Question 1 Which among the following elements of COSO
comprises of policies and procedures that support the control environment?

Select one:

a. Ongoing monitoring

b. Information and
communications

c. Control
activities

d. Risk assessment

Question 2 Before the
passage of governmental regulations regarding environmental issues, according
to _____, only those individuals with proof of harm through pollution could
raise legal challenges pollution.

Select one:

a. contractual law

b. market
requirements

c. common consensus

d. tort law

Question 3 Advertising is a $200 billion a year industry in
the United States alone. What does this prove?

Select one:

a. Business can
influence the establishment of the law.

b. Environmental
protection extends only as far as the law extends.

c. Business can influence
consumer choice.

d. Economic growth is
environmentally and ethically benign.

Question 4 When professionals have a professional and
ethical obligation to their clients, duties that override their own personal
interests, they are said to have

Select one:

a. responsibilities.

b. distribution
rights.

c. creditor claims.

d. fiduciary
duties.

Question 5 One aspect of the circular flow model does not
differentiate natural resources from other factors of production. Thus it

Select one:

a. does not respect
that resources can be sold.

b. means that
resources are not infinite.

c. does not explain
the origin of resources.

d. thus it means that
households cannot own these resources.

Question 6 According to William Baxter, society, through the
activities of individuals, will be willing to pay for an ‘optimal level of
pollution’ as long as the _____ outweigh the final costs.

Select one:

a. initial expenses

b. ethical benefits

c. communal spirit

d. perceived
benefits

Question 7 All of these functions can assume the roles of a
gatekeeper except

Select one:

a. engineers.

b. auditors.

c. accountants.

d. financial
analysts.

Question 8 Under the aegis of the Sarbanes-Oxley Act and
COSO control environment, the internal audit and compliance professionals are
also becoming more accountable for financial stewardship, resulting in all of
the following except

Select one:

a. greater
accountability.

b. greater
transparency.

c. greater emphasis
on effort to prevent misconduct.

d. greater
loyalty.

Question 9 The three goals of sustainable development that
include economic, environmental, and ethical sustainability are referred to as
the

Select one:

a. Tripartite Goals.

b. three pillars of
sustainability.

c. Three Pronged
charter.

d. shoulder of
sustainability.

Question 10 The events that led to Enron’s demise brought
into focus the necessity of the _____ and the responsibility of auditors as
never before.

Select one:

a. confluence of
principles

b. integration of
auditors

c. independence of
auditors

d. autonomous
governance

Question 11 Which among the following duties of board
members underlines the fact that directors of a company need not actually be an
expert or run the company?

Select one:

a. Duty of good faith

b. Duty of care

c. Duty of loyalty

d. Duty of guidance

Question 12 The approach that animals with a central nervous
system feel pain is akin to the _____ ethical framework which asserts an
ethical responsibility to minimize pain.

Select one:

a. social justice

b. virtue ethics

c. utilitarian

d. deontological

Question 13 Many analysts
contend that the rampant corruption in financial institutions is evidence of a
complete failure

Select one:

a. of the objective
of the company.

b. of the social
ethical structure.

c. of the venture
capitalist industry.

d. in the corporate
governance structure.

Question 14 The importance of the need for firms to be ahead
of the sustainability curve is underlined by which among the following reasons
for businesses to pursue the strategy of sustainability?

Select one:

a. Sustainability is
a prudent long-term strategy.

b. Significant cost
savings can be achieved through sustainable practices.

c. Competitive
advantages exist for sustainable businesses.

d. Sustainability is
a good risk management strategy.

Question 15 _____ argued against the exploitation of natural
resources as if they could provide an inexhaustible supply of material.

Select one:

a.
Conservationists

b. Naturalists

c. Animal rights
activists

d. Biologists

Question 16 A survey has reported that more than half the
firms believe that _____ gives investors and other stakeholders more confidence
in their financial reports.

Select one:

a. Section 407

b. Section 307

c. Section 404

d. Section 201

Question 17 The second line in The Natural Step’s funnel
represents

Select one:

a. resources
necessary to sustain life.

b. resources that are
biodegradable.

c. the biosphere
limits.

d. aggregate
worldwide demand.

Question 18 _____ explains the nature of economic
transactions in the terms of a flow of resources from businesses to households
and back again.

Select one:

a. Circular flow
model

b. The three pillars
of sustainability

c. Triple Bottom Line

d. Bilinear model

Question 19 A conflict of interest exists where a person
holds a position of _____ that requires that she or he exercise judgment on
behalf of others, but where her or his personal interests and/or obligations
conflict with those of others.

Select one:

a. responsibility

b. expertise

c. trust

d. knowledge

Question 20 Changes within the accounting industry arising
from the consolidation of major firms and _____ of services such as consulting
within single firms have virtually institutionalized conflicts of interest.

Select one:

a. cross-selling

b. outsourcing

c. higher taxation

d. purchasing

Question 21 According to Daly, an economic system needs to
be able to _____ not only the by-products of the production process, but also
the products themselves.

