Multiple Choice Questions
1. Corporate governance practices are aimed at promoting:
a. Accurate financial statements
b. Corporate fairness
c. Management accountability
d. All of the above
2. Which of the following is not one of the internal forces that shape corporate governance systems?
a. Compensation and incentive systems
b. Corporate boards of directors
c. Corporate code of conduct
d. Generally accepted accounting principles
3. What organization developed the internal control framework that is most widely used by organizations in the United States?
a. The American Institute of Certified Public Accountants
b. The Securities and Exchange Commission
c. The United States Congress
d. The Committee of Sponsoring Organizations
4. Management’s attitudes and general philosophy about internal control are captured in the:
a. Control activities
b. Control environment
c. Monitoring of activities
d. Information and communications processes
5. Which of the following control activities would most likely reduce the incidence of reporting false hours on employee time cards?
a. Securing assets through electronic means
b. Employee background checks
c. Supervisor review of time cards
d. None of the above
6. Which of the following is not likely to be an element of an ethics program?
a. Ethics call centers
b. Employee hotlines
c. Written codes of ethics
d. All of the above are possible elements of an ethics program.
7. Deceptive or unethical business practices can have a variety of negative consequences for a business, including all but which of the following?
a. Reduction in employee productivity
b. Decrease in the likelihood of unethical behavior by other employees
c. Creation of resentment among employees
d. Harm to a company’s reputation in the community