31)

The development and acceptance of IFRS involves some stages .Which one of the following is NOT involved in the development and acceptance of IFRS?

a.

Planning the project

b.

Developing and publishing the Exposure Draft, including public consultation

c.

Setting the agenda

d.

Developing and publishing the research report connected with the field study.

32)

ABC Company has been audited by the same auditor for over 10 years and the auditor regularly plays golf with the CEO and CFO of ABC Company. Identify the threat that is present in this scenario.

a.

None of these.

b.

Self-interest threat

c.

Advocacy threat

d.

Familiarity threat

33)

Which one of the following is NOT the duty of audit committee?

a.

The audit committee should consider whether there are any areas of major risk that require special attention or monitoring by the auditors

b.

The audit committee should review identified weaknesses in controls, deficiencies in systems, recommendations for improvement.

c.

To address the topical content of financial accounting, capital markets, and decision making based on financial accounting information

d.

Management, external auditors and internal auditors all assess the effectiveness of the internal control systems.

34)

Yasir Brothers owned a factory building in the year2020, the original cost of which was OMR 480,000. The fair value of the factory building is 2 million. The Chairman would like to report the difference as a gain. Which accounting measurement principle is violated by the company?

a.

Fair value.

b.

Historical cost

c.

Current value

d.

Value in use.

35)

Which one of the following is NOT the purpose of financial audit in positive accounting theory?

a.

Helps the financial auditor for preparing income documents and invoices.

b.

The management gives assurance that all accounts prepared by the business depict a true and fair view of the operations of business.

c.

Helps to improve the clarity of the communication of financial information.

d.

The financial auditor checks the balance sheet and tax returns.

36)

Carrefour enterprises is of strong opinion that its audited financial statements of the year 2019-2020 should be free from bias so as to ensure that there is no overstatement or understatement of accounts in favour of any particular group of users or individual users. Carrefour enterprises are governed by which fundamental quality of accounting information?

a.

Timeliness

b.

Neutrality

c.

Consistency

d.

Comparability

37)

Identify which one of the following prerequisites is not necessary to be present in a researcher.

a.

Ability to think critically and analytically.

b.

Stay abreast of current work within the field of research

c.

Well- equipped scientific knowledge

d.

Understand and recognize difficulties in performing their own research

38)

It is a common practice for Suleiman Company that the managers are to be rewarded in a way that is tied to the profits of the firm, the sales of the firm, or the return on assets. That is, their remuneration is based on the output of the accounting system. Which one of the following is a drawback for such bonus schemes?

a.

Bonus schemes tied to the performance of the firm will be put in place to align the interests of the owners and managers.

b.

There would be limited incentives for the manager to adopt risky strategies that increase the value of the firm.

c.

The manager may be reluctant to take on optimal levels of debt.

d.

Rewarding managers on the basis of accounting profits may induce them to manipulate accounting numbers.

39)

Positive accounting Theory is referred to contain:

a.

Pessimistic behaviour

b.

All of these.

c.

Opportunistic behavior

d.

Optimistic behaviour

40)

Which one of the following is NOT a hypothesis that is built around positive accounting theory?

a.

The debt covenant hypothesis

b.

The bonus plan hypothesis

c.

The political hypothesis

d.

The agency cost hypothesis