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CIMA BA4 Exam Syllabus Topics:

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

1. In the UK, which organization that governs the accounting profession has taken the lead with respect to ethical considerations?

A) The Financial Standards Accounting Board
B) The Financial Reporting Council
C) The International Accounting Standards Board
D) The Accounting and Auditing Policy Committee

2. Faegan and Fabian run their own business selling expensive shoes. The business is a general partnership, so both Faegan and Fabian have equal authority within it.
Recently, the business has grown very large. Because of this, one of their friends suggests getting that they have their accounts audited.
Are they legally obliged to do this?

A) Yes - General partnerships are legally required to have their accounts audited once they reach a certain size.
B) Yes - All businesses are required to have their accounts audited.
C) No - General partnerships do not have to publish or audit their accounts.
D) No - No business is required to have their accounts audited.

3. DGH is a company operating in the oil and gas industry, which is heavily regulated. The government is considering introducing a new law which is likely to result in a dramatic cut in profitability for DGH.
Which of the following is NOT a legitimate method for DGH to influence government policy in its own best interests?

A) Inviting government ministers to attend the next board meeting of DGH to allow the directors to put forward their view
B) Attempting to influence public opinion in order to put pressure on the legislative agenda
C) Offering financial incentives to public officials to use their influence on DGH's behalf
D) Employing lobbyists to put DGH's case to ministers or civil servants.

4. In the UK, the body responsible for establishing standards and related guidance for accountants providing assurance services is:

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

5. Jo is employed as management accountant of a large retailer. Jo has been asked to call a supplier and promise settlement of their account 'next week'. Jo is aware that her employer will definitely not have sufficient funds available to make the payment. If Jo accepts the request, which of the following
'fundamental principles' of CIMA's Code of Ethics will be compromised?

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

Solutions: