SUAL, GWENDOLYN S.

ETHICS
BSA 2-B MA’AM. ESTARLITA DELA CRUZ

POINTERS TO REVIEW
PART 1 – MULTIPLE QUESTIONS
1. It defines what is good for the individual and for society and establishes the nature of
duties that people owe themselves and one another.
a. Morals
b. Ethics
c. Principles
d. Values
ANSWER: B
2. It includes a deep-rooted system of beliefs that guide a person’s decisions. They form a
personal, individual foundation that influences a particular person’s behavior.
a. Values
b. Belief
c. Virtue
d. Morals
ANSWER: A
3. Which is not true: Rules benefit social beings in various manners:
a. Rules protect social beings by regulating behavior.
b. Rules do not help to guarantee each person certain rights and freedom.
c. Rules produce a sense of justice among social beings.
d. Rules are essential for a healthy economic system.
ANSWER: B
4. It encompasses parts of ethics and morals as it is an assessment of a person’s morals as
defined by a group of people.
a. Virtue
b. Values
c. Principles
d. Morals
ANSWER: A
5. These are the convictions that we generally hold to be true, usually without actual proof
or evidence and are basically assumptions that we make about ourselves, others in the
world and how we expect things to be.
a. Values
b. Principles
c. Morals
d. Beliefs
ANSWER: D
6. It is commonly known as the “language” of business.
a. Accounting
b. Accountant
c. English
d. Chinese
ANSWER: A
7. This refers mainly to man’s needs which come from his bodily space-time limitations.
This norm has to do with survival, health, and well being.
a. Technical Norm
b. Outrageous Norm
c. Societal Norm
d. Healthy Norm
ANSWER: A
8. This has something to do with the need for group cohesion and for straightening the
bonds that keep the community together
a. Healthy Norm
b. Outrageous Norm
c. Societal Norm
d. Technical Norm
ANSWER: C
9. The following are Considerations of Fraud in a Financial Statement Audit, Except:
a. INCENTIVES FOR FRAUD
b. TURNING A BLIND EYE TO FRAUD
c. DISCOVERING FRAUD OPPORTUNITIES
d. FAIRNESS REQUIRED BY AUDIT STANDARDS
ANSWER: D
10. This refers to typical perceptual forms regarding color, shape, space, movement, sound,
feeling and emotion, touch and texture, taste, scent and odor.
a. Societal Norm
b. Aesthetic Norm
c. Technical Norm
d. Moral Norm
ANSWER: B
11. It is also known as corporate or business ethics. It is a form of applied ethics or
Professional ethics that examines ethical principles and morals or ethical problems that
arise in an organizational environment.
a. Organic Ethics
b. Organizational Ethics
c. Unethical Behavior
d. Ethical Behavior
ANSWER: B
12. This principle states that the organization should help others only under the condition
when others deserve help.
a. Publicity
b. Cooperation with others
c. Equivalent Price
d. Universal Value
ANSWER: B
13. It is unethical to do a major evil to another or to oneself, whether this evil is a means or
an end.
a. Publicity
b. Equivalent Price
c. Not to do any evil
d. Universal Value
ANSWER: C
14. It is an Ethical Standard when making ethical decisions, we should try to benefit the
community as a whole.
a. Common Good Approach
b. Rights Approach
c. Virtue Approach
d. Utilitarian Approach
ANSWER: A
15. It includes fairness, honesty and integrity, and other such undisputable standards. In
contrast to the universal and constant nature of principles, values are internal, subjective,
and flexible beliefs that people hold regarding ideas or issues.
a. Morals
b. Beliefs
c. Principles
d. Values
ANSWER: C
16. He does not have the ability to distinguish between what is a morally good act and an evil
one, one who can’t identify and accept moral norms, resulting in the sort of
“abnormality” or deviancy.
a. Ammoral/Amoral Person
b. Immoral Person
c. Immortal Person
d. Mortal Person
ANSWER: A
17. It is an intentional act by one or more individuals among management, those charged
with governance, employees, or third parties, involving the use of deception that results
in a misstatement of a financial statement that is the subject of an audit.
a. Fraud
b. Kindness
c. Generous
d. Hospitality
ANSWER: A
18. If he does not act or behave in conformity with practiced moral principles or norms
a. Amoral Person
b. Immortal Person
c. Mortal Person
d. Immoral Person
ANSWER: D
19. It is the behaviour that conforms to the ethics which are individual beliefs and social
standards about what is right and good.
a. Ethical Behavior
b. Unethical Behavior
c. Organic Ethics
d. Organizational Ethics
ANSWER: A
20. It Refers to some ideal vision of an ideal stage or perfection of his/her being, which state
as the ultimate goal and norm
a. Technical Norm
b. Ethical or Moral Norm
c. Healthy Norm
d. Outrageous Norm
ANSWER: B
PART 2: IDENTIFICATION / FILL IN THE BLANK.
1. It is the system of moral and ethical beliefs that directs the behaviors and operations of an
organization and its personnel.
ANSWER: BUSINESS ETHICS
2. Stakeholder relations is the practice of forging mutually with third-party groups
and individuals that have a “stake” in common interest. 
ANSWER: Beneficial
3. It Is an organization’s obligation to maximize its positive impact on stakeholders and
minimize its negative impact.
ANSWER: Social Responsibility
4. Voluntary contributions of business to the society like involvement in community
development or other social programmes.
ANSWER: Philanthropic Responsibility
5. Business ethics a company’s values and goals, as well as how it runs its day-to-day
operations.
ANSWER: Inform
6. The extent to which businesses meet their economic, legal, ethical and
philanthropic responsibilities.
ANSWER: Strategically
7. It refers to how closely workplace decisions are aligned with a firm’s stated strategic
direction
ANSWER: Accountability
8. It is also known as Corporate or Business Ethics.
ANSWER: Organizational Ethics
9. It is a form of applied ethics or professional ethics that examines ethical and
morals or ethical problems that arise in an organizational environment.
ANSWER: Principles
10. It refers to the principles, rules and standards of moral behaviour that are accepted by
society as right or wrong.
ANSWER: Ethics
11. It is the unethical to do a major evil to another or to oneself, whether this evil is a means
or an end.
ANSWER: Not to do any evil
12. Anything that is being done or to
be done, should be brought to the knowledge of everyone.
ANSWER: Publicity
13. Refers to “a sphere of duty or obligation assigned to a person by the nature of that
person’s position, function or work.”
ANSWER: Responsibility in a Business Context
 14. It is the ethical responsibility also entails protecting the environment, both locally and
globally.
ANSWER: Committing to Environmental Responsibility
15. It is another example of how professional judgement is used and it calls into question
ethical issues related to the exercise of financial reporting options.
ANSWR: Lease Contracts
16. The application of the accumulated knowledge and experience gained through a relevant
accounting or auditing training.
ANSWER: Professional Judgement
17. The professional judgement is recommended to be applied, for example, when
determining the depreciation method and/or the useful life of assets.
ANSWER: Long-term
18. has to be combined with judgement in applying management accounting
techniques.
ANSWER: Knowledge
19. Accountants are as bias as any other group, and they need to be aware of what their
biases are. Caution is fine, but risk aversion carried to extremes is not.
ANSWER: Prone
20. Professional judgement is a skill for preparers, both auditors and accountants of
financial statements.
ANSWER: Key

