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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. How might a company ensure that an audit is independent?

A) Have the auditor review or report on the performance of management
B) Hire an external auditor.
C) Have the auditor investigate all possible wrongdoings, including fraud.
D) Conduct an internal audit.

2. Which of the following terms can be defined as follows?
"...the way an organization manages its relationships"

A) Professional behavior
B) Corporate governance
C) Social responsibility
D) Ethics

3. 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.

A) (i), (ii) and (iii)
B) (i) and (ii) only
C) (i) and (iii) only
D) (i) only

4. Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?

A) Materiality
B) Professional behavior
C) Integrity
D) Objectivity

5. Which of the following is NOT a 'financial stakeholder' of an organization?

A) Customer
B) Employee
C) Government
D) Media

Solutions: