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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
Topic 1	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 2	Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 3	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.
Topic 4	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.

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CIPS Ethical and Responsible Sourcing Sample Questions (Q53-Q58):

NEW QUESTION # 53
Credit rating agencies can assist procurement professionals. Typically, which of the following can be obtained from a credit rating agency report? Select TWO that apply.

A. Payment history
B. Rebate information
C. Financial stress score
D. Product pricing information
E. Tender submission pricing

Answer: A,C

Explanation:
Payment history and financial stress scores provide insights into a supplier's financial health and stability.
This information is crucial for procurement professionals in assessing whether a supplier can fulfill long-term commitments, supporting responsible sourcing by mitigating financial risks.

NEW QUESTION # 54
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. 1 and 3 only
B. 2 and 4 only
C. 1 and 4 only
D. 2 and 3 only

Answer: D

Explanation:
Regularly checking supplier policies and conflict of interest registers helps ensure that suppliers are upholding ethical standards, which supports responsible sourcing practices. This governance activity aligns with ethical guidelines to promote transparency and prevent conflicts that could affect the integrity of the supply chain.

NEW QUESTION # 55
The procurement team received an urgent request to source quotations for pest control services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach?

A. Yes, they must seek as many bids as possible even if it takes longer
B. No, because they might receive too many irrelevant proposals which may delay the assessment process
C. No, because international vendors must also be notified of the opportunity
D. Yes, so that the local pest control sector can decide between them who should bid

Answer: B

Explanation:
For urgent, low-value local services, targeted sourcing (e.g., RFQs to pre-vetted suppliers) is more efficient than open advertising that can create excess, low-quality responses and slow down delivery. Responsible practice also considers proportionality and timely risk control.
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - route-to-market choices; proportionality and efficiency in sourcing.

NEW QUESTION # 56
If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?

A. Complete Due-Diligence on all new suppliers
B. Complete formal tenders to find the best suppliers
C. Only work with known suppliers
D. Only work with suppliers who have a published Anti-Slavery policy

Answer: A

Explanation:
Completing Due Diligence checks will help guard against concerns about unethical business practices.
Not all companies will have a published Anti-Slavery policy- this is only required for large companies.
Known suppliers might have issues that you don't know about so you should always do due-diligence checks on everyone you work with Formal tenders won't sort out ethical issues unless specifically addressed within the tender and strong contract management is put in place afterwards.

NEW QUESTION # 57
A company's balance sheet will show you which of the following?

A. profit, loss and assets
B. revenue, profit and expenses
C. equity, assets and liabilities
D. cash coming in and out of the business

Answer: C

Explanation:
a balance sheet shows 'equity, assets and liabilities'. The other financial statements you need to know for this exam are cash flow statements and and income statements.
If you're not familiar with these three I strongly recommend you do some further reading on this before the exam if you can. This is helpful: How the 3 Financial Statements are Linked Together - Step by Step (corporatefinanceinstitute.com)

NEW QUESTION # 58
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