Cima F1 Exam Question No 34

Question No 34:

Which ONE of the following would be considered to be an example of an indirect tax?

A. An entity assessed for corporate income tax on its profit.
B. An individual purchases goods in a shop, the price includes VAT.
C. An employee has tax deducted from salary through the PAYE system.
D. An individual pays capital gains tax on a gain arising on the disposal of an investment.

Answer: B

Cima F1 Exam Question No 33

Question No 33:

To apply the fundamental principles of the Code of Ethics, existing and potential threats to the entity first need to be identified and evaluated?

A. Confidentiality threat
B. Self-interest threats
C. Self-review threats
D. Familiarity threats
E. Integrity threats
F. Objectivity threats

Answer: B, C, D

Cima F1 Exam Question No 32

Question No 32:

HOTSPOT

Whilst undertaking an external audit, the auditor has identified that there is insufficient evidence to support the financial statements.
As a result the auditors consider these financial statements to be wholly unreliable for decision making purposes.

This will result in a modified audit report with the opinion being 

Cima F1 Exam Question No 31

Question No 31:

Which THREE of the following must an auditor consider in order to form an opinion on the truth and fairness of an entity's financial statements?

A. Whether the entity has kept proper accounting records.
B. Whether the entity has complied with the relevant legislator requirements in respect of the necessary disclosures.
C. Whether all the information and explanations necessary for the purposes of the audit have been received.
D. Whether every transaction that underpins the financial statements has been correctly recorded.
E. Whether the entity has been exposed to any fraud.

Answer: A, B, C