1.

Ans- a) Makes it simplistic for the SMEs to comply with the requirements of the one
standard adhering to the full sets of IFRs and IASs and many national GAAPs
Requirements

b) reduces the cost associated with meeting the requirements of the full set of IFRs and
IASs
 c) simply meets the needs of the SMEs

2. i - Documents procedures or documentation- all documents used in the organization in

relation to the use such as cash, inventory or any other resource should be
prenumbered , accountability can be held easier and recording of information as
references

ii- Independent internal verification- purpose of validation and is done by employees of

the organization such as managers, immediate supervisor

iii- Physical, mechanical and electronic controls- these are used to keep items of the
business safe and also to prevent theft

iv- Segregation of duties - this is the separation of duties to prevent or limit fraud, theft and
wastage of resources, thereby safeguarding

3. i- The two main users of General purpose financial reporting are existing and potential
investors

ii- comparability of useful financial information is the comparing of financial statements

over a period of time to identify trends and also be able to compare financial statements of other
companies while understandability of useful financial information is a company making or
providing the financial report should not make it complex so that it doesn’t result in the users of
the information , who has knowledge of the business, economics and accounting to not
understand