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CIMAPRA17-BA4-1 Exam - Topic 7 Question 90 Discussion

CIMA's Code of Ethics would be violated if a professional accountant accepted a fee for work which is:
B) based on a quotation fixed in advance of the work being earned out
A) fixed by a company's ethics committee
C) payable once a specified finding has been attained
D) based on a price quotation submitted in competitive bidding

CIMAPRA17-BA4-1 Exam - Topic 7 Question 90 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 90
Topic #: 7
[All CIMAPRA17-BA4-1 Questions]

CIMA's Code of Ethics would be violated if a professional accountant accepted a fee for work which is:

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Suggested Answer: B

by Junita at Jun 22, 2024, 02:35 PM

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Arthur
8 months ago
Really? I thought competitive bidding was supposed to be ethical.
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Emogene
8 months ago
A and B are fine, but C crosses the line.
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Jeannetta
8 months ago
Wait, how is D not a violation? Seems sketchy to me.
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Chandra
8 months ago
I agree, C just seems wrong.
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Terrilyn
9 months ago
C is definitely a violation, that's a clear conflict of interest.
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Demetra
9 months 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.
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Cherry
9 months 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.
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Daniel
9 months 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.
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Rex
9 months ago
I remember discussing how fees should be transparent and not contingent on outcomes, so I think C might be the answer.
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Candra
9 months 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.
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Jesusita
9 months 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.
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Annett
9 months 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.
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Magnolia
9 months 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.
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Yolande
10 months 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.
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Quinn
10 months 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.
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Darrin
10 months ago
This looks like a straightforward configuration question. I think I can handle this one.
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Lucia
10 months 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.
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Vernice
10 months 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.
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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.
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Isabelle
2 years ago
B) based on a quotation fixed in advance of the work being earned out
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William
2 years ago
A) fixed by a company's ethics committee
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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.
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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.
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Joseph
2 years ago
D) based on a price quotation submitted in competitive bidding
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Meaghan
2 years ago
C) payable once a specified finding has been attained
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Leah
2 years ago
B) based on a quotation fixed in advance of the work being earned out
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Dalene
2 years ago
B) based on a quotation fixed in advance of the work being earned out
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Yuki
2 years ago
A) fixed by a company's ethics committee
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Otis
2 years ago
A) fixed by a company's ethics committee
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Leontine
2 years ago
I'm not sure, but I think C) could also be a violation of CIMA's Code of Ethics
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Malinda
2 years ago
I agree with Antione, because accepting a fee fixed in advance is more ethical
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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.
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Adell
2 years ago
I think option D could also be acceptable, as long as it's based on competitive bidding.
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Latosha
2 years ago
I agree, option B is definitely the safest choice.
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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.
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Luis
2 years ago
A: That's a good point, accepting a fee based on competitive bidding could raise ethical concerns.
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Nieves
2 years ago
B: I think option D could also be a violation, as it involves competitive bidding.
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Margot
2 years ago
A: I agree, option C is definitely a violation of the Code of Ethics.
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Antione
2 years ago
I think the answer is B)
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