Chapter 3 1 The Sarbanes-Oxley Act 2 Tone from the top, how the board works as a team, key actions of the board and its committees, board effectiveness, communication with shareholders. 3 C, E 4 Minority, foreign 5 IFAC 2018 Examinations Watch free CIMA BA4 lectures 87
OpenTuition . com Free CIMA notes • Free CIMA lectures • Free CIMA tests • Free tutor support • StudyBuddies • CIMA forums Chapter 4 1 Two-tier; unitary. Twe-tier has a supervisory and management board; unitary has non- executive direstors on the single board. 2 Nomination committee, audit committee, remuneration committee. 3 Leadership, effectiveness, accountability, remuneration, relations with shareholders 4 True 5 False Chapter 5 1 B, E 2 True and fair (or fairly present) 3 Qualified, adverse and disclaimer 4 Internal audit External audit Reports to shareholders X Appointed by management X Power from statute X Covers all categories of risk and investigation X 5 C, E Chapter 6 1 Financial statement fraud; misapporpriation of assets 2 Motive/incentive, opportunity, attitude/dishonesty 3 Prevention, detection, response 2018 Examinations Watch free CIMA BA4 lectures 88
OpenTuition . com Free CIMA notes • Free CIMA lectures • Free CIMA tests • Free tutor support • StudyBuddies • CIMA forums 4 Error of omission Error of commission Error of principal Trial balance out of balance An invoice from a customer gets lost in the post X An invoice from a customer for $541 is entered into the bookkeeping system as $451 X Repairs of $1,200 are debited to the cost of non-current assets instead of the repairs account X A purchase of $240 is entered as: • Dr Purchases 240 • Dr VAT 40 • CR Supplier $240 X X 5 ๏ Segregation of duties ๏ Physical ๏ Authorisation and approval ๏ Management and supervision ๏ Organisation ๏ Arithmetic and accounting ๏ Personnel 2018 Examinations Watch free CIMA BA4 lectures 89
OpenTuition . com Free CIMA notes • Free CIMA lectures • Free CIMA tests • Free tutor support • StudyBuddies • CIMA forums Chapter 7 1 False. There might be no legal responsibility but the behaviour of suppliers can taint companys buying from them and buyers can therefore bring pressure to bear on their suppliers to behave better, 2 Profit, people, planet or profit, social, environmental. 3 GRI is an international independent organisation that helps businesses, governments and other organisations understand and communicate the impact of business on critical sustainability issues such as climate change, human rights, corruption and many others. 4 False. CSR means going further than the law prescribes. 5 False. Directors’ legal duty is to maximise shareholder wealth. Chapter 8 1 Offer, acceptance, consideration, intention to create legal relations. (You could also mention ‘capacity’) 2 A, C 3 B 4 A – Probably a misrepresentation because the statement is one of fact and is untrue. B– Because the statement was an opinion of the seller it is probably not a misrepresentation provided it was honestly held.
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