CIPS L4M4 Q&A - in .pdf

  • L4M4 pdf
  • Exam Code: L4M4
  • Exam Name: Ethical and Responsible Sourcing
  • Updated: Nov 10, 2026
  • Q & A: 293 Questions and Answers
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  • Updated: Nov 10, 2026
  • Q & A: 293 Questions and Answers
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  • Exam Code: L4M4
  • Exam Name: Ethical and Responsible Sourcing
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  • Q & A: 293 Questions and Answers
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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
Topic 2
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 3
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 4
  • Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.

Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/ethical-and-responsible-sourcing

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CIPS Ethical and Responsible Sourcing Sample Questions:

Question #1

Tariffs and import duties imposed on a buying organisation for goods purchased from an international supplier provide benefit to ...

  • A. The supplying organisation as they receive additional payment
  • B. The domestic industry through reduced competition
  • C. Local competitors through lower prices
  • D. Consumers by having access to lower-priced goods
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

'Phishing' is an activity that can occur when an employee within an organisation receives an email that appears to be from a genuine supplier but is false. These types of emails expose the organisation to the activities of expert cyber criminals. Which type of crime category does this activity fall within?

  • A. Human rights
  • B. Fraud
  • C. Corruption
  • D. Bribery
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?

  • A. Allow the supplier to complete current orders while pursuing alternatives
  • B. Immediately raise the issue with the supplier and jointly develop a timely action plan before a repeat audit
  • C. Immediately halt all orders and switch to an alternative source of supply
  • D. Remove all business and inform press organisations to escalate to government authorities
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

A prequalification questionnaire can allow a buyer to determine whether or not a potential supplier shares the same ethical values at an early stage of a procurement process. Obtaining confirmation that a supplier has not previously been convicted of breaches of modern slavery legislation belongs to which form of evaluation criteria?

  • A. Social
  • B. Economic
  • C. Environmental
  • D. Quality
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

Which financial statement would be used for analysing an organisation's assets?

  • A. Balance sheet (statement of financial position)
  • B. Cash flow statement
  • C. Profit and loss account (statement of financial performance)
  • D. Credit rating reports
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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