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

• Ensure repay capital and service loan

• Empolyees

• Sustainability/

  ethical responsibilities

• Existing and potential lenders

• Job security and conditions

• Public

• Future performance and return

• Existing and potential investors

• Statistics & Tax

• Government agencies

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

• Goods Despatched

• Invoice Sent

• Transactions recorded in books

• Order received

• Cash received

Match the following internal control objectives within the purchase system

• Suppliers are vetted for £ & lead times

• Ordering

• Trans recorded accurately and completely

• Goods received

• For goods rec'd only; once only

• Payments

• Checked for goods, £, order no. etc

• Invoices received

• GRN - promptly and accurately

• Recording