Learn or revise key terms and concepts for your ACCA exams using OpenTuition interactive ACCA Flashcards
ACCA flashcards are interactive and only work on line, flashcards are NOT downloadable/printable
See also ACCA F8 Flashcards: Set 2 | Set 3 | Set 4
What are the two categories of substantive test?
Analytical procedures and tests of detail
What is a familiarity threat?
Because of a close relationship, members of the assurance firm become too sympathetic to members of the client firm, so that objectivity and scepticism are lost
Who sets the International Standards on Auditing?
The International Standards on Auditing are set by International Auditing and Assurance Standards Board (IAASB) – part of the International Federation of Accountants (IFAC)
What is a NED?
A NED is a non-executive director
Define corporate governance
Corporate governance: the system by which companies are directed and controlled
What is a statement of circumstances?
A statement of circumstances is a statement that auditors are required to make upon resignation or removal as auditors. It will state whether there are any untoward reasons for their removal or resignation – such as non-cooperation by the directors.
When the audit firm changes, the proposed new auditor should contact the retiring auditor. If the client refuses permission for communication to take place, what should the proposed new auditor do?
Decline the appointment
In relation to corporate governance, what does comply or explain mean?
Listed companies are expected to comply with the corporate governance code or, if they don’t, explain why not.
What are the suggested limits for the percentage of total fees coming from any one client (‘ordinary clients’ and special interest clients)?
15% for ordinary; 10% for special interest.
What two risks contribute to the risk of material misstatement in the financial statements?
Inherent risk and control risk
ACCA suggest that lead audit partners should be rotated no less frequently than how many years?
ACCA suggest that the lead partner should be changed at least every 5 years.
What are the three components of audit risk?
Inherent risk, control risk and detection risk
What are the two general reasons that would lead a practitioner not to issue an unqualified conclusion to an assurance engagement?
There is a limitation on the scope of the practitioner’s work.
The assertion is not fairly stated, and the subject matter information is materially misstated.
In relation to corporate governance, what is meant by the ‘agency problem’?
Shareholders own the company and are its principles. Directors run the company and are the agents of the shareholders. There can be a problem if directors to not run the company in the best interests of the shareholders (eg eccessive remuneration is arranged for the directors).
The UK Corporate Governance Code states that there should be a clear division … between the running of the board and the executive responsibility for the running of the company’s business. To comply with this, what roles should be split?
The roles of Chief Executive Officer and Chairman should be split.
What six threats can relate to objectivity, integrity and independence?
* Self-interest
* Self-review
* Familiarity
* Advocacy
* Intimidation
* Management
The purpose of corporate governance is to facilitate effective entrepreneurial and prudent management that can deliver long-term success of the company. What are the five main principles of the UK Corporate Governance Code?
Leadership
Effectiveness
Accountability
Remuneration
Relations with shareholders
What is another name for a limited assurance engagement?
A negative assurance
What two types of risk make up detection risk?
Sampling risk and non-sampling risk.
What are the five fundamental principles of the ACCA’s ethical code?
- Integrity
- Professional competence and due care
- Confidentiality
- Professional behaviour
- Objectivity
What are the five elements of an assurance engagement?
- A three party relationship involving a practitioner, a responsible party, and intended users
- An appropriate subject matter
- Suitable criteria
- Sufficient appropriate evidence
- A written assurance report in the form appropriate
Define an audit
An audit is the independent examination of, and expression of opinion on, the financial statements of an entity.
What sub-committee of the board of directors is responsible for finding new directors?
The nomination committee
How many non-executive directors should be on a board of directors to comply with the UK Corporate Governance Code?
NEDS not less than 50% of board; not less than 2 in small companies
What sub-committee of the board of directors is responsible for determining directors’ pay?
The remuneration committee
I am just reading Technical articles from ACCA web page and it is saying that for F7&F8 exams there hasn’t been addition or deletion from 2012 syllabus but there have been some amendments and gives a list of amendments. And amongst them is in The regulatory environment and corporate governance and it says Relationship between ISA’s and the work of the Financial Reporting Council. Since i have 2012 syllabus can someone please help me understand what is the work of Financial Reporting Council…. Thanks in advance
i am not taking any of the papers in june but i want to prepare for f8 and f4 for december attempt, so how should i start my preparation for these papers,i have already attempted once but did not pass.please give me valuable advice.
how to know which one is the first question that we can read because the flash card is revolving from right to left and left to write …is there any chronological order for of it . so on completion of other material we can get the thing on to those chapter which we have read
Questions are at random
some of the cards are blank.
Please try another browser
@admin, ok thanks. it works now.
It is very good for me to memorise F8
Great help, great work, great effort and above all, free of charge.
Thank you very much Open Tuition. Keep up the excellent work.
Much appreciated.
Kind regards.
D.B.
thanks ,ok
hello flashcards are very helpfull but I got concern that some of the answers are not full and I am using smartphone. I don’t know am I the only facing this problem or what.
Appreciate if I can get help from this.
thank you for the time
Some answers are very short
Please check in pc
Also of possible try another browser on your phone
its really good.
dear admin it is a gr8 job bt hw are we going to 1,2,3,4 sets are based on which or hw many chapters
kindly guide me
flashcards cover all syllabus
Top notch. An chance of an app soon?
you can bookmark this page on your smartphone, and it will work just fine
there won’t be an app
v.help full. v.good effort by open tuition
very handy and helpful. thanks open tuition!
what’s the flashcards?how to use it?
thanku for your flashcard!
The flash cards are good. Can be used to quickly refresh one’s memory either for exam or job interview. Lets hope other subjects will also be covered. Kudos to Open Tuition.com
How to download pllllllzzzzzzzzzzzzzzzzzz
@nishta87, Sorry, flashcards are not downloadable. They can only be accessed live form the site.
As you know OT is free to all users, but we have to cover costs somehow and this can only be done when users visit the site
When I click on “view the answer” for some of these flashcards on a desktop the card is blank and won’t allow me to even view the question again.
Examples:
2 reasons not to issue an unqualified opinion
In relation to corporate governance, what is meant by the ‘agency problem’?
What are the five fundamental principles of the ACCA’s ethical code?
Does anyone else have this issue?
@hcim83, Just tried it out and it works fine for me on both PC Laptop and Apple iTouch. Not sure what to suggest.
@gromit, Thanks – seems to be the computer i was using. As my ipad worked fine.
Will you be loading F5, F4 and F6 for dec 12 exam?
Sorry, but can’t promise.
can’t publish something that does not exist.
@aliuk100, F4 (ENG) flashcards are now on line
@admin, Appreciated man, Thank you very much!
how to see flash cards on mobile (smartphone) should i have to download it or view it directly by visiting site
Please expalin it in detail
view directly by visiting
we need to have access to print them
flashcards are interactive, they work also on your smartphone.
if you need to print – print out the course notes – all this stuff is there,
or prepare your own paper versions – that fit your own needs
Can we print them ?
I love the flashcards for F8 I can use them on the bus to and from work to refresh my memory.
you can, if you have a smartphone/tablet..
have a look