JJ18 Group: B

F1 Set 1 Questions

1. The accounting statements drawn up by a management accountant for monthly

management meetings do not need to comply with company law or accounting
standards.

Is the above sentence true or false?

A. False
B. True

2. Performance and appraisal enables the organization and the employee to

assess progress made in the job and evaluate strengths and weaknesses.

Which TWO of the following are additional purposes of appraisal?

Considering future education, training and development needs

Assessing future prospects in the organisation

Reviewing the organisation's grades and salary scales

Providing job instruction on key tasks

3. Northland, Southland, Eastland and Westland are four countries in Asia. The
following economic statistics have been produced for the year 20X7:

Country Northland Southland Eastland Westland

Change in GDP (%) -0.30 +2.51 -0.55 +2.12
Balance of payments current +550.83 -350.47 -150.90 +220.39
account ($m)
Change in consumer prices (%) +27.50 +15.37 +2.25 +2.15
Change in working population -4.76 +3.78 +1.76 -8.76
employed (%)
JJ18 Group: B

Which country experienced stagflation in the relevant period?

A. Northland

B. Southland

C. Eastland

D. Westland

4. Adam, Boris, Chow and Dev all work from home. Boris, Chow and Dev all
report to the same manager at the company's head office. Adam reports to Boris
and has no communication with the manager at head office. Boris, Chow and
Dev never contact one another directly. Any communications between them take
place through their manager.

The pattern of communication described above is represented by which of the

following?

A. The Y
B. The wheel
C. The circle
D. The chain

5. Who prefers training to be designed to allow time for analysis in accordance

with Honey and Mumford's classification of learning styles?

A. A pragmatist
B. An activist
C. A theorist

6. In relation to data protection laws, which TWO of the following should be

classified as personal data?

The accountant's opinion of Abdul, the finance

director
The payment record of Hardy Limited, a customer

The absence record of Cheryl, an employee

JJ18 Group: B

7. Which TWO of the following sources of financial information about a company

are external reports?

Budgets

Statement of profit or loss

Statement of cash flows

Variance reports

8. A junior accountant has been placed in a situation which she thinks presents
her with an ethical dilemma.

Which of the following would NOT be a suitable question for the accountant to
ask herself when resolving her ethical dilemma?

A. Would an informed third party think my decision is fair?

B. Am I being loyal to my manager?
C. Could I defend my decision in the face of public scrutiny?
D. Have I considered all the parties who may be affected by my decision?

9. Desmond works as part of a team. Whilst he is very good at turning ideas into
practical solutions, he can be somewhat inflexible and slow to respond to new
opportunities.

Which of Belbin’s team roles best describes Desmond?

A. Implementer
B. Plant
C. Monitor-Evaluator
JJ18 Group: B

10. Which TWO of the following are examples of connected stakeholders?

A. An executive director
B. A pressure group
C. A supplier
D. A shareholder

11. A manager who can manage their time well is able to 4ecognize and
distinguish which tasks are ____________ and ____________ .

Which TWO words correctly complete this sentence?

Necessary

Urgent

Important

12. Which types of goods tend to be bought and used together?

A. Complements
B. Substitutes
C. Giffen goods

D. Inferior goods

13. Which TWO of the following are potential effects of constructive conflict?

A variety of solutions to problems is introduced

Defensive attitudes replace aggressive behaviour

Task focus takes precedence over social cohesion

Creativity and innovation is encouraged

JJ18 Group: B

14. In relation to fraud prevention what objective should external auditors have in
designing and implementing their audit procedures?

A. To verify pre-determined samples of all types of records

B. The identification of every inconsistency or error within the records
C. A reasonable prospect of detecting irregular statements or records
D. To provide a systematic check of every recorded transaction

15. In which of the following structures would an employee be responsible to

both the sales department manager and the manager for product Alpha?

A. Matrix structure
B. Product structure
C. Functional structure

16. Adam is employed by a supermarket chain. His advertising campaign

attracted hundreds of new customers to the organization, for which he was paid
a bonus.

Which of the following describes the intrinsic reward that he received?

A. A sense of achievement
B. financial compensation

17. In relation to group behavior and effectiveness are each of the following
descriptions of the term 'synergy'?

The higher level of motivation that can be achieved by people working together in a team
Yes
No
The ability of a team to produce more than the sum total of individual output of members
Yes
No
JJ18 Group: B

18. Which TWO of the following are professional qualities expected of an

accountant?

Courtesy

Social responsibility

Independence

19. The usual requirement for limited liability companies to keep proper records
and books of account is dictated by which of the following?

A. Auditing standards
B. Generally accepted accounting practice
C. National legislation
D. International accounting standards

20. E Co's corporate code of ethics makes commitments to a range of different

stakeholders. The commitment to one group of stakeholders highlights the
company's supply chain policies which include a commitment to 'Fairtrade'
and the use of organic ingredients. It also highlights the company's
commitment not to test the company's products on animals.

Which commitment is this most likely to be?

A. Financing commitment
B. Commitment to customers
C. Commitment to employees
D. Core principles
21. Which TWO of the following are examples of standing data found on an
employee's payroll file?

Net salary

Leave entitlement

Rate of pay
JJ18 Group: B

22. Which TWO of the following are characteristics of an effective team?

A. Constructive criticism
B. Passive acceptance of decisions
C. Free and open communication

23. In relation to selection interviews which of the following is a description of

the 'halo effect'?

A. Making positive judgements about the suitability of interviewees based on the

subconscious influence on the interviewer of the interviewee's personal traits
B. Making a decision about the suitability of interviewees quite early on in the
interview process
C. Making a conscious decision about interviewees based on placing greater
emphasis on personal characteristics rather than their technical knowledge
and competence
D. Assuming that all interviewees from a specific source, category or grouping
will share the same personal attributes and characteristic

24. Which of the following organisations would rely most heavily on value for
money indicators and efficiency rather than information on performance and
profitability?

A. A pension fund
B. A small retailer
C. A local authority
D. A private accountancy college
JJ18 Group: B

25. JKL Co is a multinational organisation that produces pharmaceuticals. These

are all manufactured in different countries and each manufacturing facility has its
own executive organisation that operates autonomously.

This is an example of which type of organisational structure?

A. Product
B. Divisional
C. Functional
D. Matrix

26. The legal concept of _________ protects employees against arbitrary

dismissal; that is dismissal without good reason.

Which of the following correctly completes the sentence above?

A. Constructive dismissal
B. Unfair dismissal
C. Wrongful dismissal

27. Joanne works in the human resources department of CBA Co. One of her
roles is to offer advice to employees of the company who are experiencing
personal difficulties such as stress, personal relationship problems and other
matters affecting their work. Joanne provides guidance on a one-to-one and
confidential basis, often referring employees to consultants or organisations
that can provide specialist advice.

What is Joanne's role in CBA Co?

A. Coach
B. Buddy
C. Mentor
D. Counsellor
JJ18 Group: B

28, Which TWO of the following are found within the first level of Schein's
determinants of culture?

Relationships between managers and staff

Attitudes

Norms of behaviour

29. Which TWO of the following are reasons for the increased participation of
women in the labour force?

Increase in male dominated boards

Growth of the service sector

Fewer part-time jobs

Increase in the average age that women decide to have children

30. All gifts and hospitality offered to a professional accountant by a client pose
an ethical threat and should be declined.

Is this statement true or false?

A. True
B. False

31. A company's published accounts will include an auditor's report.

To whom is the audit report addressed?

A. To the management
B. To the shareholders
JJ18 Group: B

32. A rapid expansion in the use of broadband technology by consumers has the
most impact on which of the following business processes?

A. Use of advanced manufacturing techniques

B. Order processing and distribution

C. Terms negotiated with suppliers

D. Quality management and control

33. To whom do the external auditors of a company owe a duty of reasonable

care and skill?

A. The company and individual shareholders

B. Existing and potential investors
C. The shareholders as a collective body
D. The directors

34, Stephan is planning his work for the day.

Once Stephan has decided what has to be done what should he now do in order
to manage his time effectively?

