CIMA Exam CIMAPRA19-P03-1 Topic 6 Question 31 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 31
Topic #: 6

Which of the followingactionswouldbreachCIMA's Code of Ethics for Professional Accountants?

AAn accountant has been asked to evaluate an investment opportunity that is open for a very short time. The accountant has recommended rejecting the opportunity without doing any evaluation because he was too busy to study the proposal properly.

BAn accountant has been asked to select a new supplier and has decided to recommend a supplier based in country A because that will give the accountant an excuse to visit a family member who lives there.

CAn accountant has been asked to confirm that a complex financial instrument that has been recommended by the bank is suitable for the company. The accountant does not understand the instrument, but has confirmed its suitability because senior management wishes to use it.

DAn accountant has been asked to compile a list of all contacts at the company's bank so that they can be included in the mailing list for the calendar and coffee mug that are distributed as business gifts by the company in December of every year.

EAn accountant has been asked to identify the two least profitable factories so that they can be closed down, with the loss of all jobs. All of the company's factories are located in areas of high unemployment.

Show Suggested Answer

Suggested Answer: A, B, D

by Kerry at Aug 05, 2023, 06:23 AM

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Rene

1 months ago

Option A is definitely not a good look. Rejecting an opportunity without evaluation? That's just lazy, not to mention unprofessional.

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Maryann

1 months ago

Haha, option E is a real knee-slapper. Closing down factories in high unemployment areas? That's just a recipe for disaster, both ethically and practically.

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Elke

1 months ago

I'd say option B is also a breach. Using a professional decision to visit a family member is a clear conflict of interest.

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Idella

23 hours ago

B) I agree, recommending a supplier based on personal reasons is not ethical.

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Hyun

21 days ago

A) Option B is definitely a breach of CIMA's Code of Ethics. It's a conflict of interest.

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3 months ago

I think option E would breach CIMA's Code of Ethics.

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