Accounting Ethics Chapter 2: Cheesehead Questions:

1. ackground: What is the purpose oI: Chapter 1, Chapter 6, and Chapter 2? DeIine
accounting ethics?
a. Chapter 1: explain why accounting proIession has an inherently ethical character
b. Chapter 6: illustrate that rules are not enough, but must be interpreted with good
proIessional judgment
c. Chapter 2: sets down basic ideas and Ioundations Ior an approach to accounting ethics
2. %pes of stud: What is a speculative study? What is a practical study? What is the goal oI
ethics? Is it practical? What two items Iollow Irom this goal?
a. imed at knowing something Ior its own sake
b. Study aimed at acquiring knowledge in order to use that knowledge to guide action
1. Find what you need to learn; learn it; use what was learned to guide action
c. Become good: live the liIe we should (acc ethics: goal is to become ethical
practitioners)
d. Yes
e. Presupposing reader/student shares this goal; rejecting 'methods approach
(speculatively presents and criticizes ethical theories without committing to any oI
themattempting neutrality)
3. ethods of ethics approach: DeIine methods oI ethics`. Why reject the methods oI
ethics` approach?
a. DeIine consequentialism and utilitarianism. IdentiIy and explain Iour problems with
consequentialism.
1. Consequentialism: act is right Ior an agent to do which, among all actions
available to agent, leads to greatest balance oI good over bad- action
judged solely on consequences and not anything intrinsic
i. Can in principle justiIy bad social structures (i.e. slavery)
ii. Fails to respect diIIerence between an intended and a merely
Ioreseen consequence oI our actions
iii. Fails to take into account the Iact that the justiIication Ior many
actions is backward-looking rather than Iorward looking
iv. Cannot give an adequate account oI interior acts
2. Utilitarianism: Iorm oI consequentialism which comes Irom holding that
only pleasure is a good, and only pain is bad
b. DeIine deontology. IdentiIy and explain Iour problems with deontology.
1. ction is right Ior an agent to do which conIorms to a maxim which could
be consistently willed to serve as a general law Ior everyone.
i. 'the maxim is indeterminate
ii. It tells us only how to treat strangers, not Iriends
iii. Its complete Iormality lacks necessary substance (rules)
c. DeIine intuitionism. IdentiIy and explain Iour problems with intuitionism.
1. ction is right Ior an agent to do which best conIorms to the basic axioms
oI practical reasonability, which we can rationally see (or 'intuit) to be
true
i. Ethical 'intuition is vague
ii. No obligation comes Irom simply knowing something
iii. It does not allow Ior rigor
iv. It does not explain cultural variations in ethics
v. It seems to beg the question
d. What does the methods oI ethics` approach lead to?
1. Skepticism and relativism about ethics

4. !rotreptic: DeIine protreptic`. What is its goal? What is the true good`?
a. Exhortation to turn away Irom things that do not deserve our attention and to turn
toward things that do
b. Help the listener become clear about what is truly good and inspired to pursue it.
c. True good is something that careIul reasoning illustrates is actually good and not just
seems good. ct well; do the right thing; do what is admirable and excellent, always
living up to high standards, carrying out our duties and living a liIe oI service to
others
5. 'irtue ethics: DeIine and describe virtue. IdentiIy and explain the steps in a virtue ethics
analysis. What is the distinctive task oI a human being?
a. that which enable a distinctive task to be carried out better or worse
1. man manliness
2. relative to distinctive tasks
3. something long lasting and inherent
4. a thing is called 'good by having its virtues
5. a thing is most itselI when it acts in accordance with its distinctive virtues
b. same as hosmer
c. love is the distinctive task oI a human being
6. %ruth and virtue: DeIine truth. DeIine intellectual virtues and character virtues. How are
they related to truth?
a. Correspondence between mind and world
b. Intellectual virtues: characteristics enabling us to acquire speculative truth (the
mind`s conIorming itselI to the way the world is)
c. Character virtues: characteristics enabling us actually to achieve practical truth
(mind`s conIorming oI the way oI the world to itselI)
7. Cardinal virtues: What are the cardinal virtues? Why are they important? Which are selI-
regarding`? Which are others regarding`? How do the cardinal virtues help us overcome the
irrational motives oI: 1) Iear and 2) pleasure?
a. Wisdom, justice, courage, selI-mastery
b. Crucial Ior good character and most basic denominator oI all other good traits oI
character
c. Courage and selI-mastery
d. Wisdom and justice
e. Helps overcome:
1. Fear: courage-acheive successIully what we think we should do no matter
what
2. Pleasure: selI-mastery-achieve successIully what we think we should do
even iI we must give up some pleasure
8. Accountant virtues: What is the distinctive work oI an accountant? What are the
accountant`s cardinal virtues? How are they analogues to the cardinal virtues?
a. To seek and declare the truth about the Iinancial condition oI a company in order to
provide Ior the conditions oI trust in a modern, market economy
b. Speculative wisdom: Technical knowledge, competence, skill
c. Practical wisdom: dedication to some things as more important and as taking priority
over others (commitment to truth over likelihood, principles over rules, etc.)
d. Justice: practical and lively appreciation oI the main duties that pertain to him in
virtue oI his being an accountant (public interest, discretion, conIidentiality)
e. Courage: due diligence (doing as much work as needed to determine something)
I. SelI-mastery: resistance to greed and other Iorms oI selI interest