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Flashcards in Misc. Deck (38)
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1

What is cognitive dissonance?

- Describes the feeling of discomfort that results from holding two conflicting beliefs

2

Why do good, smart people do bad things?

- Drift
- Destabilizing pride
- Power
- See enterprise as self extension
- People don't learn from mistakes

3

Give an example of drift

- Mid 1990s executives at Bristol Myers Squibb counted on big results from Capoten (new drug for lowering blood pressure
- Studies of pregnant women began to suggest negative impact on fetuses, but it was ignored
- Confident executives drifting into making the wrong decision

4

What is a good analogy for drift?

"The Boiling Frog" (inability of people to react to significant changes that occur gradually)

5

Is religion a moral panacea?

NO
- Bernard Cardinal Law: resigned in disgrace after failing to remove pedophile from the ministry
- Ken Lay: led regular bible studies

6

Who refused to allow porn on the Adelphia cable system?

John Rigas

7

Who led regular bible studies?

Ken Lay

8

What can make moral failings hard to see?

Pride

9

What is a moral virus?

Power

10

Why is power a moral virus?

- Might makes right attitude (my needs are more important)

11

Do people learn from their mistakes very often?

NO

12

How can one mindfully mitigate drift?

Look to company guidelines

13

How can one mindfully mitigate destabilizing pride?

Share dilemmas and true motives with at least one person, a confidant

14

How can one mindfully mitigate self-deception?

Set aside time for introspection (when have I served the ultimate good for the function vs. myself)

15

How can one mindfully mitigate power?

Develop and maintain a well-informed conscious; may require the support of a faith community

16

Ethical fading is often due to what?

Motivated blindness

17

In a survey of 31 libraries in the US and UK, what books are more likely to be stolen than any other book?

Ethics books

18

Who was the banker that dodged $66,000 in train fares in London?

Jonathan Paul Burrows

19

What did he do?

- Hadn't bought a ticket from his original station
- Instead bought a pass that cost less

20

What happened to Jon Burrows when he got caught at a train station?

Fired from company ( to maintain

21

Why did Jon Burrows do it?

Drift, destabilizing pride, power (did it once, and didn't get caught)

22

What was Philip Zimbardo's famous experiment called?

Stanford Prison Experiment

23

What is the CPA's role when preparing a tax return?

Be objective

24

What is the CPA's role when providing tax planning advice?

Advisory/Advocate (but still have a responsibility to act ethically)

25

What is the CPA's role when representing the taxpayer?

Advisory/Advocate (but still have responsibility to act ethically)

26

What is the difference between tax avoidance and tax evasion?

Tax avoidance = legal
Tax evasion = illegal

27

What is the penalty for breaking the Congress Tax Code?

Fines/prison

28

What is the penalty for breaking the AICPA Code?

Expelled

29

What is the penalty for breaking state law?

Professional discipline (e.g. loss of license)

30

What is the issue with marketing aggressive tax shelters?

- Reasonable v. aggressive shelter
- What are the obligations when providing tax advice?
- What about public interest?