4. Briefly explain the contents of the Auditors' Report. 5. Explain the accounting principles that can be associated with each of the following: (i) qualitative characteristics of relevance (ii) the qualitative characteristics of true representation (iii) preparation of Notes to the Account 6. Explain what is meant by accounting standards. 7. Identify whether each of the following organizations is a private entity or a non-private entity and determine the accounting standards that should be applied by each organization: a) Bumi Amarda Bhd. b) BIMB Securities Sdn. Bhd. -is a subsidiary of BIMB Holdings Berhad. c) Skop Productions Sdn. Bhd. d) UM Construction Sdn. Bhd. - is a subsidiary of IJM Corporation Berhad. 8. Explain the meaning of 'Significant Accounting Policy' by including TWO (2) examples of appropriate accounting policies. 9. The following questions involve the Cash Flow Statement a) Explain why net profit does not necessarily provide a positive cash flow. b) Distinguish between the direct method and the indirect method for the Cash Flow Statement. c) Explain why under the indirect method an adjustment needs to be made on net income. d) Describe the type of adjustment that needs to be made on net income for the indirect method and give TWO (2) examples for each type of adjustment. e) The Cash Flow Statement classifies the activities of the entity into operating activities, investment activities and financing activities. For each activity, give TWO (2) examples of transactions involving cash inflows and TWO (2) examples involving cash outflows. f) En. Lazim, the chairman and majority shareholder of Lekorlas Sdn. Bhd., Has requested your assistance in preparing financial statements for his company for the purpose of bank loan application. The following is the Cash Flow Statement of Lekolas Sdn. Bhd. for the year ended 31 December 2017 that you have provided: