Practice Test 4

Name: ___________________________________________

1. …………….. is the corporate handling of all financial matters, the generic external and
internal funds for business, the management of currencies and cash flows, the complex
strategies, policies and procedures of corporate finance. 1 Mark
A. Short term planning.
B. Treasury management.
C. Financial management

2. Corporate Governance is the set of processes and policies by which a company is

directed, administered and controlled. 1 Mark
A. True
B. False

3. ……………. is an essential personal quality of an accountant where he takes ownership

of his work. 1 Mark
A. Responsibility
B. Accountability
C. Authority
D. Power

4. True or False. The production department measures the quantities of materials and time
used and allocates cost. 1 Mark
A. True
B. False

5. Which of the following is a circumstance that may create self-interest threats for warrant
holders in public practice? 1 Mark
A. Potential employment with the client.
B. A financial interest in a client where the performance of professional services may
affect the value of that interest
C. A loan to or from an assurance client or any of its directors or officers where the
performance of professional services may affect the value of that loan.
D. All of the choices.

6. The legal duty for a company to pay the correct amount of tax rests with the tax advisers
of the company. 1 Mark
A. True
B. False

7. Why does the accounting profession want to develop accounting standards? 1 Mark
A. It wants to have influence over their content
B. Members of Parliament are too busy
C. It wants to make sure they are very easy
 D. The Companies Act is out of date

8. The UK government's Committee of Standards in Public Life set out seven principles that
individuals employed in the public sector must follow. One of which is ____________
where individuals are responsible for their own actions and are accountable to others. 1
Mark
A. Accountability
B. Openness
C. Integrity
D. Selflessness

9. ………….. is an independent, private sector body that develops and approves

International Financial Reporting Standards. 1 Mark

A. International Accounting Standards Board (IASB)

B. The International Accounting Standards Committee Foundation
C. Advisory council.

10. Which of the following would be considered improvements to accounting systems? 1 Mark
A. A cheque over a certain amount of money need two signatories
B. Authorization for petty cash and expenses claims
C. Effective credit control procedures
D. All of the above

11. Which of the following is one of the activities where the purchasing/buying function co-
ordinates with the accounting department? 1 Mark
A. Determining the specification of key components
B. Securing the provisions for the accounting department's Christmas lunch
C. Setting credit limits
D. Obtaining quotations

12. The responsibility of the secretary is to make sure that all members of the committee have
a say during a meeting. 1 Mark
A. True
B. False

13. The purpose of internal control is implied to help management achieve the entity's
objectives especially in ensuring: 1 Mark
A. safeguarding of assets
B. orderly and efficient conduct of business
C. prevention and detection of fraud and error
D. all of the above
14. Which of the following is not a potential consequence of failing to keep proper accounting
records? 1 Mark
A. The directors will be asked to resign
B. The directors will be prosecuted and fined
C. True and fair accounts will not be produced
D. Customers may not be chased for payment

15. ____________ should have a balancing influence and play a key role in reducing conflicts
between management and shareholders. 1 Mark
A. Non-executive directors
B. executive directors

16. 1. Consumers may choose to buy ethical items even if they are not the cheapest.
2. Ethics is a part of good corporate governance. 1 Mark
A. Statement 1 is false
B. Statement 2 is false
C. Both statements are true
D. Both statements are false

17. ……………. Outcomes that will result in greater competitiveness and stronger long-term
market position 1 Mark
A. Strategic Objectives
B. Performance
C. Financial objective
D. None

18. True or False. Organisational, professional and personal values provide the framework in
decision making, therefore, it is vital that organisations create and environment or culture
where appropriate shared values are created, understood, fostered and committed by all
concerned. 1 Mark
A. True
B. False

19. Which of the following is not required in the financial statements of a small company prepared
in accordance with International Accounting Standards? 1 Mark
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Auditors' report

20. Responsibility for the efficient running of the committee meeting rests with the: 1 Mark
A. secretary
B. chair
C. vice chair

21. Which of the following statements is correct? 1 Mark

A. Today, most financial institutions globally are required to report transactions of a
suspicious nature to the financial intelligence unit in the respective country.
 B. A bank must perform due diligence by verifying a customer's identity and monitor
transactions for a suspected activity.
C. For Accountants. the most worrying aspect of the law on money laundering relates to the
offence of failing to disclose.
D. all of the above

22. Ad hoc committees are created to: 1 Mark

A. for a specific reason
B. Resolve day to day issues within an organization.
C. To replace directors.

23. The accounting department can provide the marketing department with information on sales
volume for each product, to help the marketing department in determining market share. 1
Mark
A. True
B. False

24. Which of the following are consequences of failure to comply with the legal requirements of
maintaining financial records? 2 Marks

a. Fines
b. Prosecution
c. Difficulties raising finance
d. Unqualified audit report
e. Damaged reputation
f. Qualified audit report

A. a, b, e and f only
B. a, b, c and d only
C. a, b, c, d and e only
D. a, b, c, e and f only

25. Which of the following is not an example of co-ordination between the production and
accounting departments? 1 Mark

A. Allocation costs
B. Budgeting
C. Balancing cost and quality
D. Approving orders

26. The International Accounting Standards Board assigns a working group to develop a new
standard, following input from the Standards Advisory Council (SAC) and produces a first draft
with some points for discussion. 1 Mark

A. True
B. False

27. The usual balanced scorecard approach is to report performance from four separate
perspectives: financial, customer, internal and _____________ perspective. 1 Mark
 A. Competitor
B. Supplier
C. Innovative
D. Political

28. The treasury department of a company can be run as a profit centre that is expected to
generate profits for the company. 1 Mark

A. True
B. False

29. True or False. Payroll is one of the largest payments made by most organisations. It is
essential that only bonafide employees are paid for the actual hours that they have worked. 1
Mark

A. True
B. False

30. …………….. sees effective leadership as being dependent on a number of variable or

contingent factors. 1 Mark

A. Kotter theory
B. Bennis theory
C. Contingency theory
D. None.

31. What is the name of a committee with the power to govern or administer? 1 Mark

A. Joint committee
B. Ad-hoc committee
C. Executive committee
D. Standing committee

32. Which of the following statements about external audit is false? 1 Mark

A. It is an independent examination of the evidence from which the financial statements are
derived, in order to give the reader of those statements confidence as to the truth and
fairness of the state of affairs which they disclose.
B. The fact that employees know that their work might be inspected by external auditor may
discourage them to do fraudulent activities.
C. It is established by management to evaluate the organisation's risk management
processes.
D. none of the above

33. Corporate social responsibility is solely concerned with a company's obligations to its external
stakeholders. 1 Mark

A. True
B. False
34. …………… refers to the state of being accountable, liable and answerable for actions and
conduct. 1 Mark

A. Responsibility

B. Accountability

35. Which of the following is a disadvantage of having a remuneration committee? 1 Mark

A. Takes the directors attention away from making strategic decisions about the company's
future
B. Increases the agency problem
C. Increased costs
D. Removes the danger of directors being paid excessive salaries

36. Which of the following statement is true? 1 Mark

A. Management is an art.
B. Some people assert that one needs no knowledge of theory to solve problems in the
practical world of business
C. A man of considerable influence in the scientific management movement is Frederick W.
Taylor.
D. All of the above.

37. 4 Marks

McCain Foods is the world’s largest frozen chip manufacturer. Around 45% of frozen potatoes
sold in the UK are made by McCain, making it the clear market leader.

Producing on such a large-scale means using a lot of energy so McCain has set up two projects
to reduce the amount of gas and electricity it has to buy from energy suppliers. The two projects
are a wind turbine system and a wastewater treatment plant.

These projects are designed to produce renewable energy, so are more environmentally sound.
One reason for these innovations is to reduce costs.

McCain has ____________ that must be paid whatever the level of production. ____________
like labour and raw materials are directly linked to the amount of goods produced. The other
reason is to help demonstrate McCain’s corporate _________________.

Which option correctly fills all 3 blanks?

