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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 following must an internal audit satisfy in order to be deemed independent? Select ALL that apply.

Options:

A.

The head of the audit must report to a high level within the organisation.

B.

The internal audit activity must be free from interference.

C.

The head of the internal audit must communicate and interact directly with the board of directors.

D.

Any problems identified during the audit should be reported.

E.

Action plans should be negotiated with management in order to address any identified problems.

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Question 2

Mr X's wife is gravely ill.  He accepts money from a client to falsify some accounts. The client is a contractor, being paid by the Government to build a bridge over a river. The accounts now state that more expensive materials were used to build the bridge. The money helps Mr X pay for his wife's medical treatment. Is this an example of a 'victimless crime'?

Options:

A.

No. The contractor is being paid to build a bridge with tax payers' money.  If it is built with poor quality materials it may collapse, wasting money, and potentially causing an accident

B.

Yes. Mr X used the money to get help for his wife. The bridge was built anyway

C.

Yes. Mr X needed the money to help his wife - family is more important

D.

Yes. Mr X has a duty to do as his client asked

Question 3

How many fundamental principles are identified by the CIMA Code of Ethics?

Options:

A.

Three

B.

Four

C.

Five

D.

Six