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CIMA BA4 Fundamentals of Ethics, Corporate Governance and Business Law — Information & Free Practice

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About CIMA BA4 Fundamentals of Ethics, Corporate Governance and Business Law

CIMA BA4 Fundamentals of Ethics, Corporate Governance and Business Law · GB

Key exam facts

Provider
The Chartered Institute of Management Accountants (CIMA) develops the syllabus and designs/administers the examinations. Pearson VUE is the computer-based assessment delivery partner, not the examination owner.
Format
An on-demand computer-based Objective Test, available at Pearson VUE test centres and online subject to local availability. Official possible styles include multiple-choice, multiple-response, select all that apply, number entry, hotspot and drag and drop; no type percentages are stated.
Exam questions
Total questions: 85.
Time limit
120 minutes (two hours) for the BA4 assessment; this is the assessment time, not arrival or check-in time.
Passing score
A scaled score of 100 or above on the 0–150 scale is a pass; 100 is not a raw percentage.
Exam fee
UK (Tier 1): GBP 123 per Certificate in Business Accounting Objective Test under prices from 1 January 2026; GBP 128 per exam from 1 January 2027. These are per-exam fees, separate from student registration/subscription and tuition. No separate resit tariff is listed in these tables.

Topics covered

  • Business Ethics and Ethical Conflict (30%)

    • Demonstrate an understanding of the importance of ethics to society, business and the professional accountant.
    • Explain the need and requirements for candidates and members in adopting the highest standards of ethical behaviour.
    • Explain the various means of regulating ethical behaviour, recognising different parties’ perspectives towards ethical dilemmas.
    • Identify ethical dilemmas and how they may be resolved.
    • Explain the nature of ethics and its application to society, business and the accountancy profession.
    • Apply the values and attitudes that provide professional accountants with a commitment to act in the public interest and with social responsibility.
    • Explain the need for a framework of laws, regulations and standards in business and their application and why CIMA and IFAC each have ethical codes.
    • Distinguish between detailed rules-based and framework/principles approaches to ethics.
    • Identify the ethical issues significant to organisations and how CIMA partners with strategic bodies to assist its members with ethical tensions/synergies.
    • Describe how personal and organisational policies and values promote behaviour.
    • Explain the need to develop the virtues of reliability, responsibility, timeliness, courtesy and respect.
    • Explain the fundamental ethical principles.
    • Identify concepts of independence, scepticism, accountability and social responsibility.
    • Illustrate the threats and safeguards to the fundamental ethical principles.
    • Explain the relationship between the CIMA Code of Ethics and the law.
    • Describe the consequences of ethical behaviour to society, business, the profession and the professional accountant.
    • Identify conflicting perspectives of interest when dealing with stakeholders in society, business and the values of professional accountants.
    • Identify situations where ethical dilemmas and conflicts of interest occur, based on CIMA’s ethical checklist.

  • Corporate Governance, Controls and Corporate Social Responsibility (45%)

    • Explain the role of corporate governance in meeting the concerns of society and investors over the management of corporations.
    • Explain the impact of corporate governance on the directors and management structures of corporations.
    • Explain the role of external and internal audit.
    • Explain the nature of errors and frauds.
    • Explain Corporate Social Responsibility (CSR) – a political and corporate perspective.
    • Explain the role of CSR within company reporting.
    • Describe corporate governance.
    • Explain the interaction of corporate governance with business ethics and company law.
    • Explain the purpose, definition of the Organisation for Economic Co-operation and Development (OECD) principles of Corporate Governance.
    • Describe IFAC’s main drivers of sustainable corporate success.
    • Illustrate CIMA’s practical proposals for better corporate governance.
    • Distinguish between detailed rules-based and principles-based approaches to governance.
    • Describe the role of the board and different board structures.
    • Explain the effects of corporate governance on directors’ powers and duties.
    • Describe the types of policies and procedures that constitute ‘best practice’.
    • Describe the respective committees and their roles and responsibilities with regards monitoring and controlling the actions of the Executive.
    • Identify the requirements for external audit and the basic processes undertaken.
    • Explain the meaning of fair presentation.
    • Distinguish between external and internal audit.
    • Explain the purpose and basic procedures of internal audit; the need for financial controls and the purpose of audit checks and audit trails.
    • Explain the role of internal audit in nonfinancial monitoring and control activities.
    • Explain the nature of errors.
    • Explain the nature of fraud.
    • Describe the different methods of fraud prevention and detection.
    • Describe the OECD general policies.
    • Explain the role of national and international laws and regulations.
    • Describe conflicting demands of stakeholders.
    • Identify issues with CSR and the supply chain.
    • Describe the guidelines of reporting CSR within annual reports.
    • Explain the role of national and international laws and regulations.

  • General Principles of the Legal System, Contract and Employment Law (15%)

    • Explain how the law determines the point at which a contract is formed and the legal status of contractual terms.
    • Explain the essential elements of an employment contract and the remedies available following termination of the contract.
    • Identify the essential elements of a valid contract and situations where the law requires the contract to be in a particular form.
    • Explain how the law determines whether negotiating parties have reached agreement and the role of consideration in making that agreement enforceable.
    • Explain when the parties will be regarded as intending the agreement to be legally binding and how an agreement may be avoided because of misrepresentations.
    • Explain how the terms of a contract are established and their status determined.
    • Explain the ability of a company to contract.
    • Explain how the contents of a contract of employment are established.
    • Explain what policies and procedures may be present in the workplace.
    • Explain the distinction between unfair and wrongful dismissal and the consequences.

  • Company Administration (10%)

    • Explain the nature, legal status and administration of business organisations.
    • Describe the essential characteristics of the different forms of business organisations and the implications of corporate personality.
    • Explain the differences between public and private companies.
    • Explain the purpose and legal status of the Articles of Association.
    • Explain the main advantages and disadvantages of carrying on business through the medium of a company limited by shares.

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

An on-demand computer-based Objective Test, available at Pearson VUE test centres and online subject to local availability. Official possible styles include multiple-choice, multiple-response, select all that apply, number entry, hotspot and drag and drop; no type percentages are stated.

How many questions are on the exam?

Total questions: 85.

How long is the exam?

120 minutes (two hours) for the BA4 assessment; this is the assessment time, not arrival or check-in time.

What is the passing score?

A scaled score of 100 or above on the 0–150 scale is a pass; 100 is not a raw percentage.

How much does the exam cost?

UK (Tier 1): GBP 123 per Certificate in Business Accounting Objective Test under prices from 1 January 2026; GBP 128 per exam from 1 January 2027. These are per-exam fees, separate from student registration/subscription and tuition. No separate resit tariff is listed in these tables.

Official sources and references

Confirm current exam arrangements with the exam provider.