Tag: Ethics

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

Part A of the IESBA Code of Ethics is a framework that applies to all professional accountants and it introduces the fundamental principles.

In this context ‘fundamental’ means?

Select ONE answer:

1. That the principles form the bedrock of professional judgements and practice
2. That the principles are the easiest aspects of the professional accountant’s work
3. That the Code is compliance-based
4. That adherence to rules is all that is required of a professional accountant

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 == > The fundamental principles form the bedrock of professional judgements and practice. It does not mean that the principles are easy; taking the approach of mere compliance; and/or of following rules is the exact opposite of what the fundamental principles represent.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.