A. fixed costs, variable costs, ethics

B. variable costs, fixed costs, social responsibility
C. fixed costs, variable costs, social responsibility
38. True or false. A code of ethics of any professional organization should contain an introduction
and a list of fundamental principles of the profession. 1 Mark

A. True
B. False

39. Which of the following statements is false? 1 Mark

A. Decision support system converts mainly internal information and provides reports that
enable managers to make appropriate decisions.
B. Decision support systems combine data and analytical model to support decision
making.
C. Knowledge work system integrate new knowledge into an organization.
D. All of the above statements are incorrect.

40. True or False. The Companies' Acts in the UK require that financial statements are prepared
which give a true and fair view, that is, they follow accounting standards, follow generally-
accepted best practice and have information of sufficient quality and quantity to satisfy the
reasonable expectations of the users. 1 Mark

A. True
B. false

41. Which of the following statements is false? 1 Mark

A. Failing to keep the proper accounting records and preparing financial statements that do
not give a true and fair view are criminal offences and may lead to prosecution.
B. Poor accounting records could also mean that the company has inadequate records of
receivables and payables.
C. The accounting function which is very keen to be self-regulated has to follow the
requirements of the Companies Act and tax authorities in order to avoid the company
facing legal action.
D. None of the statements is incorrect.

42. If a government was to announce that any profit made on a business investment was to be
tax free, which department of an organisation will this have the greatest impact? 1 Mark

A. financial accounting.
B. management accounting
C. treasury
D. marketing

43. True or False. Given the close relation between minimizing costs and maximizing profits, it is
natural to assume that an organization that seeks profits and has significant political power will
feel some motivation to use that power to externalize costs, where possible. 1 Mark

A. True
B. False
44. Which two of the following conditions would show that a task is important to an organisation?
1 Mark

A. The task will satisfy a key customer

B. The task comes in an email marked urgent
C. The task will add value to the organization
D. The task has already been delegated by two superiors

45. _____________ occurs when an individual thinks that they have been wrongly treated by a

colleague or supervisor. Which of the following correctly fills the blank? 1 Mark

A. Indirect discrimination

B. Direct discrimination

C. A grievance

46. Jim has been asked to coach John in certain technically demanding aspects of his accounting
role in order to improve John’s performance. Which of the following is he unlikely to do as part of
this work? 1 Mark

A. Show John where to find company information on relevant accounting standards

B. Demonstrate the company’s new accounting software
C. Invite John to the annual audit planning meeting
D. Help John to prepare for his upcoming appraisal

47. Which of the following is an approach to ethics which combines a concern for the law with an
emphasis on managerial responsibility? 2 Marks

A Compliance based

B Integrity based

C Environmental based

D Economic based

48. Farrah works in the sales tax section of the accounts department of BCD Co. When the finance
director is on holiday, Farrah notices that BCD Co has not been paying the correct quarterly
amounts to the authorities. Farrah had suspected this for some time and decides to contact the
authorities to tell them about the fraud. This disclosure is known as...................................
1 Mark

What two words correctly complete the sentence?

A Confidentiality breach
B Corporate conscience

C Whistle blowing

49. The directors' deliberations must be balanced by taking into account everyone who has a
legitimate interest in the company and respecting their rights and views. This statement describes
which concept? 1 Mark

A Fairness

B Openness

C Probity

50. Which of the following statements is a definition of probity? 2 Marks

A Open and clear disclosure of all relevant information

B Telling the truth and not misleading stakeholders

C Accepting the blame or credit for decisions

D Answerable in some way for the consequences of its actions

51. Abner is the lead partner on the audit of DEF Inc. The client often gives Abner corporate
hospitality at major sporting events and small gifts, such as a bottle of spirits, on his birthday.
Which threat does this represent? 1 Mark

A Self-interest

B Self-review

C Advocacy

D Intimidation

52. XYZ carries out the audit of Delta Products Inc. Delta Products Inc is in financial trouble and
XYZ has had to qualify the audit report for the past two years. The managing director of Delta
blames the qualified audit reports for her firm's continuing problems. She is threatening to sue
XYZ for poor work if they qualify the audit report for this year. What threat does this represent?

A Familiarity

B Intimidation

C Self-interest

D Self-review 2 marks
53. a) Which two of the following are criticisms of relativism? 2marks

A. It takes no account of evolving norms

B. It leads to a philosophy of anything goes

C. It makes short-term desires equivalent to longer-term interests

D. It is based on a fundamental contradiction

E. A consensus may not be possible

(b) Are the following statements about social responsibility true or false? 2marks

(i) Social responsibility action is likely to have an adverse effect on shareholders' interests in the
short term

(ii) An environmental audit involves assessing the opportunities and threats to an organisation

(iii) Only governments are concerned with social responsibility

(iv) Guaranteeing employees a minimum 'living wage' is an example of social responsibility

54. (a) JKL Co is a small firm of external auditors with a small number of clients. Almost 20% of
its revenue comes from one client. The client still has not settled the invoice from the previous
year's audit in the hope that this will strengthen their position in negotiating a lower price for this
year's audit. Which two of the following conflicts of interest exist in this situation?

A. Self-review threat

B. Advocacy threat

C. Self-interest threat

D. Familiarity threat

E. Intimidation threat 2 marks

(b) Are the following statements true or false?

(i) When dealing with ethical dilemmas ACCA students must follow ACCA's code of conduct.

(ii) Professional ethics should not be followed at the expense of contractual obligations.
(iii) There is a public expectation that accountants will act ethically.

(iv) A prospective audit firm quoting a significantly lower fee for assurance work than the

current auditors charge does not raise a threat of a conflict of interest.

2 marks

55. A company has placed a job advertisement for a full time employee and a part time employee.
The part time employee's terms are less favourable than the full-time employee's terms. What
type of discrimination is this? 2 marks

A Direct discrimination

B Indirect discrimination

C Victimisation

56. Many organisations are described as bureaucratic. When the team, was first coined,
bureaucracy was regarded as being highly efficient and there are still cases where a bureaucratic
approach is appropriate.However, bureaucracy has some undesirable features. Can you identify
three from the list below?

(i) It relies on the expertise of its members – not through standardised skills but by the importance
of the mix of skills

(ii) Committees and reports slow down the decision-making process

(iii) Innovation is difficult

(iv) Over-prescriptive rules produce a simplistic approach to problems

A (i), (ii) and (iii)

B (i), (iii) and (iv)

C (ii), (iii) and (iv)

D (i), (ii) and (iv) 2 marks

57. a) Which of the following statements is not true in respect of the relationships between
directors, shareholders and auditors? 1mark

A. Auditors are the agents of shareholders

B. Shareholders are accountable to auditors

C. Auditors report to shareholders on the financial statements prepared by directors

D. Directors are accountable to shareholders

b) Which of the following parties has the main responsibility for good corporate governance?
1mark

A The board of directors

B The audit committee

C The non-executive directors

58.a) A record showing who has accessed a computer system is called: 1 mark

A An audit trail

B A computer trail

C A password trail

b) Who appoints external auditors? 1mark

A Chairman

B Finance director

C Shareholders

59. a) Control over cash receipts will concentrate on three main areas. 1 mark

Receipts must be .......................... promptly

The record of receipts must be ..........................

The loss of receipts through theft or accident must be ..........................

A Banked, complete, prevented

B Counted, accurate, reported

C Banked, accurate, avoided

D Reported, accurate, prevented

b) Which of the following is MOST appropriate type of behavior a person should adopt when
attempting to reduce conflict with another person in the workplace? 1 mark

A. Aggression

B. Submission

C. Assertiveness

60. a) Which member(s) should sign the minutes of committee meeting to confirm they are true
and accurate record of the meeting? 1 mark

A. Any two members

B. Chairman

C. Secretary

b) Which of the following actions should be taken to enable compliance with an equal opportunity
policy? 1 mark

A. Provide parity of pay and conditions

B. Make all job titles gender neutral.

61. a) Which TWO are pre-requisites or preconditions necessary to make fraud possible? 1 mark

A. Willfulness

B. Opportunity

C. Motivation

D. Secrecy.

b) Is the following an example of malware or phising?

‘A virus is sent to a computer in order to disable all applications until ransom is paid’

62. The identification within a client company of financial problems, a dominant chief executive,
poor internal control, unusual transactions, or a high-technology environment, are all indicative
of:
A Increased scope for potential fraud

B A higher than normal risk audit

C Inadequacies in the systems of reporting

D The presence of going concern problems 2 marks

63. Which one of the statements below best describes contingency theory?

A Organisational design will be determined by a number of factors all of which depend on the
others?

B Companies must plan for changes to their organisation

C Companies should focus on the short-term as the future is uncertain 1 mark

64. Peter Drucker grouped management activities or operations into five categories.

Which of the following is not one of those categories?

A Setting objectives

B The job of measurement

C Planning and control 1 mark

65. Different types of power may be exercised within an organisation any different individuals.
Which type of power is associated with formal authority?

A Resource power

B Expert power

C Position power 1 mark

66. A company has established a project team to design a new information system. The team has
had a few meetings to discuss how they are going to tackle the work, and who would do what,
but some early ideas have been unsuccessful. Group members are still putting forward a number
of very innovative ideas, but they often disagree strongly with each other. The group members
appear to be dividing into two 'camps' each of which has an unofficial 'leader'. These two
individuals agree about very little and appear to dislike each other. According to Tuckman, which
stage in development has the project team reached?
A Norming

B Performing

C Storming 1 mark

67. Belbin described the most effective character mix in a team. This involves eight necessary
roles, which should ideally be balanced and spread in a team. A person who is highly strung,
extrovert and passionate about the task fits into which of Belbin's roles? 1 mark
(i) Plant
(ii) Completer Finisher
(iii) Resource investigator
(iv) Shaper
A (i), (ii) and (iii)
B (ii), (iii) and (iv)
C (i), (ii) and (iv)
D (i), (iii) and (iv)

68. Which of the following would Herzberg class among 'hygiene factors'? 1 mark
(i) Salary
(ii) Job security
(iii) Gaining recognition
(iv) Challenging work
A (ii) and (iv) only
B (i) only
C (i), (ii), (iii) and (iv)
D (i) and (ii)

69. Vocabulary and style should contribute to the clarity of message in a presentation. It is
recommended that short simple sentences are used and the presenter should avoid certain
expressions. Which three from the following list should be avoided? 2 marks
(i) Acronyms
(ii) Jargon
(iii) Colloquialisms
(iv) Double meanings
A (i), (ii) and (iii)
B (ii), (iii) and (iv)
C (i), (ii) and (iv)
D (i), (iii) and (iv)

70. a)To whom is the internal auditor accountable? 1 mark

A The directors of the company
B The employees of the company
C The shareholders of the company

b) SPAMSOAP is a mnemonic for the types of internal control employed by an organisation.

Which two of the following are types of internal control included in SPAMSOAP? 1 mark
1 Output
2 Arithmetic
3 Preventative
4 Physical

A 1 and 2
B 1 and 3
C 2 and 3
D 2 and 4

71. Which of the following statements accurately describes a multi-disciplinary team? 2 marks
A All team members collaboratively decide how to organise their work
B All team members have different skills and specialisms which they pool
C All team members can perform any and all of the group's tasks
D All team members are jointly responsible for the leadership of the team (2 marks)

72.Which two of the following are examples of content theories of motivation?

1 Maslow's hierarchy of needs
2 Vroom's expectancy theory
3 Herzberg's two factor theory
4 Adam's equity theory
A 1 and 2
B 2 and 4
C 2 and 3
D 1 and 3 1 mark

73 Which of the following are examples of weak financial control procedures?

A Suppliers not being paid on time
B Debtors not paying within credit limits
C Excessive bad or doubtful debts
D All of the above 1 mark

74. In a typical finance function, budgets and budgetary control would usually be the responsibility
of which of the following roles? 1 mark
A The Financial Controller
B The Management Accountant
C The Chief Executive

75. What is the term given to a method of fraud in the accounts receivable area, by which cash
or cheque receipts are stolen, and the theft concealed by setting subsequent receipts against the
outstanding debt?
A Collaboration
B Topping and tailing
C Teeming and lading
D Understating sales 2 marks

76.Which of the following are purposes of a receivables control account?

(i) A sales ledger control account provides a check on the arithmetical accuracy of the personal
ledger
(ii) A sales ledger control account helps to improve separation of duties
(iii) A sales ledger control account ensures that there are no errors in the personal ledger
(iv) Control accounts deter fraud
A (i), (ii) and (iii)
B (ii), (iii) and (iv)
C (i), (ii) and (iv)
D (i), (iii) and (iv) 2 marks

77. A ........................................ is a program which deals with one particular part of a

computerized business accounting system.
Which of the following terms correctly completes this definition?
A Suite
B Module
C Spreadsheet 1 mark

78. Power arising from an individual's formal position in the organisation is called:
A Coercive power
B Legitimate power
C Expert power
D Negative power 1 mark

79. What is the most important attribute of a 'group', which distinguishes it from a random crowd
of people?
A Leadership
B Goals
C Function
D Identity 1 mark

80. Which of Belbin's nine roles does the following description apply to? Single-minded, self-
starting, dedicated.
A Chairman
B Specialist
C Co-ordinator
D Team worker 1 mark

81. Which of the following is a category in Maslow's hierarchy of needs theory?

A Self determination
B Need for affiliation
C Safety needs 1 mark

82. From the list below, identify the one that doesn't have the attributes of a group.
A The finance department of an organization 1 mark
B An orchestra
C A football team
D Five pop fans

83. A leader may be distinguished from a manager by lack of dependency on: 1 mark
A Position power
B Expert power
C Personal power
D Physical power

84. Delegation is needed in organisations to enable a distribution of work in the organisation.

Select the two best reasons why managers may be reluctant to delegate.
(i) Doesn't trust staff to carry out delegated tasks
(ii) Wants to control all activities under his or her responsibility
(iii) The organisation is dynamic and turbulent with constant changes
(iv) Is new and doesn't know how competent staff are
A (i) and (ii)
B (ii) and (iii)
C (iii) and (iv)
D (i) and (iv) 2 marks
85. Bill has been on a training course to learn negotiation skills. Which of the following are
negotiation skills?
(i) Look for a wide variety of possible solutions
(ii) Define the problem carefully
(iii) Evaluate progress towards objectives
(iv) Try to develop objectives resulting in mutual gains
A (i), (ii) and (iii)
B (ii), (iii) and (iv)
C (i), (ii) and (iv)
D (i), (iii) and (iv) 2 marks

86. a) Which type of audit is concerned with the evaluation and testing of the internal controls
within an organisation? 1 mark
A Systems
B Management
C Transactions
b) According to the Ashridge studies on leadership style, what is most important to
subordinates about the style of their leader? 1 mark
A Consultation
B Direction
C Consistency

87.a) Which of the following must be in a job description? 1mark

1 Reporting lines
2 Salary
3 Hours of work
4 Job content
A 1 and 3
B 2 and 4
C 1 and 4
D 2 and 3
 b) Which of the following is normally subject to the most direct government regulation?
A Employment protection
B Corporate social responsibility
C Corporate governance 1 mark

88.For which two of the following does the external auditor have responsibility? 2 marks
1 Evaluating the efficiency of systems and procedures
2 Reporting to shareholders
3 Detecting fraud
4 Giving an opinion on financial statements

A 1 and 2
B 1 and 3
C 2 and 4
D 3 and 4

89. Which of the following statements describes coercive power?

A Power associated with a particular role or status
B Power associated with physical force or punishment
C Power associated with control over physical resources
D Power associated with individual personality and attitudes 2 marks

90.Which two of the following are parts of the job of a supervisor? 2 marks
1 Managing team performance
2 Co-ordinating departmental objectives
3 Developing strategic plans
4 Organising the work of others

A 1 and 3
B 1 and 4
C 2 and 4
D 2 and 3

91. The concept of ………………… is based on the belief that the types of individual difference
which are protected by anti-discrimination legislation are crude and irrelevant to successful
performance, and that an organisation can benefit from embracing all kinds of difference.
Which words correctly complete this sentence? 1 mark
A Equal opportunity
B Managing diversity
C Diversification

