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

1. lohn works as a management accountant for a law firm. He only got the job because he lied about his qualifications: he told the interviewers that he the required accountancy qualifications to do the job when he actually didn't.
Now John's boss has found that John lied during the interview. Which of the following will almost certainly happen as a result?
Select ALL that apply.

A) John will be expelled from the professional accountancy organisations he is a member of.
B) John will face civil proceedings.
C) John will face criminal proceedings.
D) John will have problems finding new employment.
E) John will lose his employer's trust.
F) John will lose his job.

2. Complying with relevant laws and legislations demonstrates part of which CIMA Code of Ethics fundamental principle?

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

3. Which of the following is correct in relation to the equitable remedy of rescission?
(i) Rescission is available in the event of any breach of contract
(ii) The victim of misrepresentation may automatically claim rescission (iiI) The purpose of rescission is to return the parties to their pre-contract position.

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

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

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

5. Which of the following terms can be defined as follows?
"How an organization manages its relationships in the wider community"

A) Social responsibility
B) Ethics
C) Corporate governance
D) Professional behavior

Solutions: