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Company B wants to implement ethical control over its staff. It wants to do this by implementing a strong organisational culture.
Which of the following are ways in which the organisation could exercise control in regards to its organisational culture?
Select ALL that apply.
A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest Therefore:
Which of the following are examples of an invitation to treat? Select ALL that apply.
Which TWO of the following are true of CIMA's conceptual framework approach to ethics?
How can values become part of a company's DNA? Choose TWO of the following options.
Which of the following is incorrect in relation to the remedy of liquidated damages?
D is the chief executive of a UK-based mining company which has operations across the world and, in some countries, employs children. Child workers are only permitted to undertake certain tasks that are deemed to be safe and not physically demanding. Endorsed by his board of directors, D argues that it is better for children in poor countries to have the option of fairly paid work than to risk starvation or be forced into prostitution or criminality. A national newspaper publishes the story and gets an unprecedented number of UK voters to sign a petition for government to intervene and stop these practices. This is an example of a tension between:
In the UK, the body responsible for establishing standards and related guidance for accountants providing assurance services is:
Who is entitled to sue under Section 994 of the Companies Act 2006, which empowers the court to grant a remedy in the event of the company's affairs being conducted in a manner "unfairly prejudicial to the interests of members…"?
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
Which of the following is correct in relation to damages?
(i) The victim of a breach of contract may claim damages in respect of losses caused by the breach which were within the contemplation of the contract breaker.
(ii) As a general rule damages cannot be claimed for annoyance and inconvenience caused by the breach of contract.
(iii) Where there is a breach of contract, damages are available to the innocent party as of right.
Anne was induced to enter into a contract with Benny by his negligent misrepresentation. Which of the following is correct?
(i) Anne has a remedy against Benny in the tort of negligence.
(ii) Anne has a remedy against Benny under the Misrepresentation Act 1967.
(iii) Anne has a remedy in the tort of deceit.
An auditor would trace copies of sales invoices lo shipping documents in order to check for which of the following errors?
Intimidation threats to compliance with fundamental principles are described as threats that may occur
The holders of a certain minimum percentage of a company's issued share capital are entitled to require the company to circulate a written statement to those entitled to receive notice of the next annual general meeting. What is that minimum percentage?
The IFAC has eight main drivers of sustainable corporate success. Which of the following are included in the eight mam drivers?
1, Innovation and adaptability
2. Effective leadership and strategy.
3. Board control and responsibility
Which of the following is correct?
(i) A public company must hold an AGM.
(ii) A public company must give at least 14 days' notice of its AGM.
(iii) One of the purposes of an AGM is to provide an annual opportunity for the shareholders to question the directors regarding their management of the company.
In the UK, the body responsible for promoting confidence in corporate reporting and governance is:
Which of the following terms can be defined as follows?
"...the way an organization manages its relationships"
A company wants to let its employees know that fraud will not be tolerated. It also wants to inform them of the consequences of committing fraud.
Which of the following would best achieve this?
In relation to international regulations, which of the following is correct?
i. International regulations seek to establish common standards between professions practicing in different States so as to further international cooperation and agreement.
ii. International regulations agreed by the professional bodies of different States have the force of international law.
iii. International regulations which harmonies standards and procedures may be incorporated into contracts by commerce and the professions.
Which of the following options are correct in relation to a contract of employment?
1. The contract must be in writing
2. An employee's duty to act with reasonable care and skill is implied into the contract
3. An employer's duty to provide a inference is implied into the contract
H is hoping for a promotion. His wife is expecting a baby and they need the extra money. He needs to present the figures for his section, but the true figures do not reflect well on his manager. What should H do?
In the UK, the body responsible for taking an appropriate role in the development of statutes, regulations and accounting standards which affect the conduct of auditing and assurance services, both domestically and internationally is:
F knows from preparing the accounts that the company she works for is going to have to make redundancies due to the recession. She also knows that, despite the recession, the Managing Director continues to enjoy lavish perks and even uses a private jet. What should she do?
J is at his company's reception desk when the promotions manager of a new restaurant and bar nearby hands him a number of vouchers for cheap meals and drinks. At the promotion manager's request, J agrees to share out the vouchers among his company's employees. J does not earn much and is tempted to keep the vouchers for himself and his friends. Is this an ethical issue and why?
Which of the following need to be proved in order for there to be a misrepresentation? Select ALL that apply.
A manufacturing company has a policy of only buying raw materials which are produced within a 100 kilometer radius of its factory. This is an example of what aspect of CSR?
Which of the following is INCORRECT in relation to the recommendations of the Greenbury Committee Report of 1995?
Which of the following statements is correct?
(i) The written statement of particulars of employment is the contract of employment and every employee with one month's service is entitled to receive a copy.
(ii) The written statement of particulars of employment is not the contract of employment.
(iii) The written statement of particulars of employment may be the best evidence of the terms of the contract and every employee with one month's service is entitled to receive a copy.
The UK Corporate Governance Code is primarily directed at which type of business organization?
Which of the following is correct in relation to international relations?
(i) International regulations are voluntarily entered into by commercial and professional bodies to standardize practices and procedure to make it easier to enter into international trading agreements.
(ii) International regulations which have been agreed by the professional bodies of different states are only binding on the members of those bodies or those who choose to adopt them.
(iii) International regulations may attain the force of law by being adopted by the legislatures of individual states
Which TWO of the following are reasons why a company would choose to introduce a values based code of ethics?
Which of the following statements is incorrect in relation to the revised derivative action under section 260 of the Companies Act 2006?
(i) The action may be brought by a single shareholder.
(ii) The action may be brought in relation to an act of negligence by the directors.
(iii) The action cannot be brought in respect of a proposed act by the directors.
Which of the following describes a principles-based approach to ethical standards in an organisation?
The objective behind the approach is to:
Evidence suggests that during a recession, companies with a clear sense of ethical direction will:
Which of the following are reasons why regulatory frameworks may differ between countries: Select ALL that apply.
Which of the following may cause a director to be disqualified from acting as a director under the Company Directors Disqualification Act 1986?
(i) Persistent default by the director in complying with the filing requirements under the Companies Acts.
(ii) Causing a company to continue to trade at a time when the director ought to know that insolvency is inevitable.
(iii) Carrying on business with intent to defraud creditors.
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
The directors of Zed Ltd issued a number of shares to their supporters, so that they would vote against a takeover bid by Exe Ltd.
Which of the following statements is INCORRECT?
Demonstrating politeness and good manners towards others reflects the personal quality identified by the CIMA Code of Ethics as:
The board of Zed Ltd wishes to borrow money from Exe Bank plc. What authority will the board require to enable it to proceed?
Your company's marketing department produces a corporate brochure where, although it uses data that is accurate, the conclusions that it draws are somewhat misleading. Is this an ethical issue and why?
Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should be straightforward and honest in all professional and business relationships"
Z Ltd intends to participate in a "substantial property transaction" with one of its directors. Which of the following is correct in relation to substantial property transactions?
(i) The value of the asset must exceed 10% of the company's net assets and be more than £5,000.
(ii) The transaction must be approved by the shareholders.
(iii) The director must disclose his interest in the transaction.
Which of the following remedies is available as of right in the event of a breach of contract?
(i) Specific performance.
(ii) Damages.
(iii) An injunction.
Working late one evening, you see a colleague copying information on to series of CD Roms. He tells you that software is too expensive for him to afford for his home computer but that he needs the software for his own personal use and in case he might take work home at some point. Is this an ethical issue and why?
Exe Ltd was under contract to deliver goods by road to London for Wye Ltd for £2,000. After part of the journey was completed the lorry broke down and Wye Ltd was forced to arrange for Zed Ltd to complete the delivery. Subject to the contract not providing for this situation, which of the following is correct?
All policies for governance and social responsibility are ultimately rooted in an organization's:
Which of the following statements is correct following the enactment of the Companies Act 2006?
(i) A public company must hold an annual general meeting within six months of the end of its accounting reference date.
(ii) A private company is no longer required to hold an annual general meeting.
(iii) A private company must give 21 days' notice of a general meeting.
T is a senior accountant, but knows he needs to update himself on recent changes in accounting practice. He has been too busy; his manager is off sick and T is taking responsibility for his work load. T decides to let his CPD slide. Another year won't matter. Is this an ethical issue?
Which of the following statements are correct in relation to an offer?
1. An offer may be made to the whole world
2. An offer cannot be withdrawn until the offeree has had the opportunity of accepting or rejecting the offer.
3. An item in a shop window marked "Special Offer" is not an offer in law.
A manager is consistently rude to a female employee and seems to have a low opinion of her ability, despite the fact that she is competent, works hard and is well liked by her peers. This is potentially an example of the ethical issue of:
Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
Which of the following best describes the consequences of being found to be unethical for an individual CIMA member?
You are at a conference. The finance director of one of your competitors is boasting about top secret plans that she says will give her company market dominance. As she walks into a conference session, she accidently drops a folder marked "private and confidential". No one else notices and you are left alone in the room with the folder. Which of the following would be an ethical course of action and why?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
The articles of association of Zed Ltd provide that Z is to be an executive director for life. Zed is also a shareholder in the company.
Which ONE of the following is CORRECT?
Which of the following would NOT violate the CIMA Code of Ethics fundamental principle of confidentiality?
Jo is employed as management accountant of a large retailer. Jo has been asked to make a payment to a bogus supplier that she believes would constitute money laundering. If Jo accepts the request, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?
Which of the following is INCORRECT in relation to corporate governance in the UK?
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
A, B C and D are sole directors and shareholders of EFG Company each holding 25% of the shares in the company. The articles of association
of EFG Company state that "the directors cannot enter into any contract on behalf of the company exceeding $30,000 without the agreement of all the shareholders’’.
B contracted on behalf of the company for $40,000 with Y Company without the agreement of the other shareholders. Which of the following is correct?
1. Y Company may enforce the contract against EFG Company
2. A, C and D may obtain an injunction to stop the contract being canted out
3. B may be liable to EFG Company for breach of duty.
Which of the following statements are correct?
(i) A claim for unfair dismissal must be made to an industrial tribunal within 3 months of the effective date of termination.
(ii) A claim for wrongful dismissal must be made to an industrial tribunal within 6 years of the effective date of termination.
(iii) A claim for wrongful dismissal must be made to an industrial tribunal within 3 months of the effective date of termination.
Which TWO of the following are the characteristics of a framework driven by values, principles and ethics?
Natthapong's toilet won't flush, so he hires a plumber to come over and fix it.
He tells the plumber what the problem is, and the plumber agrees to fix it.
However, once the builder supposedly finishes the job, Natthapong finds that it still won't flush.
Is he able to terminate the contract?
Which of the following must be satisfied for an employee to claim wrongful dismissal?
(i) The employer terminated the contract without notice, and was not justified in doing so.
(ii) The employee must have at least 12 months' continuous employment.
(iii) The dismissal was not for reasons of conduct, capability, redundancy or some other substantial reason.
The UK Corporate Governance Code is primarily concerned with the effective control, business efficacy and accountability of the management of public listed companies for the benefit of which of the following?
An independent audit is important to readers of financial statements because it
Being straightforward and honest in all professional and business relationships demonstrates the CIMA Code of Ethics fundamental principle of:
The introduction of restrictions on how companies are permitted to advertise to children is a UK government reaction to a tension between:
Which of the following auditors would need to issue a disclaimer of opinion? Select ALL that apply.
In relation to the company secretary which of the following is correct?
(i) A public company must have a company secretary who is appropriately qualified
(ii) A member of CIMA is qualified to act as a company secretary
(iii) A private company may choose to have a company secretary and if so he/she must be appropriately qualified
Which of the following cases of dismissal are likely to be deemed automatically fair by an employment tribunal?
SuperSole eventually decides to outsource its internal audit.
Which of the following are benefits it might experience from doing so?
Select ALL that apply.
Which of the following statements is correct?
(i) The Articles of Association of a private company limited by shares may be altered by special resolution.
(ii) The Articles of Association of a private company limited by shares may be altered by a written resolution.
(iii) The Articles of Association of a private company limited by shares may be altered by an ordinary resolution.
Which of the following are likely advantages of being a sole trader? Select ALL that apply.
In 2011 Exe Bank plc granted a loan of £200,000 to Wye Ltd secured by a fixed charge over the company's land and a floating charge over all the company's other assets. Wye Ltd remains solvent but has now failed to meet its monthly repayments for three months.
Which of the following options are available to Exe Bank plc?
(i) Sue Wye Ltd for breach of contract.
(ii) Appoint an administrator
(iii) Petition for the compulsory winding up of Wye Ltd.
Which of the following is correct?
(i) The purpose of the criminal law is to regulate behavior within society.
(ii) The purpose of the civil law is to enable injured persons to obtain a remedy against the wrongdoer.
(iii) A breach of the criminal or civil law can result in the defendant being fined.
TESTED 04 May 2024