1.

Question 1

Read the following statement. Determine whether it is true or false.

"Regulatory framework refers to guidelines that prescribe the accountants' professional duties and obligations, in forms of accounting standards, laws, codes, rules or regulations."

True

False

2.

Question 2

Which of the following is correct about theInternational Accounting Standards Board(IASB) and theFinancial Accounting Standards Board(FASB).

They are the two accounting bodies that primarily influencing the accounting standards in Asia-Pacific only.

They issued accounting standards to stipulate how accounting elements should be reported in financial statements.

Accountants qualified in one country can never practice accounting in another country.

Other than I A S B and F A S B, governments and regulatory units also issue accounting standards.

3.

Question 3

Which of the following is/are correct about International Financial Reporting Standards (I F R S s)? (You may choose more than one)

It is issued by I A S B.

It is less commonly used in the world compared to US G A A P s.

I F R S s is a former accounting standard, which has been recently replaced by International Accounting Standards (I A S s)

In Asia-Oceania, the national accounting standards of Australia, Hong Kong, and Korea are word-for-word adoptions of I F R S s.

4.

Question 4

Which of the following is/are NOT the example(s) of government legislation about limited liability companies?(You may choose more than one)

Financial statements must comply with the accounting standards issued by recognized accounting bodies.

Financial statements must be issued twice a year.

Financial statements must be compiled in accordance with the code of ethics.

Financial statements shall give a true and fair view of the state of affairs of the company.

5.

Question 5

Which of the following is/are true about financial reporting? (You may choose more than one)

Annual report is important because it reflects the accountability of companies to their stakeholders.

Public can only access the soft copy of annual report on companies' websites.

Financial statements usually take up around hundred pages in an annual report.

The extensive details of the financial statement of the company is included in the appendix.

6.

Question 6

Read the following statement. Determine whether it is true or false.

"It is a requirement of the US GAAP that all US listed companies must file annual reports using Form 10-K to the Securities and Exchange Commission (US SEC) "

True

False

7.

Question 7

Which of the following is/are FALSE about auditing? (You may choose more than one)

It is mandatory for limited liability companies to hire external auditor to review the financial statements of the companies.

Auditors are required to issue their independent opinions on the financial statements so as to correct the mistakes made by accountants of the company.

'Qualified opinion' may be issued by auditors to alert users the limitations in their review.

'True and fair view' may be issued by auditors to show the high level of integrity and accuracy of the financial statements.

8.

Question 8

Which of the following is/are false about Certified Public Accountants (CPAs) and CPA firms? (You may choose more than one)

CPAs are the public accountants who are licensed to issue independent opinions on financial statements

CPA firms may provide services other than auditing.

The 'Big Four' is a prominent international CPA firm.

Public interest should always be the top priority of the CPAs

9.

Question 9

Which of the following is NOT the core attribute of accountants?

Integrity

Perseverance

Independence

Professional competence

10.

Question 10

In the following case, who is/are liable for professional misconduct under the codes of ethics of accountants?

The external auditor of a limited liability company also acts as financial advisor of the same company

The person acting as both the external auditor and financial advisor

The CPA firm

The limited liability company

The Board of the limited liability company