C05-Fundamentals of ethics, corporate governance and business law
Updated: Oct 2013
Sample Exam Paper Question 1
Legal and disciplinary frameworks provide ALL of the following
EXCEPT which ONE
An effective means of challenging serious wrong-doing
Deterrents to bad practice through punishment and censure
Means of controlling behaviour
Financial compensation only to the affected parties
Which of the following statement is INCORRECT regarding Financial Reporting Council (FRC)?
It is the United Kingdom’s independent regulator for corporate reporting and governance
It must always seek to insure professional integrity of practicing accountants
It aims at promoting confidence in corporate reporting and governance
Professional Oversight Board and Audit Practices Board are part of FRC
CIMA Code of Ethics takes what is called a ‘framework-based’ approach. What is the INCORRECT statement?
It does not provide a list of ‘you should not’ commands to accountants
It provides steps to identify, explain and solve ethical problems
It helps accounting practitioners to deal with immediate practical problems
Framework-based approach must be approved by the highest court in the country of the CIMA member registers the practice
The following are four of ‘the seven principles of public life’ issued by the Committee of Standards in Public Life, and a brief explanation. Which explanation does
match with the principle?
Integrity – holders of public office should not place themselves under any financial or other obligation.
Objectivity – in carrying out public business, the holder of public office must ensure personal objectives behind public objectives
Honesty - holders of public office have a duty to declare any private interests relating to their public duties
Openness - holders of public office should be open as much as possible about all decisions and actions they take.