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BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 236–240 (page: 49)

Updated On: 9-Feb-2026

S is management accountant for a small construction company. The company's financial year is due to end in a few weeks. The company has a number of large construction projects, one of which is behind schedule. One of the directors of the company has asked S to raise an invoice for a progress payment that is due on completion of the next phase of the contract. S knows that this phase will not be complete until after the year end, but the director says that the client needs the invoice now, to allow them to process it in time for payment when the phase is complete.

Which THREE of the following would it be appropriate for S to do?

  1. Do as requested
  2. Challenge the request
  3. Ask for confirmation in writing from the director
  4. Refuse
  5. Bring the matter to the attention of the managing director
  6. Ask for advice from the company's external auditors

Answer(s): B,D,E



Which of the following is an 'interest stakeholder' in an organization?

  1. Customer
  2. Employee
  3. Government
  4. Competitor

Answer(s): D



You work for a construction company. Which of the following corporate issues is NOT related to ethics or social responsibility?

  1. The reduction of waste on building sites
  2. The formation of a world class team of employees to win more business
  3. The use of recycled paper in head office
  4. Health and safety training for employees and sub-contractors

Answer(s): B



As a general rule, what period of continuous employment is required before a person can make a claim for unfair dismissal?

  1. at least 6 months
  2. at least 9 months
  3. at least 2 years
  4. at least 3 years

Answer(s): C



Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

  1. Objectivity
  2. Observation
  3. Obedience
  4. Obsession

Answer(s): A



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