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

1. Which of the following is NOT a personal quality expected of professional accountants by CIMA?

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

2. The body responsible for reviewing the operations of the accounting profession worldwide is:

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

3. Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

A) The appointment of independent non-executive directors to the Board
B) The establishment of an audit committee
C) The appointment of a senior external auditor to the Board
D) The separation of the roles of Chairman and Chief Executive

4. B a new employee, has noticed that other members of staff in the company falsely complete their timesheets at the end of the month, making it look like they have worked more hours than they actually have.
When asked about it, C. another employee stated that management were aware of the practice, but they were happy to tolerate this as long as it was a limited amount extra, and it was up to B to decide whether or not to do the same B decided to add a few extra unworked hours to her own timesheet This is an example of what type of influence on ethical behavior?

A) Peer pressure
B) Corporate governance
C) Corporate culture
D) Professional codes of ethics

5. Andrea is completing an audit on the finance department for a medium-sized company. In her report she makes note of the fact that her audit was severely limited due to her being unable to access many of the department's documents.
Because of this and a number of other things she's discovered whilst conducting her audit, she thinks fraudulent activity might have been taking place within the department.
However, Andrea knows that it is not the business of auditors to seek out fraud.
What should she do?

A) There's nothing she can do - it's not the business of auditors to deal with matters concerning fraud.
B) Report her suspicions to the company's senior management.
C) Detail her suspicions in the 'emphasis of matter' section in the audit report.
D) Issue a disclaimer of opinion.

Solutions: