TASK 2: The History and Development Accounting in Malaysia (based on Tan Liong Tong)

Multiple Choice Questions

Page 1-3
1. Which of the following statements about the primary purpose of financial reporting is
the most correct?
A. Provides information that can help with decision making
B. The individual needs of users can be satisfied by tailoring of financial reports
C. Enables accountability since managers would have to account for resources used
D. Identifies a range of existing and potential users dependant on financial statements
to make decisions

2. Which type of accountant typically practice as an individual or as a member of a public

accounting firm?
A. Certified Management Accountant
B. Certified Public Accountant
C. Certified Internal Auditor
D. Certified Payroll Professional

3. Within Malaysia, the dominant body in the primary development of accounting

standards is the
A. Malaysian Accounting Association
B. Malaysian Institute of Certified Public Accountants
C. Institute of Management Accountants
D. Malaysian Accounting Standards Board

4. The original Malaysian Companies Act was established in 1965 that also contain a
schedule, Ninth Schedule. What was specified in this schedule?
A. The disclosure requirements in the financial statements of Malaysian companies
 B. Rules and regulation on accounting
C. Applicable accounting standards
D. Accounting history

5. What is the key feature of Companies Act 2016 for financial accounting and reporting?
A. The requirement for reporting companies to comply with the approved accounting
standards issued by the MASB
B. The registration of accountants in Malaysia
C. Accounting treatments and disclosure requirements
D. Cover the practices of the whole accounting profession in Malaysia

Page 3 - 13

6. What are the two body that was established upon Malaysian government announced to
establish new financial accounting and reporting, Financial Reporting Act 1997?

i. Malaysian Accounting Standard Board

ii. Financial Reporting Foundation

iii. Malaysian Institute of Accountants

iv. Securities Commission Malaysia

A. I and II
B. I and III
C. II and III
D. I and IV
7. Director is responsible to prepare financial statements in 18 months after date of
corporation and subsequently within 6 months of its financial end. They must present
these statements except?
A. Audited profit and loss
B. Audited balance sheet
C. Statements of sources
D. Director’s report on the state of affairs of company & group must accompany the
financial state

8. Based on the following below, which is NOT the function of Financial Reporting
Foundation (FRF)?
A. Review the performance MASB
B. Be responsible for all the financing arrangement for the operation of MASB including
approving budget MASB
C. Perform other function as Minister of Finance may prescribe by order published in
the Gazette
D. Issue new accounting standard

9. What is the main function of the Securities Commission Malaysia?

A. As a safeguard for the assets of company against loss
B. To encourage and promote the development of the capital market in Malaysia
C. As a market where the financial instrument is exchanged
D. To protect the investors by promoting confidence in the quality and reliability of
audited financial statements of public companies

10. Which of the following statement is false?

 A. BNM/GP3 is explaining on the classification of non-performing loans and Provision
for Substandard, Bad and Doubtful Debts
B. Bursa Malaysia has the power to delist, suspend, or publicly reprimand errand listed
companies for any non-compliance with its regulations
C. Financial Reporting Foundation (FRF) function to develop a conceptual framework
for the purpose of evaluating proposed accounting standard
D. According to Bursa Malaysia, the annual audited accounts together with the
auditor’s and director’s reports shall be given to Exchange for public release, within
a period not exceeding 4 months from the close of the financial years of the
company

11. The Financial Reporting Act 1997 was passed and gazetted on 6th March 1997 which
established?

I. Financial Reporting Foundation (FRF)

II. Malaysian Accounting Standard Boards ( MASB)

III. Malaysian Financial Reporting Standards (MFRS)

IV. International Financial Reporting Standards (IFRS)

A. Ⅰ and Ⅱ
B. Ⅱ and Ⅲ
C. Ⅲ and Ⅳ
D. Ⅰ and Ⅳ

12. On what Section of the Financial Reporting Act deals with compliance with approve
accounting standard of the Malaysian Accounting Standards Board (MASB)?
A. Section 56
 B. Section 22
C. Section 27
D. Section 34

13. Which of the following are the accounting standards which are acceptable for the
purposes of exchanges in Malaysia for the Foreign Companies Listed?
I. Australian Accounting Standard Board, Australia
II. II. Accounting Standards Board, United Kingdom
III. Financial Accounting Standards Board ,United States of America
IV. Accounting Standards Board, Abu Dhabi
A. I and IV
B. II and III
C. II, III and IV
D. I, II and III

14. Which of the following are the accounting standards which are acceptable for the
purposes of exchanges in Malaysia for the Foreign Companies Listed?

I. Australian Accounting Standard Board, Australia

II. Accounting Standards Board, United Kingdom

III. Financial Accounting Standards Board ,United States of America

IV. Accounting Standards Board, Abu Dhabi

A. Ⅰ and Ⅳ
B. Ⅱ and Ⅲ
C. Ⅱ, Ⅲ and Ⅳ
D. Ⅰ, Ⅱ and Ⅲ
15. Based on the statements below, which statements are TRUE regarding the Audit
Oversight Board (AOB).

I. Requires all auditor of private and public interest entities to be registered.

II. Requires all auditor of public interest entities to be registered.

III. To protect the interest of investors by promoting confidence in quality and reliability.

IV. Own the power to sanction all auditor includes the unregistered auditors for failure
to comply the standardized guidelines.

