CIMA BA4 : Fundamentals of Ethics - Corporate Governance and Business Law

  • Exam Code: BA4
  • Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
  • Updated: Sep 17, 2026   Q&As: 660 Questions and Answers

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CIMA BA4 Exam Syllabus Topics:
SectionWeightObjectives
General Principles of Legal System, Contract and Employment Law15%- Business law fundamentals
  • 1. Employment law basics
    • 2. Legal systems and sources of law
      • 3. Contract formation and enforcement
        Company Administration10%- Corporate legal administration
        • 1. Company formation and structure
          • 2. Corporate compliance and filings
            Corporate Governance, Controls and Corporate Social Responsibility45%- Corporate social responsibility
            • 1. CSR principles and sustainability reporting
              - Corporate governance framework
              • 1. Role of boards and directors
                • 2. OECD principles and governance codes
                  - Internal controls and audit
                  • 1. Internal audit and external audit roles
                    • 2. Risk management and control systems
                      Business Ethics and Ethical Conflict30%- Ethical principles and professional behaviour
                      • 1. Ethical dilemmas and conflict resolution
                        • 2. Nature of ethics and values in accounting
                          • 3. Professional independence, objectivity, and integrity
                            CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
                            Question #1

                            H is hoping for a promotion. His wife is expecting a baby and they need the extra money. He needs to present the figures for his section, but the true figures do not reflect well on his manager. What should H do?

                            • A. Present the figures which reflect well on the manager: H's family are more important
                            • B. Present the true figures: his motivation should be to be honest
                            • C. Present figures which reflect well on the manager: after all H needs his manager's approval to get the promotion
                            • D. Present slightly amended figures: after all everybody does this, and H will still be popular with the rest of his section
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

                            Question #2

                            Which THREE of the following are examples of a fraudulent action against a company?

                            • A. The sending of a bogus invoice to another company
                            • B. The misallocation of a transaction against the incorrect account code in the general ledger
                            • C. The omission of an invoice from the purchase ledger due to it being mis-filed in the petty cash invoices.
                            • D. The loss on the sales of a car due to its accumulated depreciation on the day of sale being too low as a consequence of a depreciation policy of 25%
                            • E. The theft of cash from the cash till by an employee.
                            • F. The selection of an incorrect accounting policy by the management team whereby sales of goods are recognised on the day that the order is placed despite the company policy of a three day cooling off period
                            Reveal Solution  Discussion  0

                            Correct Answer: B,C,E  🗳️

                            Question #3

                            Which of the following terms can be defined as follows?
                            "...the generic way that organizations are run"

                            • A. Social responsibility
                            • B. Corporate governance
                            • C. Ethics
                            • D. Professional behavior
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

                            Question #4

                            You are concerned that your boss may have been putting together misleading financial statements for some time. As a well known and well respected accountant, you are concerned that your boss might bring the profession into disrepute. Which TWO of the CIMA Code of Ethics fundamental principles does this affect?

                            • A. Objectivity and impartiality
                            • B. Objectivity and professional competence and due care
                            • C. Professional behavior and integrity
                            • D. Integrity and reliability
                            Reveal Solution  Discussion  0

                            Correct Answer: C  🗳️

                            Question #5

                            J is employed as management accountant of a large retailer. Jo has been invited to take a holiday 'all expenses paid' at a villa owned by the managing director of a supplier organization. If J accepts the invitation, which of the following 'fundamental principles' of CIMA's Code of Ethics will be compromised?

                            • A. Confidentiality
                            • B. Integrity
                            • C. Objectivity
                            • D. Professional behavior
                            Reveal Solution  Discussion  0

                            Correct Answer: C  🗳️

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