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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 is NOT one of the fundamental principles of CIMA's Code of Ethics?

A) Objectivity
B) Professional behavior
C) Integrity
D) Courtesy

2. In the UK, the body responsible for reviewing the regulatory activities of the professional accountancy bodies is:

A) The Financial Reporting Council
B) The Professional Oversight Board for Accountancy
C) The Financial Review Board
D) The International Federation of Accountants

3. Company A has recently been having problems matching the views of its employees to its own. Which of the following might help their situation? Select ALL that apply.

A) Ensure management level employees follow the actions and behaviour of those higher up.
B) Teach employees the company's values and train them to follow them.
C) Change its views so that it matches each of their employees.
D) Remove any barriers that might prevent an employee from adhering to the company's ethics.
E) Implement a weekly hour-long session that recaps the company's values. All employees must attend.
F) Only hire those who share the company's views.
G) Threaten legal action against those who regularly ignore the company's ethics.
H) Discipline those who regularly ignore the company's rules and values.
I) Reward those who consistently recognise and and adhere to the company's values.

4. S is management accountant for a small retail company. S has discovered a possible fraud in the purchasing department. The manager of that department has told S that he is aware of the fraud and will 'deal with it'.
Which ONE of the following would it be appropriate for S to do?

A) Ask for advice from the company's external auditors
B) Nothing
C) Bring the matter to the attention of the police
D) Ask for confirmation in writing from the manager
E) Advise a director of the company

5. Which of the following is correct in relation to the control of boards of directors of public limited companies?
i. The boards of public limited companies are under the legal control of the shareholders ii. The majority of the shares in public limited companies are held by institutional investors who are more concerned with capital growth and income than the internal management of public limited companies iii. As a general rule, private investors in the shares of public limited companies have insufficient power to influence the activities of the board.

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

Solutions: