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BA4 Fundamentals of Ethics, Corporate Governance and Business Law is now Stable and With Pass Result | Test Your Knowledge for Free

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Fundamentals of Ethics, Corporate Governance and Business Law

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Total Questions : 661

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Our free CIMA Certificate practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about BA4. Use this test to pinpoint which areas you need to focus your study on.

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Question # 31

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

Options:

A.  

Customer

B.  

Media

C.  

Employee

D.  

Government

Discussion 0
Question # 32

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?

Options:

A.  

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

B.  

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

C.  

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

D.  

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

Discussion 0
Question # 33

Demonstrating an attitude of esteem, deference, regard or admiration of others reflects the personal quality identified by the CIMA Code of Ethics as:

Options:

A.  

Responsiveness

B.  

Reliability

C.  

Reverence

D.  

Respect

Discussion 0
Question # 34

Which of the following can consideration take the form of?

Options:

A.  

Money + Goods + Services

B.  

Money

C.  

Goods

D.  

Services

E.  

Money + Goods

F.  

Money + Services

Discussion 0
Question # 35

Which of the following is NOT an advantage of establishing a company by purchasing “off the shelf”?

(i) The company is already registered so that in general business may be commenced more quickly.

(ii) The purchase off the shelf company can be cheaper than registration of a new company.

(iii) The articles of association are tailor-made to the requirements of the purchaser.

Options:

A.  

(i) only

B.  

(i) and (ii) only

C.  

(ii) and (iii) only

D.  

(iii) only

Discussion 0
Question # 36

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

Options:

A.  

(i) only

B.  

(ii) only

C.  

(i) and (ii) only

D.  

(i), (ii) and (iii)

Discussion 0
Question # 37

Jo is employed as management accountant of a large retailer. Jo has been asked to dismiss one of her colleagues for 'misconduct', but she is aware that the colleague has done nothing wrong and that her employer is trying to avoid paying any redundancy settlement. If Jo accepts the request, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?

Options:

A.  

Integrity

B.  

Objectivity

C.  

Confidentiality

D.  

Professional behavior

Discussion 0
Question # 38

The body responsible for reviewing the accountancy profession worldwide is:

Options:

A.  

The Professional Oversight Board for Accountancy

B.  

The International Federation of Accountants

C.  

The Financial Reporting Council

D.  

The Financial Review Board

Discussion 0
Question # 39

An investigation has been launched against Company G, a supermarket, after suspicions were raised about its treatment of certain employees.

It was later found that Company G were guilty of direct discrimination.

Which of the following are the ways in which Company G were found to be directly discriminating?

Select ALL that apply.

Options:

A.  

Only offering pay rises to female employees if they were under a certain weight.

B.  

Rejecting job applications if the applicant had a foreign-sounding name.

C.  

Only offering senior managerial roles to male employees.

D.  

Making it company policy that no one over 65 could be hired.

E.  

Having a rule that no one under 5ft tall could be hired.

Discussion 0
Question # 40

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?

Options:

A.  

There is no limitation on the scope of the department's work

B.  

The department has no operational responsibilities

C.  

The appointment process of the head of internal audit reduces the opportunity for management bias

D.  

The department is sufficiently resourced both financially and in terms of qualified, experienced staff.

E.  

The department is independent and objective.

Discussion 0
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