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CIMA's Code of Ethics would be violated if a professional accountant accepted a fee for work which is:
Suggested Answer: B
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39 comments · newest first
AR
Arthur
11 months ago
Really? I thought competitive bidding was supposed to be ethical.
EM
Emogene
11 months ago
A and B are fine, but C crosses the line.
JE
Jeannetta
11 months ago
Wait, how is D not a violation? Seems sketchy to me.
CH
Chandra
12 months ago
I agree, C just seems wrong.
TE
Terrilyn
12 months ago
C is definitely a violation, that's a clear conflict of interest.
DE
Demetra
1 year ago
I think D is safe since it's based on competitive bidding, but I can't recall if that always aligns with ethical standards.
CH
Cherry
1 year ago
I practiced a similar question where the focus was on the independence of the accountant, which makes me lean towards C being a violation.
DA
Daniel
1 year ago
I'm not entirely sure, but I feel like fees set by an ethics committee (A) could still be acceptable if they follow proper guidelines.
RE
Rex
1 year ago
I remember discussing how fees should be transparent and not contingent on outcomes, so I think C might be the answer.
CA
Candra
1 year ago
This is a tricky one. I'll need to think through the potential threats to the fundamental principles, like integrity and professional behavior. The wording of the options is quite specific, so I'll need to analyze each one closely.
JE
Jesusita
1 year ago
Okay, I think I've got this. The key is to identify which fee arrangement would compromise the accountant's independence or objectivity. I'll eliminate the options that don't seem to raise any ethical concerns.
AN
Annett
1 year ago
Hmm, I'm a bit unsure about this one. The question is asking about a specific violation, so I'll need to carefully review the code to identify the relevant ethical principles.
MA
Magnolia
1 year ago
This seems like a straightforward ethics question. I'll focus on the key principles of the CIMA Code of Ethics to determine which fee arrangement would be a violation.
YO
Yolande
1 year ago
I'm pretty confident that B is the right answer. Wireless devices are typically handheld or portable, so a Blackberry or PDA fits that description perfectly. The other options just don't seem like typical wireless devices to me.
QU
Quinn
1 year ago
I'm not entirely sure about this one. The wording of the options is a bit confusing. I'll need to read through them carefully and try to eliminate the incorrect answers.
DA
Darrin
1 year ago
This looks like a straightforward configuration question. I think I can handle this one.
LU
Lucia
1 year ago
I think the Documents tab is the way to go here. That seems like the most straightforward option to attach the proposal to the customer record.
VE
Vernice
1 year ago
Okay, I think I've got this. The key is understanding what's happening with the principal amount when securities are repurchased under repos.
ST
Stevie
2 years ago
Honestly, I'm just glad I don't have to worry about this code of ethics stuff. I'll stick to my day job flipping burgers, where the only ethical dilemma is whether to put extra pickles on the customer's sandwich.
IS
Isabelle
2 years ago
B) based on a quotation fixed in advance of the work being earned out
WI
William
2 years ago
A) fixed by a company's ethics committee
PA
Pamella
2 years ago
I'm torn between B and D, but I think D might be the way to go. Competitive bidding keeps things fair and above board.
BA
Barney
2 years ago
Haha, can you imagine the accountant being like, 'Hey boss, I found the money you were looking for! Show me the cash!'. That's definitely not allowed.
JO
Joseph
2 years ago
D) based on a price quotation submitted in competitive bidding
ME
Meaghan
2 years ago
C) payable once a specified finding has been attained
LE
Leah
2 years ago
B) based on a quotation fixed in advance of the work being earned out
DA
Dalene
2 years ago
B) based on a quotation fixed in advance of the work being earned out
YU
Yuki
2 years ago
A) fixed by a company's ethics committee
OT
Otis
2 years ago
A) fixed by a company's ethics committee
LE
Leontine
2 years ago
I'm not sure, but I think C) could also be a violation of CIMA's Code of Ethics
MA
Malinda
2 years ago
I agree with Antione, because accepting a fee fixed in advance is more ethical
KA
Kami
2 years ago
I'd have to go with option B. A fixed quotation in advance seems like the safest way to avoid any ethical issues.
AD
Adell
2 years ago
I think option D could also be acceptable, as long as it's based on competitive bidding.
LA
Latosha
2 years ago
I agree, option B is definitely the safest choice.
AH
Ahmad
2 years ago
Option C is clearly a violation of the Code of Ethics. You can't accept a fee based on a specific outcome - that's just unethical.
LU
Luis
2 years ago
A: That's a good point, accepting a fee based on competitive bidding could raise ethical concerns.
NI
Nieves
2 years ago
B: I think option D could also be a violation, as it involves competitive bidding.
MA
Margot
2 years ago
A: I agree, option C is definitely a violation of the Code of Ethics.
AN
Antione
2 years ago
I think the answer is B)