CIMA CIMAPRA17-BA4-1 Exam Questions Instant Access

Question 1

Rank the following, starting with the highest court:

(i) Crown Court

(ii) Supreme Court

(iii) Magistrates

(iv) Court of Appeal (Criminal)

A(iii), (i), (iv), (ii)

B(i), (ii), (iii), (iv)

C(ii), (iv), (i), (iii)

D(iv), (ii), (i), (iii)

Answer : C

Question 2

Which of the following auditors would need to issue a disclaimer of opinion? Select ALL that apply.

AMiguel - Unable to conduct a full audit due to the client's refusal to provide access to the company's financial records.

BAbe - Has limited time to complete an audit, so performs a brief check of each department

CIndia - Has noticed that the company she is auditing has adopted a new set of accounting rules unusually early.

DSean - Discovers during an audit that the company has overstated the value of its assets.

Answer : A, B

Question 3

Which of the following statements refer to the remuneration committee? Select ALL that apply.

AStaffed exclusively by NEDs.

BMakes decisions regarding the payment of directors.

CHas a responsibility to attract, retain and motivate directors.

DMakes decisions regarding the appointment of new directors.

EHas a responsibility to monitor and review the effectiveness of the internal audit function.

FMakes decisions regarding the appointment, re-appointment and removal of the external auditor.

Answer : A, B, C

Question 4

Which of the following accountants have breached CIMA's ethical principle of professional behaviour: Select ALL that apply.

AKara - Recently got a new job as a management account by lying about the number of accountancy qualifications she has.

BMike - Posted a series of disparaging tweets about a rival external auditing firm.

CTim - Told his friends at the pub how much money one of his clients had made in the last financial quarter.

DSara - Accepted an offer of a free week's stay at a hotel she was due to audit.

EDave - Most recent set of financial reports were found to contain inaccuracies because he didn't check them when he was finished.

Answer : A, B

Question 5

Which ONE of the following most accurately describes corporate governance?

AIt is a code of best practice which instructs directors of listed companies how to maximise profits for the benefit of shareholders

BIt is a body of law, morals and ethics designed to ensure that the shareholders of listed companies are treated fairly by the board

CIt is the body of rules and ethics primarily concerned with the effective control, business efficacy and accountability of the management of public-listed companies for the benefit of stakeholders

DIt is the set of rules contained in the constitution of listed companies which governs the relationship between the board and the shareholders

Answer : C

Question 6

Which of the following statements is incorrect?

(i) A term may be implied into a contract on the basis of previous dealings between the parties.

(ii) A term may be implied into a contract by statute.

(iii) A term may be implied into a contract by a court where it would be reasonable to imply it.

A(i) only

B(i) and (ii) only

C(ii) only

D(iii) only

Answer : D

Question 7

In the UK, the body responsible for reviewing the regulatory activities of the professional accountancy bodies is:

AThe Professional Oversight Board for Accountancy

BThe International Federation of Accountants

CThe Financial Reporting Council

DThe Financial Review Board

Answer : A

CIMA BA4 - Fundamentals of Ethics, Corporate Governance and Business Law CIMAPRA17-BA4-1 Exam Questions