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BA4 Exam Dumps : Fundamentals of Ethics, Corporate Governance and Business Law

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Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

Question 1

Regarding auditor remuneration, a self-interest threat to professional competence and due care is created if

Options:

A.

a gift from a client is accepted

B.

the competitive fee quoted did not recognize the complexity of the assignment

C.

the auditor accepts a referral of a new client from an existing client

D.

a professional accountant in public practice solicits new work through advertising or other forms of marketing

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Question 2

Which of the following must an internal audit satisfy in order to be deemed independent? Select ALL that apply.

Options:

A.

The head of the audit must report to a high level within the organisation.

B.

The internal audit activity must be free from interference.

C.

The head of the internal audit must communicate and interact directly with the board of directors.

D.

Any problems identified during the audit should be reported.

E.

Action plans should be negotiated with management in order to address any identified problems.

Question 3

'Remuneration' is one of the main principles in the Corporate Governance Code. Which of the following is NOT best practice under the 'Remuneration' principle?

Options:

A.

Remuneration should be sufficient to attract, retain and motivate directors of the quality required to run the company successfully, but should not be excessive

B.

Remuneration should be structured in order to link a significant proportion of the rewards to corporate and individual performance

C.

There should be a formal and transparent procedure for developing policy on executive remuneration

D.

The board of directors are able to set the remuneration of non-executive directors