CIMA BA4

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CIMA BA4 Exam Syllabus Topics:

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

1. Intimidation 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) when a professional accountant may be deterred from acting objectively by threats, actual or perceived
C) as a result of the financial or other interests of a professional accountant or of an immediate or close family member
D) when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment

2. Which of the following is a 'financial stakeholder' of an organization?

A) Employee
B) Competitor
C) Non-governmental organizations
D) Media

3. Which of the following is incorrect in relation to a reduction of capital by a private company?

A) It is not necessary for the company's Articles of Association to authorize a reduction of capital.
B) The directors must make a solvency statement.
C) The reduction must be approved by the court.
D) The company must pass a special resolution to authorize the reduction of capital.

4. Working late one evening, you see a colleague copying information on to series of CD Roms. He tells you that software is too expensive for him to afford for his home computer but that he needs the software for his own personal use and in case he might take work home at some point. Is this an ethical issue and why?

A) Maybe - depending on whether he uses the software for personal or business use
B) Maybe - depending on whether his income is really insufficient to cover the cost of software purchase
C) Yes - unauthorized reproduction would be regarded by the manufacturer as software piracy
D) No - one additional copy of the software makes no difference to the manufacturer, so this is not an ethical issue

5. In the UK, the body responsible for taking an appropriate role in the development of statutes, regulations and accounting standards which affect the conduct of auditing and assurance services, both domestically and internationally is:

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

Solutions: