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THE INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF BANGLADESH CMA JUNE, 2016 EXAMINATION
BUSINESS LEVEL
SUBJECT: GE 05.FUNDAMENTALS OF ETHICS, CORPORATE GOVERNANCE AND BUSINESS LAW.
Time: Three hours Full Marks: 100
All questions are to be attempted.
Show computations, where necessary.
Answer must be brief, relevant, neat and clean.
Start answering each question from a fresh sheet.
Q. No. 1.
(a) “A professional accountant shall comply with the fundamental principals as per IFAC Handbook for code of Ethics for Professional Accountants”. Please expand upon this statement. Discuss the Code of Ethics of a Professional Accountant.
(b) Who is a professional accountant as per Financial Reporting Act-2015? Critically discuss the Financial Reporting Act-2015 with particular emphasis on the accounting profession in Bangladesh.
(c) Mr. Kamal is a professional accountant working in XYZ Company Ltd. listed with the Dhaka Stock Exchange Ltd. He was asked to issue an unrealistically high revenue forecast. What is the ethical dilemma here? What would be your response as a professional accountant?
[Marks: (5+5+5) = 15]
Q. No. 2.
(a) Briefly describe the recent developments of corporate governance in Bangladesh. Who can be an “Independent Director”? Explain.
(b) Critically discuss the ‘Corporate Governance Notification’ for listed companies issued by the Bangladesh Securities Exchange Commission.
[Marks: (5+5) = 10]
Q. No. 3.
(a) What do you mean by “Contract”? Briefly explain the elements of a valid contract giving relevant examples.
(b) “All contracts are agreements, but all agreements are not contracts”– Explain the statement with examples.
(c) “No consideration, no contract”– Explain the statement with examples.
[Marks: (5+5+5) = 15]
Q. No. 4.
(a) What do you mean by “Tort”? Explain Tort of Negligence.
(b) Discuss the benefits of international regulations for commerce and professional practice through the International Federation of Accountants (IFAC).
[Marks: (5+5) = 10]
Q. No. 5.
(a) Though Common Law & Equity seem identical, there are some unique features which have set out the distinctiveness. Write down the distinction between the two.
(b) In business, Shari’ah law is emerging as a good alternative to traditional law. Describe the elements of Shari’ah law.
[Marks: (5+5) = 10]
Page 2 of 2 CMA JUNE, 2016 EXAMINATION
BUSINESS LEVEL
SUBJECT: GE 05. FUNDAMENTALS OF ETHICS, CORPORATE GOVERNANCE AND BUSINESS LAW.
Q. No. 6.
(a) Write and discuss the key features of “Sale of Goods Act 1930” with reference to provision.
(b) What is misrepresentation in terms of Contract Act 1872? How can an agreement be avoided due to misrepresentation?
(Marks: (5+10) = 15]
Q. No. 7.
(a) Write short notes on Civil Liability for Occupational Injuries.
(b) What are the prevailing rules of health & safety at work? What are the remedies to employees if not complied by employers?
[Marks: (3+7) = 10]
Q. No. 8.
Write short notes on:
(a) Unfair and wrongful Dismissal of Employee;
(b) Independent Contractor;
(c) Quasi Contract.
[Marks: (5+5+5) = 15]
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