ACCA AK Business Ethics and Governance

Question 1

According to the ACCA Code of Ethics and Conduct, which of the following is one of the five fundamental principles?

Accepted Answer

Professional competence and due care

Answer

Profit maximisation

Answer

Cost minimisation

Answer

Market dominance

Question 2

The UK Corporate Governance Code recommends that the board of a listed company should include:

Accepted Answer

A sufficient number of independent non-executive directors to provide effective challenge

Answer

Only executive directors to ensure operational expertise

Answer

Only family members of the founder

Answer

External auditors as board members

Question 3

What is the primary role of the audit committee?

Accepted Answer

To oversee the financial reporting process, internal controls, and the external audit

Answer

To prepare the annual financial statements

Answer

To set the strategic direction of the company

Answer

To manage the day-to-day operations of the business

Question 4

A self-interest threat to an accountant's objectivity arises when:

Accepted Answer

The accountant has a financial interest in the outcome of an engagement

Answer

A colleague pressures the accountant to change a report

Answer

The accountant becomes too familiar with a long-standing client

Answer

The accountant is threatened with dismissal for reporting fraud

Question 5

Corporate social responsibility (CSR) encompasses:

Accepted Answer

The voluntary actions a company takes beyond legal requirements to address its impact on society and the environment

Answer

Only the legal obligations a company must meet

Answer

Exclusively the company's obligations to its shareholders

Answer

The company's marketing and advertising strategy

Question 6

The Nolan Principles (Seven Principles of Public Life) include all of the following EXCEPT:

Accepted Answer

Profitability

Answer

Selflessness

Answer

Integrity

Answer

Accountability