Tag: Auditing

Accounting Multiple Choice Question – 24 March 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Part A of the ICAEW Code of Ethics establishes the fundamental principles of professional ethics for professional accountants and provides a conceptual framework for applying those principles.

Which ONE of the following are stated as fundamental principles in the ICAEW Code of Ethics?

Select ONE answer:

  1. Independence
  2. Persuasiveness
  3. Reliability
  4. Integrity

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > The fundamental principles established by the ICAEW Code of Ethics are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

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Accounting Multiple Choice Question – 23 March 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Staffie plc employs directors of finance, human resources and legal services, as well as a company secretary.

The company is having operational problems which are delaying its completion of a key industrial project.

If the project misses its deadline Staffie plc may suffer heavy penalties under the terms of its sales contract with the ultimate end customer.

Part of the delay has been caused by strikes due to bad industrial relations with both Staffie’s own employees and the sub-contractors, but Staffie plc is unsure whether the penalties included in the contract will come into effect given this primary reason.

Identifying whether the penalties are likely to come into effect is the role of Staffie plc’s?

Select ONE answer:

  1. Director of finance
  2. Director of human resources
  3. Director of legal services
  4. Company secretary

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct == > Enforcement of contracts is clearly a legal matter requiring the attention of the company’s director of legal services.
  4. Not correct

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Accounting Multiple Choice Question – 22 March 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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In relation to the external audit or statutory audit of a limited company in the UK, a colleague has made three statements below.

Statement 1 To act as statutory auditor, the person appointed must be a member of a recognised supervisory body.

Statement 2 To act as statutory auditor, the person appointed must be either a body corporate or a partnership.

Statement 3 To act as statutory auditor, the person appointed must hold a recognised qualification obtained in the UK.

Identify whether the statements are true or false?

Select ONE answer:

  1. Statement 1. True and Statement 2. False and Statement 3. False
  2. Statement 1. False and Statement 2. True and Statement 3. False
  3. Statement 1. True and Statement 2. False and Statement 3. True
  4. Statement 1. False and Statement 2. True and Statement 3. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct == > True False False – Sole practitioners can be appointed as statutory auditors and certain overseas qualifications may be recognised.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 21 March 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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According to the Companies Act 2006, qualification as a chartered accountant and appointment as a director of a company together qualify an individual to be appointed as?

Select ONE answer:

  1. Company actuary, if it is an insurance company
  2. Company secretary, if it is a listed company
  3. Company valuer of investment properties, if it is a property company
  4. Company liquidator

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct == > The Companies Act 2006 states that a company secretary of a plc shall be a member of ICAEW (or certain other bodies) or a solicitor or barrister.
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 20 March 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex, the managing director of Lucy Ltd wants to understand the links between technical competence and professional responsibility in the accounting profession.

Which areas should be considered by Alex below?

Select ONE answer:

  1. Disciplinary proceedings and the profession’s interest only
  2. Disciplinary proceedings and accounting principles only
  3. The profession’s interest and accounting principles only
  4. Disciplinary proceedings, the profession’s interest and accounting principles

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct == > Applying accounting principles is an aspect of technical competence. Disciplinary proceedings are relevant when there has been a failure of technical competence and/or professional responsibility. The profession’s interest has no impact.
  3. Not correct
  4. Not correct

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