Business Ethics Test Questions with Answers Essay

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Chap 10: 16. Which of the following is true of gatekeepers? a. They are not bound to ethical duties. b. Investors and boards are examples of gatekeepers. c. They serve as intermediaries between market participants. d. They are not responsible for ensuring conformance to fairness in the marketplace. Answer: c 17. Which of the following rely on gatekeepers for fair and effective functioning of economic markets? a. Bankers b. Auditors c. Accountants d. Financial analysts Answer: a 18. The function of auditors as gatekeepers is to: a. verify a company’s financial statements so that investors’ decisions are free from fraud and deception. b. evaluate a company’s financial prospects or creditworthiness, so that banks and…show more content…
a. Section 407 b. Section 301 c. Section 406 d. Section 307 Answer: d 32. Section 404 of the Sarbanes-Oxley Act addresses the: a. rules of professional responsibility for attorneys. b. codes of ethics for senior financial officers. c. management assessment of internal controls. d. services outside the scope of auditors. Answer: c 33. Section 406 of the Sarbanes-Oxley Act addresses the: a. rules of professional responsibility for attorneys. b. codes of ethics for senior financial officers. c. management assessment of internal controls. d. services outside the scope of auditors. Answer: b 34. _____ of the Sarbanes-Oxley Act addresses the disclosure of audit committee financial expert. a. Section 404 b. Section 301 c. Section 407 d. Section 307 Answer: c 35. Which of the following is a criticism of the Sarbanes-Oxley Act? a. It excludes requirements for certification of documents by officers. b. It imposes extraordinary financial costs on the firms. c. It does not require lawyers to report concerns of wrongdoing if not addressed. d. It does not require codes of ethics for senior financial officers. Answer: b 36. Identify the external mechanism that seeks to ensure ethical corporate governance. a. The Sarbanes-Oxley Act b. The COSO framework c. The European Union 7th Directive d. The European Union 4th Directive Answer: a 37. Which of the following is an

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