LJJ INAC 2

What is the acronym that is useful for remembering the types of internal control?

What is meant by 'Stewardship' and why is it important?

Which of the following is not part of the regulatory framework governing the preparation of financial statements?

• Companies Act 2006

• GAAP

• International Financial Reporting Standards

• Health & Safety at Work Act 1974

Match the following users of accounts to their needs

• Sustainability/

  ethical responsibilities

• Existing and potential lenders

• Job security and conditions

• Empolyees

• Future performance and return

• Public

• Statistics & Tax

• Government agencies

• Ensure repay capital and service loan

• Existing and potential investors

Pick any 4 from the 8 types of internal control and explain their function

What are the Enhancing Qualitive Characteristics?

Which fundamental qualitative characteristic means that the financial statements will provide information that is pertinent to any decisions made by users

Which fundamental qualitative characteristic means that the financial statements will provide a true and fair view of the organisation to the stakeholders

Re-order the following stages of a sales system

• Transactions recorded in books

• Order received

• Invoice Sent

• Goods Despatched

• Cash received

Match the following internal control objectives within the purchase system

• For goods rec'd only; once only

• Invoices received

• GRN - promptly and accurately

• Goods received

• Suppliers are vetted for £ & lead times

• Payments

• Checked for goods, £, order no. etc

• Recording

• Trans recorded accurately and completely

• Ordering