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

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?
A) Consider resignation of his post as accountant. and C) Discuss the situation with his line manager. and D) Consider reporting the situation to the appropriate authorities.
B) Adjust the figures in line with the board's request as this is a forecast and not the financial statements.
E) Delegate the work to a subordinate.
F) Submit the original forecast without the board's approval.

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

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 123
Topic #: 3
[All CIMAPRA19-F02-1 Questions]

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?

Show Suggested Answer Hide Answer
Suggested Answer: A, C, D

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

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Truman
7 hours ago
This is tough. I think Mr D should consider resignation.
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Alberta
5 days ago
D sounds like a good idea, but will it backfire?
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Martina
11 days ago
Wait, can he really just ignore the board's request?
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Sarina
16 days ago
B seems risky, forecasts should be honest too!
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Portia
2 months ago
A is a strong move if integrity is at stake.
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Anika
2 months ago
Definitely option C, talking it out is key!
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Tuyet
3 months ago
I’m leaning towards submitting the original forecast without approval, but I’m not sure if that’s ethical or just risky. It’s a tough call!
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Delsie
3 months 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
3 months 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
4 months 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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