Study with BA4 Actual Test Questions

Demonstrating politeness and good manners towards others reflects the personal quality identified by the CIMA Code of Ethics as:

• A. Creativity
• B. Courtesy
• C. Correctness
• D. Cohesion

Advocacy threats to compliance with fundamental principles are described as threats that may occur

• A. when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised
• B. when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment
• C. as a result of the financial or other interests of a professional accountant or of an immediate or close family member
• D. when, because of a close relationship, a professional accountant becomes too sympathetic to the interests of others

CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?

• A. In focusing on improving corporate governance disclosure the information provided should be standardised to enable shareholders to compare performance with other companies.
• B. In focusing on improving corporate governance disclosure the skills, experiences and personalities of the board should explain how the board ensures robust decision-making
• C. In focusing on improving corporate governance disclosure the board should evaluate its own effectiveness by focusing on how its actions have improved profit.
• D. In focusing on improving corporate governance disclosure the board activities should be linked into key aspects of the corporate performance and strategic development to enable users to evaluate the effectiveness of the board

S Ltd has an issued share capital of 1000 ordinary shares of £1 each. Some of the shareholders would like to change the name of the company. What is the minimum number of votes which must be cast in favor of the resolution to make it effective?

• A. 750
• B. 1,000
• C. 501
• D. 500

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?

• 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.