Question

You work for a company that always pushes the envelope with respect to reporting revenues and expenses. You often disagree with the company because its approach to reporting these amounts cannot be justified from a GAAP perspective. You are upset and are considering whether this is a company that has a culture you want to be part of. Which of the following best characterizes the ethical issues of concern?

A. Rights Theory

B. Ethical Dissonance

C. Moral blindness

D. Materiality

Answer 1

A. Rights theory - it means that there are things we cannot do against individuals, because they are holders of moral rights. Having a right means having a special protection

B. Ethical dissonance - it is the tension that arises from the inconsistency between people’s actual dishonest behavior and their desire to maintain a positive moral self-image

C. Moral blindness - it represents the state of unawareness or insensibility to moral issues pertaining both to oneself and to one's relations to others.

D. Materiality - it indicates the importance of a particular event and its impact on the organization as a whole

.As i want to maintain the GAAP other than the managements decision to follow receipts and payments in preparing the financial statements. the issue can be treated as ethical dissonance.