1What are the five fundamental principles of ethics according to CIMA?
Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behavior
2What does integrity mean in the context of CIMA ethics?
Integrity requires accountants to be straightforward and honest in all professional and business relationships.
3How does objectivity apply to professional accountants?
Objectivity means accountants must not allow bias, conflicts of interest, or undue influence from others to override their professional judgment.
4Objectivity means accountants must not allow bias, conflicts of interest, or undue influence from others to override their professional judgment.
Accountants must maintain professional knowledge and skill at the required level to provide competent services, acting diligently and in accordance with applicable technical and professional standards.
5Why is confidentiality important in accounting?
Confidentiality ensures that accountants do not disclose information acquired in the course of their professional work unless legally obligated or authorized to do so.
6What does professional behavior require from accountants?
Professional behavior means complying with relevant laws and regulations and avoiding any action that discredits the profession.
7What is the CIMA Code of Ethics based on?
The CIMA Code of Ethics is based on the International Ethics Standards Board for Accountants (IESBA) Code of Ethics.
8What are some threats to compliance with the fundamental principles?
Self-interest threat
Self-review threat
Advocacy threat
Familiarity threat
Intimidation threat
9What is a self-interest threat?
A self-interest threat arises when a professional accountant has a financial or other personal interest that could unduly influence their judgment or behavior.
10What is a self-review threat?
A self-review threat occurs when a professional accountant is in a position to evaluate their own previous work.
11What is an advocacy threat?
An advocacy threat occurs when a professional accountant promotes a client’s or employer’s position to the extent that their objectivity is compromised.
12What is a familiarity threat?
A familiarity threat arises when a close relationship with a client or employer results in undue influence on an accountant’s professional judgment.
13What is an intimidation threat?
An intimidation threat occurs when a professional accountant is deterred from acting objectively by actual or perceived pressures.
14How can accountants safeguard against ethical threats?
Implementing strong internal controls
Seeking independent professional advice
Declining or removing oneself from engagements where ethical threats cannot be mitigated
Regular ethics training
Consulting CIMA’s ethics helpline or guidance
15What should an accountant do if they suspect unethical behavior?
Follow the organization’s whistleblowing procedures
Consult CIMA’s ethical guidance
Consider reporting to relevant authorities if necessary