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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. Your boss knows that you will always strive to deliver a project on time and on budget. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?
A) Reliability
B) Courtesy
C) Respect
D) Timeliness
2. Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
A) The separation of roles of Chairman and Chief Executive
B) The appointment of a senior Government representative to the Board
C) The establishment of an audit committee
D) The appointment of independent non-executive directors to the Board
3. The International Accounting Education Standards Board has published a document titled "Approaches to the Development and Maintenance of Professional Values, Ethics and Attitudes in Accounting Education Programs'", which provides guidance about the personal qualities needed by accountants to meet the expectations of the public The particular qualities which it identifies are
A) responsibility, accountability, timeliness, independence and respect
B) responsibility, accountability, courtesy, independence and respect
C) reliability, responsibility timeliness, courtesy and respect
D) reliability, responsibility, timeliness, independence and respect
4. Which of the following is INCORRECT in relation to the recommendations of the Greenbury Committee Report of 1995?
A) All the recommendations were incorporated into the Stock Exchange Listing Rules.
B) Directors should never be given discounted share options.
C) Annual bonuses should not be pensionable.
D) Any long-term incentive schemes to be offered to directors should first be approved by the shareholders.
5. T is a senior accountant, but knows he needs to update himself on recent changes in accounting practice. He has been too busy; his manager is off sick and T is taking responsibility for his work load. T decides to let his CPD slide. Another year won't matter. Is this an ethical issue?
A) Yes. T has a duty to maintain his professional knowledge
B) Yes. T should not be doing two people's work
C) No. T has a contractual duty to his employer; he can't take time off for CPD at this time
D) No. T is an experienced accountant and doesn't need training
Solutions:
| Question # 1 Answer: A,D | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: A |


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