BTF - Professional accountancy

1. The objective of the accountancy profession can best be described as:

• A. Providing financial information about an entity to external users, which is useful to them in making economic decisions and for assessing the stewardship of the entity’s management
• B. Measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and other decision makers make resource allocation decisions
• C. Identifying, measuring, accumulating, analysing, preparing, interpreting and communicating information used by management to plan, evaluate and control an entity and to assure appropriate use of and accountability for its resources
• D. Managing all the processes associated with the raising and use of financial resources in a business

2. Which of the following element is least likely to characterise a profession?

• A. Restrictions on membership to ensure the skill and competence of members
• B. A high degree of autonomy and independence
• C. Core values are established which members are expected to maintain
• D. The profession’s rules and regulations are established solely by government legislation

3. Professions often set out codes of ethics and conduct. These are an example of which common attribute of professions?

• A. Professional values
• B. Self-regulation
• C. Co-regulation
• D. Formal regulatory process

5. Paula recently established her own accountancy practice from small retail premises in Hightown. She operates as a sole trader. Paula passed the last of her ICAEW examinations last month although she is not yet permitted to offer statutory audit, insolvency, investment business or probate services. She has already been successful in attracting several clients to her new practice. She has not yet become a member of ICAEW but she is registered with an approved body for supervision under the money laundering regulations. Which of the following statements is correct?

• A. Paula cannot call herself an accountant.
• B. ICAEW can legally stop Paula from practising as a sole trader.
• C. Paula can offer any accountancy services she considers appropriate.
• D. Paula can offer any accountancy services except those in the reserved areas

7. Upholding professional ethics is a key part of being a professional accountant. Which of the following duties of an accountant only applies to those employed in the public sector?

• A. Protect the public interest
• B. Apply laws and regulations
• C. Protect the profession’s reputation and standing
• D. Protect taxpayers’ money

11. The following statements concern the role of the ICAEW.

The ICAEW is only responsible for discipline in respect of ICAEW members.

Identify whether the statement is accurate.

• Accurate

• Inaccurate

12. Who is responsible for supervising member firms of the ICAEW in respect of anti-money laundering?

• A. The Financial Conduct Authority (FCA)
• B. The ICAEW
• C. The Office of Professional Body AML Supervision (OPBAS)
• D. HMRC