1. [单选题]Which of the following statements relating to internal and external auditors is correct?
A. Internal auditors are required to be members of a professional body
B. Internal auditors’ scope of work should be determined by those charged with governance
C. External auditors report to those charged with governance
D. Internal auditors can never be independent of the company
2. [单选题]5 An enterprise has made a material change to an accounting policy in preparing its current financial statements.
Which of the following disclosures are required by IAS 8 Accounting policies, changes in accounting estimates and errors in these financial statements? 1 The reasons for the change. 2 The amount of the consequent adjustment in the current period and in comparative information for prior periods. 3 An estimate of the effect of the change on future periods, where possible.
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. All three items
3. [单选题]5 Which of the following factors could cause a company’s gross profit percentage on sales to fall below the expected
level? 1 Understatement of closing inventories. 2 The incorrect inclusion in purchases of invoices relating to goods supplied in the following period. 3 The inclusion in sales of the proceeds of sale of non-current assets. 4 Increased cost of carriage charges borne by the company on goods sent to customers.
A. 3 and 4
B. 2 and 4
C. 1 and 2
D. 1 and 3
4. [单选题]22 Which of the following items may appear in a company’s statement of changes in equity, according to IAS 1 Presentation of financial statements?
1 Unrealised revaluation gains. 2 Dividends paid. 3 Proceeds of equity share issue. 4 Profit for the period.
A. 2, 3 and 4 only
B. 1, 3 and 4 only
C. All four items
D. 1, 2 and 4 only
5. [单选题]8 Which of the following statements about accounting concepts and conventions are correct?
(1) The money measurement concept requires all assets and liabilities to be accounted for at historical cost. (2) The substance over form. convention means that the economic substance of a transaction should be reflected in the financial statements, not necessarily its legal form. (3) The realisation concept means that profits or gains cannot normally be recognised in the income statement until realised. (4) The application of the prudence concept means that assets must be understated and liabilities must be overstated in preparing financial statements.
A. 1 and 3
B. 2 and 3
C. 2 and 4
D. 1 and 4.
