Free BA4 Questions Attempt

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

Question 81

Corporate governance codes may either be rules-based or principles-based

Which of the following statements correctly describes a rules-based approach to corporate governance?

A rules-based approach requires that a company complies with the rules or explains why it has not.

A rules-based approach instils the code into law but leaves the sanctions for non-compliance to be decided and enforced by the shareholders.

A rules-based approach instils the code into law but encourages compliance with the spirit of the law.

A rules-based approach instils the code into law with appropriate penalties for transgression.

Question 82

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

a gift from a client is accepted

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

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

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

Question 83

Which of the following is INCORRECT in relation to Shari'ah law?

i. Shari'ah law is intended to provide for a person's spiritual well-being but is not concerned with secular matters.

ii. The Sunnah is one of the primary sources of Shar'iah law.

iii. The salat (daily prayers) is one of the Five Pillars of Islam.

(i) only

(ii) only

(i) and (ii) only

(iii) only

Question 84

Which THREE of the following may be external stakeholders in the activities of a nuclear power station?

The government

Finance providers

Employees

Environmental pressure groups

Suppliers

Local residents