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S is management accountant for a small retail company. S has discovered a possible fraud in the purchasing department. The manager of that department has told S that he is aware of the fraud and will 'deal with it'.

Which ONE of the following would it be appropriate for S to do?

Options:

Nothing

Advise a director of the company

Ask for confirmation in writing from the manager

Bring the matter to the attention of the police

Ask for advice from the company's external auditors

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Question 2

Which of the following is correct?

(i) All courts below the Supreme Court may refer a case involving European Law to the European Court of Justice for a preliminary ruling.

(ii) The Supreme Court must refer a case involving European Law to the European Court of Justice for a preliminary ruling.

(iii) An English court is not bound to give effect to a preliminary ruling of the European Court of Justice.

Options:

(i) and (ii) only

(ii) and (iii) only

(iii) only

(i) and (iii) only

Question 3

There are several different schools of ethics. Which of the following best represents the ethical approach adopted by the accountancy profession?

Options:

People have a duty to comply with a set of universal principles that apply irrespective of the consequences of their actions

The guiding principle of conduct should be the greatest happiness or benefit of the greatest number.

People should act in their own best interests and an action is only right if it benefits the individual undertaking that action

Virtues such as charity and justice are dispositions to act in ways that benefit both the person possessing them, and society as a whole

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

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