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A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest Therefore:

A.

the public interest will always be served if an accountant complies with his or her employer's corporate ethical policies

B.

frauds which are detected in an audit must be reported to the public

C.

a professional accountant's responsibility is not exclusively to satisfy the needs of an individual client or employer

D.

professional accountants must be prepared to break laws that they consider to be against the public interest

A professional accountant is NOT accountable to:

A.

The public

B.

His or her clients

C.

His or her employer

D.

His or her company's competitors

When might an ethical dilemma occur?

A.

When the boundaries between right and wrong are unclear

B.

When the code of ethics does not specify what action to take

C.

When an individual is under pressure to do something that does not feel right

D.

All of the above

Which of the following is NOT an obligation imposed on all professional accountants by the principle of objectivity?

 

Not to compromise their professional or business judgment because of:

A.

Bias

B.

Conflict of interest

C.

The undue influence of others

D.

Honesty

Which of the following is INCORRECT in relation to an alteration of a company’s articles of association?

A.

The articles may be amended by the members passing a special resolution.

B.

Any special resolution to alter a company’s articles of association may be passed by the members in a general meeting or by a written resolution.

C.

As long as the resolution to alter the articles is approved by 75% of the members of the company, it may require members to purchase additional shares.

D.

Any special resolution to alter the articles must be passed in good faith in the best interest of all the shareholders.

Which of the following entitles the innocent party to cancel the contract?

(i) A breach of a warranty.

(ii) A breach of a condition.

(iii) An express term authorizing termination of the contract.

A.

(i) only

B.

(i) and (ii) only

C.

(ii) and (iii) only

D.

(i), (ii) and (iii).

Alan, Ben, Chris and Debbie are the only shareholders in ABCD Ltd, each holding 100 ordinary £1 shares. Alan, who is the company's sole director, has recently learned that Ben, Chris and Debbie are intending to remove him as a director by passing an ordinary resolution. In consequence Alan sold his computer to the company in return for 1,000 ordinary £1 shares. The company was in need of a computer, which was of equal value to the 1,000 ordinary £1 shares.

 

Which of the following is correct?

A.

The share issue is valid and Alan may use his 1,100 votes to defeat the resolution proposed by Ben, Chris and Debbie.

B.

The share issue is invalid as it has had the effect of manipulating the voting structure within the company.

C.

The share issue is invalid as the shares should have been offered to all the existing members first.

D.

The share issue is valid as long as Alan has the necessary authority to issue shares.

Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

A.

Integrity

B.

Professional behavior

C.

Objectivity

D.

Accountability

What is a fundamental attribute of a competent accountant?

A.

Ability to exercise good judgment

B.

Ability to communicate effectively

C.

Ability to calculate correctly

D.

Ability to be efficient

What is the purpose of the equitable remedy of rescission?

A.

To place the parties in their pre-contract position.

B.

To force the party in breach to carry out the contract.

C.

To prevent a party from acting in breach of contract.

D.

To ensure that the innocent party is adequately compensated.

A manufacturing company has a policy of only buying raw materials which are produced within a 100 kilometer radius of its factory. This is an example of what aspect of CSR?

A.

Quality management

B.

Environmental impact reporting

C.

Supply chain management

D.

Brand management

All policies for governance and social responsibility are ultimately rooted in an organization's:

A.

Values and code of ethics

B.

The Board

C.

Stakeholder relationships

D.

The Government

Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

A.

Constancy

B.

Confidentiality

C.

Contemplation

D.

Conviction

You have been charged with the task of reviewing the CSR report for your company, GHI. Which of the following aspects of the report represent a lack of compliance with the Global Reporting Initiative G4 Sustainability Reporting Guidelines?

A.

The CSR report reflects GHI's significant economic, environmental and social impact

B.

The CSR report includes both positive and negative aspects of GHI's performance for the year

C.

The CSR report presents information using visual aids that improve the accessibility and understand ability of the information for stakeholders.

D.

The CSR report is compiled and published only when material developments within GHI policies and achievements become available to warrant the expense of producing a new report

B is employed by Zed plc and has suffered an occupational injury.

 

Which of the following is correct?

 

Zed plc may be liable to B for:

i. breach of an implied term in B's contract of employment

ii. breach of the duty to take care in the tort of negligence

iii. breach of statutory duty

A.

(i) only

B.

(ii) only

C.

(iii) only

D.

(i), (ii) and (iii)