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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 2
  • 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 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:

The balance sheet (statement of financial position) is one of the financial statements used in assessing a supplier's financial stability. The balance sheet contains information on such items as ...

  • A. Liquidity ratios, return on capital employed and gearing
  • B. Cash receipts from customers
  • C. Short-term liabilities (e.g., unpaid taxes and bank overdraft)
  • D. Operating expenses and net profit
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for PassLeader members. You can sign-up / login (it's free).

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

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

Correct Answer: B  🗳️

Explanation: Only visible for PassLeader members. You can sign-up / login (it's free).

Which of the following financial documents would show whether a supplier has sufficient funds to pay their subcontractors in the short term?

  • A. balance sheet
  • B. profit and loss account
  • C. cash flow statement
  • D. ESG policy
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for PassLeader members. You can sign-up / login (it's free).

Which of the following can be undertaken by the buyer in relation to the governance of a supplier's ethical and sustainable behaviours?
Review the insurance clauses in the contract
Check that the supplier's internal policies are up to date
Check the supplier's conflict of interest register for their contract
Review the non-disclosure agreement for their contract

  • A. 2 and 3 only
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1 and 4 only
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for PassLeader members. You can sign-up / login (it's free).

Why would you use a credit score to appraise a supplier?

  • A. to understand the level of risk the supplier poses to your organisation
  • B. to find out how much money the supplier has in the bank
  • C. to find out if the supplier has any unethical business practices
  • D. to understand if their prices reflect market value
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for PassLeader members. You can sign-up / login (it's free).

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