BPP Accounting Past Paper PDF

Module 1 ACCOUNTING AND SOCIETY 1 Which of the following statements about the attributes of a profession are correct? A They are attributes that non-professional occupations do not possess. B They may exist in non-professional occupations, but to a lesser extent than in profession...

Module 1 ACCOUNTING AND SOCIETY 1 Which of the following statements about the attributes of a profession are correct? A They are attributes that non-professional occupations do not possess. B They may exist in non-professional occupations, but to a lesser extent than in professions. C They make it possible to distinguish clearly between professions and non-professional occupations. D They are attributes that make professions more important to society than non-professional occupations. 2 Accountants have a fundamental duty or 'service ideal' towards A clients. B employers. C regulators. D society at large. 3 The professional capabilities that accountants require in order to implement accounting systems and their constructs, and therefore to achieve appropriate reporting in each circumstance, include A technical knowledge and soft skills only. B soft skills and extensive experience only. C technical knowledge and extensive experience only. D technical knowledge, soft skills and extensive experience. 4 Accounting is used to measure and report on the level of performance by a manager or business unit. In light of this statement, which of the following is true? A Accounting therefore has a broad social impact at the micro but not the macro level. B Accounting therefore has a broad social impact at the macro but not the micro level. C Accounting therefore has a broad social impact at both the micro and the macro level. D Accounting does not have a broad social impact at either the micro or the macro level. 5 An accountancy firm was accused of failure to conduct an audit with due care, after disclosure of a material misstatement in the audited financial report of a major corporate client. As a result, the professional accounting body imposed a large fine on the firm for its unprofessional behaviour. What should NOT be a conclusion from this incident? A The governing body of a profession has the power to control the actions of its members. B The governing body of a profession may rely on the courts to impose disciplinary action on its members. C The actions of the governing body of a profession must be credible in the opinion of the general public. D A requirement for any profession is that its professional body must have the power to discipline its members. 6 The two categories of skills required by a member of CPA Australia are A soft skills and social skills. B soft skills and technical skills. C communication skills and social skills. D communication skills and technical skills. Module questions 3  7 Complete the following sentence: A CPA's technical knowledge, skills and experience (TKSE) A comprises taxation and financial reporting/analysis only. B cannot be specified but does not have to include taxation. C comprises financial reporting/analysis and management accounting only. D extends beyond financial reporting/analysis, taxation and management accounting. 8 According to Wilensky (1964) what is 'the pivot around which the claim to professional status revolves'? A integrity B service ideal C confidentiality D professional conduct 9 To fulfil its continuing professional development (CPD) learning requirements, a member of CPA Australia must undertake: A SSKE activities only. B TKSE activities only. C both TKSE and SSKE activities. D a general commitment to development only. 10 According to Blanthorne's research, which are the most important skills for partnership appointments in CPA firms? A 1 Interpersonal skills, 2 Leadership skills, 3 Technical skills B 1 Technical skills, 2 Leadership skills, 3 Communication skills C 1 Technical skills, 2 Interpersonal skills, 3 Communication skills D 1 Interpersonal skills, 2 Leadership skills, 3 Communication skills 11 Which of the following is NOT listed by IFAC's professional accountant in business (PAIB) committee as a main activity of a professional accountant in business? A implementation of business unit plans B reporting to stakeholders under GAAP C creating value through the effective use of resources D interpreting information so management can formulate strategy 12 Lucy is a CPA and works as a manager in a large corporate environment. She is subject to entrepreneurial pressures. Which of the following statements is NOT true? A Lucy is able to take on the role of company secretary. B Lucy must comply with professional ethics but not the service ideal. C Lucy is allowed to hold a position on the board as the director of the company. D Lucy may be involved in risk management but not corporate social responsibility matters. 13 In comparison to a colleague employed in a larger organisation, an accountant employed by an SME will be involved in A less detailed work and less varied compliance requirements. B more detailed work and less varied compliance requirements. C less detailed work and more varied compliance requirements. D more detailed work and more varied compliance requirements. 4 Ethics and Governance 14 Accountants employed in larger SMEs find continuing self-development of soft skills to be very important. According to a report by the IFAC PAIB Committee in 2008, this is particularly the case in relation to A leadership skills. B negotiating skills. C interpersonal skills. D communication skills. 15 An important attribute of professionalism is the exercise of professional judgment. Which one of the following statements is NOT consistent with this statement? A Professionals are required to comply in practice with rules and regulations, and to apply accounting concepts. B Professionals must be capable of applying their knowledge with skill to define the right problems as well as to solve them. C Professionals must be aware of the uniqueness, uncertainty and instability in situations and how the value conflicts that arise from this may affect their judgment. D A formal education process is insufficient for an individual to acquire professional status: accountants must also learn to apply professional judgment to identifying and resolving problems. 