CIMAPRA19-F02-1 Exam - Topic 3 Question 123 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 123
Topic #: 3

Mr D, a CIMA qualified accountant, is working on the preparation of a long term profit forecast required by the local stock marketprior to a new share issue of equity shares. At the most recent board meeting the directors requested that the forecast be inflated. In Mr D's view this wouldgrossly overestimate the forecast profit. Theboard intends to publish the revised inflated forecast.

Which THREE of the following are the ethical options available to Mr D in this situation?

AConsider resignation of his post as accountant.

BAdjust the figures in line with the board's request as this is a forecast and not the financial statements.

CDiscuss the situation with his line manager.

DConsider reporting the situation to the appropriate authorities.

EDelegate the work to a subordinate.

FSubmit the original forecast without the board's approval.

Show Suggested Answer

Suggested Answer: A, C, D

by Effie at Apr 04, 2026, 03:28 PM

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Delsie

4 days ago

Reporting to authorities sounds serious, but I wonder if that’s really necessary in this case. I feel like there should be a middle ground.

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Carmela

9 days ago

I think I saw a similar question about ethical dilemmas in our practice exams. Adjusting the figures seems wrong, but I’m not sure if discussing it with the manager is enough.

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Vivienne

14 days ago

I remember discussing the importance of ethical standards in accounting, especially when it comes to forecasts. Resigning could be an option, but it feels drastic.

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