Course Overview

Covering everything from contractual obligations to company formation, this CIMA paper in the Fundamentals of Ethics, Corporate Governance and Business Law is part of the qualification to become a member of the Chartered Institute of Management Accountants (CIMA). This internationally recognised and respected body offers one of the most highly-regarded qualifications available in the field of accountancy.

Pre-requisites

A 'Flexible Entry' policy is in place, meaning that there are no minimum entry requirements, but students will need a good standard of maths and be competent in the English Language.

Qualification

CIMA Paper 5: Fundamentals of Ethics, Corporate Governance and Business Law

Support and Benefits

• Gain an internationally recognised qualification to enhance your career opportunities
• CIMA approved study materials including exam practice questions
• Access to a dedicated tutor and student advisors to guide you through your studies

Key Topics

• Comparison of English Law with Alternative Legal Systems

Understand how behaviour in society is regulated by civil and criminal law, and discover the sources of English law. Examine the doctrine of precedent and the tort of negligence. Compare English Law with that of alternative legal systems, and consider the role of international legal regulations.

• The Law of Contract

Examine the different forms of contracts and the essential elements of each. Consider legal agreement between negotiating parties. Discover how the law controls the use of unfair contractual terms. Explore the area of non-performance of a contract, including valid and invalid reasons for non-performance, as well as the possible repercussions of non-performance.

• The Law of Employment

Explore the differences between employees and independent contractors, and discover how the contents of a contract of employment are established. Examine the distinction between unfair and wrongful dismissal. Consider how both employers and employees are affected by health and safety legislation, and discover the consequences of failure to comply.

• Company Administration and Finance (1)

Examine the essential characteristics of the different forms of business organisations and the implications of corporate personality. Consider the purpose and legal status of the memorandum and articles of association. Understand the main advantages and disadvantages of carrying on business through the medium of a company limited by shares. Examine the nature of board meetings and general meetings of shareholders, as well as the voting rights of directors and shareholders.

• Company Administration and Finance (2)

Examine the different types of share and the procedure for the issue of shares. Explore the maintenance of capital principle and the procedure to increase and reduce share capital. Consider secured and unsecured loans. Examine the role of directors and the company secretary, and contrast the rights of shareholders with those of the board of a company.

• Ethics and Business

Understand that professional accountants have a commitment to act in the public interest and with social responsibility. Consider the need for a framework of laws, regulations and standards in business. Examine the nature of ethics in the accountancy profession and business as a whole. Examine the reasons why CIMA and IFAC each have a ‘Code of Ethics for Professional Accountants’.

• Ethical Conflict

Examine the relationship between ethics, governance, the law and social responsibility. Understand the consequences of unethical behaviour to the individual, the profession and the society. Consider ethical dilemmas and conflicts of interest, as well as potential resolutions.

• Corporate Governance

Understand the interaction of corporate governance with business ethics and company law, and examine the international history of corporate governance. Explore the effect of corporate governance on directors’ behaviour. Investigate different board structures. Discover the different types of policies and procedures that best-practice companies introduce. Study the regulatory governance framework for companies.

Course Code

M04

Hours of Study

130 hours per paper

Technical requirements and Fees

CIMA registration and exam fees are additional to the course fees.

Outline

You’ll complete three formative assessments (set by ICS) during your course and one final exam (set by CIMA) on completion of your course. The formative assessments can be submitted to ICS online via the Student Community, or they can be posted to ICS. It is recommended that you submit your formative assessments online as you will receive your results more quickly this way

Assessment Breakdown

• Formative Assessment 1: 5 scenario-based questions
• Formative Assessment 2: 5 multi-part short answer questions
• Formative Assessment 3: a mock exam
• Final Exam: a computer-based exam consisting of 50 questions which must be completed within 2 hours

Notes

Scenario-based questions test that you can apply the knowledge you have learnt from the course to hypothetical scenarios. These questions are typically multi-part.

For each part of a short answer question you are normally required to write between a sentence and a paragraph.

The exam is available all year round and can be sat at your local testing centre.

Please note that you are required to register with CIMA in order to sit the exam.

Please note that the format of the exam is subject to change. The details provided are intended only as a guide and should not be regarded as definitive.