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Decklt is a skateboard manufacturer that is ethically run and has a good reputation.
However, it has just transpired that one of their suppliers - with whom they have a good relationship with due to their cheap prices - is involved in a serious fraud case.
What should Decklt do?
AD company has recently appointed you as the head of their internal audit department and the head of the risk management committee. The internal audit department consists of a team of ten full time staff and other finance and IT staff are appointed into the internal audit team on an ad hoc basis as required. The rail time staff are all qualified accountants, some with CIMA and some with other professional bodies.
The company prefers to keep the full time staff complement to ten to manage the costs and the team have told you that they are often under considerable pressure to perform their operational and financial audit work and feel short staffed. The team therefore relies on the support of key members of the finance department and IT department, who are experts in their areas
You were appointed to the role by the audit committee and have been given authority to investigate all aspects of the business.
From your initial understanding of the internal audit function which TWO statements describe the strengths of the department?
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
A advertised his van for sale in the local newspaper at a price of £5,000.
In which of the following situations is a contract between A and B created?
ABC Ltd has contracted with DEF Ltd. If ABC Ltd acts in breach of a warranty, which of the following is correct?
(i) DEF Ltd may terminate the contract and sue for damages.
(ii) DEF Ltd may sue for damages but may not terminate the contract.
(iii) DEF Ltd may ignore the breach and continue with the contract.
Members of private companies often enter into so-called “shareholder agreements”. Which of the following elements of a shareholder agreement are NOT true of articles of association?
(i) A shareholder agreement is a private document not open to public inspection.
(ii) All the provisions of a shareholder agreement have contractual force.
(iii) The terms of a shareholder agreement can only be amended by unanimous consent and not by majority agreement.
Which of the following is CORRECT in relation to the Sarbanes-Oxley Act passed in the United States of America in 2002?
i. The Act sought to protect investors by improving the accuracy of corporate disclosure and reporting procedures and increasing corporate openness.
ii. The Sarbanes-Oxley Act 2002 was passed in response to the high-profile Enron and WorldCom financial scandals.
iii. The Act provides that all auditors of public companies must register with the Public Company Accounting Oversight Board.
The directors of Zed Ltd issued a number of shares to their supporters, so that they would vote against a takeover bid by Exe Ltd.
Which of the following statements is INCORRECT?
Which of the following might a company experience if they were to implement internal control measures?
Select ALL that apply.
S is assistant management accountant for a large telecommunications company. S has become aware that the company is offering different levels of discount to different corporate customers. S is concerned that this is unethical, so she mentioned it to the Finance Director during her most recent appraisal. The Director seemed amused at S's concern, and said that such a situation was 'perfectly normal'.
Which ONE of the following would it be appropriate for S to do?
Which of the following identifies civil as opposed to criminal proceedings?
i. The case was heard by the Magistrates Court.
ii. The case was brought by a claimant.
iii. The case was proved on the balance of probabilities.
Being offered gifts and hospitality can give rise to threats to compliance with fundamental principles. Which of the following statements is NOT in accordance with the CIMA Code of Ethics?
A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest Therefore:
James works for a large company in the City. He likes working there, though he has just identified an issue of fraud within the company.
He has double-checked the facts, deduced that the fraudulent activity is both unethical and illegal, identified a number of ethical principles that have been breached and identified who is involved and who could be
affected.
What should he do next?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
An auditor would trace copies of sales invoices lo shipping documents in order to check for which of the following errors?
Which of the following requires the approval of a simple majority of all the company's shareholders who are entitled to vote?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
According to Carroll's model of CSR, which of the following is TRUE of a company's legal responsibility?
Company F is a new business that prides itself on being green and ethical. It uses renewable energy to run its factories, abides by all the rules and regulations and regularly donates money to sustainable development
charities around the world, despite occasionally being unable to fully pay its workers.
Why is Company F in violation of Carroll's CSR pyramid?
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 requires the approval of 75% of all the company's shareholders who are entitled to vote?
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?
Which of the following are situations in which the accountant is permitted to disclose confidential information?
Select ALL that apply.
Which of the following statements is incorrect in relation to the Memorandum of Association of a company which is registered after the Companies Act 2006 is fully in force?
Seb is auditing a large firm in the City. He wants to access the company's books and records, to be notified of any shareholder meetings and to ask the company's senior staff to produce certain documents that he feels
are necessary to audit.
However, the company he is auditing denies every one of these requests.
Should Seb's requests be granted?
Which of the following is INCORRECT in relation to the recommendations of the Greenbury Committee Report of 1995?
Which of the following statements is correct in relation to private and public companies limited by shares?
Which ONE of the following was NOT a recommendation of the Cadbury Committee Report 1992?
Advocacy threats to compliance with fundamental principles are described as threats that may occur
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'?
X owns 51% of the shares in X Ltd. Y and Z are the only directors of X Ltd. Which ONE of the following is CORRECT?
Which of the following is INCORRECT in relation to directors' duties?
i. Directors who arrange for shares to be offered directly to their supporters in order to prevent a take-over bid are acting lawfully so long as they have the legal power to allot shares in the company's constitution.
ii. Directors may act in breach of their duties and still be complying with the UK Corporate Governance Code.
iii. Directors' duties are owed to the shareholders as a body and enforceable by the company.
In resolving an ethical dilemma, which of the following would NOT be a useful approach to take when focusing on finding an ethical solution?
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?
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 NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?
How might a company ensure that the roles and responsibilities of its board and management are made clear and publicly known?
In which THREE of the following situations might professional accountants be required or permitted to disclose confidential information relating to their employer?
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?
Which of the following need to be proved in order for there to be a misrepresentation? Select ALL that apply.
Section 13 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the goods supplied will correspond to the description. What remedies are available to the innocent buyer in the event of a breach of Section 13?
A professional accountant's social responsibility relates to which TWO of the following?
Which of the following automatically causes a contract to become unenforceable?
(i) Where the contract has become frustrated.
(ii) Where the buyer was induced to enter into the contract by a fraudulent misrepresentation.
(iii) Where one of the parties has acted in breach of a warranty in the contract.
The introduction of restrictions on how companies are permitted to advertise to children is a UK government reaction to a tension between:
The chief executive of a transnational corporation states on her curriculum vitae that she has an MBA which she does not in fact have. Is this an ethical issue and why?
P is an accountant working in a business Which of the following circumstances might create a self-interest threat for P in her professional role?
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.
Which one of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
Complying with relevant laws and legislations demonstrates part of which CIMA Code of Ethics fundamental principle?
Which of the following must an internal audit satisfy in order to be deemed independent? 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?
Which of the following are recommended by the UK Corporate Governance Code?
(i) The roles of Chairman and Managing Director should be separated
(ii) A senior independent director should be identified and available as a contact for shareholders
(iii) At least one half of the board as a whole should be made up of independent non-executive directors
Which of the following is correct in relation to Section 14 of the Sale of Goods Act 1979 which implies a term into contracts for the sale of goods that the goods supplied will be of “satisfactory quality.”
(i) A breach of Section 14 enables the innocent buyer to cancel the contract and claim damages.
(ii) The parties to a contract for the sale of goods can choose to exclude Section 14.
(iii) Section 14 applies to contracts for the sale of new goods only and does not apply to sales of second-hand goods
Governance denotes the generic way an organization is run with particular emphasis on:
A, B C and D are sole directors and shareholders of EFG Company each holding 25% of the shares in the company. The articles of association
of EFG Company state that "the directors cannot enter into any contract on behalf of the company exceeding $30,000 without the agreement of all the shareholders’’.
B contracted on behalf of the company for $40,000 with Y Company without the agreement of the other shareholders. Which of the following is correct?
1. Y Company may enforce the contract against EFG Company
2. A, C and D may obtain an injunction to stop the contract being canted out
3. B may be liable to EFG Company for breach of duty.
In relation to the law of misrepresentation, which of the following is correct?
Which of the following statements about the relationship between external and internal auditors is FALSE?
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.
A Ltd contracted to deliver a quantity of goods to B Ltd for £5,000. The goods were delivered and A Ltd submitted an invoice to B Ltd for the amount due which contained a number of new terms. Which of the following is incorrect?
Which of the following is incorrect?
(i) All contracts must be in writing.
(ii) A contract to sell land must be in writing.
(iii) A contract of employment must be in writing.
Which of the following is incorrect in relation to the remedy of liquidated damages?
Working late one evening, you see a colleague copying information on to series of CD Roms. He tells you that software is too expensive for him to afford for his home computer but that he needs the software for his own personal use and in case he might take work home at some point. Is this an ethical issue and why?
You are the financial controller of SB Company, responsible for directing the budgeting process For the current year, you were instrumental in gaming approval of a particular manager's budget without modification. As a token of appreciation, the manager has given you a gift voucher for a local restaurant In considering whether or not to accept the gift, you should refer to which of the following fundamental ethical principles?
On the basis of the National Minimum Wages Act 1998, what is the age range for the lowest national minimum wage entitlement?
In the event of a conflict between European Law and French Law which will prevail?
B is employed by Zed plc and has suffered an occupational injury.
Which of the following is correct?
Zed plc may be liable to B for:
i. breach of an implied term in B's contract of employment
ii. breach of the duty to take care in the tort of negligence
iii. breach of statutory duty
Which of the following is correct?
i. A company intending to issue new shares for cash must first offer them to the existing shareholders.
ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.
iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.
Which of the following is correct in relation to damages?
(i) The victim of a breach of contract may claim damages in respect of losses caused by the breach which were within the contemplation of the contract breaker.
(ii) As a general rule damages cannot be claimed for annoyance and inconvenience caused by the breach of contract.
(iii) Where there is a breach of contract, damages are available to the innocent party as of right.
You work for an accountancy firm and discover that a member of an assurance team has a significant conflict of interest. You take CIMA's Code of Ethics with you when you alert your board of directors as to why this is an important issue, but the board decides that the conflict of interest is not important. This is an example of tension between:
If a business trades as “Exe and Co (Office Furniture)” which of the following is CORRECT?
(i) The business could be owned by a partnership
(ii) The business could be owned by a sole trader
(iii) The business could be owned by a private company limited by shares
Which of the following types of committee is NOT required by the UK Corporate Governance Code?
In furtherance of their duty to promote the success of the company under Section 172 of the Companies Act 2006, the directors are required to take account of amongst others, the company and its members, employees and suppliers.
Which of the following can enforce this duty against the directors?
AB Ltd contracted to deliver two desks and three filing cabinets to CD Ltd. On the day when delivery was due to take place AB Ltd did not have a vehicle with sufficient capacity to hold all the goods. As a result AB Ltd delivered the two desks only
Which of the following is correct?
The UK Corporate Governance Code is primarily directed at which type of business organization?
B agreed in his contract that he would not work for a competitor of Gee Ltd for a period of 12 months after leaving the company's employment. On leaving Gee Ltd, B worked for Zed Ltd, a competitor of Gee Ltd. If the restriction in B's contract with Gee Ltd should be found to be reasonable, which of the following remedies is Gee Ltd entitled to?
(i) A decree of specific performance forcing B to comply with his contract with Gee Ltd.
(ii) Damages in respect of any loss caused by B's breach of contract.
(iii) An injunction to stop B working for Zed Ltd.
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?
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
C is a professional accountant He encounters an ethical dilemma in his role and wishes to seek help in resolving it. Which of the following would NOT be an appropriate source of advice?
A group of business associates are about to register X Ltd as a company limited by shares. The associates wish to restrict the company's objects so that the company is only authorized to carry on the business of retailing computer hardware and software. Which of the following is correct?
Which ONE of the following in INCORRECT in relation to a Limited Liability Partnership (“LLP”)?
C recently purchased some goods at an auction sale. Which of the following is correct?
(i) The contract was concluded by the fall of the Auctioneer's hammer.
(ii) The Auctioneer's call for bids was an invitation to treat.
(iii) Once the bidding had started, the Auctioneer was unable to withdraw the goods from the sale.
A business has been registered under the name ABC Ltd. Which of the following types of business organization must this be?
CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?
Zed Ltd was incorporated in 2010 and has chosen to use the standard Model Articles of Association. The company is considering appointing Max as a director of the company.
Which of the following is incorrect?
(i) Max cannot be a director of the company unless he holds shares in the company.
