It has been brought to your attention that a colleague in your accounts department has been continually submitting inflated expenses claims. Which of CIMA's fundamental principles have they breached? It has been brought to your attention that a colleague in your accounts department has been continually submitting inflated expenses claims. Which of CIMA's fundamental principles have they breached? Professional behaviour. Their actions are certainly dishonest and may
constitute fraud. You are the finance director of a large multinational company which has recently expanded its operations.
You are the finance director of a large multinational company which has recently expanded its operations. Objectivity. It could appear to a reasonable observer that you received the holiday in return for accepting the loan. You are aware that a colleague regularly takes important reports home to check, but
does so after drinking a bottle of wine. Are they in breach of any of CIMA's fundamental principles, if so which one? You are aware that a colleague regularly takes important reports home to check, but does so after drinking a bottle of wine. Are
they in breach of any of CIMA's fundamental principles, if so which one? Professional competence and due care. The colleague is unlikely to be able to exercise due care if they have consumed a bottle of wine. You are the
management accountant of a large chain of health clubs. Your father has decided to set up his own rival chain and has asked you to become finance director. However, as a condition he has asked you to provide him with the database of members' details from your current employer. If you go ahead, which of CIMA's fundamental principles will you break? You are the management accountant of a large chain of health clubs. Your father has decided to set up his own rival chain and has asked you to become finance director. However, as a condition he has asked you to provide him with the database of members' details from your current employer. If you go ahead, which of CIMA's fundamental principles will you break? Confidentiality. The database contains personal information about the members that should only be used by your employer. Supplying the information to a third party (your father) breaches that confidentiality. Your manager has set out a new policy that you should follow when preparing the
management accounts. From now on you are to use estimates for trade receivables and payables. Does this conflict with any of CIMA's fundamental principles, if so which one? Your manager has set out a new policy that you should follow when
preparing the management accounts. From now on you are to use estimates for trade receivables and payables. Does this conflict with any of CIMA's fundamental principles, if so which one? Integrity. The continued use of estimates risks inaccurate trade receivables and payables and therefore misleading accounts. When a CIMA member faces an ethical conflict, who should they look to first to resolve it? A CIMA When a CIMA member faces an ethical conflict, who should they look to first to
resolve it? A CIMA member should always look to resolve the matter themselves before taking it further. Fill in the missing words. Personal Fill in the missing words. Personal Which of the following best describes CIMA's fundamental principle of professional competence? Which of the following best describes CIMA's fundamental principle of professional competence? Professional competence means only taking on work that you are suitably qualified to do. Which three of the following are potential consequences to the accounting profession if members are allowed to behave unethically?
Which three of the following are potential consequences to the accounting profession if members are allowed to behave unethically?
Professional bodies can lose their 'chartered' status if they are no longer seen to act in the public interest. The profession may be subject to external regulation or legal regulation by government if it cannot regulate itself adequately. The public will lose trust in it. What should a CIMA member do if the only option available to resolve an ethical issue with their employer What should a CIMA member do if the only option available to resolve an ethical issue with their employer Legal advice should always be taken before breaching any duty of confidentiality to minimise any risk of legal action by the affected party. A and D both involve breaching confidentiality, and C would mean the accountant behaving unethically and at risk of disciplinary action by CIMA. Where a professional duty conflicts with the law, which should be followed? Where a professional duty conflicts with the law, which should be followed? The law always overrides professional and personal ethics. Which of the following statements are true or false? Unethical behaviour will always be punished with a criminal conviction CIMA students are expected to demonstrate the same level of professional standards as full members. A conflict of interest is evidence of wrongdoing. Societal values are encompassed in the law. Which of the following statements are true or false? Unethical behaviour will always be punished with a criminal conviction F CIMA students are expected to demonstrate the same level of professional standards as full members. T A conflict of interest is evidence of wrongdoing. F Societal values are encompassed in the law. T Unethical behaviour is not always criminal behaviour.A conflict of interest describes a situation where an individual has competing professional or personal interests. It is virtually impossible for finance professionals to avoid conflicts entirely. It only becomes wrongdoing if the professional exploits the situation for his or her own benefit. Which of the following examples of unethical behaviour could an accountant face criminal prosecution for if Which of the following examples of unethical behaviour could an accountant face criminal prosecution for if Supply of such information is insider-dealing – a criminal offence. A CIMA member has encountered a fraud but it would breach confidentiality if it were to be disclosed. What A CIMA member has encountered a fraud but it would breach confidentiality if it were to be disclosed. What The CIMA code provides that where the resolution of an ethical dilemma requires breach of confidence, the member should seek legal advice or consult CIMA. A colleague has provided a report to senior management that contains misleading information. Which of CIMA's fundamental principles have they broken? A colleague has provided a report to senior management that contains misleading information. Which of CIMA's fundamental principles have they broken? Providing misleading information breaches the fundamental principle of integrity. Which three of the following situations may create a conflict of interest?
