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CIMA BA4 Exam Syllabus Topics:

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

1. One of your colleagues is running an event to raise money for a local charity. One evening, you see her taking boxes of pens, notepads and post-it notes. When you challenge her, she says that she is taking them for her fundraising and, although she has not asked permission to take them, she is sure the company will not mind. Is this an ethical issue and why?

A) Yes - she is using company property for other purposes without permission
B) No - it is just stationery and nothing valuable
C) Yes - she should not be undertaking charitable initiatives
D) No - the company would undoubtedly not mind her using the stationery for charitable purposes, so there is nothing wrong with her taking it

2. Miss K is a newly qualified accountant working in a highly respected local accountancy firm headed by Mr R, who is a pillar of the community. One night, Miss K is at an out of town bar with friends, when she spots Mr R with Mrs E, a client of the firm. It is obvious they are having a secret affair. Is this an ethical issue?

A) No, what Mr R and Mrs E do in their own personal time is nobody else's business
B) Yes, Mr R is involved in a potential conflict of interest by having an affair with a client
C) Yes, as professional accountants, Miss K and Mr R should not be drinking alcohol
D) No, Miss K knows nothing about Mr R's private life, and may be mistaken about the affair

3. C has just set up her own practice and things are going well. She is also a single parent, so is reliant upon her income to pay her bills and support her family. One of her uncles recommends a new client to her.
This client wants C to provide an accountant's report in support of his mortgage application. He insists there is no need for her to see the full details of his income. He suggests that C's uncle would be most displeased if she did not help him, and that she may potentially lose other potential clients.
This is a tension between C's:

A) Personal and Societal values
B) Societal and Professional values
C) Personal and Professional values
D) Corporate and Professional values

4. S is management accountant for a small retail company. S has discovered a possible fraud in the purchasing department. The manager of that department has told S that he is aware of the fraud and will 'deal with it'.
Which ONE of the following would it be appropriate for S to do?

A) Ask for advice from the company's external auditors
B) Advise a director of the company
C) Ask for confirmation in writing from the manager
D) Nothing
E) Bring the matter to the attention of the police

5. 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) Leadership
B) Objectivity
C) Learning
D) Integrity

Solutions: