Tutorial Questions 1 14 
T1 & 2 (Q)
(1) Which one of the following is an example of an internal stakeholder?
A A shareholder
B Investment analyst / consultant
C A manager
D A supplier
(2) What is the primary responsibility of the external auditor?
A To verify all the financial transactions and supporting documentation of the client
B To ensure that the client’s financial statements are reasonably accurate and free from bias
C To report all financial irregularities to the shareholders of the client
D To ensure that all the client’s financial statements are prepared and submitted to the relevant authorities on time
(3) To whom is the internal auditor primarily accountable?
A The audit committee of the company
B The company as a separate entity
C The shareholders of the company
D The employees of the company
(4) Identify any four user groups of financial statements and explain what information that are of interest to them. (2) Top of Form
(5) “The business entity concept requires a business to be treated as being separate from its owners”
Is this statement true or false?
A True
B False
(6) Which of the following statements are correct?
(1) Materiality means that only items having a physical existence may be recognised as assets.
(2) The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect.
(3) The money measurement concept is that only items capable of being measured in monetary terms can be recognised in financial statements.
A 2 only
B 1, 2 and 3
C 1 only
D 3 only
(8) What is the main purpose of a balance sheet?
I To report assets, liabilities at a particular date
II To report capital (owner ship equity) at a particular date
III To report on valuation & information about business activities at a over a specific period of time.
IV To report on the growth in value of business at a particular date
A I only
B I & II only
C III & IV only
D IV only
(9) What
(1) Which one of the following is an example of an internal stakeholder?
A A shareholder
B Investment analyst / consultant
C A manager
D A supplier
(2) What is the primary responsibility of the external auditor?
A To verify all the financial transactions and supporting documentation of the client
B To ensure that the client’s financial statements are reasonably accurate and free from bias
C To report all financial irregularities to the shareholders of the client
D To ensure that all the client’s financial statements are prepared and submitted to the relevant authorities on time
(3) To whom is the internal auditor primarily accountable?
A The audit committee of the company
B The company as a separate entity
C The shareholders of the company
D The employees of the company
(4) Identify any four user groups of financial statements and explain what information that are of interest to them. (2) Top of Form
(5) “The business entity concept requires a business to be treated as being separate from its owners”
Is this statement true or false?
A True
B False
(6) Which of the following statements are correct?
(1) Materiality means that only items having a physical existence may be recognised as assets.
(2) The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect.
(3) The money measurement concept is that only items capable of being measured in monetary terms can be recognised in financial statements.
A 2 only
B 1, 2 and 3
C 1 only
D 3 only
(8) What is the main purpose of a balance sheet?
I To report assets, liabilities at a particular date
II To report capital (owner ship equity) at a particular date
III To report on valuation & information about business activities at a over a specific period of time.
IV To report on the growth in value of business at a particular date
A I only
B I & II only
C III & IV only
D IV only
(9) What