Select one:

a. recycle or
re-use

b. design

c. monitor

d. patent

Question 22 In order for the board to assess their success
according to FSG standards, all of the following are necessities except

Select one:

a. the evaluation of
their training and development materials.

b. the evaluation of
their personal annual financial statements.

c. the evaluation of
their individual evaluation processes.

d. the evaluation of
their governance structure and position descriptions.

Question 23 The fact that future generations, neighbors,
etc. will bear the brunt of environmental pollution, it goes to show that
market failure can occur through means of

Select one:

a. lack of ability to
create a price for important social goods.

b. the existence of
externalities.

c. the distinction
between individual decisions and group decisions.

d. the distinction
between individual decisions and group consequences.

Question 24 Management assessment of internal controls is an
aspect of which among the following provisions of the Sarbanes-Oxley Act that
has significantly impacted corporate governance and boards?

Select one:

a. Section 404

b. Section 201

c. Section 407

d. Section 307

Question 25 From the perspective of _____, structural
changes including the provision of legal protection or sanction to shield
professionals from conflicts of interest would be an appropriate response to
the accounting scandals of recent years.

Select one:

a. philosophical
ethics

b. law

c. public opinion

d. social ethics

Question 26 Which among the following are responsible for
ensuring that decisions and transactions conform to the law?

Select one:

a. Accountants

b. Attorneys

c. Auditors

d. Analysts

Question 27 The _____ sees environmental responsibilities as
a fundamental part of basic business practice.

Select one:

a. adherence paradigm

b. Triple Bottom Line

c. ethical treatment
of employees

d. sustainability
paradigm

Question 28 The _____ relies on the judgment of accounting
professionals in carrying out their duties rather than stipulating specific
rules.

Select one:

a. American Accounting
Association

b. AICPA Code of
Professional Conduct

c. Securities and
Exchange Commission

d. Institute of
Internal Auditors

Question 29 Which among the following entails an incentive
to redesign products so that they can be recycled efficiently and easily?

Select one:

a. Biomimicry

b. Service-based
economy

c. Cradle-to-cradle
responsibility

d. Ecoefficiency

Question 30 All of the following are characteristics of a
market approach to environmental responsibilities except

Select one:

a. that a responsible
business manager simply seeks profits.

b. that the market
allocates resources efficiently.

c. the businesses
develop a compliance structure ensuring conformation to certain
regulations.

d. the business fills
its role within a market system, thus serving greater overall good.

Question 31 Knowing what the future might be; creative
businesses _____ the present and determine what must be done to arrive to that
future.

Select one:

a. backcast to

b. chart

c. change

d. design

Question 32 The COSO
standards for internal controls shifted audit, compliance, and governance from
a _____ to concern for the organizational environment.

Select one:

a. numbers
orientation

b. critical
requirement orientation

c. stakeholder
perspective

d. risk assessment
mode

Question 33 According to Daly, the emphasis of economic
growth as the goal of economic policy will inevitably fail unless it is
realized that

Select one:

a. the population of
the world needs to be controlled.

b. the economy is a
subsystem within earth’s biosphere.

c. resources are
infinite.

d. efficient markets
need to be stabilized to ensure higher economic returns.

Question 34 According to the Federal Sentencing Guidelines,
the board must, in particular, work with executives to analyze the

Select one:

a. mission statement
of the organization.

b. objectives of the
organizations.

c. long-term
sustainable profits of the organization.

d. incentives for
ethical behavior.

Question 35 Which among the following evaluate a company’s
financial prospects or creditworthiness, so that banks and investors can make
informed decisions?

Select one:

a. Accountants

b. Attorneys

c. Auditors

d. Analysts

Question 36 Estimates suggesting that with present
technologies, businesses can readily achieve at least a fourfold increase in
efficiency, and perhaps as much as a tenfold increase. This can be achieved
through

Select one:

a. biomimicry.

b.
ecoefficiency.

c. cradle-to-cradle
responsibility.

d. service-based
economy.

Question 37 The Triple Bottom Line approach involves the
measurement of business success of sustainable businesses and sustainable
economic development in terms of all of the following factors except

Select one:

a. economic
sustainability.

b. legal
sustainability.

c. ethical
sustainability.

d. environmental
sustainability.

Question 38 The interrelatedness of natural systems has
helped mankind understand the wide range of dependence on ecosystems. This fact
has increased the importance of

Select one:

a. understanding the
moral nature of animals.

b. governmental
regulations for ethical behavior.

c. self-interested
reasoning.

d. innovation.

Question 39 Which among the following is responsible for
influencing the control consciousness of its people under the elements of COSO?

Select one:

a. Ongoing monitoring

b. Information and
communications

c. Risk assessment

d. Control
environment

Question 40 The Enterprise Risk Management – Integrated
Framework, expands on the prior framework in that it intentionally includes
“_____” as one of its interrelated components.

Select one:

a. development and
validation

b. risk assessment
and reduction

c. research and
analysis

d. objective
setting