CIMA BA4

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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. According to CIMA, which TWO of the following is true of ethical behavior in relation to professional accountants?
Ethical behavior is:

A) A fundamental part of professional behavior
B) As important as technical competence
C) Legally required of accountants
D) Optional for CIMA members

2. Intimidation threats to compliance with fundamental principles are described as threats that may occur

A) as a result of the financial or other interests of a professional accountant or of an immediate or close family member
B) when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment
C) when a professional accountant may be deterred from acting objectively by threats, actual or perceived
D) when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised

3. Allowing bias, conflict of interest or undue influence of others to override professional or business judgments violates the CIMA Code of Ethics fundamental principle of:

A) Objectivity
B) Truthfulness
C) Objection
D) Transparency

4. Wye Ltd is considering appointing Anne as a director of the company. Which of the following is incorrect?
(i) If Anne is an un-discharged bankrupt, she cannot act as a company director.
(ii) If Anne is the subject of a disqualification order, she cannot act as a company director.
(iii) If Anne has already been appointed a director of another company, she cannot also act as a director of Wye Ltd.

A) (ii) only
B) (ii) and (iii) only
C) (iii) only
D) (i) only

5. You work for a publishing company. Which of the following corporate issues is NOT related to ethics or social responsibility?

A) Whether your company's magazines are more popular than competitor titles
B) Whether the paper used for the magazines comes from sustainably managed forests or can be recycled
C) Whether sales targets are so high that they implicitly encourage salespeople to ignore corporate values and principles
D) Whether advertisers are given more favorable editorial coverage than other companies that do not advertise in your company's magazines

Solutions: