TEST 9 ETHICS

198. Which of the following statements is correct?

A Ethics in business is the application of ethical values to business.
B Ethics is about what an organisation does, not how it does it.
C Ethics and the law are the same thing.
D If a person complies with the letter of the law he will always be acting ethically.
199. Which one of the following is associated with a framework-based approach to ethics?
A Detection.
B Mandatory.
C Values driven.
D Black and white.
200. Which one of the following is not associated with a value-based approach to ethics?
A Slow burner.
B Long time-frame.
C Grey.
D Constant monitoring.
201. Which one of the following is associated with a rules-based approach to ethics?
A Easier for personnel.
B Prevention.
C Discretionary.
D Spirit of the law.
Answers
202. Which one of the following is not associated with a compliance-based
approach to ethics?
A Mandatory.
B Grey.
C Explicit.
D Constant monitoring.
203. The body responsible for reviewing the operations of the accounting
profession worldwide is
A The International Federation of Accountants.
B The Professional Oversight Board for Accountancy.
C The Financial Reporting Council.
D The Auditing Practices Board.
204. In the UK, the body responsible for establishing ethical standards relating to
the independence, objectivity and integrity of those providing assurance
services is
A The International Federation of Accountants.
B The Professional Oversight Board for Accountancy.
C The Financial Reporting Council.
D The Auditing Practices Board.
205. In the UK, the body responsible for reviewing the regulatory activities of the
professional accountancy bodies is
A The International Federation of Accountants.
B The Professional Oversight Board for Accountancy.
C The Financial Reporting Council.
D The Auditing Practices Board.
Answers

206. In the UK, the body responsible for promoting confidence in corporate
reporting and governance is
A The Financial Review Board.
B The Professional Oversight Board for Accountancy.
C The Financial Reporting Council.
D The Auditing Practices Board.
207. Which of the following is not one of the 7 principles of public life, as defined
by the Committee on Standards in Public Life?
A Selflessness.
B Integrity.
C Professionalism.
D Leadership.
208. Which of the following is not one of the 7 principles of public life, as defined
by the Committee on Standards in Public Life?
A Objectivity.
B Learning.
C Openness.
D Accountability.
209. Which of the following is one of the 7 principles of public life, as defined by
the Committee on Standards in Public Life?
A Materiality.
B Courtesy.
C Confidence.
D Honesty.
Answers
210. The International Federation of Accountants believes that members of the
accountancy profession need to have certain personal qualities.
Which one is defined as the concept of being able to be trusted by others
and to be dependable through the ability to deliver what and when it has
been agreed with another?
A Reliability.
B Responsibility.
C Timeliness.
D Courtesy.
211. CIMAs Code of Ethics for Professional Accountants applies to
A Members and students internationally.
B Members internationally and students in UK.
C Students and members in UK.
D Members internationally but not students.
212. Which of the following is not one of the fundamental principles of CIMAs Code of Ethics?
A Professional behaviour.
B Courtesy.
C Integrity.
D Objectivity.
213. Which of the following is not one of the fundamental principles of CIMAs Code of Ethics?
A Professional competence and care.
B Confidentiality.
C Integrity.
D Leadership.

Answers
214. Which of the fundamental principles of CIMAs Code of Ethics is defined as
follows? A professional accountant should be straightforward and honest in all
professional and business relationships.
A Objectivity.
B Professional behaviour.
C Integrity.
D Professional competence and care.
215. Which of the fundamental principles of CIMAs Code of Ethics is defined as follows?
A professional accountant should not allow bias, conflict of interest or undue influence of others to
override professional or business judgements.
A Integrity.
B Professional competence and care.
C Professional behaviour.
D Objectivity.
216. Which of the fundamental principles of CIMAs Code of Ethics is defined as follows?
A professional accountant should act diligently and in accordance with applicable technical and
professional standards.
A Professional competence and care.
B Objectivity.
C Professional behaviour.
D Integrity.
Answers
217. Which of the fundamental principles of CIMAs 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.
A Professional competence and care.
B Confidentiality.
C Professional behaviour.
D Integrity.
218. Which of the fundamental principles of CIMAs Code of Ethics is defined as
follows? A professional accountant should respect the confidentiality of information
acquired as a result of professional and business relationships and should
not disclose any such information to third parties without proper and specific
authority unless there is a legal or professional right or duty to disclose.
A Professional competence and care.
B Confidentiality.
C Professional behaviour.
D Objectivity.
219. Mac is employed as Management Accountant by Realmeat Ltd, a small chain of butchers
shops. Mac has been asked to call a farmer who supplies the company direct and promise
settlement of his account at the end of next week. Mac is aware that Realmeat Ltd will definitely
not have sufficient funds available to make the payment. If Mac accepts the request, which of the
following fundamental principles of CIMAs Code of Ethics will be compromised?
A Integrity.
B Confidentiality.
C Professional behaviour.
D Objectivity.
Answers

220. Mac is employed as Management Accountant by Realmeat Ltd, a small chain

of butchers shops. Mac has been asked to make a payment to a bogus
supplier that he believes would constitute fraud. If Mac accepts the request, which of the following
fundamental principles of CIMAs Code of Ethics will be compromised?
A Integrity.
B Confidentiality.
C Professional behaviour.
D Objectivity.
221. Mac is employed as Management Accountant by Realmeat Ltd, a small chain
of butchers shops. Mac has been asked to dismiss one of his colleagues for incapability. Mac is
aware that this is bogus and that Realmeat Ltd is trying to scale down the workforce without
making the due statutory payment to the colleague. If Mac accepts the request, which of the
following fundamental principles of CIMAs Code of Ethics will be compromised?
A Integrity.
B Confidentiality.
C Professional behaviour.
D Objectivity.
222. Mac is employed as Management Accountant by Realmeat Ltd, a small chain of butchers
shops. Mac has been asked to dismiss one of his colleagues for incapability. Mac is aware that
this is bogus and that Realmeat Ltd is trying to scale down the workforce without making the due
statutory payment to the colleague. If Mac tells his colleague about the true reason for the
dismissal, which of the following fundamental principles of CIMAs Code of Ethics will be
compromised?
A Integrity.
B Confidentiality.
C Professional behaviour.
D Objectivity.
Answers
223. Mac is employed as Management Accountant by Realmeat Ltd, a small chain
of butchers shops. A farmer who supplies the company has invited Mac to
take a holiday all expenses paid at his chalet in Verbier. If Mac accepts the invitation, which of
the following fundamental principles of CIMAs Code of Ethics will be compromised?
A Integrity.
B Confidentiality.
C Professional behaviour.
D Objectivity.
Answers
ETHICAL CONFLICT (10%)
224. Which of the following terms can be defined as follows?
How an organisation manages its relationships in the wider community.
A Professional behaviour.
B Social responsibility.
C Corporate governance.
D Ethics.
225. Which of the following terms can be defined as follows?
the generic way that organisations are run.
A Professional behaviour.
B Social responsibility.
C Corporate governance.
D Ethics.

226. Which of the following is a financial stakeholder of an organisation?

A Non-governmental organisations.
B Supplier.
C Media.
D Competitor.
227. Which of the following is not a financial stakeholder of an organisation?
A Customer.
B Government.
C Employee.
D Media.
Answers
228. Which of the following is not a financial stakeholder of an organisation?
A Shareholder.
B Government.
C Employee.
D Competitor.
229. Which of the following is an interest stakeholder of an organisation?
A Customer.
B Government.
C Employee.
D Competitor.
230. In relation to employees, what benefits can be obtained by a company adopting a code of
ethics?
(i) It may contribute to employees acting within the law.
(ii) It will ensure that employees are acting within the law.
(iii) Establishing and maintaining a positive reputation assists in the survival of the company and
continuing employment prospects.
A (i) only.
B (i) and (iii) only.
C (ii) and (iii) only.
D (iii) only.
Answers
231. A situation has arisen which will involve you participating in transactions which are legally
correct but ethically unsound. Which of the following is correct?
(i) It is not possible for a transaction to be both legally correct yet ethically unsound.
(ii) As long as the transactions are legal you are acting properly in participating.
(iii) One of the purposes of ethical codes is to guide professionals as to how to behave even when
the proposed transactions are legal.
A (i) only.
B (ii) only.
C (iii) only.
D (i) and (ii) only.
232. If a member furthered the goals of their organisation by providing misleading information,
what type of threat to the fundamental principles would this represent?
A A self-interest threat.
B An advocacy threat.
C A familiarity threat.
D A intimidation threat.
E A self-review threat.
F None of the above.

233. A professional accountant in business is being pressured into reviewing and approving a
management report but, being new in the role, has not had time to check the accuracy of the
information. Which principle(s) is/are under threat?
A Integrity.
B Objectivity.
C Integrity and objectivity.
D Professional competence and due care.
E Confidentiality.
F Professional behaviour.