IAS_C3Q1

Ethics carry the authority of a governing body.

• True

• False

Answer explanation

LAWS carry the authority of a governing body and ethics do not.

Which of the following pertains to the rules that mandate or prohibit certain behavior?

• laws

• ethics

• cultural mores

• policies

An ethical act can be based on many factors if acceptable or not.

• True

• False

There is no difference between ethics and laws.

• True

• False

What is defined as the legal obligation of an entity which includes the legal obligation to make restitution?

• laws

• liability

• due care

• due diligence

Answer explanation

The employer can be held financially liable for the actions of their employees who perform illegal or unethical acts, with or without their authorization, which cause harm.

Liability is not a legal obligation of organization.

• True

• False

Which of the following is defined as the guidelines that describe acceptable and unacceptable employee behaviors?

• law

• policies

• ethics

• cultural mores

An organization makes sure that every employee knows what is acceptable or unacceptable behavior and knows the consequences of illegal or unethical actions. What standard is met by an organization?

• due care

• due diligence

• liability

• policy implementation

The organization must be able to demonstrate that the employee understood the requirements and content of the policy. What criterion of policy implementation is being described?

• dissemination

• review

• comprehension

• compliance

The organization must be able to demonstrate that the relevant policy has been made readily available for review by the employee. What criterion of policy implementation is being discussed?

• dissemination

• review

• comprehension

• compliance