16 The traditional view of professions as set out by Greenwood emphasised that, in comparison with non-professionals, a professional has A better education. B a higher level of skills. C a higher level of standards. D the ability to charge higher fees. 17 Which of the following elements is least likely to characterise a profession? A possession of a specific skill set B regulated solely by government legislation C extensive education programs for members D high degree of autonomy and independence 18 An accountant who has committed fraud will be subject to A legal sanctions but not internal sanctions by their professional body. B internal sanctions by their professional body but not legal sanctions. C both legal sanctions and internal sanctions by their professional body. D neither legal sanctions nor internal sanctions by their professional body. 19 Buckley (1978) argued that with regard to the service ideal, society grants a profession monopoly power over professional affairs and discretion in the use of its monopoly power provided that A the profession regulates itself effectively. B the profession acts in the public interest. C the profession provides value for money. D the profession ensures all members are reputable. Module questions 5  20 With regards to the standing of the accountancy profession, complete the following sentence: 'Unchecked unethical behaviour by accountants will lead to A higher professional indemnity insurance fees.' B more collapses like that of Arthur Andersen.' C fewer traineeships for professional accountants.' D eroded public trust and further diminution of the profession's autonomy, authority and reputation.' 21 Schön (1983) has argued that to make values-based professional judgments the accountant must A understand how to solve problems. B maintain continuing professional development. C understand the complexity of the nature of problems. D learn the fundamental principles contained in the code of ethics. 22 According to Carnegie and Napier (2010), 'deprofessionalisation' of accounting may result from over-emphasis on which one of the ideals of accounting professionalism? A ethics B expertise C education D entrepreneurship 23 Which of the following measures was NOT taken by governments to restore the credibility of auditing and financial reporting in the early 2000s, following a number of financial scandals involving major companies and audit firms? A release of the Ramsay Report which recommended ways to improve auditor independence B strict legal requirements to monitor the independence of auditors of companies in Australia C the USA release of the Sarbanes-Oxley Act 2002 outlining new financial reporting requirements D reduction in the number of major audit firms (public accountancy firms) in Australia and the USA 24 Which of the following statements about the regulation of auditing in Australia is correct? A Neither auditing standards nor the APES 110 Code of Ethics for Professional Accountants have the force of law for auditors. B Auditing standards have the force of law but there is no legislative application of the APES 110 Code of Ethics for Professional Accountants to auditors. C Auditing standards have the force of law and there is legislative application of the APES 110 Code of Ethics for Professional Accountants to auditors. D Auditing standards do not have the force of law but there is legislative application of the APES 110 Code of Ethics for Professional Accountants to auditors. 25 For Australia, direct responsibility for monitoring the effectiveness of auditor independence requirements rests with A IFAC. B the FRC. C the AASB. D the AUSB. 6 Ethics and Governance 26 To ensure public trust is maintained in the accounting profession, which of the following traits should an individual professional accountant display? A up to date technical knowledge and leadership training B excellent commercial awareness and entrepreneurial skills C the ability to make ethical judgments and implement ethical codes D competence, capability, timeliness and the ability to make professional judgments 27 Which of the following is NOT a key role of the governing body of a profession? A apply disciplinary sanctions B ensure standards for entry and for CPD are maintained C ensure that the scope of activities performed by members is as wide as possible D ensure that as a governing body it has a high standard of performance and conformance itself 28 When the accountancy profession is criticised, which of the following is NOT usually cited as one of its negative traits? A profession has disproportionate power B members have a high level of technical skill C members are lacking in people and presentation skills D profession creates a monopoly to facilitate unfair pricing 29 Which of the following is NOT an example of a penalty CPA Australia may give to a member when they are found guilty of behaving unethically? A a fine B forfeiture of membership C instructing the employer to terminate the member's employment D publishing the member's actions on the CPA Australia website and journal 30 Can a CPA Australia member ever lose their job if they are found guilty of unethical behaviour? A No, unethical behaviour is not a fair reason for dismissal. B Yes, if their job requires them to be a CPA Australia member. C Yes, CPA Australia can instruct their employer to dismiss them. D No, even if they are excluded from membership, employers cannot dismiss an ex-member as it would discriminate against them. 31 The authority for CPA Australia to investigate complaints against members under its investigation, discipline and appeals procedure comes from A an auditing standard. B Corporations Act 2001 (Cwlth). C the constitution of CPA Australia. D APES 110 Code of Ethics for Professional Accountants. 32 The best decisions are made where which of the following intersect? A ethics, law and commercial reality B law, ethics and professional regulation C corporate accountability, ethics and law D governance, ethics and corporate accountability Module questions 7  33 In the traditional view of the profession, accountants are thought to act in A the public interest. B their own self-interest. C the interest of the market. D their enlightened self-interest. 34 In the market-control view of the profession, accountants are thought to act in A the public interest. B their own self-interest. C the interest of the market. D their enlightened self-interest. 8 Ethics and Governance