Why are the principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior "fundamental"?

• A.Because they are the foundations of corporate responsibility
• B.Because they are the foundations of human rights
• C.Because they are the foundations of management accounting
• D.Because they are the foundations of reasoning and professional practice

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A company is considering having an external audit. It knows the benefits of doing so, though is unsure of the disadvantages.
Which of the following are reasons why the company might not want to have an external audit?
Select ALL that apply.

• A.Reputation with stakeholders will decrease.
• B.It will cost a lot of money.
• C.There is a risk of confidential information leaking.
• D.Shareholders may become concerned about the state of the company.
• E.Interests of shareholders and directors may become unaligned if they aren't already.
• F.It will take a long time.

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

• A.Goods which have been invoiced have not been recorded in the sales ledger.
• B.Goods sent to customers have not been invoiced
• C.Goods which were sent to customers have not been recorded in the individual customer's ledger account
• D.Goods which have been invoiced have not been sent to customers

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N is a CIMA qualified accountant working within a complex and evolving organisation A new HR manager. Q, has been employed and has reviewed the salaries of the accounting team in order to reduce the expense to the company.
Q suggests that N's position could be outsourced to an accounting servicing company to save money.
This outsourcing team does not employ professionally qualified accountants N's finance director emphatically disagrees with Q's suggestion Which THREE of the following are justifications for retaining N's services?
As a CIMA qualified accountant N

• A.takes personal responsibility for ensuring that his behavior complies only with that of his professional body and therefore the company can have confidence in his work and complain to his professional body if they are unhappy
• B.takes personal responsibility for ensuring the accuracy and validity of the judgments of his directors in assessing the risk appetite of the company.
• C.takes personal responsibility for ensuring that the information he provides is unbiased and unaffected by conflicts of interest
• D.takes personal responsibility for ensuring that he is independent in his relationship with his employer.
• E.takes personal responsibility for ensuring that he is straightforward and honest in his business dealings
• F.takes personal responsibility for ensuring that he is professionally competent to undertake work for the company

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Which of the following is correct in relation to loans to directors of a public company?

• A.A public company is not subject to any restrictions when making a loan to one of its directors
• B.A public company cannot make loans to its directors
• C.A public company which provides a loan to one of its directors commits a criminal offence unless the loan is approved by the shareholders
• D.If a public company pays the debts of one of its directors on terms that the payment must be repaid by the director, the shareholders must approve the payment

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