CIMA Business Ethics and Corporate Governance 1

Question 1

Which CIMA ethical principle requires a professional accountant to be straightforward and honest in all professional and business relationships?

Accepted Answer

Integrity

Answer

Integrity is the CIMA fundamental principle requiring straightforwardness and honesty in all professional relationships.

Question 2

Under CIMA's Code of Ethics, which of the following best describes a 'self-interest threat'?

Accepted Answer

A financial or other interest that inappropriately influences a member's judgment

Answer

A self-interest threat arises when a financial or other interest could inappropriately influence a member's professional judgment or behavior.

Question 3

According to CIMA's corporate governance principles, what is the primary role of the audit committee?

Accepted Answer

Overseeing financial reporting and internal controls

Answer

The audit committee's primary role is to oversee financial reporting integrity and the effectiveness of internal controls.

Question 4

Which governance concept separates the role of CEO from Chairman to reduce concentration of power?

Accepted Answer

Independence of leadership

Answer

Independence of leadership is the governance principle recommending separation of CEO and Chairman roles to prevent undue concentration of power.

Question 5

CIMA's ethical framework uses a 'threats and safeguards' approach. Which safeguard is created by the profession, legislation, or regulation?

Accepted Answer

Education and training requirements for entry

Answer

Education and training requirements for entry into the profession are safeguards created by the profession and regulation, not individual firms.

CIMA - Chartered Institute of Management Accountants Aptitude Test Practice Test