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| Section | Objectives |
|---|---|
| Topic 1: Recording Financial Transactions | - Ledger accounts and trial balance preparation - Control accounts and reconciliations |
| Topic 2: Accounting Adjustments and Controls | - Errors and suspense accounts - Inventory valuation and adjustments - Non-current assets and depreciation |
| Topic 3: Financial Statements Preparation | - Accruals and prepayments adjustments - Income statement and statement of financial position |
| Topic 4: Accounting Fundamentals and Principles | - Basic accounting concepts and principles - Double-entry bookkeeping system |
1. The role of the internal auditors is primarily to:
A) Reduce the fees charged by the external auditors by carrying out some of their duties at a lower cost, thereby improving profits
B) Prepare the financial accounts
C) Support the work of the external auditors by carrying out specific checks on the accuracy of the accounting system
D) Report to shareholders on the accuracy of the accounting system
2. Which one of the following is not an example of an intangible asset?
A) Royalties
B) Trademarks
C) Research and Development costs
D) Patents
3. An internal audit is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization Which of the following appoints the internal auditor?
A) Finance director
B) Shareholders
C) The Board
D) Internal audit manger
4. An invoice to Sammy has been entered in the sales day book as $85 instead of $58.
To correct the position, which of the following procedures should be adopted?
A) Debit Receivables $27, Credit Sales $27 and increase the balance owing by Sammy
B) Debit Sales $27, Credit Receivables $27 and decrease the balance owing by Sammy
C) Debit Sales $27, Credit Receivables $27 and increase the balance owing by Sammy
D) Debit Receivables $27, Credit Sales $27 and decrease the balance owing by Sammy
5. Which of the following financial documents contains the manufacturing account?
A) Statement of changes in equity
B) Income statement
C) Statement of financial position
D) Statement of profit and loss
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |
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