Which TWO of the following are true of CIMA's conceptual framework approach to ethics?
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?
XYZ plc has recently acted in breach of its contract with ABC Ltd. The breach caused ABC Ltd to lose several thousand pounds. The board of ABC Ltd has resolved not to proceed against XYZ plc, as it believes that the time and expense involved would be disadvantageous to the company. A number of ABC Ltd shareholders are dissatisfied with the board's decision.
Which of the following is INCORRECT?
Which of the following statements is correct in relation to a public company limited by shares?
(i) A public company cannot commence trading until it has received a certificate from the Registrar of Companies confirming that it has satisfied the minimum requirements as to authorized and issued share capital.
(ii) If a public company commences trading without a trading certificate, and fails to meet its obligations, the directors may be held jointly and severally liable for those obligations.
(iii) A public company must have a minimum of one shareholder.
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"
One of your colleagues is running an event to raise money for a local charity. One evening, you see her taking boxes of pens, notepads and post-it notes. When you challenge her, she says that she is taking them for her fundraising and, although she has not asked permission to take them, she is sure the company will not mind. Is this an ethical issue and why?
X owns 51% of the shares in X Ltd. Y and Z are the only directors of X Ltd. Which ONE of the following is CORRECT?
Seb is auditing a large firm in the City. He wants to access the company's books and records, to be notified of any shareholder meetings and to ask the company's senior staff to produce certain documents that he feels
are necessary to audit.
However, the company he is auditing denies every one of these requests.
Should Seb's requests be granted?
What is the legal meaning of the word “simple” in the expression “valid simple contract”?
An ethical dilemma generally refers to:
Abel has just completed an audit on a large law firm. He has decided to issue a modified audit report with a qualified opinion due to the issues he discovered regarding misstatements in the company's financial records.
Why has Abel decided to issue the report with a qualified opinion as opposed a different kind?
Which of the following are the TWO main differences between the structure and function of company boards in Germany and the UK?
Danny holds 1%, Edward 2% and Fozia 3% of the issued share capital of Vee Ltd. Which of these shareholders, acting alone or together, hold the minimum percentage to entitle them to require the company to circulate a written statement of their views to all those entitled to receive notice of the forthcoming annual general meeting?
What is an essential quality for a professional accountant?
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"
A group of business associates are about to register X Ltd as a company limited by shares. The associates wish to restrict the company's objects so that the company is only authorized to carry on the business of retailing computer hardware and software. Which of the following is correct?
Kane is a management accountant for business in the City. When looking through the company's latest financial reports he finds that company has been paying far less tax than it should be.
After consulting the company's management, Kane discovers that the company had been deliberately paying less tax and are not interested in taking action to rectify it.
As Kane has done all he can to try and solve the issue himself, it's clear that he now needs to take steps to disassociate himself from the misleading information.
How might he do this?
Select ALL that apply.
Which TWO of the following options describe safeguards that the CIMA Code of Ethics states may eliminate or reduce threats to compliance with fundamental principles to an acceptable level?
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?
Which of the following auditors would need to issue a disclaimer of opinion? Select ALL that apply.
Which of the following statements is INCORRECT?
i. A contract is a voluntary agreement whereas obligations in the tort of negligence are imposed by the state.
ii. Damages are only available for breach of contract and breach of the tort of negligence if damage, injury or loss has been suffered by the claimant.
iii. A contract breaker is liable whether or not he is at fault whereas to be liable in the tort of negligence the defendant must have been at fault.
Which of the following is INCORRECT in relation to a claim for wrongful dismissal?
Which ONE of the following is needed to solve ethical problems?
In furtherance of their duty to promote the success of the company under Section 172 of the Companies Act 2006, the directors are required to take account of amongst others, the company and its members, employees and suppliers.
Which of the following can enforce this duty against the directors?
Which of the following statements is correct in relation to private and public companies limited by shares?
In the event of a conflict between European Law and French Law which will prevail?
Which of the following statements are correct in relation to a misrepresentation?
1. A misrepresentation is a false statement of fact or law but not a mere expression of opinion by someone having no expertise in the subject matter of the contract
2. A misrepresentation renders a contract voidable
3. As a general rule silence can amount to a misrepresentation.
Completing work within established deadlines reflects the personal quality identified by the CIMA Code of Ethics as:
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?
Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?
In which of the following situations has a contract of employment arisen?
Which THREE of the following statements are correct regarding the CIMA Code of Ethics for Professional Accountants?
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.
What is the purpose of the equitable remedy of rescission?
According to the CIMA Code of Ethics, which of the following categories describe common threats to compliance with the fundamental principles? Please select all that apply.
Articles of association regulate the relationship between:
Which of the following is not financial assistance for the purchase of a public company's own shares?
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…"?
The CIMA Code of Ethics relates to:
Decklt is a skateboard manufacturer that is ethically run and has a good reputation.
However, it has just transpired that one of their suppliers - with whom they have a good relationship with due to their cheap prices - is involved in a serious fraud case.
What should Decklt do?
Which of the following statements are correct in relation to the purpose of the OECD principles of corporate governance?
1. The principles are regarded by OECD members as representing a common basis essential for the development of good corporate governance practice
2. The principles are intended to be a substitute for individual government's proposals for governance best practice.
3. The principles are intended for the use of OECD members only.
Which of the following is incorrect?
Which of the following is normally implied into a contract of employment?
Why are the principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior “fundamental”?
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 of the following statements is incorrect?
Which of the following would be regarded as an issue of shares for an improper purpose?
(i) An issue of shares to enable the directors to maintain control of the board.
(ii) An issue of shares to prevent a take-over bid.
(iii) An issue of shares in return for a non-cash consideration.
In which country are accountants legally required to speak up about certain ethical concerns?
Which of the following are recommended by the UK Corporate Governance Code?
(i) The roles of Chairman and Managing Director should be separated
(ii) A senior independent director should be identified and available as a contact for shareholders
(iii) At least one half of the board as a whole should be made up of independent non-executive directors
In the tort of negligence what is meant by “res ipsa loquitur”?
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
Which of the following is presumed not to be intended to create legal relations?
You have been asked to be involved in negotiations for the potential acquisition of another company. It so happens that your spouse is on the board of directors of that company. This affects the CIMA Code of Ethics fundamental principle of:
Which of the following would comply with best practice in accordance with the UK Corporate Governance Code in relation to Board conduct?
Who is involved in the third party relationship?
What is the public function of all accountants?
Zed plc wishes to issue £500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months' time. Which of the following best describes these shares?
Which of the following is INCORRECT regarding the differences between a general partnership and a company limited by shares?
(i) Both a partnership and a company are formed by registration with the Registrar of Companies.
(ii) All partners are agents of the firm and all directors are agents of the company.
(iii) All partners are fully liable for the firm’s debts and the company is fully liable for its own debts.
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
Which TWO of the following are NOT directly relevant to a system of professional ethics?
Demonstrating an attitude of esteem, deference, regard or admiration of others reflects the personal quality identified by the CIMA Code of Ethics as:
Which ONE of the following statements is incorrect? Ethical standards are:
Which ONE of the following provides an example of circumstances that may create self-review threats for a professional accountant in public practice?
T, a Sales Representative of E plc, made an appointment to see you in the hope of persuading you to place a substantial order with E plc. During your discussions, T suggested that you could qualify for a cash bonus in the event of an order being placed.
Which of the following is correct?
(i) Placing an order in these circumstances will place you in breach of your employment and professional obligations.
(ii) If the goods are what your company requires and are priced competitively, you are acting correctly in placing an order and qualifying for the cash bonus.
(iii) You have been placed in a conflict of interest situation and you should not proceed to place an order.
Which of the following is incorrect?
(i) All contracts must be in writing.
(ii) A contract to sell land must be in writing.
(iii) A contract of employment must be in writing.
Which of the following are reasons why regulatory frameworks may differ between countries: Select ALL that apply.
Which ONE of the following is NOT contained within form IN01 which must be submitted to the Registrar of Companies in order to register a company limited by shares?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
Which of the following statements is correct in relation to the ability of a company to contract?
Which of the following is correct?
Members of private companies often enter into so-called “shareholder agreements”. Which of the following elements of a shareholder agreement are NOT true of articles of association?
(i) A shareholder agreement is a private document not open to public inspection.
(ii) All the provisions of a shareholder agreement have contractual force.
(iii) The terms of a shareholder agreement can only be amended by unanimous consent and not by majority agreement.
If the IFAC Code of Ethics is in conflict with the laws of a particular country, then which of the following statements is TRUE?
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.
The body responsible for reviewing the accountancy profession worldwide is:
The board of Zed Ltd wishes to borrow money from Exe Bank plc. What authority will the board require to enable it to proceed?
ABC plc has acted in breach of its health and safety obligations and this has led to a number of employees and members of the public being injured.
Which of the following is correct?
The breach could give rise to:
i. Civil claims on the part of the employees and members of the public
ii. Enforcement action by the Health and Safety Executive
iii. Criminal sanctions against ABC plc
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
Which of the following is correct?
X Ltd has entered into a number of contracts with Y Ltd. In which of the following situations could the directors be held personally liable for the debts contracted with Y Ltd?
(i) X Ltd has continued to trade at a time when insolvency appeared inevitable
(ii) X Ltd has become insolvent and is unable to pay its debts to Y Ltd
(iii) X Ltd has contracted for a purpose not specified in its articles of association
Andrea is completing an audit on the finance department for a medium-sized company. In her report she makes note of the fact that her audit was severely limited due to her being unable to access many of the
department's documents.
Because of this and a number of other things she's discovered whilst conducting her audit, she thinks fraudulent activity might have been taking place within the department.
However, Andrea knows that it is not the business of auditors to seek out fraud.
What should she do?
Which of the following is incorrect in relation to the remedy of damages?
Which of the following are not owed duties by the directors?
(i) The company as whole.
(ii) Individual shareholders.
(iii) All the present and future shareholders.
Your boss knows that you will always strive to deliver a project on time and on budget. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?
Which of the following is incorrect?
What, according to CarlyFiorina, CEO of Hewlett Packard, is the spirit of a code of ethics:
While working as an accountant, you are asked to overlook certain irregularities in your company's accounts. This is likely to result in tensions described by which TWO of the following four options:
Which of the following identifies criminal as opposed to civil proceedings?
A professional accountant is NOT accountable to:
Badger has just been offered a job after completing a series of long interviews.
Which of the following would legally form the employment contract between him and his employer:
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
Which of the following types of committee is NOT required by the UK Corporate Governance Code?
The UK Corporate Governance Code is primarily directed at which type of business organization?
Company F is a new business that prides itself on being green and ethical. It uses renewable energy to run its factories, abides by all the rules and regulations and regularly donates money to sustainable development
charities around the world, despite occasionally being unable to fully pay its workers.
Why is Company F in violation of Carroll's CSR pyramid?
'Remuneration' is one of the main principles in the Corporate Governance Code. Which of the following is NOT best practice under the 'Remuneration' principle?
An independent audit is important to readers of financial statements because it
Which of the following is CORRECT?
(i) A company registered today may restrict its ability to contract by including a provision to that effect in its articles of association.
(ii) A company which was registered before the Companies Act 2006 came into force may pass a special resolution to remove its objects clause from its memorandum of association.
(iii) If the directors ignore any restriction on the company’s ability to contract they may be sued for breach of duty by the company.
Wye Ltd has ordered goods from ABC plc and the directors of Wye Ltd have guaranteed that Wye Ltd will pay the agreed sum within one month of the delivery of the goods.
Which of the following is correct?
(i) The contract is between Wye Ltd and ABC plc and the directors cannot be forced to pay the amount due in any circumstances.
(ii) A contract of guarantee is only enforceable if it is evidenced in writing.
(iii) The directors of Wye Ltd can be forced to honor the guarantee in the event of Wye Ltd not paying the amount due.
You are the manager of the finance function of a large engineering company According to IFAC's drivers of sustainable corporate success, which of the following would be a method by which you could improve the value of your department to the company?
B was an employee of Exe plc but his line manager made it practically impossible for him to continue his employment. B resigned without giving Exe plc any notice as required by his contract of employment. Which of the following is correct?