CIMA’s Code Of Ethics - 30%

Question 1

What are the 5 fundamental principles

Answer 1

• integrity
• Objectivity
• professional competence and due care
• confidentiality
• professional behaviour

Question 2

Define integrity

Answer 2

Members must be straightforward and professional in all business relationships

Question 3

Define objectivity

Answer 3

Members should avoid all bias, prejudice and partiality

Question 4

Define professional competence and due care

Answer 4

Members must not perform roles which they can not due without reasonable care, competence and diligence. They must stay technically up to Dre and comply with professional standards

Question 5

Define confidentiality

Answer 5

Members should not disclose confidential information without permission or legal or professional right or duty

Question 6

Define professional behaviour

Answer 6

Members should protect their reputation and that of the professional body

Question 7

What are the 5 threats to fundamental principles

Answer 7

• self interest
• self review
• advocacy
• familiarity
• intimidation

Question 8

Define self interest

Answer 8

The risk that a financial or other interest may influence the accountants judgement or behaviour. Also known as conflict of interest

Question 9

Define self review

Answer 9

The risk that an accountant may not appropriately re- evaluate their ( or a colleague’s ) previous work ( including judgement made or services performed ) when relying on the work when performing a current service.

Question 10

Define advocacy

Answer 10

The risk that an accountant promotes a client or employer’s position to the point that their objectivity is compromised

Question 11

Define familiarity

Answer 11

The risk that due to long and close relationships with a client or employer, an accountant will be too sympathetic to their interests or too ready to accept their work.

Question 12

Define intimidation

Answer 12

The risk that an accountant will be deterred from acting objectively because of actual or perceived pressures, including attempts to undue influence over them

Question 13

What are the personal qualities of an accountant

Answer 13

Reliability
Responsibility
Timeliness
Courtesy
Respect

Question 14

Define the personal quality reliability

Answer 14

You are trust worthy and dependable

Question 15

Define the personal quality respoinsibility

Answer 15

You take ownership of your work and conduct yourself in a manner that respects the position given to you

Question 16

Define the personal quality timeliness

Answer 16

You work within agreed timeframe

Question 17

Define the personal quality courtesy

Answer 17

You conduct yourself with courtesy and consideration to those you meet

Question 18

Define the personal quality respect

Answer 18

You develop constructive relationships and recognise the values and rights of others

Question 19

What are the 4 professional qualities of an accountant

Answer 19

Independence
Scepticism
Accountability
Social responsibility

Question 20

Define the professional quality of an accountant - independence

Answer 20

You work with integrity and professional scepticism ( independent mind ).

You avoid all situations that could cause a reasonable observer to doubt your objectivity ( independence in appearance )

Question 21

Define the professional quality of an accountant - scepticism

Answer 21

You question information given to you and form your own opinion about it

Question 22

Define the professional quality of an accountant - accountability

Answer 22

You recognise that you are accountable for your own work and do not pass responsibility onto others.

Question 23

Define the professional quality of an accountant - social responsibility

Answer 23

You recognise your work will affect the public in some way

Cima members must follow the socially responsible principle of integrity, respect, courtesy and due care

Question 24

Professional development

Answer 24

The development of personal qualities such as communication skills, assertiveness, time management & relationship building

They are skills that have too be developed by an individual and must come from within

Question 25

Life long learning

Answer 25

The concept that an individual never stops learning and should be open to new ideas, decisions, skills or behaviours. The stages in CIMA’s professional development cycle for lifelong learning are ; define, assess, design, act reflect and evaluate

Question 26

What two principles are required to meet the principle of professional competence ?

Answer 26

Professional behaviour Life long learning