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BA4 Exam Dumps : Fundamentals of Ethics - Corporate Governance and Business Law

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Fundamentals of Ethics - Corporate Governance and Business Law Questions and Answers

Question 1

Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?

 

"A professional accountant should comply with the relevant laws and regulations and should avoid any action that discredits the profession"

Options:

A.

Integrity

B.

Objectivity

C.

Professional competence and due care

D.

Professional behavior

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Question 2

Independence of mind allows a professional accountant to:

Options:

A.

Act with integrity

B.

Exercise objectivity

C.

Exercise professional skepticism

D.

All of the above

Question 3

The majority of developed countries require publicly quoted companies and large companies to produce annual financial statements which are then audited by an external auditor.

Which of the following statements regarding the requirement for external audit is Incorrect?

Options:

A.

Independent external audit gives confidence in the financial statements which is required as the directors have incentives to manipulate the financial statements presented to the shareholders

B.

As the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and this needs to be guaranteed by independent external audit.

C.

Independent external audit gives confidence in the financial statements by including the auditor's opinion on whether or not they show a true and fair view.

D.

As the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and there is a need for this to be assured by independent external audit