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

1. Which of the following types of committee is NOT required by the UK Corporate Governance Code?

A) Remuneration Committee
B) Audit Committee
C) Disciplinary Committee
D) Nominations Committee

2. Which of the following would be paid last by a company which had been placed in insolvent liquidation?

A) Outstanding loan capital and interest due to the holder of an unsecured debenture.
B) Fees owed to the directors
C) Unpaid employees' wages
D) Share capital invested by the shareholders.

3. Internal audit is considered best practice but is not required by law Which of the following does NOT describe a benefit of internal audit to the board of directors?

A) The internal audit function can help the audit committee have confidence in the fraud prevention systems within the company
B) The internal audit function can report back to the audit committee if controls are not as effective as they should be
C) The internal audit function can help the audit committee to discharge their responsibilities for the ongoing monitoring of the risk in the company
D) The internal audit function can provide independent assurance of the financial policies applied to the financial statements

4. If a professional accountant believes that he or she will not be able to comply with all the legal frameworks, regulations and standards for business in a particular circumstance, what does he or she have a duty to do? Please select TWO of the following:

A) Disregard conflicting standards
B) Obey the law
C) Act in the interests of his or her employer
D) Raise his or her concerns by speaking up

5. Acting diligently and in accordance with applicable technical and professional standards demonstrates the CIMA Code of Ethics fundamental principle of:

A) Professional competence and due care
B) Objectivity
C) Respect
D) Responsibility

Solutions: