Which of the Following Statements About Ethics Audits Is False

question 21

Multiple Choice

Which of the following statements about ethics audits is false?

• A)They provide an opportunity to measure conformity to the firm's desired ethical standards.
• B)Social audits and ethics audits perform basically the same function,so organizations can use them interchangeably.
• C)They provide an objective method for demonstrating a company's commitment to improving strategic planning,including its compliance with legal and ethical standards and social responsibility.
• D)They can be a component of social audits.
• E)They are systematic evaluations of an organization's ethics program and performance to determine whether it is effective.

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Definitions:

Sales Projection

An estimate of the sales revenue that a company expects to achieve in a future period.

Retained Earnings

Profits that a company has kept or retained rather than distributed to shareholders in the form of dividends.

Debt to Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by shareholder equity, indicating the proportion of equity and debt used to finance a company's assets.

Dividends

Distributions given to the shareholders of a corporation, typically sourced from the profits of the business.