Which of the Following Is True of Integrity-Based Ethics Programs

question 58

Multiple Choice

Which of the following is true of integrity-based ethics programs in business organizations?

• A) They are designed by corporate counsel to prevent, detect, and punish legal violations.
• B) They increase surveillance and controls on people and impose punishments on wrongdoers.
• C) Companies and people govern themselves through a set of guiding principles that they embrace.
• D) Program elements include establishing and communicating legal standards and procedures.
• E) They include assigning high-level managers to oversee compliance.

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Definitions:

Deferred Income Taxes

Taxes applicable to income that is booked but not yet paid, reflecting the timing difference in recognizing income for accounting and tax purposes.

Financial Reporting Choices

The selection among alternative accounting methods and estimates by companies in presenting their financial information.

Interfirm Comparisons

The analysis and comparison of financial and operational data from different companies within the same industry, used to benchmark performance and practices.

Deferred Tax Assets

Financial items on a company's balance sheet that can be used to reduce future tax liability.