BTF 2 - Chapter 9

Which of the following word is to describe “an occupational area or vocation, which involves prolonged training leading to a formal qualification, can be defined by a group of attributes which distinguish it from others”?

• Job

• Training

• Profession

• Work

“Professionals are permitted to set their own licensing rules which form a barrier to new entrants into the profession and its market”. Which common attribute of professions does this describe?

• Co-regulation

• High degree of autonomy

• Formal regulatory process

• Self-regulation

Which of the following is NOT one of the three basic aspects of the professional accountant’s work?

• Maintaining control and safeguarding assets

• Financial management

• Financial reporting

• Customer relationship management

Automation affects which of the following roles of an accountant?

• Maintaining ledgers; Preparing reconciliations; Entry bookkeepingMaintaining ledgers

• Maintaining ledgers

• Preparing reconciliations

• Entry bookkeeping

The following statements have been made concerning the impact of technology on accounting.

Statement (1): Automation has not impacted who performs accounting

Statement (2): Accountants need to be prepared to provide advice on how clients should account for technological innovations.

Identify whether each statement is accurate.

• Statement (1) is accurate; Statement (2) is accurate

• Statement (1) is inaccurate; Statement (2) is accurate

• Statement (1) is inaccurate; Statement (2) is inaccurate

• Statement (1) is accurate; Statement (2) is inaccurate

In the three basic aspects of the professional accountant’s work, financial management means:

• The management of the raising and use of financial resources in a business

• The recording of transactions

• Overview of internal controls and risk management

• Preparing financial reporting

For members of the ICAEW audit, statutory audit and probate are:

• Recognized areas

• Reserved areas

• Regulated areas

• Registered areas

Which of the following is a “reserved area” of professional accountancy practice?

• Mergers and acquisitions

• Banking

• Insolvency

• Forensic accounting

Which of the following elements is LEAST LIKELY to characterize a profession?

• Restriction on membership to ensure the skills and competence of members

• A high degree of autonomy and independence

• Core values, which members are expected to maintain, are established

• The profession’s rules and regulations are established solely by the government

Distributed ledger technology and advanced accounting systems may have impacts on the work of the auditor.

Statement (1): The rate of technology change, such as with distributed ledger technology, is so fast that auditing regulations in regard to the audit of transactions are now irrelevant.

Statement (2): The use of advanced accounting software reduces the need for auditors to audit transactions and verify the ownership of assets.

Identify whether each statement is accurate.

• Statement (1) is inaccurate; Statement (2) is accurate

• Statement (1) is accurate; Statement (2) is accurate

• Statement (1) is inaccurate; Statement (2) is inaccurate

• Statement (1) is accurate; Statement (2) is inaccurate