CIMA CIMAPRA17-BA4-1 Exam Practice Test Instant Access

Question 1

You are the manager of the finance function of a large engineering company According to IFAC's drivers of sustainable corporate success, which of the following would be a method by which you could improve the value of your department to the company?

AProviding ethical leadership which focuses on minimizing environmental costs sustainably.

BProviding ethical and strategic leadership which focuses on sustainable value creation.

CProviding strategic leadership which sustains the maximization of short term value.

DProviding sustainable ethical and strategic leadership which focuses on operating profit.

Answer : B

Question 2

The majority of developed countries require publicly quoted companies and large companies to produce annual financial statements which are then audited by an external auditor.

Which of the following statements regarding the requirement for external audit is Incorrect?

AIndependent external audit gives confidence in the financial statements which is required as the directors have incentives to manipulate the financial statements presented to the shareholders

BAs the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and this needs to be guaranteed by independent external audit.

CIndependent external audit gives confidence in the financial statements by including the auditor's opinion on whether or not they show a true and fair view.

DAs the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and there is a need for this to be assured by independent external audit

Answer : B

Question 3

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?

AThe internal audit function can help the audit committee have confidence in the fraud prevention systems within the company

BThe internal audit function can provide independent assurance of the financial policies applied to the financial statements

CThe internal audit function can report back to the audit committee if controls are not as effective as they should be

DThe internal audit function can help the audit committee to discharge their responsibilities for the ongoing monitoring of the risk in the company

Answer : B

Question 4

Which of the following statements is correct in relation to private and public companies limited by shares?

AA private and public company are required to hold an AGM

BA public company cannot commence trading until it has satisfied minimum share capital requirements

CA public company is required to have at least one director

DA private company must have a qualified company secretary

Answer : B

Question 5

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?

AQuality management

BEnvironmental impact reporting

CSupply chain management

DBrand management

Answer : D

Question 6

Which of the following are correct in relation to supervisory and management boards of directors?

1 A supervisory board reports to the mangament board in respect of business policy and future strategy

2 A management board is usually made up entirely of executive directors

3 A supervisory board includes employee representatives.

A2 only

B1 and 2 only

C2 and 3 only

D1 only

Answer : C

Question 7

An auditor would trace copies of sales invoices lo shipping documents in order to check for which of the following errors?

AGoods which have been invoiced have not been sent to customers

BGoods which were sent to customers have not been recorded in the individual customer's ledger account

CGoods which have been invoiced have not been recorded in the sales ledger.

DGoods sent to customers have not been invoiced

Answer : C

CIMAPRA17-BA4-1 BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Exam Practice Test