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

1. The UK Corporate Governance Code is primarily directed at which type of business organization?

A) All listed public companies
B) All business organizations
C) All private companies
D) All limited liability business organizations

2. Independence of mind allows a professional accountant to:

A) All of the above
B) Exercise professional skepticism
C) Act with integrity
D) Exercise objectivity

3. A business that has an internal ethical code is likely to experience which of the following benefits? Select ALL that apply.

A) Consistency of conduct
B) Competitive advantage
C) Reduced risk
D) Better communication with staff
E) Improved reputation

4. Which of the following statements regarding companies limited by shares and general partnerships is correct?

A) Both a private company limited by shares and a general partnership are established by registration
B) Unlike a general partnership, a private company limited by shares may create a floating charge as security for a loan
C) In the event of insolvency both a private company limited by shares and a general partnership may be placed in insolvent liquidation
D) Private companies limited by shares and general partnerships are required to disclose financial information regarding the operation of the business to the general public

5. Which ONE of the following provides an example of circumstances that may create self-review threats for a professional accountant in public practice?

A) All of the above
B) The discovery of a significant error during a re-evaluation of the work of the professional accountant in public practice
C) A member of the assurance team being, or having recently been, a director or officer of that client
D) Reporting on the operation of financial systems after being involved in their design or implementation

Solutions: