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

1. Which THREE of the following statements are correct regarding the CIMA Code of Ethics for Professional Accountants?

A) The CIMA Code is mandatory for all CIMA members and students, and is applicable to all professional services.
B) The CIMA Code imposes an obligation on CIMA members and students to comply with relevant laws and regulations
C) Where a statutory requirement is in conflict with a provision of the CIMA Code, the CIMA Code requirement prevails
D) The CIMA Code is an example of a compliance driven ethical framework
E) Professional accountants should consider the ethical requirements contained in the CIMA Code as the basic principles which they should follow in performing their work

2. Which of the following would NOT violate the CIMA Code of Ethics fundamental principle of confidentiality?

A) Disclosing publicly available information
B) Disclosing confidential information to third parties
C) Using sensitive information gained with a previous employer for the advantage of a new employer
D) Not disclosing information if required to do so by law

3. Paul has been held personally liable to contribute to the assets of P Ltd as a result of his "fraudulent trading" under Section 213 of the Insolvency Act 1986. The court is about to disqualify Paul from acting as a director. What is the maximum period for which he may be disqualified?

A) No maximum.
B) 15 years.
C) 10 years.
D) 5 years.

4. A situation has arisen which will involve you participating in transactions which are legally correct but ethically unsound.
Which of the following is correct?
(i) It is not possible for a transaction to be both legal and ethically unsound.
(ii) As long as the transactions are legal you are acting properly in participating.
(iii) One of the purposes of ethical codes is to guide professionals as to how to behave even when the proposed transactions are legal.

A) (ii) only
B) (iii) only
C) (i) only
D) (i) and (ii) only

5. Which of the following may be liable to contribute to the assets of the company in the event of the company carrying on business at a time when it appeared that insolvency was inevitable?

A) The current directors and former shareholders of the company.
B) The current directors and shareholders of the company.
C) The current directors of the company.
D) The current and former directors of the company.

Solutions: