Accounting : The audit of Liverpool Ltd had been completed

Subject: Business / Accounting
Question
1.The audit of Liverpool Ltd had been completed and the audit senior for the engagement prepared items for discussion. He argues that the following list of accounting changes violate the consistency qualitative characteristic of accounting information. As audit manager, which of the following items do you think are worthy of discussion with the audit partner?

Multiple Choice

The company uses an inventory valuation method that is different from the method used by other companies in the industry.
The company disposed of a subsidiary that had been included in the financial reports in prior years.
After five years of using straight-line depreciation for reporting purposes and accelerated depreciation for tax purposes, the entity decided to adopt accelerated depreciation for reporting purposes.
The estimated remaining useful life of an asset was reduced due to the increase in volume of use of the asset.
2.In accordance with the IASB conceptual framework, which of the following transaction(s) is/are consistent with a definition of income?

Multiple Choice

Collection of accounts receivable and debt forgiveness.
Collection of accounts receivable.
Issue of share capital.
Debt forgiveness.
3. In adopting the standards of IASB, Australian entities are required to comply with:

Multiple Choice

the IASB framework and the statement of accounting concepts 3 and 4.
the IASB conceptual framework and the statement of accounting concept 1.
the Australian conceptual framework and statement of accounting concepts 3 and 4.
the Australian conceptual framework and statement of accounting concepts 1 to 4.
4. The accountant of Broken Bay Ltd decided to retain the historical cost of the entity’s intangible assets because it was difficult to obtain fair value of these assets. This action is consistent with ____________.

Multiple Choice

accrual accounting
cash accounting
balancing of relevance and faithful representation
substance over form
5. In the development of accounting standards by the IASB, which of the following is NOT performed before the Exposure Draft?

Multiple Choice

Research.
Discussion Paper.
Proposal.
Published IFRS.
6. Section 296 of the Corporations Act requires (all or in part):

Multiple Choice

the directors to make a declaration stating whether, in their opinion, the financial statements comply with accounting standards.
the AASB to follow the broad strategic direction determined by the FRC.
the AASB to develop a conceptual framework, not having the force of an accounting standard, for the purpose of evaluating accounting standards and international standards.
a company’s directors to ensure that the company’s financial statements for a financial year comply with accounting standards.
7. The Corporations Act requires which of the following statements to be included in a Directors’ Declaration?

Multiple Choice

Whether or not in their opinion, when the declaration was made, there were reasonable grounds to believe that the company would be able to pay its debts as they become due.
Whether in their opinion the financial statements comply with accounting standards and theCorporations Act.
All of the given answers should be included.
Whether in their opinion the financial statements give a true and fair view of the financial position and financial performance of the entity.
The Corporations Act requires which of the following statements to be included in a Directors’ Declaration?

Multiple Choice

Whether or not in their opinion, when the declaration was made, there were reasonable grounds to believe that the company would be able to pay its debts as they become due.
Whether in their opinion the financial statements comply with accounting standards and theCorporations Act.
All of the given answers should be included.
Whether in their opinion the financial statements give a true and fair view of the financial position and financial performance of the entity.

https://applewriters.com/place-order/

We can do it for you