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Which of the following is incorrect in relation to shareholder meetings held by a public company?

A.

A failure by a public company to hold an AGM is an offence by every officer of the company who is in default

B.

A public company must hold an AGM within six months of the end of its accounting reference date

C.

A public company must give at least 14 days notice of the AGM to its members

D.

Short notice of an AGM by a public company must be given by all the members

A company is considering having an external audit. It knows the benefits of doing so, though is unsure of the disadvantages.

Which of the following are reasons why the company might not want to have an external audit?

Select ALL that apply.

A.

It will take a long time.

B.

It will cost a lot of money.

C.

There is a risk of confidential information leaking.

D.

Reputation with stakeholders will decrease.

E.

Interests of shareholders and directors may become unaligned if they aren't already.

F.

Shareholders may become concerned about the state of the company.

Which of the following is correct?

A.

A special resolution may be passed by 51% of the shareholders who are present voting in favor of the proposal either in person or by proxy.

B.

A special resolution may be passed by 75% of the shareholders who are present voting in favor of the proposal either in person or by proxy.

C.

A special resolution may only be passed by 75% of all the company's shareholders voting in favor of the proposal either in person or by proxy.

D.

A special resolution may only be passed by all the company's shareholders voting in favor of the proposal either in person or by proxy.

An internal auditor discovered evidence of a fraud earned out by an employee who worked in the accounting department. The auditor concluded that the fraud had been possible because of unsatisfactory segregation of duties in the department.

Poor segregation between which of the following duties would provide the best opportunity for this type of fraud to occur?

A.

Issuing both sales invoices and purchase invoices.

B.

Issuing sates invoices, and recording payments to suppliers in the ledger.

C.

Receiving payments from customers, and recording them in the ledger

D.

Receiving purchase invoices, and banking payments from customers.

Which of the following need NOT be submitted in order to register a private company limited by shares?

(i) Articles of association

(ii) The name of the company secretary

(iii) A statement of share capital

A.

(i) only

B.

(i) and (ii) only

C.

(ii) only

D.

(ii) and (iii) only

Which of the following are guilty of skimming? Select ALL that apply.

A.

Barry - An accountant for a large law firm who sometimes redirects incoming company funds to his own private account.

B.

Gina - A senior manager at an investment firm who often redirects company funds to a fake account that she's created.

C.

Simon - An owner of a medium-sized business who sometimes understates his company's profits by a small amount in order to pay less tax.

D.

Phil - An owner of a large business who often understates his company's profits by huge amounts in order to pay significantly less tax.

Which of the following are cases where the veil should be lifted? Select ALL that apply.

A.

The pink company - Failed to disclose the full company name on official documents.

B.

The orange company - Continues to trade even though it knows it is in irrevocable debt

C.

The white company - An investigative journalist reveals that the company has been deliberately avoiding tax.

D.

The red company - Continues to trade despite being having small debts.

E.

The black company - Trades with a company based in a country experiencing civil war.

Rank the following, starting with the highest court:

(i) Court of Appeal (Civil)

(ii) Supreme Court

(iii) County Court

(iv) High Court

A.

(ii), (i), (iv), (iii)

B.

(i), (ii), (iv), (iii)

C.

(i), (ii), (iii), (v)

D.

(ii), (iv), (i), (iii)

lohn works as a management accountant for a law firm. He only got the job because he lied about his qualifications: he told the interviewers that he the required accountancy qualifications to do the job when he actually

didn't.

Now John's boss has found that John lied during the interview. Which of the following will almost certainly happen as a result?

Select ALL that apply.

A.

John will lose his employer's trust.

B.

John will lose his job.

C.

John will face criminal proceedings.

D.

John will face civil proceedings.

E.

John will be expelled from the professional accountancy organisations he is a member of.

F.

John will have problems finding new employment.

Which of the following statements is incorrect in relation to a public company limited by shares?

A.

The company must have at least one director.

B.

The company must have at least one shareholder.

C.

The company must have issued at least £50,000 of shares.

D.

The company must ensure that its company secretary is properly qualified whereas a private company need not have a company secretary.

Demonstrating an attitude of esteem, deference, regard or admiration of others reflects the personal quality identified by the CIMA Code of Ethics as:

A.

Responsiveness

B.

Reliability

C.

Reverence

D.

Respect

L is a senior management accountant in a large and respected firm. He has found out that two of the partners of the firm are working unethically for clients who operate on 'the wrong side of the law'.  L would like to draw this matter to the attention of the third partner, but he is concerned that he will either lose his job, or, if the scandal gets out, the firm will lose its reputation and clients as a result.  He decides to do nothing.  Is this an unethical thing to do?

A.

Yes - it is the ethical duty of an accountant not to cover anything up

B.

Yes - it is unethical to work for a firm like that

C.

No - he is protecting the reputation of the firm

D.

No - he is protecting his own job and the jobs of everyone in the firm

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.

Integrity

B.

Objectivity

C.

Confidence

D.

Openness

Michael is conducting a social and environmental audit on a chemicals factory. Which of the following should he review?

A.

Emissions levels and the procedures the factory has in place to manage them.

B.

Wastage levels and the procedures the company has in place to manage them.

C.

Recycling targets and procedures.

D.

Adherence to health and safety procedures.

E.

Operational efficiency.

F.

Suitability of the project plan, and project management process.

G.

Adherence to rules and procedures.

Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?

A.

Agency theory assumes that the goals of the managers of the company are the same as the owners of the company

B.

Agency theory requires that the managers of the company act in the interests of the owners of the company

C.

Agency theory assumes that the goals of the managers of the company are different from the owners of the company

D.

Agency theory explains the issues which arise from the separation between the owners of the company and those who control it

E.

Agency theory defines the problems that arise from the dependency of an organisation on resources