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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Lucina

5 days 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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Craig

14 days 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

15 days 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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Frederica

16 days ago

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

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Mozell

17 days 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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Candida

25 days ago

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

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