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

1. Which of the following statements refer to the Sarbanes-Oxley Act?

A) Rules-based approach
B) Only applies to the US
C) Adherence is not compulsory
D) Known as Sarbox or SOX
E) Established in 1992

2. How can a company help employees make the right decision when faced with a difficult situation?

A) Offer guiding values and principles to underpin decision-making
B) Give them a rule book
C) Threaten them with disciplinary procedures
D) Have a strong rules-based culture

3. Advocacy threats to compliance with fundamental principles are described as threats that may occur

A) when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised
B) as a result of the financial or other interests of a professional accountant or of an immediate or close family member
C) when, because of a close relationship, a professional accountant becomes too sympathetic to the interests of others
D) when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment

4. Which of the following accountants have breached CIMA's ethical principle of professional behaviour:
Select ALL that apply.

A) Sara - Accepted an offer of a free week's stay at a hotel she was due to audit.
B) Kara - Recently got a new job as a management account by lying about the number of accountancy qualifications she has.
C) Dave - Most recent set of financial reports were found to contain inaccuracies because he didn't check them when he was finished.
D) Mike - Posted a series of disparaging tweets about a rival external auditing firm.
E) Tim - Told his friends at the pub how much money one of his clients had made in the last financial quarter.

5. In a situation where a professional accountant needs to choose in whose interest he or she is to behave and act, which of the following interests should he or she put first?

A) CIMA's interest
B) Client's interest
C) Public interest
D) Employer's interest

Solutions: