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4 marksAccounting Standards and Conceptual Framework

CAPE Accounting Unit 1 · 2017 · Paper 2 · Question 1(a)(i)

Explain the meaning of 'Verifiability' and 'Prudence' as defined in the IASB conceptual framework for the preparation and presentation of financial statements.

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  1. 1(a)(ii)According to the framework, explain TWO characteristics of relevant information that make the information in financial statements relevant to users.[4 marks]
  2. 1(b)(i)List TWO other principles of internal controls concerning the management of cash, in addition to physical, mechanical and electronic controls, and segregation…[2 marks]
  3. 1(b)(ii)Describe TWO procedures to be implemented for EACH of the FOUR principles given as well as recommended in (b)(i).[8 marks]
  4. 1(b)(iii)Outline THREE differences between an 'internal auditor' and an 'external auditor'.[6 marks]
  5. 1(c)Prepare the journal entries (without narratives) to record the transactions during 2016.[11 marks]

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