ethics test 1 2023 WITH 100% CORRECT ANSWERS

Per our class discussion, what are the hallmarks of a profession? •Minimum 5 years of education/continuing education •Must be certified •Intellectual and requires judgment •Representation by various bodies (ex. AICPA, TSBCPA) •Autonomy - is fellow accountant doing right thing? According to a survey conducted by CGMA Magazine, what are the three highest-ranking attributes of a professional? •1) assumed to have specialized knowledge (and to know how to use rules) •2) held to high standards •3) act ethically and encourage others to do so -- trustworthiness, credibility increases as you maintain these Beyond their technical skills, what value do accountants add to the professional services they provide? Professional Judgment Why is it important for an accountant to maintain credibility? •Not only so that they can continue to be hired and have clients, but also so that the profession as a whole can be perceived by others positively •Keeping the public trust/interest What are the two core ethics philosophies? 1) consequentialism - the consequences of an action on the society as a whole are what determines if its ethical (if overall outcome of consequences is good then do that) 2) deontology - if you fill duties you are acting ethically (consequences don't matter) Explain Consequentialism generally and Utilitarianism specifically, including criticisms The overall consequences on the society as a whole of an action are what determines if the action is good or bad •Utilitarianism - what action creates greatest good for greatest number is the best o Step 1: identify stakeholders (who is affected by decision?) o Step 2: how each one is affected? (assign pluses and minuses) o Step 3: net good and bad and choose decision with most good Disadvantages -means are considered and sometimes you sacrifice a minority for a larger group & you don't think about degrees of good/bad (hard to measure) Advantages - formulaic approach so objective and measurable so easy to figure out what is good or bad Explain Deontology generally and the Universality and Reversibility Principles specifically •Deontology says that if you fill your duties then you are acting ethically, no matter the consequences o Categorical imperatives - Kant thinks that all people owe certain duties to others o Criticisms - hard to define human dignity and also doesn't give way to deal with opposing moral duties •Universality principle - certain duties and rights apply globally to all (specifically 6) o 1) do not cause physical harm o 2) respect others' privacy (ex. privacy of thought, communication, data, location, etc) o 3) respect freedom of association o 4) honor agreements and respect property rights o 5) promote impartial justice (equality for all) o 6) be truthful (kant really liked this one) •Reversibility Principle - if you reversed your position, how would you feel? "Golden Rule" theory What are four common pitfalls in ethical decision making? 1) focus ONLY on the short term (you need to think long term) 2) focus ONLY on legalities (you can't stop there) 3) failing to recognize ALL stakeholders 4) failing to recognize conflicts of interests (influence/bias that prevents you from doing your job/protecting interests