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BA4 Questions and Answers

Question # 1

If financial statements give a true and fair view, then they:

A.

are guaranteed to be free from material misstatement

B.

are prepared in a timely manner for the benefit of the users

C.

indicate that the entity has been managed properly through the period under review

D.

faithfully present the financial position and performance of an entity on the dates being reported

Question # 2

A was disqualified from driving but continued his employment as a driver for XYZ plc. The company discovered that A had lost his driving license and immediately dismissed him without notice.  

 

Which of the following is correct? 

 i. As no notice was provided A's dismissal amounts to constructive dismissal.

ii. The employer was justified in dismissing A without notice as he was unable to continue his employment.

iii. A may make a claim for wrongful dismissal as, although his dismissal was justified, he was entitled to notice.  

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(iii) only

Question # 3

Company B wants to implement ethical control over its staff. It wants to do this by implementing a strong organisational culture.

Which of the following are ways in which the organisation could exercise control in regards to its organisational culture?

Select ALL that apply.

A.

Introduce a statement of values which outlines what the organisation stands for.

B.

Ensure the company's ethical expectations are thoroughly communicated.

C.

Ensure that the company's chairman and CEO lead by example.

D.

Ensure that the company's organisational systems encourage adherence to its ethics.

E.

Ensure that disciplinary action is taken when the company's ethical code is broken.

F.

Only employ directors who have proven strong moral values.

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