CIMA CIMAPRA17-BA4-1 Quiz 1 Topic 7 Questions 1-5

Question: 1

As a member of the audit team of a large company, J has discovered that one of his close friends is in a part of the business which is going to be sold off, and his friend is likely to face redundancy. What should he do?

ADo nothing: professionally, J is bound to respect the confidentiality of the information he has received

BTell his friend: he has an obligation to his friendship

CLeak the information: that way he can let his friend know, but the information won't be traced back to J

DResign: J can't carry on working at the company whilst he is personally compromised

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Question: 2

An internal auditor discovered evidence of a fraud earned out by an employee who worked in the accounting department. The auditor concluded that the fraud had been possible because of unsatisfactory segregation of duties in the department.

Poor segregation between which of the following duties would provide the best opportunity for this type of fraud to occur?

AIssuing both sales invoices and purchase invoices.

BIssuing sates invoices, and recording payments to suppliers in the ledger.

CReceiving payments from customers, and recording them in the ledger

DReceiving purchase invoices, and banking payments from customers.

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Question: 3

Which of the following is correct in relation to a company's ability to contract where the company was registered after the Companies Act 2006 was fully implemented?

AThe company's ability to contract is specified in its objects clause in its memorandum of association.

BThe company's ability to contract is specified in its objects clause in its articles of association.

CThe company cannot restrict its ability to contract in either its memorandum or articles of association.

DThe company has unrestricted objects

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Question: 4

Which of the following are not owed duties by the directors?

(i) The company as whole.

(ii) Individual shareholders.

(iii) All the present and future shareholders.

A(i) and (ii) only

B(ii) only

C(ii) and (iii) only

D(iii) only

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Question: 5

Which of the following statements is correct?

(i) In the event of a conflict between English Law and European Law, English Law prevails.

(ii) The Supreme Court is the highest court in the United Kingdom.

(iii) The High Court is bound by a ratio decidendi of the Supreme Court.

A(ii) and (iii) only

B(i) and (iii) only

C(i), (ii) and (iii).

D(i) and (ii) only

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CIMA CIMAPRA17-BA4-1 Quiz:1 Topic:7 Questions:1-5