PART 3: ENUMERATION
1 - 5. THE IMPORTANCE OF BUSINESS ETHICS.
• Better Decision Making
• Survival of business
• Increase Social Responsibility
• Employees feel comfortable and safe
• Increase Customer’s Loyalty
• Build and Maintain its reputation
7 - 14. SOCIAL RESPONSIBILITY TO STAKEHOLDERS
• Good Return on Investment
• Fair Pay & Working Conditions
• Regular Business & Prompt Payment
• Fair Price & Safe Product
• Community Jobs
• Employment for Local Community
• Environment
 • Less Pollution
15 - 18. FOUR LEVELS OF SOCIAL RESPONSIBILITY
• Economic
• Legal
• Ethical
• Philanthropic
19 – 22. ETHICAL STANDARDS
• Utilitarian Approach
• Rights Approach
• Common Good Approach
• Virtue Approach
23 – 30. CONSIDERATION OF FRAUD IN A FINANCIAL STATEMENT AUDIT.
• Auditor’s responsibility for detecting fraud.
• Turning a blind eye to fraud.
• Signs of auditor disregard for fraud.
• Incentives for fraud.
• Discovering fraud opportunities.
• Inquiries required by audit standards.
• Documenting control weaknesses.
• Brainstorming and planning your response to fraud risk.

PART 4 – TRUE OR FALSE

1. The person must not be able to formulate the actions to be taken to achieve the desired
outcome.
ANSWER: False
2. Rules refer to explicit or understood regulations or principles governing conduct within a
specific activity or sphere.
ANSWER: True
3. Ethical Behavior is the behaviour that conforms to the ethics which are individual beliefs
and social standards about what is right and good.
ANSWER: True
4. Common-law liability for fraud is not available to third parties in any jurisdiction. The
plaintiff must prove.
ANSWER: False
5. Discretion is the quality of behaving or speaking in such a way as to avoid causing
offense or revealing private information.
 ANSWER: True
6. A key part of ethical responsible business is finding ways to minimize any negative social
impacts along the entire supply chain of your operations.
ANSWER: True
7. Section 11 of the 1934 Securities Act Provides investors with the ability to hold issuers,
officers, underwriters, and others liable for damages caused by untrue statements of fact
or material omissions of fact within registration statements at the time they become
effective.
ANSWER: False
8. Auditors cannot be sued by clients, investors, creditors, and the government.
ANSWER: False
9. Professional Judgment is defined as the application of the accumulated knowledge and
experience gained through a relevant accounting or auditing training.
ANSWER: True
10. Fraud is an intentional act by one or more individuals among management, those charged
with governance, employees, or third parties, involving the use of deception that results
in a misstatement of a financial statement that is the subject of an audit.
ANSWER: True