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Questions 3 (20 marks) Fill in the blanks 1. The Act 2001 is the most important Act under the authority of the Australian Securities and Investments Commission. 2. Directors owe a legal duty to their company to act with and 3. Ethically, businesses are obliged to act in the way expected of them by 4. Not compromising your professional judgement because of bias or a conflict of interest is known as maintaining 5. Corporate principles include appropriate auditing, board independence, corporate responsibility, financial transparency and information disclosure. 6. The AASB's modified reporting requirements for Tier 1 and Tier 2 disclosing entities is known as 7. Occurrences that have the potential to affect the entity in some way, but that will not be recorded as business transactions until an exchange of goods or services takes place between the entity and an outside party, are known as 8. A journal is a record in which each business transaction appears in order. 9. A worksheet error that is relatively easy to find due to the difference being divisible by nine is known as a(n) error. 10. represents all changes in equity other than profit or loss, and transactions associated with owners such as dividends and capital contributions