Director Duties – NBC Institute

BCL – Nov 2018 – L1 – Q5a – Company Directors and Other Officers Governance and Ethical Issues Relating to Business

Explain the governance issues and director duties related to fraud and financial mismanagement in a company.

Question

In 2015, BIGO Ltd, which carries on the business of exporting yam and pineapple from Ghana to Europe, opened an account with Cal Bank at the Osu Branch. In 2016, the Finance Manager, who is the sole accounts officer of the company, forged the signature of the Managing Director (who was also the sole signatory to the bank account of the company) and made several withdrawals from the company to the tune of GH¢550,000. The bank, in that same year, requested that the Managing Director should, within two weeks of the letter, confirm the credit balance on the account which at the time stood at GH¢2,200,000. The Managing Director, without any further checks, signed the document, thus confirming the credit balance presented by the bank. In 2017, the auditors raised queries on some of the fictitious withdrawals. The Chairman of the Board ordered the Human Resource Manager to dismiss both the Managing Director and the Finance Manager with immediate effect.

Required:
i) Explain FOUR (4) issues in the case relating to governance and duties of directors.

(12 marks)

ii) Explain THREE (3) factors that disqualify a person from being appointed as a director.

(6 marks)

Answer

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Tags: Corporate Governance, Director Duties, Ethical Issues, Financial Mismanagement, Fraud
Level: Level 1

Topic: Governance and Ethical Issues Relating to Business
Series: NOV 2018

FA – Nov 2017 – L1 – Q1 – Preparation of financial statements of a sole trader

Explain the objectives of financial statements, accrual and going concern concepts, duties of directors, and preparation of payables ledger control account.

Question

a) A businessman who wants to take advantage of the One District One Factory initiative has approached you to assist him with the following accounting issues raised from (i) to (iii):

i) State TWO objectives of financial statements. (2 marks)

ii) Explain the accrual and going concern concepts. (4 marks)

iii) State FOUR duties of directors of a company. (4 marks)

b) From the following information, draw up a Payables ledger control account for the month of October 2017.

Items	GH¢
Payable to Suppliers at 01/10/2017	2,127,721
Receivable from Suppliers at 01/10/2017	127,721
Credit Purchases excluding VAT	4,000,100
VAT on Purchases	123,714
Returns Outwards including VAT	25,100
Cash Purchases excluding VAT	2,150,150
Cheques paid to Suppliers	5,222,100
Discounts received from Suppliers	22,500
Contra entries to Receivables ledger	950

A reconciliation of the books of accounts with some of the suppliers revealed that some of the
products were overpriced leading to an over invoiced amount of GH¢52,330. Amount
receivable from suppliers at 31/10/2017 amounted to GH¢33,100

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Control Accounts, Director Duties, Financial Statements, Going Concern
Level: Level 1

BCL – Nov 2018 – L1 – Q5a – Company Directors and Other Officers Governance and Ethical Issues Relating to Business

Explain the governance issues and director duties related to fraud and financial mismanagement in a company.

Question

Required:
i) Explain FOUR (4) issues in the case relating to governance and duties of directors.

(12 marks)

ii) Explain THREE (3) factors that disqualify a person from being appointed as a director.

(6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Governance, Director Duties, Ethical Issues, Financial Mismanagement, Fraud
Level: Level 1

Topic: Governance and Ethical Issues Relating to Business
Series: NOV 2018

FA – Nov 2017 – L1 – Q1 – Preparation of financial statements of a sole trader

Explain the objectives of financial statements, accrual and going concern concepts, duties of directors, and preparation of payables ledger control account.

Question

a) A businessman who wants to take advantage of the One District One Factory initiative has approached you to assist him with the following accounting issues raised from (i) to (iii):

i) State TWO objectives of financial statements. (2 marks)

ii) Explain the accrual and going concern concepts. (4 marks)

iii) State FOUR duties of directors of a company. (4 marks)

b) From the following information, draw up a Payables ledger control account for the month of October 2017.

Items	GH¢
Payable to Suppliers at 01/10/2017	2,127,721
Receivable from Suppliers at 01/10/2017	127,721
Credit Purchases excluding VAT	4,000,100
VAT on Purchases	123,714
Returns Outwards including VAT	25,100
Cash Purchases excluding VAT	2,150,150
Cheques paid to Suppliers	5,222,100
Discounts received from Suppliers	22,500
Contra entries to Receivables ledger	950

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accruals, Control Accounts, Director Duties, Financial Statements, Going Concern
Level: Level 1

Question Tag: Director Duties

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BCL – Nov 2018 – L1 – Q5a – Company Directors and Other Officers Governance and Ethical Issues Relating to Business

Explain the governance issues and director duties related to fraud and financial mismanagement in a company.

FA – Nov 2017 – L1 – Q1 – Preparation of financial statements of a sole trader

Explain the objectives of financial statements, accrual and going concern concepts, duties of directors, and preparation of payables ledger control account.

BCL – Nov 2018 – L1 – Q5a – Company Directors and Other Officers Governance and Ethical Issues Relating to Business

Explain the governance issues and director duties related to fraud and financial mismanagement in a company.

FA – Nov 2017 – L1 – Q1 – Preparation of financial statements of a sole trader

Explain the objectives of financial statements, accrual and going concern concepts, duties of directors, and preparation of payables ledger control account.

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BCL – Nov 2018 – L1 – Q5a – Company Directors and Other Officers Governance and Ethical Issues Relating to Business

Explain the governance issues and director duties related to fraud and financial mismanagement in a company.

You're reporting an error for "BCL – Nov 2018 – L1 – Q5a – Company Directors and Other Officers Governance and Ethical Issues Relating to Business"

FA – Nov 2017 – L1 – Q1 – Preparation of financial statements of a sole trader

Explain the objectives of financial statements, accrual and going concern concepts, duties of directors, and preparation of payables ledger control account.

You're reporting an error for "FA – Nov 2017 – L1 – Q1 – Preparation of financial statements of a sole trader"

BCL – Nov 2018 – L1 – Q5a – Company Directors and Other Officers Governance and Ethical Issues Relating to Business

Explain the governance issues and director duties related to fraud and financial mismanagement in a company.

You're reporting an error for "BCL – Nov 2018 – L1 – Q5a – Company Directors and Other Officers Governance and Ethical Issues Relating to Business"

FA – Nov 2017 – L1 – Q1 – Preparation of financial statements of a sole trader

Explain the objectives of financial statements, accrual and going concern concepts, duties of directors, and preparation of payables ledger control account.

You're reporting an error for "FA – Nov 2017 – L1 – Q1 – Preparation of financial statements of a sole trader"

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