Directors’ Responsibilities

AAA – Nov 2012 – L3 – SA – Q3 – Regulatory Framework and Professional Standards

Identifying non-responsibilities of directors related to accounting functions in a company.

Question

The responsibilities of the directors in relation to the accounting functions of the company fall under the following EXCEPT:
A. Safeguarding the company’s assets and preventing errors and fraud in the company
B. Defining the concept of materiality and tolerable error as a guide to the auditor
C. Ensuring that the company keeps proper accounting records as defined in the legislations
D. Setting up internal control system in the company as a standard practice
E. Preparing the financial statements to show the results of the company for the year and financial position as at year-end

Answer

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Tags: Accounting Functions, Directors' Responsibilities, Financial Statements, Internal Control
Level: Level 3

Topic: Regulatory Framework and Professional Standards
Series: NOV 2012

AA – May 2018 – L2 – Q1b – Regulatory Framework and Audit Responsibilities

Compares the responsibilities of directors and auditors in relation to annual financial statements, focusing on potential legal action for misleading audit opinions.

Question

Atu Emma & Co Chartered Accountants has audited Great Tribulation Ltd for 10 years. In 2017, the Directors found out that the company has been borrowing to finance operating expenses and this has gone on for the past two years. They have advised their lawyers to commence legal action against the auditors for misleading the Directors into approving the annual financial statements after they have given an unqualified audit opinion.

Required: Compare the responsibilities of the directors and auditors regarding the annual financial statements of Great Tribulations Ltd. (10 marks)

Answer

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Tags: Audit opinion, Auditors' responsibilities, Directors' Responsibilities, Financial Statements, Legal Action
Level: Level 2

Topic: Regulatory Framework and Audit Responsibilities
Series: MAY 2018

FA – Nov 2018 – L1 – Q4 – Inventory | The IASB’s Conceptual Framework

Explain the going concern concept, value inventory under different conditions, and outline the responsibilities of directors in preparing financial statements.

Question

a) The Conceptual Framework for Financial Reporting is a set of principles which underpin the foundation of financial accounting. The Conceptual Framework sets out the going concern concept as one of the important underlying assumptions for the preparation of financial statements.

Required:
Explain the going concern concept, illustrating your answer with suitable examples. (5 marks)

b) A trader who trades in computers commences business on 1 January 2018 and buys 100 computers, each costing GH¢3,500. During the year, he sells 80 machines at GH¢5,000 each.

Required:
How should the remaining machines be valued at the end of the year if:
i) He is forced to close down his business at the end of the year and the remaining machines will realize only GH¢2,000 each in a forced sale. (2 marks)
ii) He intends to continue the business into the next year. (2 marks)

c) One of the fundamental qualitative characteristics of useful financial information in the Conceptual Framework for Financial Reporting is ‘faithful representation’.

Required:
Explain what is meant by ‘faithful representation’. (5 marks)

d) Those charged with governance of a company are responsible for the preparation of the financial statements. The board of directors of a company are usually the top management in a Small and Medium Enterprise and are those who are charged with governance of the company. The responsibilities and duties of directors are usually laid down in law and are wide-ranging.

Required:
State THREE (3) responsibilities of directors towards the preparation of financial statements. (6 marks)

Answer

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Tags: Directors' Responsibilities, Going Concern, Inventory Valuation, Qualitative Characteristics
Level: Level 1

Topic: Inventory, The IASB’s Conceptual Framework
Series: NOV 2018

AAA – Nov 2012 – L3 – SA – Q3 – Regulatory Framework and Professional Standards

Identifying non-responsibilities of directors related to accounting functions in a company.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Functions, Directors' Responsibilities, Financial Statements, Internal Control
Level: Level 3

Topic: Regulatory Framework and Professional Standards
Series: NOV 2012

AA – May 2018 – L2 – Q1b – Regulatory Framework and Audit Responsibilities

Compares the responsibilities of directors and auditors in relation to annual financial statements, focusing on potential legal action for misleading audit opinions.

Question

Required: Compare the responsibilities of the directors and auditors regarding the annual financial statements of Great Tribulations Ltd. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit opinion, Auditors' responsibilities, Directors' Responsibilities, Financial Statements, Legal Action
Level: Level 2

Topic: Regulatory Framework and Audit Responsibilities
Series: MAY 2018

FA – Nov 2018 – L1 – Q4 – Inventory | The IASB’s Conceptual Framework

Explain the going concern concept, value inventory under different conditions, and outline the responsibilities of directors in preparing financial statements.

Question

Required:
Explain the going concern concept, illustrating your answer with suitable examples. (5 marks)

b) A trader who trades in computers commences business on 1 January 2018 and buys 100 computers, each costing GH¢3,500. During the year, he sells 80 machines at GH¢5,000 each.

c) One of the fundamental qualitative characteristics of useful financial information in the Conceptual Framework for Financial Reporting is ‘faithful representation’.

Required:
Explain what is meant by ‘faithful representation’. (5 marks)

Required:
State THREE (3) responsibilities of directors towards the preparation of financial statements. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Directors' Responsibilities, Going Concern, Inventory Valuation, Qualitative Characteristics
Level: Level 1

Topic: Inventory, The IASB’s Conceptual Framework
Series: NOV 2018

Question Tag: Directors' Responsibilities

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AAA – Nov 2012 – L3 – SA – Q3 – Regulatory Framework and Professional Standards

Identifying non-responsibilities of directors related to accounting functions in a company.

AA – May 2018 – L2 – Q1b – Regulatory Framework and Audit Responsibilities

Compares the responsibilities of directors and auditors in relation to annual financial statements, focusing on potential legal action for misleading audit opinions.

FA – Nov 2018 – L1 – Q4 – Inventory | The IASB’s Conceptual Framework

Explain the going concern concept, value inventory under different conditions, and outline the responsibilities of directors in preparing financial statements.

AAA – Nov 2012 – L3 – SA – Q3 – Regulatory Framework and Professional Standards

Identifying non-responsibilities of directors related to accounting functions in a company.

AA – May 2018 – L2 – Q1b – Regulatory Framework and Audit Responsibilities

Compares the responsibilities of directors and auditors in relation to annual financial statements, focusing on potential legal action for misleading audit opinions.

FA – Nov 2018 – L1 – Q4 – Inventory | The IASB’s Conceptual Framework

Explain the going concern concept, value inventory under different conditions, and outline the responsibilities of directors in preparing financial statements.

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AAA – Nov 2012 – L3 – SA – Q3 – Regulatory Framework and Professional Standards

Identifying non-responsibilities of directors related to accounting functions in a company.

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AA – May 2018 – L2 – Q1b – Regulatory Framework and Audit Responsibilities

Compares the responsibilities of directors and auditors in relation to annual financial statements, focusing on potential legal action for misleading audit opinions.

You're reporting an error for "AA – May 2018 – L2 – Q1b – Regulatory Framework and Audit Responsibilities"

FA – Nov 2018 – L1 – Q4 – Inventory | The IASB’s Conceptual Framework

Explain the going concern concept, value inventory under different conditions, and outline the responsibilities of directors in preparing financial statements.

You're reporting an error for "FA – Nov 2018 – L1 – Q4 – Inventory | The IASB’s Conceptual Framework"

AAA – Nov 2012 – L3 – SA – Q3 – Regulatory Framework and Professional Standards

Identifying non-responsibilities of directors related to accounting functions in a company.

You're reporting an error for "AAA – Nov 2012 – L3 – SA – Q3 – Regulatory Framework and Professional Standards"

AA – May 2018 – L2 – Q1b – Regulatory Framework and Audit Responsibilities

Compares the responsibilities of directors and auditors in relation to annual financial statements, focusing on potential legal action for misleading audit opinions.

You're reporting an error for "AA – May 2018 – L2 – Q1b – Regulatory Framework and Audit Responsibilities"

FA – Nov 2018 – L1 – Q4 – Inventory | The IASB’s Conceptual Framework

Explain the going concern concept, value inventory under different conditions, and outline the responsibilities of directors in preparing financial statements.

You're reporting an error for "FA – Nov 2018 – L1 – Q4 – Inventory | The IASB’s Conceptual Framework"

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