CIMA Updated BA4 Exam Questions and Answers by asma

Integrity

Objectivity

Confidence

Professional behavior

(i) only

(i) and (ii) only

(ii) only

(iii) only

Independent external audit gives confidence in the financial statements which is required as the directors have incentives to manipulate the financial statements presented to the shareholders

As the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and this needs to be guaranteed by independent external audit.

Independent external audit gives confidence in the financial statements by including the auditor's opinion on whether or not they show a true and fair view.

As the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and there is a need for this to be assured by independent external audit

Svetlana - Recorded a payment of £530 in the company's expenses account rather than its sales account.

Jim - Recorded a payment of £1,000 in both the company's expenses account and the sales account.

David - Forgot to record a payment of £50 in the company's sales account.

Jean - Recorded a customer payment as £120 when they actually paid £150.

Janet - Recorded the payment made by one customer in another customer's account.