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CIMA BA4 Exam Syllabus Topics:

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

1. Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?

A) Honesty
B) Integrity
C) Leadership
D) Professionalism

2. While working as an accountant, you are asked to overlook certain irregularities in your company's accounts. This is likely to result in tensions described by which TWO of the following four options:

A) Professional and societal values
B) Personal and societal values
C) Personal and corporate values
D) Professional and corporate values

3. Which TWO of the following are the characteristics of a framework driven by values, principles and ethics?

A) Mandatory
B) Detection
C) Implicit
D) Discretionary

4. Andrea is completing an audit on the finance department for a medium-sized company. In her report she makes note of the fact that her audit was severely limited due to her being unable to access many of the department's documents.
Because of this and a number of other things she's discovered whilst conducting her audit, she thinks fraudulent activity might have been taking place within the department.
However, Andrea knows that it is not the business of auditors to seek out fraud.
What should she do?

A) Issue a disclaimer of opinion.
B) Detail her suspicions in the 'emphasis of matter' section in the audit report.
C) Report her suspicions to the company's senior management.
D) There's nothing she can do - it's not the business of auditors to deal with matters concerning fraud.

5. In relation to the law of misrepresentation, which of the following statements is incorrect?

A) A victim of fraudulent misrepresentation may seek rescission and damages.
B) Misrepresentation renders a contract voidable.
C) Damages are available for innocent misrepresentation under the Misrepresentation Act.
D) A false statement of fact may give rise to remedies in both contract and tort.

Solutions: