Q1 Which of the following best describes the purpose of disclosure notes in the financial statements?

A. To provide more detail for the users of financial statements about the information in the statement of fi
B. To allow companies to present their financial results in a more favourable way by only disclosure some t
C. To give all the detail of all the transactions that occurred during the period because the main FS only pre
D. To explain the accounting treatment adopted where management have chosen not to apply accounting

Answer A
statements?
mation in the statement of financial position and statement of profit or loss and OCI
ay by only disclosure some things in the notes and not on the main FS.
ecause the main FS only present a summary.
sen not to apply accounting standards.
Q2 According to VAS 23 - Events After The Reporting Period, which TWO of the events require an adjustment to the
financial statements?
A. The bankrupcy of a major customer, with a subtantial debt outstanding at the end of the reporting perio
B. A fire destroying some of the company's inventory (the company's going concern status is not affected)
C. An issue of shares to finance expansion
D. Sale for less than cost of some inventory held at the end of the reporting period.

Answer A, D
quire an adjustment to the figures in the draft

he end of the reporting period

ncern status is not affected)
 In the course of preparing a company's statement of cash flows, the following figures are to be included in the ca
activities.
Depreciation charges 980,000
Q3 Profit on sale of non-current assets 40,000
Increase in inventories 130,000
Decrease in receivables 100,000
Increase in payables 80,000
What will the net effect of these items be in the statement of cash flows?
A. Addition to operating profit 890,000
B. Subtraction from operating profit 890,000
C. Addition to operating profit 1,070,000
D. Addition to operating profit 990,000

Answer D

Solution
Depreciation charges 980,000
Profit on sale of non-current assets (40,000)
Increase in inventories (130,000)
Decrease in receivables 100,000
Increase in payables 80,000
Net effect 990,000
are to be included in the calculation of net cash from operating
 You are preparing the financial statements for a business. The cost of the items in closing inventory is 152.000.00
Q4 costs 22.000.000 VND and which were damaged in transit. You have estimated that it will cost 2.500.000VND to r
sold for 20.000.000VND.
What is the correct inventory valuation for inclusion in the financial statements?
A. 130.000.000VND
B. 147.500.000VND
C. 149.500.000VND
D. 132.000.000VND

Answer B

Solutions
Estimated selling price 20,000,000
Estimated selling expense 2,500,000
NRV 17,500,000
Cost 22,000,000
=> Lower of NRV and Cost 17,500,000
The correct inventory valuation 147,500,000
ng inventory is 152.000.000VND. This includes some items which
ll cost 2.500.000VND to repair the items and they can then be
 A manufacturing company receives an invoice on 29/2/20x2 for work done on one of its machines. $25.500 of th
Q5 upgrade, which will improve efficiency. The accounts department do not notice and charge the whole amount to
depreciated at 25% per annum on a straight-line basis, with a proportional charge in the years of acquisition and
By what amount will the profit for the year to 30/6/20x2 be understated?
A. $19,125
B. $25,500
C. $23,375
D. $21,250

Answer C

Solutions
Depreciation amount per month $ 531.25
Depreciation amount for 4 months (from Mar to Jun) $ 2,125 CP giảm, LN tăng
Incorrect expense (understated profit) $ 25,500 CP tăng, LN giảm
=> Net $ 23,375 LN giảm
ne of its machines. $25.500 of the costs is actually for a machine
and charge the whole amount to maintenance costs. Machine is
e in the years of acquisition and disposal.
 Which of the following statements about research and development expenditure are correct?
1. If certain conditions are met, an entity may decide to capitalise development expenditure
2. Research expenditure, other than capital expenditure on research facilities, must be written off as incurred.
Q6 3. Capitalised development expenditure must be amortised over a period not exceeding 5 years.
4. Capitalised development expenditure must be disclosed in the statement of financial position under intangible n

A. 1,2 and 4 only

B. 1 and 3 only
C. 2 and 4 only
D. 3 and 4 only

Answer C

Solutions
correct?
iture
written off as incurred.
g 5 years.
position under intangible non-current assets.
 Net profit was calculated as being $10,200. It was later discovered that capital expenditure of $3000 had been tre
Q7 and revenue receipts of $1,400 had been treated as capital receipts.
What is the net profit after correcting this error?

A. $5,800
B. $8,600
C. $11,800
D. $14,600

Answer D

Solutions
Net profit (incorrect) $ 10,200.00 = Revenue - Expense
Capital expenditure $ 3,000
Revenue receipts $ 1,400
Net profit after correcting $ 14,600
re of $3000 had been treated as revenue expenditure
 A company has been notified that a customer has been declared bankrupt. The company had previously made an
Q8 Which of the following is the correct double entry to account for this new information?
A. Dr Irrecoverable debts/ Cr Receivables
B. Dr Receivables / Cr Irrecoverable debts
C. Dr Allowance for receivables/ Cr Receivables
D. Dr Receivables / Cr Allowance for receivables

Answer C

Solutions
any had previously made an allowance for this debt.
n?
Q9 Which two of the following are limitations of the provisions of assurance?
A. Assurance work is carried out by people independence of the entity
B. Sampling is used in assurance work
C. Client systems have inherent limitations
D. Unqualified staff may be used on assurance engagements

Answer B, C
Q10 Which two of the following constitute the best quality evidence concerning the net realisable value of inventory?
A. Company's controls over inventory counting
B. Post year-end sales invoices
C. Post year-end sales orders
D. Post year-end sales price lists

Answer B, C
alisable value of inventory?
 The finance director of Litten Ltd has recently informed the audit engagement partner that Litten Ltd will be seek
listing. The finance director has implied that Litten Ltd will want to use the firm for significant amounts of advisor
Q11 listing, but joked at the same time that "clean bills of health" would be crucial from now on.
Select the type of threat which might arise in that situation.

A. Self-interest
B. Management
C. Self-review

Answer B
r that Litten Ltd will be seeking a stock exchange
gnificant amounts of advisory work in relation to the
ow on.
Q12 Which of the following services would it be least appropriate for a firm to carry out for an audit client?
A. Preparation of tax computation
B. Provision of tax advice
C. Provision of internal audit services
D. Preparation of the financial statements for a public interest entity

Answer D
r an audit client?
Q13 Which two of the following are objectives of the sales ordering part of the sales system ?
A. Sales are only made to credit worthy customers
B. Goods are correctly invoiced
C. Cut-off is correct
D. Orders can be fulfilled

Answer A, D
m?
 Melanice Hotel is a global group of hotels. The parent company, Melanice Holdings plc employs an internal audit
Q14 audits and investigations on the individual hotels in the group.
Which two of the following could the internal audit function carry out and still operate effectively?

A. Secondment to the accounts department of the Singapore Melanice to cover the maternity leave of the
B. Special investigation into the profits of the New York Melanice where the group directors suspect a frau
C. Test of the controls at the Edinburgh Melanice as part of a routine internal audit cycle
D. Identification of risks at the proposed Nairobi Melanice, which is due to open in nine months' time

Answer B, C
c employs an internal audit function which carries out

te effectively?

r the maternity leave of the financial controller.

oup directors suspect a fraud may have been carried out.

n in nine months' time

Q15 Which two of the following constitute sampling?
A. Testing 100% of the items in a population
B. Testing less than 100% of the items in a population
C. Testing all items with a certain characteristic
D. Testing items selected randomly from the population

Answer B, D
Q16 Which two of the following are true in respect of related party transactions?
A. Related party transactions tend to be low-risk to the auditor.
B. Disclosure of related party transactions is unlikely to be material to the financial statements
C. Related party transactions must be completely disclosed in the financial statements
D. There may be a significant control risk in relation to related party transactions.

Answer C, D
ncial statements
 If the company wants to earn a profit of $42,000 instead of breaking even, what is the number of units the comp

Q17

A. 14,000
B. 18,200
C. 26,000
D. 17,000

Answer B

Solutions
Calling X is The number of units the company must sell to earn a profit of 42,000$
Profit + Fixed Expenses = (Unit price - Variable expenses) * No. of units
=> $42,000 + ($130,000 + $10,000) = ($17 - $7) * X
=> X = 18,200
number of units the company must sell?
Q18 Current asset MINUS current liabilities is the
A. Current ratio
B. Net Worth
C. Working Capital
D. Quick ratio

Answer C
Q19 What does the accounts receivable turnover ratio tell us?
A. How often AR is received
B. How many times average AR is collected
C. AR Balance is at the end of a period
D. Bad debt balances at year end

Answer B
 The Carlos Company has gross sales of $2.5 million and a net profit margin of 6%. Total equity is $3.8 million with
Q20 outstanding. There are no preferred shares. The company has a P/E ratio of 18. What is the market price per shar
A. $0.68
B. $2.70
C. $3.80
D. $4.10

Answer B

Solutions
The net earnings are $150,000 (= 6%*$2.5 million)
EPS = $150,000 / 1,000,000 shares = $0.15
Price = EPS * P/E = $0.15 * 18 = $2.7
al equity is $3.8 million with 1 million shares
is the market price per share?
 There are four pipes used to fill a tank at a constant rate. Altogether, the four pipes are able to fill up the tank in
Q21 to reduce this time taken to 2 hours. How many more pipes filling up the tank at a constant rate will they need to
A. 2
B. 4
C. 6
D. 8

Answer B

Solutions
re able to fill up the tank in 4 hours. The owner wishes
nstant rate will they need to install?
 There are 5 objects: scissors, pencil, bottle, apple and banana. They are kept in either one of the three boxes - left
- Each box must contain at least 2 objects
- The scissors are in the right box.
- The apple and banana are in the box next to one with the bottle
Q22 - The pencil is in the left box
- The bottle is in the same box with the pencil.
The sixth object, a coin, is placed in one of the three boxes. Which box is it placed in?

A. Left
B. Centre
C. Right

Answer C

Left Center Right

Pencil apple Scissors
Bottle bânna
one of the three boxes - left, right and centre.
 Which cube can be formed by folding the given shape?

Q23

Answer D
 There are 5 objects: scissors, pencil, bottle, apple and banana. They are kept in either one of the three boxes - left
- Each box must contain at least 2 objects
- The scissors are in the right box.
- The apple and banana are in the box next to one with the bottle
Q24 - The pencil is in the left box
- The bottle is in the same box with the pencil.
The sixth object, a coin, is placed in one of the three boxes. Which box is it placed in?

A. Left
B. Centre

C. Right

Answer
one of the three boxes - left, right and centre.
Q25

The Bronze Watch displays the time as 15:45.

A. 1
B. 0
C. Insuffient information

Answer A
Q26 A man walked diagonally across a square lot. Approximately, what was the percent saved by not walking along th
A. 20
B. 24
C. 30
D. 33

Answer C 1 29%
1.414214
aved by not walking along the edges?
Q27 Which Chinese corporation is investing in Shopee now?
A. Alibaba
B. Tencent
C. Huawei
D. Baidu

Answer B
Q28 Which airlines are granted direct flights to the US?
A. Vietjet Air
B. Jetstar Pacific
C. Bamboo Airways
D. Vietravel Airlines

Answer C
 When you need to find everything in a table or a range by rows. For example, look up part of a car's price by part
Q29 employee names based on their employee IDs. You will use functionality :
A. SUMIFS
B. FIND
C. IF
D. VLOOKUP

Answer D
part of a car's price by part number, or find
Q30 When did Vietnam join the WTO?
A. 1999
B. 2007
C. 1995
D. 2009

Answer B