A. Set priorities and schedule the work according to these priorities

B. Deal with all matters marked as 'urgent' in his in-basket
C. Work on the most complex task first in order to get it out of the way
D. Work on the tasks that others are pressurising him to complete

35, The payables ledger section of the finance team relies on the purchasing
department to do which TWO of the following?

To advise them of all purchase orders

To inform them of payments received

To confirm the validity of invoices received from

suppliers
JJ18 Group: B

36. Two departments have requested a new photocopier, but the company cannot
afford two machines. The proposed solution is to provide a shared access to a
single new copier and place the copier between the two departments.
What type of conflict resolution is this?

A. Win-win
B. Win-lose
C. Lose-lose

37. TECA Co has to decide whether to replace its physical retail outlets with a call
centre.

This decision relates to which component of the marketing mix?

A. Price
B. Place
C. Product
D. Promotion

38. Alison has carried out a training needs analysis for a team in her organisation
and has concluded that certain training requirements must be addressed.

What is the next action that she must take?

A. Establish how the training should be evaluated

B. Decide on the method of training
C. Align training needs with organizational needs
D. Define the precise training objectives
JJ18 Group: B

39. The following statements refer to the role of the International Federation of
Accountants (IFAC). Are each of the statements true or false?

. True False
IFAC is responsible for preparing and publishing global accounting
standards
IFAC is responsible for promoting ethical education standards

40. Which of the following systems is most relevant to the work of a

procurement manager?

A. A just-in-time system that will reduce inventories of raw materials

B. An advanced manufacturing system that will reduce the length of the working
capital cycle
C. A satellite tracking system that will monitor and record deliveries of finished
goods
D. An internet-based customer order fulfilment system

41. According to Heifetz what should leaders do to facilitate change effectively?

A. Maintain psychologically close relationships and balance the needs of

individuals and teams with the need to achieve key tasks
B. Identify the members of the team who are most able to adapt and develop their
knowledge, competencies and skills over time
C. Create an environment of participation and involvement to ensure that team
members are fully aware of challenges that face them
D. Instill in team members an understanding of their need to adapt their values,
attitudes and behaviours over time
JJ18 Group: B

42. DEF Co operates in a country where the government has adopted a

principles-based approach to regulation. Companies are encouraged to adhere
to generally accepted good standards of corporate governance. DEF Co wishes
to reappoint two of its non-executive directors to the board for a third term of
three years. It believes that this is in the best interest of the company and its
shareholders. However the code of practice applicable to listed companies such
as DEF Co states that non-executive directors should serve a maximum of two
terms of three years.

What action should DEF Co take?

A. Reappoint the non-executive directors and make no reference to this in its

annual report
B. Reappoint the non-executive directors and explain the reasons for its actions
in the annual report
C. Appoint new non-executive directors to replace those who have served two
terms of three years
D. Seek permission from the government to reappoint the non-executive
directors

43. The sales team of GFE Co has been together for some time. The members
have got to know one another quite well, but they are still encountering
difficulties in reaching consensus on decisions.

Several team members have not yet got to the stage at which they fully trust
others, and they are reluctant to be totally open and honest about how they feel.

According to Tuckman's theory which stage of development has the team

reached?

A. Performing
B. Norming
C. Storming
D. Forming
JJ18 Group: B

44. Which of the following statements about ethics is true?

(1) Ethics are a set of moral principles to guide behaviour

(2) If an action conforms with the law then it is ethical

A. Statement 1 only
B. Neither statement
C. Both statements 1 and 2
D. Statement 2 only

45. Which of the following assesses the overall effectiveness of internal controls
in an organisation?

A. Probity audit
B. Systems audit
C. Substantive tests
D. Internal check

46. Hai is the minister responsible for the organisation of the civil service in his
country. Historically the civil service has been organised as a tightly controlled,
bureaucratic structure. He would like each department within the civil service to
become focused on deliverables emanating from their formal objectives and
capable of responding to changing priorities quickly and efficiently. Hai wants
the civil service to become more accountable for results with department
managers being judged by their performance in well-defined spheres of activity.

With reference to Handy's cultural typologies what change in the organisation is

Hai seeking to achieve?

A. From a role culture to a task culture

B. From a task culture to a role culture
C. From a role culture to a power culture
D. From a person culture to a task culture
JJ18 Group: B

47. Organisations have relationships with several types of stakeholders who

themselves have varying levels of power and interest in relation to business
activities.

Select the correct options to complete the following sentences

The stakeholders of an organisation are often categorised as internal, connected

and external stakeholders.

Internal stakeholders include parties such as :

A, Managers and executive
B, Non- executive directors
C, All directors
Connected stakeholders include :
A, Suppliers
B, Professional bodies
C, Regulators

External stakeholders include:

A, Pressure groups
B, Customers
C, Providers of finance

and are most relevant when analysing

A, Opportunities and threats
B, Strengths and weaknessess

Stakeholder analysis is carried out by many organisations using stakeholder

mapping, and some use the Mendelow grid as a framework for this analysis. This
proposes different strategies according to the level of power and interest. For
example, Mendelow's theory suggests that those who have a low level of power
and a high level of interest should be :
A, Kept informed
B, Afforded minimal attention

while those with a high level of interest and a high level of power should be
A, Regarded as key players
B, Kept Satisfied
JJ18 Group: B

When used in strategic planning, stakeholder analysis considers the company's

potential relationships with its stakeholders over a
period of :
A, One to three years
B, Three to five years
C, One year

Most strategic writers consider that it is necessary to:

A, Seek consensus for different stakeholder groups
B, Maximise the benefits to key players at all costs
C, Minimise detrimental influence

48.
XXX Co is a multinational corporation manufacturing and selling all kinds of foods and
household goods. It has divided its activities into five distinctive product groups: health
and beauty, drinks, food, appliances and textiles. Each product group has its own
management structure and support functions, including administration, finance, human
resources and marketing.

YYY Co is a large consultancy, operating in many countries. Each of its consultants

reports to a general manager. Owing to the unpredictable and flexible nature of the
demands placed upon them, any of the consultants can be assigned to a team leader
to enable their specialisms to be applied to specific tasks and projects. The
consultants can have multiple responsibilities, reporting to different managers, at the
same time.

ZZZ Co provides accountancy and tax advisory services. It operates from a small
headquarters but most of its advisers have no permanent office, because they
frequently work at the premises of clients, and at other times they work from home.
When the advisers are at headquarters, a 'hot desk' facility is provided, where advisers
can take a free space anywhere in a large open plan room. Very few face-to-face
meetings are organised, as the company makes extensive use of audio and video
conferencing.

Task 1
For each company, indicate the applicable organisational structure.
. Divisional Virtual Matrix
XXX Co

YYY Co

ZZZ Co
JJ18 Group: B

Task 2
In relation to Schein's theory of organisation culture, indicate which THREE of the
following are elements of observable (or explicit) culture (at the first level of the model).

1, Value
2, Behaviour
3, Belief
4, Artifacts
5, Attitudes
6, Assumptions

Task 3
In relation to Mintzberg's organisation theory, indicate which of the following is
the term used to describe those involved in standardising processes and finding
the best ways of doing jobs.

49. Most large companies must engage the services of an external auditor.

Complete the following by filling the gaps.

The external auditor of a company is appointed by the:

A. Shareholders
B. Board of directors
C. Chief executive officer

each year. The contract between the company and the external auditor is a:
A. Fixed term contract
B. Contract of employment
JJ18 Group: B

The primary duty of the external auditor is to submit a report to the:

A. General meeting of shareholders
B. Board of directors

, the primary purpose of which is to:

A. Provide absolute assurance
B. Guarantee
C. Express an opinion

that the financial statements of the company:

A. Are accurate in all respects
B. Are a true and fair view

Auditors carry out various types of test:

A. Substantive
B. Data
C. System

tests are used to ascertain whether numerical data is correct or not, and…….. tests
are carried out to determine whether controls are working correctly.
A. Compliance
B. Application

In discharging their duties, auditors must not allow bias, conflict of interest or undue
influence to affect their work. This requirement is referred to as:
A. Integrity
B. Objectivity
C. Transparency
JJ18 Group: B

50. There are a range of theorists and theories on the nature and style of
leaders, managers and about the objectives of management as a key functional
role in business.

Select the correct options to complete the following text

Professor John Adair's action-centered leadership model, sometimes referred to as

the:
A. Situational leadership model
B. Functional leadership model
C. Contingency leadership model
focuses on what leaders need:
A. To be
B. To do
, in contrast to the traits theory that focuses on:
A. Personal qualities
B. External influences on the leader
C. Internal influences on the leader

Adair suggests that leaders must strike a balance in respect of three activities:
achieving the task, maintaining the group (or team) and:
A. Developing the individual
B. Exercising authority
C. Inspiring trust

The leader who focuses excessively on achieving the task resembles the:
A. Impoverished
B. Produce or perish
C. Middle of the road

leader as described in the Blake and Mouton managerial grid, whereas the leader who
attempts to empathize excessively with the team could be described in the Blake and
Mouton model as adopting the:………… style.
A. Country club
B. Team
C. Impoverished
JJ18 Group: B

Adair's model has been put into practice by many companies who require leaders to
bring working groups together on a regular basis to consider policies, products, people
and other relevant issues in order to enhance better working relationships. These
forums are referred to as:
A. Team briefings
B. Brainstorming
C. Cascade sessions

Generally, Adair's approach favors the: ……………. approach to leadership.

A. Consultative
B. Authoritarian
C. Laissez- faire
51. Jacques, Ki, Larissa and Maureen are all specialists employed by a local
government authority.

Jacques visits tenants who rent houses and apartments from the authority. His job is
to deal with tenants who are experiencing financial difficulties. It involves helping them
to draw up a true picture of their financial position and from that prioritise their
expenditure in order to enable them to resolve or minimise their difficulties. The end
result of Jacques' interviews is a plan of action that will enable them to remain in their
homes.

Ki works with the negotiators in the procurement department. The negotiators are
highly experienced, but Ki's job is to add value to their efforts by helping them to
develop their strengths and overcome their weaknesses. She describes her work as a
continuous process of reviewing in order to improve.

Larissa works in the human resources function. As the authority has several hundred
employees, some of them experience personal difficulties such as divorce, separation,
addiction and so on. Larissa helps employees to address their personal issues in order
to overcome them. Larissa sometimes refers employees to specialist agencies.

Maureen also works in the human resources department. She works closely with new
employees on an individual basis in order to help them integrate with their colleagues.
She encourages each individual to prepare a plan through which they will take the
learning experiences of the induction programme into the workplace, and then guides
them over a four month period, helping them to achieve their targets and address any
specific difficulties they encounter. Maureen describes her role as 'a process for
informal communication of knowledge and social support'.
JJ18 Group: B

For each individual, state whether they are involved in coaching, counselling or
mentoring.
. Coaching Mentoring Counselling
Jacques
Ki
Larissa
Maureen

52. Background,

XYZ Bank is a regional financial institution. Its internal audit department reports to the
finance director.

Sam is an internal auditor for XYZ Bank. While carrying out an inspection at a branch
office, he identified a large cash payment that was not backed up with documentation
or other records. Sam decided to refer the matter to Raj, his immediate manager.

Raj was keen to sign off the audit visit, as it was scheduled to be completed by the
end of that day. He told Sam that having dealt with the branch for eight years there
was never a problem with this branch and that the manager was extremely diligent
and honest. Raj added that he had known the manager since his school days and was
sure that there was a perfectly good explanation. The manager who processed the
transaction left the bank several months ago and now works abroad.

Raj told Sam that if he was unhappy with signing off the audit he would leave it to his
professional judgement, but he would be inclined to leave the matter as it was very
unlikely that there had been any irregular behaviour.
JJ18 Group: B

Task 1
Select the TWO threats to independence that have created an ethical dilemma.

Task 2
The banking regulator has informed XYZ Bank that it is inappropriate for the internal
audit department to report to the the finance director

Select the TWO parties to which it would be appropriate for the internal audit
department to report

The board of directors

The audit committee

The compliance officer

The company secretary

The chief executive officer