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

1. Bill is conducting an audit on a furniture manufacturer. There doesn't appear to be any major issues with the company and its finances. However, Bill has noticed that the company has adopted a new set of accounting standards unusually early.
What should Bill do?

A) Issue an adverse opinion due to concerns raised during the audit.
B) Issue a modified audit report as he is satisfied the elements examined.
C) Issue a modified audit report as he is unsatisfied with the elements examined.
D) Document this finding in an 'emphasis of matter' statement

2. 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..."?

A) The directors.
B) The shareholders as a whole.
C) Any member.
D) The holders of at least 10% of the company's issued share capital.

3. Which ONE of the following resolutions is no longer legally effective?

A) A written resolution
B) An ordinary resolution
C) A special resolution
D) An elective resolution

4. Self regulation is based upon:

A) Compliance
B) Rules
C) Trust
D) Professional bodies

5. If a professional accountant believes that he or she will not be able to comply with all the legal frameworks, regulations and standards for business in a particular circumstance, what does he or she have a duty to do? Please select TWO of the following:

A) Disregard conflicting standards
B) Act in the interests of his or her employer
C) Raise his or her concerns by speaking up
D) Obey the law

Solutions: