multiple choice questions

1.The main components of an annual financial report are:

The auditor's report, the directors' report and the directors' declaration

The accounting standards, notes to the financial statements and the directors' declaration

The financial statements, notes to the financial statements and the directors' declaration

The auditor's report and the notes to the financial statements

2.If a company fails to give its auditor access at all reasonable times then the consequence is:

That damages are paid to their members

A breach of Part 2M.3 and is dealt with as per s344

That damages are paid to the auditor

That the company has 12 months to appoint a new auditor

3.Under the Corporations Act, directors, other officers and employees must not improperly use their position:

To destroy the communities in which the corporation operates

To gain an advantage for the corporation

To cause detriment for other related entities of the corporation

To gain an advantage for themselves or someone else or cause detriment to the corporation

4.Under the Corporations Act what must give a true and fair view:

The additional information that is required to explain why the accounting standards are not complied with

The financial statements and notes of the financial position and performance of the company

The accounting standards and the directors' declaration

All fundraising attempts and disclosures made by the company during the financial year

5.Under the common law, the duty to act in good faith has both a subjective and an objective test. The objective test is:

That the directors believe they are not harming the company

That directors must honestly believe they are acting in best interest of the company

Whether a reasonable person examining the evidence from all perspectives would consider that the directors acted in the company's best interest

Whether a reasonable person in the position of the directors would act in such a way