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

1. Which of the following is INCORRECT in relation to the company secretary?

A) The company secretary is the chief administrative officer of the company
B) The company secretary may bind the company in contract if she/he has actual or ostensible authority
C) The company secretary of a public company must be appropriately qualified
D) All companies must have a company secretary

2. Why does life-long learning require commitment? Choose TWO options.

A) Rapid advances in technology
B) Computer virus-protection
C) Career progression
D) Evolving regulations

3. S is assistant management accountant for a large telecommunications company. S has become aware that the company is offering different levels of discount to different corporate customers. S is concerned that this is unethical, so she mentioned it to the Finance Director during her most recent appraisal. The Director seemed amused at S's concern, and said that such a situation was 'perfectly normal'.
Which ONE of the following would it be appropriate for S to do?

A) Request a further meeting with the Finance Director
B) Resign
C) Ask for advice from the company's external auditors
D) Bring the matter to the attention of the Managing Director
E) Ask for confirmation in writing from the Director
F) Nothing further

4. An independent audit is important to readers of financial statements because it

A) objectively examines and reports on management's financial statements
B) confirms the accuracy of management's financial representations.
C) measures and communicates the data included in financial statements
D) assures the readers of financial statements that any fraudulent activity has been corrected

5. Which of the following is an 'interest stakeholder' in an organization?

A) Employee
B) Government
C) Competitor
D) Customer

Solutions: