CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 75 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 75
Topic #: 1

An accountant acting under their Code of Ethics would do which THREE of the following?

AResist pressure from the directors to recognise revenue on sales where the risks and rewards have not transferred to the customer.

BReport material conflicts of interest to a more senior level.

CReject a justified change to a depreciation policy that increases profitability.

DAccept a recommendation from the audit committee to increase segregation of duties within the finance department.

EMake a provision for a liability of uncertain timing or amount, requested by the directors, where there is NOT a present obligation.

FAccept a director's instruction to remove one element of their remuneration from the directors' remuneration report.

Show Suggested Answer

Suggested Answer: B

by Rolland at Oct 03, 2023, 03:32 AM

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Shelton

2 months ago

E and F are definitely no-nos. Making unsupported provisions and hiding remuneration? That's cooking the books, not accounting!

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Gilbert

6 days ago

C) Reject a justified change to a depreciation policy that increases profitability.

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Alecia

11 days ago

B) Report material conflicts of interest to a more senior level.

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Willard

19 days ago

C) Reject a justified change to a depreciation policy that increases profitability.

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Isadora

27 days ago

B) Report material conflicts of interest to a more senior level.

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Crissy

1 months ago

A) Resist pressure from the directors to recognise revenue on sales where the risks and rewards have not transferred to the customer.

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Portia

1 months ago

A) Resist pressure from the directors to recognise revenue on sales where the risks and rewards have not transferred to the customer.

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Lucina

2 months ago

Ha! Rejecting a justified depreciation change to increase profits? That's like a baker refusing to add sugar to a cake. C is just ridiculous.

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Leoma

16 days ago

User 3: It's important for accountants to follow their Code of Ethics and not give in to unethical practices.

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Barrie

1 months ago

User 2: Definitely, accountants should report conflicts of interest and resist pressure to recognize revenue falsely.

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Jamey

1 months ago

User 1: I agree, rejecting a depreciation change for profit is not ethical.

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Craig

2 months ago

I'm not sure about C. Wouldn't rejecting a justified change that increases profitability go against the Code of Ethics?

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Veta

2 months ago

This is a no-brainer. A, B, and D are the obvious choices - resist pressure, report conflicts, and improve segregation of duties. Anything else would be a breach of ethics.

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King

1 months ago

User 2: Absolutely, those are the key actions that an accountant should take to uphold their Code of Ethics.

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Johana

1 months ago

User 1: Definitely agree, A, B, and D are crucial for maintaining ethical standards.

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Frederica

2 months ago

I agree with Candida. Those options align with the Code of Ethics for accountants.

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Mozell

2 months ago

A, B, and D are the correct choices here. An accountant's ethical duty is to ensure accurate financial reporting, not cater to management's demands.

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Shelton

1 months ago

D) Accept a recommendation from the audit committee to increase segregation of duties within the finance department.

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Brynn

1 months ago

B) Report material conflicts of interest to a more senior level.

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Talia

1 months ago

A) Resist pressure from the directors to recognise revenue on sales where the risks and rewards have not transferred to the customer.

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Candida

3 months ago

I think the answer is A, B, and C.

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