Chartered Global Management Accountant (CGMA) Business Ethics, Governance, and Integrated Reporting Syllabus

Business Ethics, Governance, and Integrated Reporting syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Business Ethics, Governance, and Integrated Reporting in Chartered Global Management Accountant (CGMA), not a summary of it.

1. 1

   Professional Ethics for the Management Accountant

   4 topics

   • Fundamental Ethical Principles
     • Integrity, objectivity, and professional competence
     • Confidentiality and professional behavior
   • Threats and Safeguards
     • Self-interest, self-review, advocacy, familiarity, intimidation
     • Safeguards created by the profession and the workplace
   • Resolving Ethical Conflicts
     • The CIMA ethical conflict resolution model
     • Whistleblowing and reporting obligations
   • Ethical Decision-Making Frameworks
2. 2

   Corporate Governance Frameworks

   4 topics

   • Principles and Codes of Governance
     • Agency relationships and accountability
     • Rules-based versus principles-based approaches
   • Board Structure and Accountability
     • Executive and non-executive directors
     • Audit, remuneration, and nomination committees
   • Governance, Risk, and the Sarbanes-Oxley Context
   • Shareholder Engagement and Reporting Obligations
3. 3

   Sustainability, Integrated Reporting, and Value Creation

   4 topics

   • The Integrated Reporting Framework
     • The six capitals model
     • Content elements and guiding principles of <IR>
   • Sustainability and ESG Reporting
     • Environmental, social, and governance metrics
     • Sustainability standards and frameworks
   • The Triple Bottom Line and Long-Term Value
   • The CGMA Role in Driving Sustainable Business

Business Ethics, Governance, and Integrated Reporting flashcards for Chartered Global Management Accountant (CGMA)

24 of 51 cards from the Business Ethics, Governance, and Integrated Reporting deck — real questions with worked answers.

1. What are the five fundamental ethical principles in the CGMA/IFAC Code of Ethics?

   Integrity, Objectivity, Professional Competence and Due Care, Confidentiality, and Professional Behavior.

2. Define the fundamental ethical principle of Integrity.

   Being straightforward and honest in all professional and business relationships; it also implies fair dealing and truthfulness.

3. Define the fundamental ethical principle of Objectivity.

   Not allowing bias, conflict of interest, or undue influence of others to override professional or business judgments.

4. What does Professional Competence and Due Care require of a management accountant?

   Maintaining professional knowledge and skill at the level required to provide competent service, and acting diligently in accordance with applicable technical and professional standards.

5. Define the principle of Confidentiality and one of its key limits.

   Respecting the confidentiality of information acquired through professional relationships and not disclosing it without proper authority unless there is a legal or professional right or duty to disclose; it applies even in social environments and continues after the relationship ends.

6. What does the principle of Professional Behavior require?

   Complying with relevant laws and regulations and avoiding any conduct that the accountant knows or should know might discredit the profession.

7. What are the five categories of threats to compliance with the fundamental ethical principles?

   Self-interest, Self-review, Advocacy, Familiarity, and Intimidation threats.

8. Define a self-interest threat and give an example.

   A threat that a financial or other interest will inappropriately influence judgment or behavior; e.g., holding shares in a client/employer or being eligible for a profit-related bonus tied to results you report.

9. Define a self-review threat.

   The threat that an accountant will not appropriately evaluate the results of a previous judgment or service performed by themselves (or their firm) on which they now must rely; e.g., reporting on systems they designed.

10. Define an advocacy threat.

    The threat that an accountant will promote a client's or employer's position to the point that objectivity is compromised; e.g., promoting the entity's shares or acting as an advocate in litigation.

11. Define a familiarity threat.

    The threat that due to a long or close relationship with a client/employer, the accountant becomes too sympathetic to their interests or too accepting of their work.

12. Define an intimidation threat.

    The threat that an accountant will be deterred from acting objectively because of actual or perceived pressures, including attempts to exercise undue influence (e.g., threat of dismissal).

13. In the IFAC conceptual framework, what are the two broad categories of safeguards against ethical threats?

    Safeguards created by the profession, legislation, or regulation; and safeguards in the work environment (created by the employer/firm and the individual).

14. Give three examples of safeguards created by the profession, legislation, or regulation.

    Educational and training entry requirements, continuing professional development (CPD) requirements, corporate governance regulations, professional standards, and external monitoring/disciplinary procedures.

15. What is the basic process for applying the conceptual framework to a threat?

    Identify threats to the fundamental principles, evaluate the significance of those threats, and address them by eliminating the circumstances, applying safeguards to reduce them to an acceptable level, or declining/discontinuing the activity.

16. What is meant by an 'acceptable level' of a threat?

    A level at which a reasonable and informed third party would likely conclude that compliance with the fundamental principles is not compromised.

17. What is the recommended approach when ethical safeguards cannot reduce a threat to an acceptable level?

    The accountant should decline or discontinue the specific professional activity or service, and where necessary resign from the engagement or employing organization.

18. What are the key steps in a structured process for resolving an ethical conflict?

    Gather the relevant facts; identify the ethical issues and principles involved; identify affected parties; consider established internal procedures; evaluate alternative courses of action; consult (internally, then professional body/legal advice); and document the issue and resolution.

19. If an internal ethical conflict cannot be resolved, what escalation route does the Code suggest?

    Escalate within the organization (e.g., to the audit committee, non-executive directors, or those charged with governance); obtain advice from the professional body or legal counsel; and if unresolved, consider resigning while complying with confidentiality obligations.

20. Why should an accountant document an ethical conflict and its resolution?

    To provide a record of the facts, issues considered, parties consulted, and decisions made, which protects the accountant and demonstrates that the matter was handled professionally.

21. Name three common ethical decision-making frameworks used to evaluate dilemmas.

    The AAA (American Accounting Association) seven-step model, Tucker's 5-question model, and Kohlberg's stages of moral development; the IFAC/CGMA conceptual (threats-and-safeguards) framework is the profession's primary tool.

22. What are the five questions in Tucker's model for an ethical decision?

    Is the decision (1) profitable, (2) legal, (3) fair, (4) right, and (5) sustainable? A decision should pass all five tests to be ethical.

23. Contrast deontological (duty-based) and teleological (consequence-based) ethics.

    Deontological ethics judges actions by adherence to rules, duties, and rights regardless of outcome; teleological (consequentialist, e.g., utilitarianism) judges actions by their consequences—the greatest good for the greatest number.

24. What does the CGMA Ethical Checklist provide for practitioners?

    A practical step-by-step tool to work through an ethical dilemma: recognize the threat, gather facts, evaluate against the fundamental principles, consider alternatives and consultation, and decide on action while documenting the process.

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