ETHICAL THEORY FOR FRAUD EXAMINERS
TABLE OF CONTENTS
I. INTRODUCTION
Why Study Ethics? .................................................................................................................................................... 3
Review Question ....................................................................................................................................................... 5
II. WHAT IS ETHICS?
A Definition of Ethics ............................................................................................................................................. 7
Ethical Problems ................................................................................................................................................ 7
Ethical Theory .................................................................................................................................................... 8
Ethical Behavior ................................................................................................................................................. 8
Ethics as a Field of Study......................................................................................................................................... 8
Metaethics ........................................................................................................................................................... 8
Normative Ethics ............................................................................................................................................... 9
Applied Ethics .................................................................................................................................................... 9
Review Questions ...................................................................................................................................................10
III. ETHICAL DECISIONS
Reflective Choice ....................................................................................................................................................11
Sources of Ethical Guidance ..........................................................................................................................11
An Ethical Decision Maker’s Role ................................................................................................................14
Three Ethical Approaches ..............................................................................................................................14
Review Question .....................................................................................................................................................18
IV. MORALITY, ETHICS, AND LEGALITY
The High Road ........................................................................................................................................................20
Moral Philosophy ....................................................................................................................................................20
Assess in Terms of Legality ...................................................................................................................................20
The Complete Picture ............................................................................................................................................21
Review Question .....................................................................................................................................................22
V. MEANS AND ENDS
Practical Application of the Means and Ends Approach: A Case Study ........................................................23
VI. VALUES AND PRINCIPLES
Values ......................................................................................................................................................................27
Three Principles of Ethical Decision Making .....................................................................................................27
Review Question .....................................................................................................................................................29
VII. THE IMPERATIVE PRINCIPLE
Review Question .....................................................................................................................................................33
VIII. THE UTILITARIAN PRINCIPLE
The Role of Values in Utilitarianism ....................................................................................................................36
Two Types of Utilitarianism ...........................................................................................................................37
Ethical Theory for Fraud Examiners
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ETHICAL THEORY FOR FRAUD EXAMINERS
VIII. THE UTILITARIAN PRINCIPLE (CONT.)
Problems with Utilitarianism ..........................................................................................................................38
Utilitarianism and Fraud..................................................................................................................................41
Review Question .....................................................................................................................................................46
IX. THE GENERALIZATION PRINCIPLE
Limitations of the Generalization Principle ........................................................................................................48
Practical Application of the Generalization Principle: A Case Study..............................................................49
Review Question .....................................................................................................................................................50
X. CONCLUSION
Approach for Ethical Decision Making...............................................................................................................51
The Certified Fraud Examiner Code of Professional Ethics ...........................................................................51
Practical Application of the Four-Step Approach to Ethical Decisions: A Case Study ...............................52
Step 1: Determine the Facts at Issue .............................................................................................................51
Step 2: Identify the Alternative Courses of Action .....................................................................................52
Step 3: Evaluate the Ethical Problem ...........................................................................................................52
Step 4: Select a Course of Action ..................................................................................................................57
Review Question .....................................................................................................................................................59
XI. SOLUTIONS TO REVIEW QUESTIONS
I. Introduction ....................................................................................................................................................61
II. What Is Ethics? ................................................................................................................................................62
III. Ethical Decisions ............................................................................................................................................63
IV. Morality, Ethics, and Legality ........................................................................................................................64
VI. Values and Principles......................................................................................................................................65
VII. The Imperative Principle ...............................................................................................................................66
VIII.The Utilitarian Principle ................................................................................................................................67
IX. The Generalization Principle .......................................................................................................................68
X. Conclusion.......................................................................................................................................................69
XII. FINAL EXAMINATION ..................................................................................................................... E-1
XIII. INDEX ........................................................................................................................................................ I-1
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Ethical Theory for Fraud Examiners