Pearson BA4 New Attempt

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

Question 73

P is an accountant working in a business Which of the following circumstances might create a self-interest threat for P in her professional role?

A client is threatening P's dismissal over a disagreement about the review of accounting policies

P is concerned over her employment security

P is required to review data after previously being involved in its preparation

The company is being threatened by litigation

Question 74

In the UK, the body responsible for reviewing the regulatory activities of the professional accountancy bodies is:

The Professional Oversight Board for Accountancy

The International Federation of Accountants

The Financial Reporting Council

The Financial Review Board

Question 75

Which of the following describes the aim of corporate governance initiatives?

To remove shareholder responsibility for the conduct of the company.

To reduce the burden of regulation on all companies to increase shareholder wealth

To enable shareholders to reduce their involvement in the governance of the company

To ensure that shareholders may have confidence that the company is well run

Question 76

Which of the following is normally not an implied term of a contract of employment?

The duty to provide work.

The duty to obey the employer's lawful instructions.

The duty to maintain mutual trust and confidence.

The duty not to disclose confidential information.