Business Ethics and Governance Flashcards
6 cards from real ACCA AK practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Business Ethics and Governance flashcards as text
According to the ACCA Code of Ethics and Conduct, which of the following is one of the five fundamental principles?
Answer: Professional competence and due care
The five fundamental principles in the ACCA Code are: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Profit maximisation, cost minimisation, and market dominance are not ethical principles.
The UK Corporate Governance Code recommends that the board of a listed company should include:
Answer: A sufficient number of independent non-executive directors to provide effective challenge
The UK Corporate Governance Code recommends that at least half the board (excluding the chair) should be independent non-executive directors. They provide independent judgement, challenge executive management, and protect shareholder interests.
What is the primary role of the audit committee?
Answer: To oversee the financial reporting process, internal controls, and the external audit
The audit committee oversees the integrity of financial reporting, reviews internal controls and risk management systems, monitors the external audit process, and ensures the independence of auditors. It does not prepare accounts or manage operations.
A self-interest threat to an accountant's objectivity arises when:
Answer: The accountant has a financial interest in the outcome of an engagement
A self-interest threat occurs when the accountant has a financial or other personal interest that could inappropriately influence their judgement — for example, owning shares in an audit client or being financially dependent on a single client's fees.
Corporate social responsibility (CSR) encompasses:
Answer: The voluntary actions a company takes beyond legal requirements to address its impact on society and the environment
CSR refers to a company's voluntary commitment to managing its social, environmental, and economic impacts responsibly. It goes beyond mere legal compliance to include ethical behaviour, environmental stewardship, and community engagement.
The Nolan Principles (Seven Principles of Public Life) include all of the following EXCEPT:
Answer: Profitability
The seven Nolan Principles are: selflessness, integrity, objectivity, accountability, openness, honesty, and leadership. Profitability is a commercial objective and is not one of the principles governing conduct in public life.