A. Ⅰ and Ⅱ
B. Ⅱ and Ⅲ
C. Ⅰ and Ⅳ
D. Ⅲ and Ⅳ

Page 13-24

16. During the pronouncements before the current financial reporting regime, what are the
two Standards formulated in the Approval Accounting Standards?
A. Malaysian Accounting Standards (MASs) and Malaysian Financial Reporting
Standards (MFRS)
B. International Accounting Standards (IASs) and Malaysian Accounting Standard Board
(MASB)
C. International Accounting Standards (IASs) and Malaysian Accounting Standards
(MASs)
D. Malaysian Financial Reporting Standards (MFRS) and International Financial
Reporting Standards (IFRS)
17. MASB Standard was separated into two reporting framework which consists of public
and privates entities. What are they?
I. Financial Reporting Standard (FRS)
II. Private Entity Reporting Standard (PERS)
III. Malaysian Financial Reporting Standards (MFRS)
IV. Malaysian Accounting Standard Board (MASB)
A. Ⅰ and Ⅱ
B. Ⅱ and Ⅲ
C. Ⅰ and Ⅳ
D. Ⅲ and Ⅳ

18. Which company incorporated under the Companies Act?

A. Patnership
B. Sole proprietorship
C. Unlisted public company
D. Limited liabilty partnership

19. For private company, it reporting requirement are?

I. Approved accounting standards
II. Companies Act
III. Security commission
IV. Bursa Malaysia

A. Ⅰ and Ⅱ
B. Ⅱ and Ⅲ
C. Ⅰ and Ⅳ
D. Ⅲ and Ⅳ
20. Which one is FALSE regarding what should a listed public company should submit?
A. Quarterly financial statements to the Securities Commission and the Bursa Malaysia.
B. Other interim and periodic financial reports to the Securities Commission.
C. Financial statement has been drawn up to show a true and fair view are in
compliance with Approved Accounting Standards.
D. Final audited financial statements to the Companies Commission, Bursa Malaysia
and Inland Revenue Board of Malaysia.

21. MIA and MICPA are the professional accountancy bodies that regulated the financial
accounting and reporting practices in Malaysia before the establishment of the MASB.
Which statement is not true relating to the pronouncement before current financial
reporting regime?
A. Before MASB, MIA and MICPA not only can control their members but also have
the statutory power to enforce compliance
B. Follow International Accounting Standards (IASs) and Malaysian Accounting
Standard (MASs)
C. MIA and MICPA conduct review of financial state prepared and audit by their
member
D. The two professional body stop issue accounting standard after Financial
Reporting Act gazette in March 1997

22. The Foreword to MASB Standards was considered the due process by which the Board
developed or adopted and issued accounting standards. The technical pronouncements
that was issued by the MASB other than MASB standards include
A. Technical Releases (TR)
B. Urgent Issues Abstracts (UIA)
C. Guidance Notes (GN)
 D. All the above

23. The technical pronouncements were developed with due regard to both local and
international treatments and within the framework of the laws and the standards. What
is the purpose of the technical pronouncement?
A. It was to provide guidance on the application of generally accepted accounting
principles to the resolution of a particular accounting issue.
B. To identify the qualitative characteristic of applicable accounting standard
C. To provide a basis for setting of high-quality and consistent reporting standards
D. To provide the opportunity for interested parties to comment on the proposal of
the pronouncement

24. In August 2008, the FRF and MASB announce plan to bring Malaysia to full convergence
with IFRS by 1 January 2012. In the MASB’s due process, the pronouncement
deliberated in Working Group (WG) meeting to provide comment and recommendation
to issue raise in the pronouncement for the MASB Board’s consideration occur during
A. Stage 1
B. Stage 2
C. Stage 3
D. Stage 4

25. Public and WG’s comments are tabled at MASB for deliberation and consideration
during stage 3 of MASB’s due process after 2003. After that, comment letter is prepared
and submit to
A. International Financial Reporting Standards Board (IFRS)
B. International Accounting Standards Board (IASB)
C. Malaysian Accounting Standard Board (MASB)
 D. Private Entity Reporting Standards (PERS)

26. In 2006, the MASB announced that private entities in Malaysia need not comply with
MFRSs. The following statement is true relating with private entity except,
A. Private entity can choose either to follow MFRS or PERS
B. Private entity is not required to prepare or lodge any financial state under any
law administered by Securities Commission or Bank Negara Malaysia
C. Private entity is a subsidiary or jointly controlled by an entity which is required to
prepare or lodge any financial statement under any law administered by
Securities Commission or Bank Negara Malaysia
D. MFRS is too high for the smaller private entity to comply with

27. Which of the following do not have the legal power to enforce compliance, however it
can delist, suspend or publicly reprimand errant any listed companies who do not
comply its regulations?
A. Companies Commission Malaysia
B. Securities Commission Malaysia
C. Bank Negara Malaysia
D. Bursa Malaysia

28. What will provide a reasonable assurance that the assets of company are safeguarded
against loss from unauthorized use of disposition and to give a proper account of the
assets?
A. The directors shall have in place a system of internal control
B. Keep and accounting and other records within 60 days of completion of
transaction to which they relate
 C. Directors are responsible to prepare financial statements and present the
required statements
D. All of the above

29. Capital Markets and Services Act 2007 (CMSA) enacted to secure Securities Industry Act
1983 & Futures Industry Act 1993 to regulate and prepare the matter related to the
market and intermediaries in capital market. CMSA is required to submit to the
Commission including,
I. A copy of audited annual account
II. Interim and periodic report after the figure available
III. Listed corporation and director should kept such account report
IV. Corporation shall retain the record for 7 years after completion of transaction
A. I, II and III
B. I, II and IV
C. II, III and IV
D. All of above

30. Which of the following below is function to protect the investors by promoting
confidence in the quality and reliability of audited financial statements of public
companies?
A. Income Tax Act 1967
B. Securities Commission
C. Audit Oversight Board
D. Bursa Malaysia