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Questions # 1:

Where a countries' rules protect whistleblowers. they usually only do so where there has been a "qualifying disclosure" Which of the following statements best describes the minimum level of information which a whistleblower needs to have to make a "qualifying disclosure"?

Options:

Certainty that at least one company rule is being breached or has been breached in the past

Knowledge that company rules are about to be breached

Reasonable grounds to believe that sufficiently serious malpractice is taking place

A suspicion that serious malpractice has taken place

Questions # 2:

Which of the following statements is incorrect in relation to the revised derivative action under section 260 of the Companies Act 2006?

(i) The action may be brought by a single shareholder.

(ii) The action may be brought in relation to an act of negligence by the directors.

(iii) The action cannot be brought in respect of a proposed act by the directors.

Options:

(i) only

(ii) only

(iii) only

(ii) and (iii) only

Questions # 3:

Which of the following is INCORRECT in relation to directors' duties?

Options:

Directors owe a duty to promote the success of the company.

Directors' duties are codified in the UK Corporate Governance Code.

Directors must act in accordance with the company's constitution.

Directors' duties are owed to the shareholders as a whole.

Questions # 4:

You work for a chain of coffee shops who are proud of their sustainable credentials and have used their claim to recycle all of their disposable cups as part of their brand identity. An audit has revealed that staff in one region (West) are mixing these cups into normal waste and sending them to landfill in spite of the ethical code of practice of the company

Which TWO of the following might explain why the code has failed to promote the desired behavior?

Options:

The regional manager has been actively promoting expanded green programs through a Green West is Best initiative which has involved all store managers and teams in the West region

The induction programmer for new staff has been recently updated and the section on recycling procedures has been inadvertently dropped. The initial staff training is done in the store through shadowing experienced staff for a month before any tasks are attempted unsupervised

A recent focus on staff efficiency in the West region failed to reflect the time needed to sort the recycle waste from the normal waste at the end of the day. West store managers were rewarded for their recycle rates and these are published in a district league table each quarter.

The regional manager of the West branch has not been checking on the recycling reports which would have highlighted this issue and so there have

been no adverse consequences to the staff concerned

A recent focus on staff efficiency in the West region failed to reflect the time needed to sort the recycle waste from normal waste at the end of the day West store managers and teams were rewarded on efficiency and not recycle rates.

Questions # 5:

AD company has recently appointed you as the head of their internal audit department and the head of the risk management committee. The internal audit department consists of a team of ten full time staff and other finance and IT staff are appointed into the internal audit team on an ad hoc basis as required. The rail time staff are all qualified accountants, some with CIMA and some with other professional bodies.

The company prefers to keep the full time staff complement to ten to manage the costs and the team have told you that they are often under considerable pressure to perform their operational and financial audit work and feel short staffed. The team therefore relies on the support of key members of the finance department and IT department, who are experts in their areas

You were appointed to the role by the audit committee and have been given authority to investigate all aspects of the business.

From your initial understanding of the internal audit function which TWO statements describe the strengths of the department?

Options:

There is no limitation on the scope of the department's work

The department has no operational responsibilities

The appointment process of the head of internal audit reduces the opportunity for management bias

The department is sufficiently resourced both financially and in terms of qualified, experienced staff.

The department is independent and objective.

Questions # 6:

What is the purpose of the equitable remedy of rescission?

Options:

To place the parties in their pre-contract position.

To force the party in breach to carry out the contract.

To prevent a party from acting in breach of contract.

To ensure that the innocent party is adequately compensated.

Questions # 7:

Which of the following statements refer to the remuneration committee? Select ALL that apply.

Options:

Staffed exclusively by NEDs.

Makes decisions regarding the payment of directors.

Has a responsibility to attract, retain and motivate directors.

Makes decisions regarding the appointment of new directors.

Has a responsibility to monitor and review the effectiveness of the internal audit function.

Makes decisions regarding the appointment, re-appointment and removal of the external auditor.

Questions # 8:

B agreed in his contract that he would not work for a competitor of Gee Ltd for a period of 12 months after leaving the company's employment. On leaving Gee Ltd, B worked for Zed Ltd, a competitor of Gee Ltd. If the restriction in B's contract with Gee Ltd should be found to be reasonable, which of the following remedies is Gee Ltd entitled to?

(i) A decree of specific performance forcing B to comply with his contract with Gee Ltd.

(ii) Damages in respect of any loss caused by B's breach of contract.

(iii) An injunction to stop B working for Zed Ltd.

Options:

(i) only

(i) and (ii) only

(ii) and (iii) only

(i), (ii) and (iii)

Questions # 9:

A company's board of directors is faced with an ethical dilemma. The directors decide to adopt a utilitarian approach to coming up with a solution Therefore, they will take action based on which of the following approaches?

Options:

They will do whatever results in the greatest amount of good for the greatest number of people affected by the action

They will base their decision on previous consequences and results from past actions in similar situations

They will ensure that the result of their action will maximise profits for the company shareholders

They will focus on the intrinsic goodness or value of their action

Questions # 10:

Which of the following is correct in relation to damages?

(i) The victim of a breach of contract may claim damages in respect of losses caused by the breach which were within the contemplation of the contract breaker.

(ii) As a general rule damages cannot be claimed for annoyance and inconvenience caused by the breach of contract.

(iii) Where there is a breach of contract, damages are available to the innocent party as of right.

Options:

(i) only

(i), (ii) and (iii)

(ii) only

(ii) and (iii) only

Questions # 11:

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

Options:

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

Questions # 12:

Which of the following is presumed to be intended to create legal relations?

Options:

A promise by a father to make a gift to his son.

A commercial transaction.

A domestic arrangement.

A social arrangement.

Questions # 13:

AB Ltd contracted to deliver two desks and three filing cabinets to CD Ltd. On the day when delivery was due to take place AB Ltd did not have a vehicle with sufficient capacity to hold all the goods. As a result AB Ltd delivered the two desks only

Which of the following is correct?

Options:

The contract between AB Ltd and CD Ltd is frustrated.

CD Ltd is legally entitled to refuse delivery of the desks

The failure to deliver the filing cabinets is a breach of a warranty which entitles CD Ltd to claim damages

The delivery of the desks amounts to substantial performance of the contract and CD Ltd is obliged to pay the contract price less an amount for the defects in performance

Questions # 14:

Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

Options:

The separation of the roles of Director and Company Secretary

The appointment of independent non-executive directors to the Board

The establishment of an audit committee

The identification of an independent director as primary shareholder contact

Questions # 15:

AB (Wholesalers) Ltd contracted to sell a quantity of television sets to DC (Retailers) Ltd. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should comply with their description.

Which of the following is correct?