Chapter 2

Question 1

What are CIMA’s five fundamental principles

Answer 1

• Objectivity - judgements and decisions free from bias + also expected to avoid situations where conflict of interests arise
• Professional competence & due care - Only take on tasks you’re competent to perform + must remain up to date
• Professional behaviour - not doing things that will discredit CIMA or the wider accounting profession
• Integrity - honest and straightforward manner
• Confidentiality - unless there is a legal or professional duty to disclose
• when permitted by law - when permitted by client or employer - when required by law - when permitted by a professional duty or right

Question 2

Give examples of threats to professional ethics

Answer 2

• self interest *intimidation
• self review - if it judges someone else’s performance
• advocacy - promoting a client or employer position so much that accountants objectivity is compromised

Question 3

Give examples of how to overcome threats to professional ethics

Answer 3

*education & training * professional standards *requiring members follow the CPD pathway *corporate governance requirements *external review *professional or regulatory monitoring and disciplinary procedures

Question 4

What are CIMA’s five personal qualities of an accountant?

Answer 4

*Reliability *Responsibility *Respect *Timeliness *Courtesy

Question 5

What are CIMA’s five professional qualities of an accountant?

Answer 5

*Accountability *Professional scepticism *Social responsibility *Independence of mind (and appearance)

Question 6

What are the stages of the professional development cycle

Answer 6

*Define *Assess *Design *Act *Reflect *Evaluate