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

1. Which of the following statements describes an example of a value for money audit?

A) Identifying and appraising weaknesses in the organisation's management team
B) Analysing the reported financial performance of one of the organisation's branches
C) Appraising the efficiency of one of the organisation's manufacturing processes
D) Assessing the organisation's conformance with employment laws and regulations

2. IFAC member firms or bodies:

A) Are entitled to use the IFAC Code of Ethics as an optional approach for their own organization
B) Must prosecute any individual who fails to adhere to any part of the IFAC Code of Ethics
C) Must not apply less stringent standards than those stated in the IFAC Code of Ethics
D) Must, by law, adhere to the IFAC Code of Ethics

3. Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should act diligently and in accordance with applicable technical and professional standards"

A) Professional behavior
B) Integrity
C) Professional competence and due care
D) Objectivity

4. Complying with relevant laws and legislations demonstrates part of which CIMA Code of Ethics fundamental principle?

A) Responsibility
B) Professional behavior
C) Integrity
D) Objectivity

5. Which THREE of the following statements are correct in relation to the essential elements of a contract?

A) A request for further information in relation to an offer has the effect of cancelling the offer
B) Once an offer has been made it does not exist forever but will lapse after a reasonable time
C) Even if the parties are fully in agreement, the agreement will be unenforceable unless at least one of the parties has provided consideration
D) If an offer is rejected it can only be revived by the person who made the offer
E) A conditional offer cannot be accepted until the condition has been satisfied
F) A revocation of an offer is only valid when it is received by the offeree, unless it is sent by post in which case it is valid as soon as it is posted

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