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CIMA BA4 Exam Syllabus Topics:

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

1. Which of the following are benefits a company might gain from having NEDs on their audit committee?
Select ALL that apply.

A) Independence in dealing with auditors.
B) Independent review of risk and reporting.
C) New directors are fairly appointed.
D) They are fairly paid (not too high or low).

2. W, a junior accountant, passed all his qualifications with distinction, and has received high praise for the quality of the work he has done. However, he always delivers his work late, believing it is more important to be thorough than to be on time. Which personal quality is W lacking?

A) Timeliness
B) Courtesy
C) Reliability
D) Respect

3. Section 172 of the Companies Act 2006 provides that directors must promote the success of the company for the benefit of its members. Which of the following factors must be taken account of in complying with this duty?
(i) The interests of the company's employees
(ii) The likely consequence of any decision in the long term
(iii) The impact of the company's operations on the community and the environment

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

4. Regarding auditor remuneration, a self-interest threat to professional competence and due care is created if

A) a professional accountant in public practice solicits new work through advertising or other forms of marketing
B) a gift from a client is accepted
C) the competitive fee quoted did not recognize the complexity of the assignment
D) the auditor accepts a referral of a new client from an existing client

5. You are happy to be held accountable for your actions and hope that others can trust and depend upon you. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?

A) Timeliness
B) Responsibility
C) Reliability
D) Respect

Solutions: