Which parties of a company form the agent/principal relationship?
Which of the following are primary sources of Shari'ah law?
(i) The Sunnah
(ii) The Qur'an
(iii) Rules agreed unanimously by the disciples of Mohammad
Which of the following statements is correct in relation to private and public companies limited by shares?
According to CIMA, what is accountability?
Which of the following are TWO reasons why new legislation might be introduced in response to corporate scandals?
Which of the following statements refer to the Sarbanes-Oxley Act?
Which of the following will NOT as a general rule amount to consideration?
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?
You work for a pharmaceutical company and have discovered a series of substantial and unpublicized gifts to specific university departments. You investigate further and find that all of the university departments published research into your company's products within a year of receiving the gift. Every piece of research is favorable to your company and none identifies any financial link with your organization. Is this an ethical issue and why?
Charles is one of the three directors of Cee Ltd. The company has recently agreed to purchase Charles' house at its market value of £250,000. Which of the following is correct?
Why are the principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior “fundamental”?
A company is considering having an external audit. It knows the benefits of doing so, though is unsure of the disadvantages.
Which of the following are reasons why the company might not want to have an external audit?
Select ALL that apply.
Matty dreams of owning his own business but can't be bothered to follow the steps involved in setting one up.
What should he do?
Exe Ltd includes the following provisions in its Articles of Association. If Exe Ltd acted in breach of these clauses, identify which would not be enforceable against the company as a breach of contract.
Which ONE of the following in INCORRECT in relation to a Limited Liability Partnership (“LLP”)?
In the event of a breach of contract, what is the purpose of damages?
(i) To punish the contract breaker.
(ii) To compensate the innocent party.
(iii) To ensure that the innocent party makes a profit.
Which of the following is incorrect in relation to Shari'ah law?
Which of the following describes a principles-based approach to ethical standards in an organisation?
The objective behind the approach is to:
Which of the following would be paid last by a company which had been placed in insolvent liquidation?
A company's board of directors is faced with an ethical dilemma. The directors decide to adopt a utilitarian approach to coming up with a solution Therefore, they will take action based on which of the following approaches?
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) To succeed in the tort of negligence, a claimant must show that the defendant owed him a duty of care.
(ii) To succeed in the tort of negligence, the defendant must have broken a duty to take care.
(iii) To succeed in the tort of negligence, it is necessary to show that the claimant suffered loss or harm as a result of the defendant's breach of duty.
One of your colleagues has just been poached by a competitor. You have reason to suspect that he has provided his new employer with sensitive information about your company that could disadvantage your employer. This affects the CIMA Code of Ethics fundamental principle of:
Terry and Taylor are music producers in the UK who have decided to go into business together. They set up their partnership as an LLP and call itjammin' Records. Unfortunately their company quickly fails due to having
large debts.
Who is liable for these debts?
In relation to registering a company limited by shares, which of the following is correct?
Which of the following is incorrect?
Which of the following are guilty of skimming? Select ALL that apply.
Which of the following is NOT a 'financial stakeholder' of an organization?
The primary role of internal audit within an organisation is to:
Which ONE of the following was NOT a recommendation of the Cadbury Committee Report 1992?
Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should act diligently and in accordance with applicable technical and professional standards"
Which of the following would comply with best practice in accordance with the UK Corporate Governance Code in relation to Board conduct?
Jo is employed as management accountant of a large retailer. Jo has been asked to call a supplier and promise settlement of their account 'next week'. Jo is aware that her employer will definitely not have sufficient funds available to make the payment. If Jo accepts the request, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?
Anne, Bill, Chris and Diane are the only directors of ABCD Ltd. Bill is the Chairman of the board and has a casting vote. A board meeting was called to consider a proposal to enter into a contract with EFG Ltd. Which of the following is INCORRECT?
According to the CIMA Code of Ethics, a professional accountant should not be associated with reports, returns, communications or other information where they believe that the information:
You work for a clothing retailer. Which of the following corporate issues is NOT related to ethics or social responsibility?
C has just set up her own practice and things are going well. She is also a single parent, so is reliant upon her income to pay her bills and support her family. One of her uncles recommends a new client to her. This client wants C to provide an accountant's report in support of his mortgage application. He insists there is no need for her to see the full details of his income. He suggests that C's uncle would be most displeased if she did not help him, and that she may potentially lose other potential clients.
This is a tension between C's:
Regarding auditor remuneration, a self-interest threat to professional competence and due care is created if
Which of the following statements is incorrect in relation to written resolutions?
A business has been registered under the name ABC Ltd. Which of the following types of business organization must this be?
Timmy has just taken over as the managing director of a well-known manufacturing company.
He really wants to do a good job an ensure that the company maintains its positive reputation.
Baring in mind the five key principles of corporate governance, which of the following should Timmy do to ensure he does a good job?
Select ALL that apply.
Which of the following statements is correct regarding dismissal?
Members of the accountancy profession are expected to demonstrate certain personal qualities and virtues such as 'respect'
Which of the following is an example of the demonstration of the virtue of respect?
In relation to contractual performance, which of the following is incorrect?
Which of the following statements is correct in relation to the ability of a company to contract?
You work for a company that is constructing a major football stadium. The day that the stadium is finished, large cracks appear in the supporting walls. It turns out that your company's purchasing director bought cement from a new and inexperienced company. You find out that the cement supplier was no cheaper than the other suppliers who had bid for the contract but that the son of your purchasing director happens to run the cement company. Is this an ethical issue and why?
CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?
Which of the following is NOT normally a stakeholder of an organization?
Which of the following is NOT a 'financial stakeholder' of an organization?
Which of the following is incorrect in relation to the remedy of liquidated damages?
Which ONE of the following most accurately describes corporate governance?
Which of the following accountants have breached CIMA's ethical principle of professional behaviour: Select ALL that apply.
You work for an oil company and your company is negotiating a contract with the government of another country. During the course of the negotiations, your managing director has run up a very substantial expenses bill for entertaining personnel from the country's government. This scenario suggests which TWO of the following ethical issues?
Miss K is a newly qualified accountant working in a highly respected local accountancy firm headed by Mr R, who is a pillar of the community. One night, Miss K is at an out of town bar with friends, when she spots Mr R with Mrs E, a client of the firm. It is obvious they are having a secret affair. Is this an ethical issue?
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?
B has been employed by Wye Ltd for 10 years. His contract of employment states that, if either Wye Ltd or B wishes to terminate the contract, each party must give the statutory minimum period of notice.
Which of the following statements is correct?
Listed companies must comply with the Corporate Governance Code If they do not, which of the following penalties will apply?
Which ONE of the following might NOT be the consequence of unethical behavior by a professional body?
Lotl is a well-known supermarket chain that has recently come under fire for not encouraging diversity within the organisation.
Because of this, it has been making efforts to make the business more diverse.
Which of the following are ways Lotl might do this?
Select ALL that apply.
Which of the following resolutions of a private company limited by shares CANNOT be effected by using the written resolution procedure?
(i) An ordinary resolution to dismiss a director.
(ii) A special resolution to misapply statutory pre-emption rights in relation to a new issue of shares.
(iii) An alteration of the articles of association.
Which of the following CANNOT be carried out by a simple contract?
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 statements is incorrect?
Which of the following need NOT be submitted in order to register a private company limited by shares?
(i) Articles of association
(ii) The name of the company secretary
(iii) A statement of share capital
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
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.
As a member of the audit team of a large company, J has discovered that one of his close friends is in a part of the business which is going to be sold off, and his friend is likely to face redundancy. What should he do?
Which of the following is correct?
Which of the following statements is correct in relation to the "maintenance of capital" principle?
Which THREE of the following are examples of a fraudulent action against a company?
Which of the following is correct in relation to the UK Corporate Governance Code?
(i) The Code gives rise to a disclosure requirement
(ii) Breach of the Code gives rise to criminal penalties
(iii) Breach of the Code gives rise to civil liability
Which of the following statements is correct?
Which of the following is correct?
(i) All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(ii) The Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(iii) An English court is not bound to give effect to a preliminary ruling of the European Court of Justice.
Which of the following are situations involving familiarity threats? Select ALL that apply.
Which of the following is not valid consideration?
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:
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 need to be proved in order for there to be a misrepresentation? Select ALL that apply.
Which of the following statements is incorrect in relation to a public company limited by shares?
Zed plc contracted to build an apartment block for Exe Ltd. Which of the following would provide Zed with a valid excuse not to proceed with the contract?
(i) A key employee who was to manage the project has resigned.
(ii) The price of the materials to be used by Zed plc have increased to such an extent that the building can only be completed at a loss to Zed plc.
(iii) Planning permission has been refused.
In the UK, the body responsible for promoting confidence in corporate reporting and governance is:
Zed plc has appointed Wye and Co (accountants) as auditors of the company. If the audit is carried out negligently which of the following are entitled to claim against the auditors?
As stated in the CIMA Code of Ethics, the two key attributes of independence used in connection with the assurance engagement are:
Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
Which of the following are listed among the IFAC's drivers for sustainable organisational success?
Select ALL that apply.
Which of the following is NOT a correct distinction between shares and debentures?
Which of the following is correct?
(i) A contract for the sale of land must be in writing.
(ii) A consumer credit agreement must be in writing.
(iii) A contract of employment must be in writing.
Which ONE of the following is not included in the CIMA Code of Ethics list of client issues that could threaten compliance with the fundamental principles?
Which of the following are the TWO main differences between the structure and function of company boards in Germany and the UK?
Who should check that a company's financial statements provide a true and fair view of its financial performance?
You work for a chain of restaurants. The head chef of your flagship restaurant raises questions about the inclusion of highly endangered species of fish on the restaurant's menu. Is it an ethical issue and why?
Cameron runs his own chain of ice cream shops. However, his business recently accrued a lot of debt due to a sharp rise in the price of milk, and he is now forced to shut the whole operation down.
Who is liable for the debt?
Michael is conducting a social and environmental audit on a chemicals factory. Which of the following should he review?
Ethical dilemmas can arise where there is tension between:
Which of the following is correct if a promoter orders goods or services on behalf of a company limited by shares which is not yet registered?
(i) The promoter is personally liable for the order.
(ii) The promoter and the company are jointly liable for the order.
(iii) If the company ratifies the order after its registration, the company is liable and the promoter's liability for the order ceases.
Which of the following are fundamental characteristics of useful information? Select ALL that apply.
Steve manages the accounts for a large software company. He's good at his job, though it has recently emerged that he is going through quite a messy divorce.
Why should the company's senior management be most concerned?
According to the UK Corporate Governance Code, who is responsible for setting the company's values and standards?
Which of the following statements is correct?
(i) As a general rule the acceptance of an offer is only effective when it has been communicated to the offeror.
(ii) A person must know of an offer before he or she can accept it.
(iii) A request for further information has the effect of destroying the original offer.