- Exam Code: BA4
- Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
- Certification Provider: CIMA
- Corresponding Certification: CIMA Certification
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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| General Principles of the Legal System, Contract and Employment Law | 15% | - Employment law, rights and obligations - Terms, breach and remedies of contract - Structure and sources of law - Essential elements of a valid contract |
| Company Administration | 10% | - Corporate insolvency and administration - Company financing and capital - Formation and constitution of companies - Types of business organizations |
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Principles and frameworks of corporate governance - Internal control and risk management - Corporate social responsibility and sustainability - Roles and responsibilities of directors and officers - External audit and assurance |
| Business Ethics and Ethical Conflict | 30% | - Ethics vs law and regulation - Concepts of ethics and business ethics - CIMA Code of Ethics and professional values - Identification and resolution of ethical dilemmas |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Jo is employed as management accountant of a large retailer. Jo has been asked to make a payment to a bogus supplier that she believes would constitute money laundering. If Jo accepts the request, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?
- A. Confidentiality
- B. Objectivity
- C. Integrity
- D. Professional behavior
Correct Answer: D 🗳️
Which of the following is the superior source of law?
- A. A Regulation issued by the European Council of Ministers.
- B. A provision in an Act of Parliament
- C. A Statutory Instrument.
- D. A decision by the Supreme Court.
Correct Answer: A 🗳️
Which of the following is correct?
(i) The provisions of the Memorandum of Association do not form a contract between the members and the company.
(ii) The provisions of the Articles of Association form a contract between the members and the company.
(iii) One member may sue another directly on the provisions in the Articles of Association which contain ordinary membership rights.
- A. (ii) only
- B. (i) and (ii) only
- C. (ii) and (iii) only
- D. (i) only
Correct Answer: C 🗳️
What can companies do in order to minimize the likelihood of future legislation?
- A. Understand and address what the public expects of companies in terms of ethical behavior and social responsibilities
- B. All of the above
- C. Maintain effective self regulation
- D. Insist on the highest standards of ethical behavior from their company and its employees
Correct Answer: B 🗳️
Who is responsible for identifying and managing fraud?
- A. External auditors
- B. Internal auditors
- C. External auditors and internal auditors
- D. Management
- E. Management and internal auditors
- F. Management and external auditors
Correct Answer: D 🗳️
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