B was an employee of Exe plc but his line manager made it practically impossible for him to continue his employment. B resigned without giving Exe plc any notice as required by his contract of employment. Which of the following is correct?
Company A has recently been having problems matching the views of its employees to its own. Which of the following might help their situation? Select ALL that apply.
Which of the following remedies is available as of right in the event of a breach of contract?
(i) Specific performance.
(ii) Damages.
(iii) An injunction.
Which of the following is not financial assistance for the purchase of a public company's own shares?
Michael is conducting a social and environmental audit on a chemicals factory. Which of the following should he review?
GHI Ltd has contracted with JKL Ltd. If JKL Ltd acts in breach of a condition, which of the following is correct?
Zed plc wishes to issue £500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months' time. Which of the following best describes these shares?
Which of the following is incorrect in relation to the remedy of liquidated damages?
Which of the following is incorrect in relation to a reduction of capital by a private company?
Which of the following would be regarded as an issue of shares for an improper purpose?
(i) An issue of shares to enable the directors to maintain control of the board.
(ii) An issue of shares to prevent a take-over bid.
(iii) An issue of shares in return for a non-cash consideration.
Which of the following statements correctly defines the ethics of utilitarianism?
Wye Ltd has ordered goods from ABC plc and the directors of Wye Ltd have guaranteed that Wye Ltd will pay the agreed sum within one month of the delivery of the goods.
Which of the following is correct?
(i) The contract is between Wye Ltd and ABC plc and the directors cannot be forced to pay the amount due in any circumstances.
(ii) A contract of guarantee is only enforceable if it is evidenced in writing.
(iii) The directors of Wye Ltd can be forced to honor the guarantee in the event of Wye Ltd not paying the amount due.
Which of the following statements about the relationship between external and internal auditors is FALSE?
XYZ plc has recently acted in breach of its contract with ABC Ltd. The breach caused ABC Ltd to lose several thousand pounds. The board of ABC Ltd has resolved not to proceed against XYZ plc, as it believes that the time and expense involved would be disadvantageous to the company. A number of ABC Ltd shareholders are dissatisfied with the board's decision.
Which of the following is INCORRECT?
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?
Natthapong's toilet won't flush, so he hires a plumber to come over and fix it.
He tells the plumber what the problem is, and the plumber agrees to fix it.
However, once the builder supposedly finishes the job, Natthapong finds that it still won't flush.
Is he able to terminate the contract?
On 1st October X Ltd wrote to Y Ltd offering to sell a machine at a price of £5,000. The letter stated that Y Ltd must give X Ltd “notice in writing” of its acceptance of the offer by 8th October. Y Ltd posted its acceptance on 5th October and this reached X Ltd on 7th October. In the meantime X Ltd sent a letter to Y Ltd on 4th October revoking its offer, and this reached Y Ltd on 8th October.
Which of the following is correct?
Which of the following statements is incorrect in relation to the revised derivative action under section 260 of the Companies Act 2006?
(i) The action may be brought by a single shareholder.
(ii) The action may be brought in relation to an act of negligence by the directors.
(iii) The action cannot be brought in respect of a proposed act by the directors.
Which of the following types of committee is NOT required by the UK Corporate Governance Code?
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?
Adam, Brian, Charles and David each held 25% of the issued share capital of ABCD Ltd. Adam has recently issued further shares to himself in order to increase his voting power. Which of the following is incorrect?
Which of the following is INCORRECT in relation to the Unfair Terms in Consumer Contracts Regulations 1999?
Which of the following are situations involving familiarity threats? Select ALL that apply.
Which of the following is correct?
(i) A decision of the Supreme Court is binding on all lower courts which are called upon to decide a case based on similar material facts.
(ii) If there is a conflict between European Law and English law, European Law prevails.
(iii) Parliament may delegate authority to the government to make law.
The board of Wye Ltd has resolved to issue £100,000 of redeemable preference shares. Which of the following is correct?
(i) The company must have issued at least one non-redeemable share.
(ii) The company must redeem them at not less than their nominal value.
(iii) A holder of a redeemable share must also hold at least one ordinary share in the company.
Which of the following is correct in relation to Section 14 of the Sale of Goods Act 1979 which implies a term into contracts for the sale of goods that the goods supplied will be of “satisfactory quality.”
(i) A breach of Section 14 enables the innocent buyer to cancel the contract and claim damages.
(ii) The parties to a contract for the sale of goods can choose to exclude Section 14.
(iii) Section 14 applies to contracts for the sale of new goods only and does not apply to sales of second-hand goods
The IFAC has eight main drivers of sustainable corporate success. Which of the following are included in the eight mam drivers?
1, Innovation and adaptability
2. Effective leadership and strategy.
3. Board control and responsibility
The code of ethics of the professional body to which M belongs is very clear about the importance of non-discrimination on the grounds of race, gender, sexual orientation and religion. But, because of her particular religious convictions, M believes that homosexuality is wrong. This is an example of a tension between:
Which of the following is correct?
(i) A public company must hold an AGM.
(ii) A public company must give at least 14 days' notice of its AGM.
(iii) One of the purposes of an AGM is to provide an annual opportunity for the shareholders to question the directors regarding their management of the company.
Which of the following is CORRECT?
(i) A company limited by shares is a legal person separate and distinct from those who own and manage the company
(ii) If the company structure is used as a mere façade for fraudulent purposes the company but not the directors or shareholders can be held liable
(iii) If the company has carried on business despite the fact that insolvency appeared inevitable the directors may be personally liable for the debts contracted.
The distinction between an employee and an independent contractor is important because only an employee:
i. is given statutory protection in relation to employment rights.
ii. is subject to the deduction of income tax and national insurance under the PAYE system.
iii. can make the employer vicariously liable for his/her torts.
Which of the following is correct if a promoter orders goods or services on behalf of a company limited by shares which is not yet registered?
(i) The promoter is personally liable for the order.
(ii) The promoter and the company are jointly liable for the order.
(iii) If the company ratifies the order after its registration, the company is liable and the promoter's liability for the order ceases.
Jimmy wants to sell his scooter, so he puts an advert on the internet with a price of £50.
He quickly gets an offer for the full amount, but then decides that he doesn't want to sell his scooter after all!
The buyer complains and threatens to report jimmy to the police.
This doesn't worry Jimmy as he knows he is not legally obliged to sell his scooter. Why is this?
According to the CIMA Code of Ethics, which of the following categories describe common threats to compliance with the fundamental principles? Please select all that apply.
Which of the following statements is incorrect?
(i) A term may be implied into a contract on the basis of previous dealings between the parties.
(ii) A term may be implied into a contract by statute.
(iii) A term may be implied into a contract by a court where it would be reasonable to imply it.
In relation to the Unfair Contract Terms Act 1977, which of the following is correct?
(i) A clause which attempts to exclude liability for death or personal injury caused by negligence is only valid if it is reasonable.
(ii) A clause which attempts to exclude liability for damage to property is void unless it is reasonable.
(iii) The Unfair Contract Terms Act applies to contractual terms and to occupiers' liability.
P is an accountant working in a business Which of the following circumstances might create a self-interest threat for P in her professional role?
The introduction of restrictions on how companies are permitted to advertise to children is a UK government reaction to a tension between:
In relation to international regulations, which of the following is correct?
i. International regulations seek to establish common standards between professions practicing in different States so as to further international cooperation and agreement.
ii. International regulations agreed by the professional bodies of different States have the force of international law.
iii. International regulations which harmonies standards and procedures may be incorporated into contracts by commerce and the professions.
H is hoping for a promotion. His wife is expecting a baby and they need the extra money. He needs to present the figures for his section, but the true figures do not reflect well on his manager. What should H do?
According to Carroll's model of CSR, which of the following is TRUE of a company's legal responsibility?
Which of the following is correct in relation to the control of boards of directors of public limited companies?
i. The boards of public limited companies are under the legal control of the shareholders
ii. The majority of the shares in public limited companies are held by institutional investors who are more concerned with capital growth and income than the internal management of public limited companies
iii. As a general rule, private investors in the shares of public limited companies have insufficient power to influence the activities of the board.
B Ltd has an issued share capital of 1,000 ordinary £1 shares. The board of B Ltd has resolved to alter the company's articles of association. Which of the following is correct?
(i) The articles may be altered by board resolution.
(ii) The articles may be altered by a written resolution of the shareholders.
(iii) The articles may be altered by a special resolution of the directors.
T contracted to buy a washing machine from AB (Retailers) Ltd for his personal use at home. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality". The contract was on AB (Retailers) Ltd's standard form contract.
Which of the following is correct?
(i) Conditions implied by the Sale of Goods Act 1979 cannot be excluded in any sale.
(ii) This is a consumer sale and the clause excluding liability is void.
(iii) This is a non-consumer sale and the clause is void unless reasonable.
A Ltd contracted to deliver a quantity of goods to B Ltd for £5,000. The goods were delivered and A Ltd submitted an invoice to B Ltd for the amount due which contained a number of new terms. Which of the following is incorrect?
Which of the following statements is correct?
(i) A term may be implied into a contract by statute.
(ii) A term may be implied into a contract on the ground that it is a trade custom.
(iii) A term may be implied into a contract by a court in order to give the agreement "business efficacy".
Which of the following is NOT a personal quality expected of professional accountants by CIMA?
Maintaining professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service demonstrates the CIMA Code of Ethics fundamental principle of:
The board of Zed Ltd wishes to borrow money from Exe Bank plc. What authority will the board require to enable it to proceed?
How might a company ensure that the roles and responsibilities of its board and management are made clear and publicly known?
What can companies do in order to minimize the likelihood of future legislation?
Which of the following does the CIMA Code of Ethics fundamental principle of integrity NOT involve?
S is management accountant for a small retail company. S has discovered a possible fraud in the purchasing department. The manager of that department has told S that he is aware of the fraud and will 'deal with it'.
Which ONE of the following would it be appropriate for S to do?
One of the fellow accountants in your office thinks that she is intellectually superior to the rest of you. This has made her complacent and she refuses to attend training courses or ongoing professional development. As a result, she may be failing to adhere to the CIMA Code of Ethics fundamental principle of:
Which TWO of the following are the characteristics of a framework driven by values, principles and ethics?
B is a director and shareholder in Cee Ltd. Which ONE of the following is INCORRECT?
Which of the following are fundamental characteristics of useful information? Select ALL that apply.
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
S is Assistant Management Accountant for a large telecommunications company. S has become aware that the company is paying fees to those government ministers responsible for the regulation of the telecommunications industry and for authorizing large public contracts. S is concerned that this is unethical, so she mentioned it to the Finance Director during her most recent appraisal. The Director seemed amused at her concern and said that such a situation was 'perfectly normal'.
Which TWO of the following would it be appropriate for S to do?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
ABC Ltd has entered into a contract with DEF Ltd. The contract provides that breach a particular term entitles the innocent party to terminate the contract. What is the legal status of that term?
Which of the following statements is correct in relation to the "maintenance of capital" principle?
Which of the following is correct?
(i) All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(ii) The Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary ruling.
(iii) An English court is not bound to give effect to a preliminary ruling of the European Court of Justice.
Which ONE of the following was NOT a recommendation of the Cadbury Committee Report 1992?
P contracted to buy a computer from CD (Retailers) Ltd. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality".
Which of the following is correct?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
Which of the following is INCORRECT in relation to an alteration of a company’s articles of association?
(i) In general a person is assumed to know of a clause of which he has been given reasonable notice at or before the time of the contract.
(ii) In general a person cannot rely on a clause brought to the other party's attention after the contract has been concluded.
(iii) In general a person cannot be bound by a clause written in small print.
Choose one of the following.
Which of the following does a professional accountant NOT have a duty to stay up to date on?
Which THREE of the following are examples of a fraudulent action against a company?
The Auditing Practices Board has an objective of establishing ethical standards in relation to which aspects of the work of external auditors and those providing assurance services?
Which of the following is CORRECT in relation to a Limited Liability Partnership (“LLP”)?
(i) An LLP is formed by registration with the Registrar of Companies
(ii) Unlike the articles of a company the internal rules of an LLP are not available for public inspection
(iii) An LLP is liable to pay corporation tax on its profits
In the UK, which organization that governs the accounting profession has taken the lead with respect to ethical considerations?
As a general rule, what period of continuous employment is required before a person can make a claim for unfair dismissal?
ABC Ltd has resolved to purchase the business of ST Ltd for £500,000. ABC Ltd is to pay ST Ltd for the business by issuing ordinary £1 shares rather than cash. As the market value of ABC Ltd's shares is £5 per share, ABC Ltd is to issue to ST Ltd 100,000 ordinary £1 shares. Which of the following is incorrect?
An external auditor has concluded that the financial statements of a company fairly reflect the financial position of a company. The report which the auditor issues will include which of the following?
1. Details of the company's directors
2. Details of managements' responsibilities.
3. Details of the company's performance.
Pascal later heads off to the party where he proceeds to tell everyone about his amazing first day at work and the huge profits his new company are making and how much he's already saved them. "My future is bright"
he tells everyone!
Again, Pascal has breached CIMA's ethical principles.
Which of the following has he breached?
Select ALL that apply.
Which of the following is incorrect in relation to a company registered after the Companies Act 2006 was fully in force?
Which of the following is correct in relation to financial assistance for the purchase of its own shares provided by a private company?
Which of the following might a company experience if they were to implement internal control measures?
Select ALL that apply.
Section 12 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the person selling the goods has the right to sell them. Which of the following is correct?
(i) The contracting parties may agree to exclude Section 12 from their contract
(ii) Section 12 applies to both consumer and non-consumer contracts for the sale of goods.
(iii) A breach of Section 12 entitles the purchaser of the goods to cancel the contract.
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TESTED 22 Nov 2024
