Chapter 2 Flashcards
The ethical domain for accountants and auditors usually involves what four key constituent groups?
(1) client organization that hires and pays for acct services
(2) acct firm that employs the practitioner
(3) account profession, including regulatory bodies such as SEC AND PCAOB
(4) general public, who rely on attestations & representations of practitioner and firm
6 stages of moral development are divided into three levels. What are the three levels?
1) pre conventional
2) conventional
3) post conventional
What is preconventional?
Individual is self centered
Rules are seen as something external imposed on the self
What are the two stages in preconventional?
1 — obedience to rules; avoidance of punishment
2 — satisfying ones own needs
What is conventional?
Individual is aware of interests of others and ones duty to society.
Personal responsibility becomes important consideration in decision making
What are the two stages in conventional?
3 — fairness to others
—> motivated by rules but also motivated to do what is percieved interests of others
4 — law and order
—> emphasizes morality of law and duty to social order
What is post conventional?
Principles morality underlines decision making at this level.
Individual recognizes that there must be a society wide basis for cooperation
There is an orientation to principles that shape whatever laws and role systems a society may have
What are the stages in post conventional?
5 — social contract
—> individual is motivated by upholding basic rights, values, and legal contracts of society.
6 — universal ethical principles
—> right and wrong are determined by universal ethical principles that everyone should follow
Kohl berg maintains that his stage is universal; it is same in all cultures?
T or F
T
Do kohlbergs stages refer to underline mode of reasoning or underline specific beliefs?
Underline modes of reasoning
Empirical studies have indicated what?
- ethical reasoning may be an important factor to decide professional judgement
- unethical and dysfunctional audit behavior may be related to auditors level of ethical reasoning
- ethical reasoning may be an import cognitive characteristic that may affect individual judgement
What single modt influential factor determines a persons moral behavior?
Moral judgement
What are some complaints about kohlbergs work?
- draws to heavily from Rawls theory of justice
- makes deontological ethics superior to other ethics perspectives
- applies more to societal issues than individual ethical perspectives
Rest built on kohlberg work by developing a four component model of ethical decision making process
T OR F
T
What are the four components of rest model?
1) moral sensitivity
2) moral judgement
3) moral motivation
4) moral character
Moral sensitivity
Determine if situation is moral
Moral judgement
Making these judgements is crucial for moral behavior
Moral motivation
Reflects an individuals willingness to place ethical values (honesty, integrity, trustworthiness, caring & empathy) ahead of nonethical values that relate to self interest
What also plays apart in moral motivation?
Emotions
Moral character
Ethical intentions align with their ethical actions
The four components of rests model are processes that must take place for what to occur?
Moral behavior
Jones model consists of 6 dimensions
1) magnitude of consequences
- degree to which individual may be harmed or benefited by decision makers action
2) temporal immediacy
- refers to length of time between action and its consequences
3) social consensus
- degree of agreement among social group that an action is good or bad
4) proximity
- refers to nearness of decision maker to the individuals potentially affected by consequences
5) probability of effect
- refers to the likelihood that the predicted consequences and expected level of harm/benefit will occur
5) concentration of effect
- refers to the relationship between the number of people affected and the magnitude of harm
What prompted jones to create the intensity model?
Lack of research on characteristics of moral issue
