Topic: The Role of Professional Accountants in Business and Society

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BMF – Nov 2020 – L1 – SB – Q4 – The Role of Professional Accountants in Business and

Explanation of ethical dilemmas, powers of professional bodies, and methods for resolving ethical dilemmas.

Question

(a) Distinguish between ethical dilemma and conflict of interest. (4 Marks)
(b) Globally, professional bodies are backed by law, consequently, a measure of authority is conferred upon them which they regularly exercise whenever the situation or circumstance demands.
State THREE powers of a professional body. (6 Marks)
(c) State FIVE possible ways of resolving ethical dilemma in a business environment. (10 Marks)

(Total 20 Marks)

Answer

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Tags: Business Ethics, Conflict of Interest, Conflict Resolution, Ethical dilemma, Professional Body Powers
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2020

BMF – Nov 2020 – L1 – SA – Q14 – The Role of Professional Accountants in Business and Society

Identify the item that is NOT considered an agency cost.

Question

Agency costs are the costs that the shareholders incur when professional managers run their company. Which of the following is NOT part of agency costs?
A. Costs of auditing accounts of the company
B. Remuneration paid to managers of the company
C. Cash bonuses paid to managers for meeting specified targets
D. Costs incurred paying too much for the acquisition of a subsidiary
E. Award of free shares to management of the company

Answer

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Tags: Agency Costs, Management Compensation, Shareholders
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2020

BMF – Nov 2020 – L1 – SA – Q11 – The Role of Professional Accountants in Business and Society

Identify the term for reporting suspicions of illegal or improper behavior.

Question

Reporting suspicions of illegal or improper behavior to a person in authority is termed:
A. Business ethics
B.
C.
D.
E. Whistle blowing

Answer

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Tags: Ethics, Professional Conduct, Whistleblowing
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2020

BMF – MAY 2016 – L1 – SA – Q13 – The Role of Professional Accountants in Business and Society

Multiple choice question on matters not typically associated with public interest in accountancy.

Question

It is usual for accountants to associate public interest with the following matters EXCEPT

A. Detecting and reporting any serious misdemeanour or crime
B. Protecting health and public safety
C. Preventing the public from being misled by a statement or action of an individual or an organisation
D. Protecting health and personal safety
E. Revealing the existence of any conflict of interests of those individuals who are in a position of power or influence

Answer

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Tags: Accountancy, Professional Ethics, Public Interest
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: MAY 2016

BMF – May 2016 – L1 – SA – Q3 – The Role of Professional Accountants in Business and Society

This question tests the student's understanding of characteristics and objectives of not-for-profit organizations.

Question

The following are TRUE about Not-For-Profit Organisations EXCEPT:
A. They exist for purposes other than making profit
B. They operate within the funding and cash available
C. They are wholly or partly funded from non-government sources
D. The operating surplus is retained for the organisation
E. They will aim to operate at a surplus

Answer

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Tags: Accounting, Business Objectives, Not-for-profit organizations
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: MAY 2016

BMF – Nov 2014 – L1 – SA – Q20 – The Role of Professional Accountants in Business and Society

Identify the individual regarded as the father of "Scientific Management."

Question

Which of these management writers is regarded as the father of “Scientific Management”?

A. Charles Babbage
B. Robert Katz
C. Henry Mintzberg
D. Frederick Taylor
E. Henri Fayol

Answer

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Tags: Frederick Taylor, Management Theory, Scientific Management
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2014

BMF – Nov 2014 – L1 – SA – Q16 – The Role of Professional Accountants in Business and Society

Identify an example of an agency relationship in a typical business organization.

Question

Which of the following provides a good example of an agency relationship in a typical business organization?

A. Employees and Employer
B. Employees and Creditors
C. Creditors and Shareholders
D. Creditors and Governments
E. Debtors and Creditors

Answer

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Tags: Agency Relationship, Business Governance, Employer-Employee
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2014

BMF – Nov 2014 – L1 – SA – Q15 – The Role of Professional Accountants in Business and Society

Identify the main objective of a not-for-profit organization.

Question

The objective of a not-for-profit organization should be the pursuit of:

A. Cost effectiveness
B. Profit minimization
C. Shareholders’ wealth maximization
D. Value for money
E. Market position

Answer

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Tags: Cost Effectiveness, Not-for-profit, Value for Money
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2014

BMF – Nov 2014 – L1 – SA – Q13 – The Role of Professional Accountants in Business and Society

Identify the type of group that manages its own work and practices.

Question

A work group that manages its own work practices and job allocation within the group is known as:

A. Team group
B. Operative work group
C. Autonomous work group
D. Cooperative work group
E. Joint work group

Answer

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Tags: Autonomous Group, Team Management, Work Group
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2014

BMF – Nov 2014 – L1 – SA – Q10 – The Role of Professional Accountants in Business and Society

Identifies the field that ethics as a science belongs to.

Question

Ethics is a science of
A. Religion
B. Philosophy
C. Psychology
D. Physiology
E. Morals

Answer

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Tags: Ethics, Morals, Philosophy
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2014

BMF – Nov 2019 – L1 – SB – Q3 – The Role of Professional Accountants in Business and Society

Explain the term "Corporate code of ethics" and discuss ways to deal with stakeholders and benefits of code of ethics.

Question

(a) Explain the term ‘Corporate code of ethics’ and state the contents thereof. (5 Marks)

(b) The code of conduct recommends the way each stakeholder group might be treated ethically. Explain briefly TWO ways of dealing with employees, customers, and competitors ethically. (6 Marks)

(c) State the THREE main benefits of a corporate code of ethics. (9 Marks

Answer

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Tags: Corporate Code of Ethics, Ethics, Stakeholder Management
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2019

BMF – Nov 2019 – L1 – SA – Q19 – The Role of Professional Accountants in Business and Society

Identifying a reason that is not typically associated with setting up an NGO

Question

A Non-Governmental Organisation (NGO) is set up to pursue certain non-commercial objectives. Which of the following is NOT a particular reason for setting up an NGO?
A. Human rights
B. Mental health
C. Economic research
D. Protection of children
E. Addressing of natural disasters

Answer

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Tags: NGOs, Non-Commercial Objectives
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2019

BMF – Nov 2019 – L1 – SA – Q7 – The Role of Professional Accountants in Business and Society

Identifying the principle that is not a fundamental requirement for professional accountants

Question

Professional accountants are required to comply with the following fundamental principles EXCEPT:
A. Integrity
B. Efficiency
C. Objectivity
D. Competence
E. Confidentiality

Answer

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Tags: Accounting principles, Professional Ethics
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2019

BMF – Nov 2019 – L1 – SA – Q1 – The Role of Professional Accountants in Business and Society; Business and Organizational Structures and Choices

Identifying incorrect accountability in different business structures

Question

The management of an organisation is accountable to its owners for the performance of the firm. From the foregoing, which of the following statements is incorrect?
A. Charities are accountable to stakeholders
B. Limited liability partnership is accountable to the government
C. The directors of a company are accountable to equity holders
D. Managers of public sector enterprises are accountable to the government
E. Partners in a business partnership are accountable to the stakeholders

Answer

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Tags: Accountability, Business Structures, Partnerships, Stakeholders
Level: Level 1

BMF – May 2017 – L1 – SA – Q20 – The Role of Professional Accountants in Business and Society

Multiple-choice question on identifying an action not in the public's best interest.

Question

Which of the following actions will NOT be in the best interest of the public?

A. Preventing the public from being misled by an action of an organisation
B. Detecting and concealing any serious misdemeanor
C. Exposing the misuse of public funds
D. Exposing corruption in government
E. Protecting health and public safety

Answer

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Tags: Ethical Decisions, Professional Ethics, Public Interest
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: MAY 2017

BMF – May 2017 – L1 – SA – Q19 – The Role of Professional Accountants in Business and Society

Multiple-choice question on identifying a principle not required for professional accountants.

Question

Which of the following is NOT a fundamental principle required to be strictly adhered to by professional accountants?

A. Professional incompetence
B. Professional behavior
C. Confidentiality
D. Objectivity
E. Integrity

Answer

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Tags: Accounting principles, Code of Conduct, Professional Ethics
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: MAY 2017

BMF – Mar July 2020 – L1 – SB – Q4b – The Role of Professional Accountants in Business and Society

Providing a brief description of NOCLAR and ICAN's position on the regulation.

Question

The International Ethics Standards Board for Accountants (IESBA) recommends some measures on Non-Compliance with Laws and Regulations (NOCLAR) to professional accountancy bodies for adoption.

Required:
Provide a brief description of NOCLAR and state the position of ICAN on this regulation.

Answer

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Tags: Compliance, NOCLAR, Professional Ethics
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: MAR/JULY 2020

BMF – Mar July 2020 – L1 – SB – Q4a – The Role of Professional Accountants in Business and Society

Listing and explaining five threats that can impair the conduct of a professional accountant.

Question

A broad range of relationships and circumstances could compromise a professional accountant’s ability to comply with the fundamental principles of ethical behavior.

Required:
List and explain FIVE threats that can impair the conduct of a professional accountant in a business environment.

Answer

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Tags: Business Environment, Ethical behavior, Professional Conduct
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: MAR/JULY 2020

BMF – May 2024 – L1 – SB – Q3a – The Role of Professional Accountants in Business and Society

Discuss the ethical threats faced by professional accountants and their impact on compliance with laws and regulations.

Question

a. Explain briefly FIVE ethical threats that could compromise a professional accountant’s ability to comply with relevant laws and regulations. (5 Marks)

Answer

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Tags: Accountants, Ethical Threats, Ethics, Laws and regulations, Professional Conduct
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: MAY 2024

BMF – May 2024 – L1 – SA – Q7 – The Role of Professional Accountants in Business and Society

Determining what guides the decisions and actions of professional accountants within organizations.

Question

The decisions and actions of all professional accountants in an organization are guided by:
A. Organizational culture
B. Management
C. Professional trainings
D. Core values
E. Corporate code of ethics

Answer

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Tags: Accountants, Business Culture, Professional Ethics
Level: Level 1