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

1. Being offered gifts and hospitality can give rise to threats to compliance with fundamental principles.
Which of the following statements is NOT in accordance with the CIMA Code of Ethics?

A) Accepting a gift may create self-interest threats to objectivity
B) The significance of threats will depend on the nature, value and intent behind the offer
C) If a professional accountant believes that a gift of significant value is designed to influence his or her actions, then it is acceptable for him or her to accept the gift without disclosing details of the gift to colleagues or superiors
D) If a professional accountant accepts a substantial gift, the possibility of that offer being made public could result in intimidation threats

2. C is a professional accountant He encounters an ethical dilemma in his role and wishes to seek help in resolving it. Which of the following would NOT be an appropriate source of advice?

A) The internal whistle-blowing helpline
B) The CIMA ethics helpline
C) Legal advisors.
D) The external auditors.

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

A) The establishment of a Risk Committee
B) The appointment of a competent Company Secretary
C) The separation of the roles of Chairman and Chief Executive
D) The appointment of independent non-executive directors to the Board

4. P is an accountant working in a business Which of the following circumstances might create a self- interest threat for P in her professional role?

A) P is concerned over her employment security
B) P is required to review data after previously being involved in its preparation
C) A client is threatening P's dismissal over a disagreement about the review of accounting policies
D) The company is being threatened by litigation

5. What is the public function of all accountants?

A) To represent the life-cycle of accounts
B) To provide truthful and independent accounts of finances
C) To give financial judgments to owners and shareholders
D) To do a job and go home

Solutions: