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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Ettie

13 days ago

I believe option C is also a breach. Confirming suitability without understanding the financial instrument is risky.

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Tran

19 days ago

I agree with you, Madelyn. Closing down factories and causing job losses is not ethical.

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Madelyn

25 days ago

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

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