Business ethics is
a. the application of ethical principles and methods of analysis to business
b. an appraisal or monitoring activity established within an entity as a service to the entity
c. any act characterized by deceit, concealment, or violation of trust
d. a process to identify, assess, manage, and control potential events or situations to provide reasonable assurance regarding the achievement of the organization’s objectives
This ethical model lays down alternative courses of actions without reference to the norm.
Tucker's 5 question model
Global Reporting Initiative (GRI)
American Accounting Association (AAA) model
Code of Business Conduct and Ethics
As internal auditor, you are asked to review the organization’s code of ethics and the environment for ethical decision making. Which procedure is inappropriate for the engagement?
A survey of employees, asking general questions regarding the ethical quality of the organization’s decision making.
A review of the code of ethics and a comparison with other such codes.
Administration of an anonymous “ethics test” to determine if employees know of u
A survey of the board of directors to determine their level of support for the organization’s code of ethics.
Which of the following is true concerning business codes of conduct and the compliance standards?
Compliance standards should be straightforward and reasonably capable of reducing the prospect of criminal conduct.
The compliance standards should be codified in the charters of the audit committee.
Companies with international operations should institute various compliance programs, based on selective geographic locations, that reflect appropriate local regulations.
In order to prevent future legal liability, the code should consist of legal terms and definitions.
Which of the following is detrimental to a good compliance environment?
An international company that institutes a global compliance program that reflects local conditions, laws, and regulations
. A company that creates an organizational chart, identifying personnel who are responsible for implementing compliance programs
A company whose code of conduct provides guidance to employees on relevant issues
A company that rewards employees for charging travel hours in order to take advantage of the tax benefits