Which three of the following situations may create a conflict of interest?
Owning shares in a company that competes with your employer does not create a conflict of interest, as you are not in a position to affect its results. The performance bonus would only cause a conflict if you were able to determine if you were eligible. Which of the following is not a benefit of ethical accountants to society? Which of the following is not a benefit of ethical accountants to society? Although ethical accountants may in some cases help improve the profitability of companies, they cannot 'ensure' companies are profitable. Interfering with a company's results to make them profitable is unethical behaviour. Which three matters should CIMA members record whilst attempting to resolve an ethical issue?
Which three matters should CIMA members record whilst attempting to resolve an ethical issue?
The accountant
should keep a record of all professional and business communications, meetings Which of the following is the least suitable to consult with when dealing with a major ethical dilemma? Which of the following is the least suitable to consult with when dealing with a major ethical dilemma? Whilst you might find it easier to talk to a close colleague, this approach could lead to a breach of You have just encountered a threat to your professional standards, what should your response be? You have just encountered a threat to your professional standards, what should your response be? You should avoid activities that threaten your professional standards. Which three of the following situations would justify disclosure of confidential information?
Which three of the following situations would justify disclosure of confidential information?
All these circumstances would permit you to disclose the information. A letter from a solicitor does not legally oblige you to disclose the information, nor does the preparation of a report. Which of the following statements is incorrect? Which of the following statements is incorrect? 'I did not know' is no excuse if the accountant should have been reasonably aware of the problem, even if not made aware of it explicitly. Which of the following statements about ethical dilemmas is correct? Which of the following statements about ethical dilemmas is correct? Ethical dilemmas involve unclear choices about what is right and wrong. Accountants should trust their instincts and seek advice where appropriate. An accountant is employed by a manufacturing company, but has permission to take on private work in their spare time producing management accounts for their own clients. Which three of the following situations may create a conflict of interest?
An accountant is employed by a manufacturing company, but has permission to take on private work in their spare time producing management accounts for their own clients. Which three of the following situations may create a conflict of interest?
Working for direct competitors will create a conflict as each would require the accountant to put their interests first. High fee income from one private client may cause the accountant to put their needs before those of their employer. A job offer is not a conflict of interest. Turning down work is an example of preventing a conflict of interest as the accountant is only taking on work they can do in the time they have available – no party is disadvantaged. Emergencies involving private clients may cause a conflict if the accountant needs to decide whether or not to stay in their employer's office or go to see the client. Which of the following fundamental principles would be most at risk when an accountant is rushing to meet a deadline? Which of the following fundamental principles would be most at risk when an accountant is rushing to meet a deadline? Integrity is about accuracy; this is most likely to be at risk when rushing to meet a deadline as mistakes are more likely. When taking on a new type of work for the first time, you are at greater risk of breaching which of CIMA's fundamental principles? A Integrity When taking on a new type of work for the first time, you are at greater risk of breaching which of CIMA's fundamental principles? A Integrity Professional competence and due care is about being competent to do a job and paying close attention to what you are doing. When attempting to do something for the first time the most relevant principle you are likely to breach is the principle of competence. When deciding on whether a solution to an ethical dilemma is appropriate, which of the following questions When deciding on whether a solution to an ethical dilemma is appropriate, which of the following questions Career aspirations are not relevant to making an ethical decision. The right decision should be taken regardless of the impact it might have. This is why some ethical decisions are difficult to take. Fill in the missing words. When considering a course of action to resolve an ethical issue, an accountant should consider the Principles Fill in the missing words. Which of the following circumstances is most likely to cause an accountant to breach the fundamental A Being asked to act contrary to professional standards Which of the following circumstances is most likely to cause an accountant to breach the fundamental Gifts and hospitality may be seen by others as reward for 'special favours' and may bias future work. An accountant has been asked by their manager to amend a set of accounts contrary to established An accountant has been asked by their manager to amend a set of accounts contrary to established The manager represents corporate values, accounting standards represent professional values. |
In resolving an ethical conflict, which of the following would never be appropriate?
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