(ii) Max cannot be a director of the company if he is an undischarged bankrupt.
(iii) Max cannot be a director of the company if he is subject to a disqualification order.
Which of the following is incorrect in relation to remedies for breach of contract?
You always take the time to be polite to colleagues and listen to the opinions of others, even if you might disagree with their views. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?
Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession"
Which of the following is INCORRECT in relation to the Unfair Terms in Consumer Contracts Regulations 1999?
According to the CIMA Code of Ethics, which of the following categories describe common threats to compliance with the fundamental principles? Please select all that apply.
Which ONE of the following provides an example of circumstances that may create self-review threats for a professional accountant in public practice?
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
In relation to international regulations, which of the following is correct?
i. International regulations seek to establish common standards between professions practicing in different States so as to further international cooperation and agreement.
ii. International regulations agreed by the professional bodies of different States have the force of international law.
iii. International regulations which harmonies standards and procedures may be incorporated into contracts by commerce and the professions.
Zed Bank plc has agreed to allow Exe Ltd an overdraft of £50,000 subject to a fixed and floating charge over almost all of the company's assets. In addition, the directors of Exe Ltd have been required to personally guarantee the overdraft.
Which of the following is correct?
(i) The directors could face bankruptcy if they are called upon to honour the guarantee.
(ii) In this case the directors do not enjoy limited liability as they are liable on the guarantee if the company cannot pay.
(iii) The directors could only be required to honor the guarantee if the company's assets proved insufficient to meet the overdraft.
Which of the following statements is correct?
(i) The written statement of particulars of employment is the contract of employment and every employee with one month's service is entitled to receive a copy.
(ii) The written statement of particulars of employment is not the contract of employment.
(iii) The written statement of particulars of employment may be the best evidence of the terms of the contract and every employee with one month's service is entitled to receive a copy.
A was disqualified from driving but continued his employment as a driver for XYZ plc. The company discovered that A had lost his driving license and immediately dismissed him without notice.
Which of the following is correct?
i. As no notice was provided A's dismissal amounts to constructive dismissal.
ii. The employer was justified in dismissing A without notice as he was unable to continue his employment.
iii. A may make a claim for wrongful dismissal as, although his dismissal was justified, he was entitled to notice.
When preparing financial statements, you are extremely careful not to omit relevant information, mislead readers or misstate facts. This demonstrates the CIMA Code of Ethics fundamental principle of:
Which of the following are situations involving conflicts of interest? Select ALL that apply.
Which of the following statements correctly defines the ethics of utilitarianism?
In relation to business names which of the following is CORRECT?
(i) Any business may trade under a business name.
(ii) If a business name is used the name of the owner of the business must be disclosed.
(iii) The business name of a private limited company must end with the word “Limited” or “Ltd”.
You work for a publishing company. Which of the following corporate issues is NOT related to ethics or social responsibility?
A manufacturing company has a policy of only buying raw materials which are produced within a 100 kilometer radius of its factory. This is an example of what aspect of CSR?
Which of the following are benefits a company might gain from having NEDs on their audit committee? Select ALL that apply.
How can values become part of a company's DNA? Choose TWO of the following options.
There are several different schools of ethics. Which of the following best represents the ethical approach adopted by the accountancy profession?
Which of the following are examples of an invitation to treat? Select ALL that apply.
Although no-one has reason to suspect, you have taken a violent dislike to a particular assurance client. This could severely affect your independence:
Which of the following statements is correct in relation to the "maintenance of capital" principle?
Louis is the only director in MNO Ltd. Max, Nick and Olga each hold one third of the issued share capital of the company. Louis has proposed an amendment to the company's Articles of Association. Which of the following is correct?
SuperSole is a large shoe company that sells its products all over the world. It has many factories and stores in many different countries, and its yearly revenues often exceed £100 million. The company is also listen on
the stock exchange.
Should SuperSole have its own internal auditing department?
The board of Zed Ltd wishes to borrow money from Exe Bank plc. What authority will the board require to enable it to proceed?
Which of the following is not financial assistance for the purchase of a public company's own shares?
Which of the following groups is a non-financial as opposed to a financial stakeholder of a company?
Which of the following cases of dismissal are likely to be deemed automatically fair by an employment tribunal?
Ethical dilemmas may be raised with a professional accountant via which of the following routes?
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 of the following terms can be defined as follows?
"...the generic way that organizations are run"
How might an organization exercise ethical control over its staff? Select ALL that apply.
Allowing bias, conflict of interest or undue influence of others to override professional or business judgments violates the CIMA Code of Ethics fundamental principle of:
Which of the following statements is INCORRECT?
(i) A counter offer has the legal effect of destroying the original offer and putting another offer in its place.
(ii) For an agreement to be valid at law, the offer and the acceptance must be in the same form.
(iii) Agreements made by email are unenforceable at law.
The body responsible for reviewing the operations of the accounting profession worldwide is:
Which TWO of the following are reasons why a company would choose to introduce a values based code of ethics?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
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.
Pascal later heads off to the party where he proceeds to tell everyone about his amazing first day at work and the huge profits his new company are making and how much he's already saved them. "My future is bright"
he tells everyone!
Again, Pascal has breached CIMA's ethical principles.
Which of the following has he breached?
Select ALL that apply.
Who should check that a company's financial statements provide a true and fair view of its financial performance?
You work for a company that designs and manufactures children's toys. Which of the following is NOT an example of social responsibility that your company might choose to address?
Which of the following remedies is not available for a breach of a contract to provide personal services?
Which of the following is CORRECT in relation to an alteration of a company’s articles of association?
(i) A copy of the resolution and the amended articles must be filed with the Registrar of Companies within 15 days of the date of the resolution.
(ii) The articles of association may be amended by an ordinary resolution with special notice.
(iii) An alteration of the articles cannot discriminate between the majority and minority shareholders.
Jimmy wants to sell his scooter, so he puts an advert on the internet with a price of £50.
He quickly gets an offer for the full amount, but then decides that he doesn't want to sell his scooter after all!
The buyer complains and threatens to report jimmy to the police.
This doesn't worry Jimmy as he knows he is not legally obliged to sell his scooter. Why is this?
In which country are accountants legally required to speak up about certain ethical concerns?
Your company's marketing department produces a corporate brochure where, although it uses data that is accurate, the conclusions that it draws are somewhat misleading. Is this an ethical issue and why?
F knows from preparing the accounts that the company she works for is going to have to make redundancies due to the recession. She also knows that, despite the recession, the Managing Director continues to enjoy lavish perks and even uses a private jet. What should she do?
Which of the following statements refer to the remuneration committee? Select ALL that apply.
Which of the following is correct?
(i) A contract of guarantee is unenforceable unless it is evidenced in writing.
(ii) A contract to sell land must be in writing.
(iii) A contract of employment must be in writing.
Intimidation threats to compliance with fundamental principles are described as threats that may occur
Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?
Internal audit is considered best practice but is not required by law Which of the following does NOT describe a benefit of internal audit to the board of directors?
Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?
Company A has recently been having problems matching the views of its employees to its own. Which of the following might help their situation? Select ALL that apply.
R, S and T are the only shareholders in RST Ltd each holding 5,000 ordinary £1 shares. R is the only director of the company. The articles of association of RST contain the following provisions:
1. R is to be a director of RST Ltd for life.
2. In the event of any resolution to dismiss R by ordinary resolution his votes shall count three times.
Which of the following is CORRECT?
(i) Provision 1 is void as a director cannot be appointed for a period exceeding 3 years.
(ii) Provision 2 is valid and R may outvote any proposed resolution to dismiss him.
(iii) Provisions 1 and 2 are both unenforceable by R as they are not ordinary membership rights.
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
How can a company help employees make the right decision when faced with a difficult situation?
T is a senior accountant, but knows he needs to update himself on recent changes in accounting practice. He has been too busy; his manager is off sick and T is taking responsibility for his work load. T decides to let his CPD slide. Another year won't matter. Is this an ethical issue?
A advertised her motor car for sale in a local newspaper at a price of £5,000.
Which of the following is correct?
L is a senior management accountant in a large and respected firm. He has found out that two of the partners of the firm are working unethically for clients who operate on 'the wrong side of the law'. L would like to draw this matter to the attention of the third partner, but he is concerned that he will either lose his job, or, if the scandal gets out, the firm will lose its reputation and clients as a result. He decides to do nothing. Is this an unethical thing to do?
Which of the following is INCORRECT in relation to an alteration of a company’s articles of association?
Which of the following increase the likelihood of having a successful ethical code? Select ALL that apply.
Which of the following are cases where the veil should be lifted? Select ALL that apply.
V is an accountant for HIJ company. This large international jewelry manufacturer and retailer both mines, designs and sets and retails its gemstones It has significant mining operates in Country A and Country Z.
It has been a key player in the development of ethical employment mining practices especially in advanced safety policies and it received a United Nations award for action against Blood Diamonds It publishes a detailed CSR report which highlights how its approach to safety is a core business value and how its KPIs around employee turnover and accident have improved annually.
Vs company has recently appointed a new CEO who is taking an aggressive stance to improving profit margins and wants to reduce the expenditure on safety, a key aspect of the approach to ethical mining practices in HIJ company
Which THREE of the following statements would V use to support the continuation of the ethical policy in this new culture? The ethical treatment of the mining workforce
One of your colleagues is running an event to raise money for a local charity. One evening, you see her taking boxes of pens, notepads and post-it notes. When you challenge her, she says that she is taking them for her fundraising and, although she has not asked permission to take them, she is sure the company will not mind. Is this an ethical issue and why?
Which of the following entitles the innocent party to cancel the contract?
(i) A breach of a warranty.
(ii) A breach of a condition.
(iii) An express term authorizing termination of the contract.
lohn works as a management accountant for a law firm. He only got the job because he lied about his qualifications: he told the interviewers that he the required accountancy qualifications to do the job when he actually
didn't.
Now John's boss has found that John lied during the interview. Which of the following will almost certainly happen as a result?
Select ALL that apply.
Which of the following does NOT discharge a contract?
(i) Self-induced frustration.
(ii) Performance of the parties' obligations under the contract apart from minor defects
(iii) The insolvency of one of the parties making it impossible for him to pay the contract price.
Which TWO of the following are NOT directly relevant to a system of professional ethics?
High profile corporate scandals in the past decade have had an effect on which of the following?
Tee Ltd placed some computers in its shop window with a notice which reaD. "Special offer. Internet-ready computers for sale at £400."
Which of the following is correct?
(i) The notice amounts to an invitation to treat.
(ii) When a customer called in to the shop and offered £350 for one of the computers, he had made a counter offer.
(iii) The shop is obliged to sell a computer to anyone who can pay the price.
Which of the following is correct in relation to the purchase by a company of its own shares?
(i) If a company wishes to purchase its own shares it must have authority in its Articles of Association.
(ii) A private company may purchase its own shares out of capital.
(iii) It is not possible for a company to purchase all its own shares.
Which of the following is incorrect in relation to a reduction of capital by a private company?
Which of the following is correct in relation to a company's ability to have a restricted objects clause in its constitution?
(i) A company may restrict its objects in its constitution
(ii) Any clause restricting the company's objects should be included in the company's articles of association
(iii) The shareholders may pass a special resolution to alter the company's constitution by including a clause which restricts the company's objects
Which THREE of the following represent the impact of one of the seven principles of public life on accountants?
When awarding contracts accountants should ensure that this is based upon objective measures of comparative merit.
Wye Ltd is considering appointing Anne as a director of the company. Which of the following is incorrect?
(i) If Anne is an un-discharged bankrupt, she cannot act as a company director.
(ii) If Anne is the subject of a disqualification order, she cannot act as a company director.
(iii) If Anne has already been appointed a director of another company, she cannot also act as a director of Wye Ltd.
D is the chief executive of a UK-based mining company which has operations across the world and, in some countries, employs children. Child workers are only permitted to undertake certain tasks that are deemed to be safe and not physically demanding. Endorsed by his board of directors, D argues that it is better for children in poor countries to have the option of fairly paid work than to risk starvation or be forced into prostitution or criminality. A national newspaper publishes the story and gets an unprecedented number of UK voters to sign a petition for government to intervene and stop these practices. This is an example of a tension between:
TESTED 21 Nov 2024