92. The website of a university contains a dedicated site for academic researchers, giving them
access to the university's archived material, if they register and obtain a password to enter the
site. 2 marks
Of which type of network is this an example?
A. Internet
B. Intranet
C. Extranet

93. At a chocolate manufacturing company, one of the production mixers has recently been made
redundant. Fellow shop-floor staff are outraged: he was 'the only one who knew anything about
chocolate' and they had relied on his judgement for years. Protests are ignored. A week later,
cement is found in a batch of crunchy bars. Two weeks later, staff refuse to work overtime. The
mixer is finally reinstated.
Which two types of power are illustrated in this scenario by the mixer and the shop floor staff?
(i) Position power
(ii) Expert power
(iii) Personal power
(iv) Negative power
A (i) and (ii)
B (ii) and (iii)
C (ii) and (iv)
D (iii) and (iv) 2 marks

94. In a particular work team, Jemima is acknowledged to be the 'ideas' person who 'thinks outside
the box' with creative solutions to difficult problems. However, she tends to look at the big picture,
not at the details. Frank spots the gaps in Jemima's suggestions, and encourages the team to
consider other options.
Match each character in this scenario with the role that they occupy in Belbin's team role model.
Characters Roles
A Jemima 1 Monitor-Evaluator
B Frank 2 Team worker
3 Plant
A. A→1, B→2
B A→1, B→3
C A→2, B→2
D A→3, B→1 2 marks

95 . If a team has been functioning for some time, it may grow complacent with its performance,
and start todevote more attention to relationship and power issues with in the group.In the group
development model, which of the following terms would be used for this stage of the team's
development? 2 marks
A Forming
B Norming
C Dorming
D Storming

96. …………………… occurs when a person is penalised for giving information or taking action
is pursuit of a claim of discrimination. 1 mark
Which word or words correctly complete this statement?
A Direct discrimination
B Indirect discrimination
C Victimisation

97. 4 marks
(a) Here are four short references to possible frauds faced by organisations:
A. Receipts from one debtor are taken by the fraudster, who then uses receipts
from another debtor to clear this sales ledger balance
B. The fraudster diverts small amounts from a large number of transactions
C. A company is asked to pay a small amount up front in order to secure a larger
later payment.
D. A fake investment is created, where high investment returns are paid to early
investors out of the investments made by subsequent investors.
Required:
Identify the description above which is associated with each of the following
frauds, by writing A, B, C or D.
(i) Ponzi scheme
(ii) Teeming and lading
(iii) Skimming
(iv) Advance fee fraud (0.5 marks each, total =2marks)

(b). One serious type of fraud is money laundering. This involves issues such as:
A Layering
B Tipping off
C Placement
D Integration

The following sentences contain gaps relating to key money laundering terms.
‘_____Gap 1____ involves transferring money between businesses or locations in order to
conceal their original source.’
Required:
(i) Select the term that appropriately fills gap 1 above; i.e. select A, B, C or D.

‘Recently, a criminal used stolen cash to buy shares in a company. This is an example
of _______Gap 2______.’
Required:
(ii) Select the type of organisation that appropriately fills gap 2 above; i.e. select
A, B, C or D. (1 mark each = 2 marks in total)

98. 4 Marks
(a) BBX Co is a small company that manufactures bicycles. It has a small account department
with one main bookkeeper (Mr. E) and two assistants. The owners of BBX have recently identified
a number of factors relating to the accounts department that they feel could suggest that
fraudulent activity is taking place.
Consider the following factors relating to BBX:
A. Mr. E is well paid and happy in his current role
B. Opening and recording cash receipts is always done by Mr. E and one other, rotating member
of staff
C. The accounts department is dominated by Mr. E – he is the only member of the accounts staff
who is in the office full time
D. Mr. E has recently moved to a large house in an expensive part of the local area
E. BBX’s senior management rarely investigate or query any part of the financial statements or
budgets for the company
F. BBX has significant internal controls which are regularly checked by external auditors
G. Mr. E takes similar holidays each year
H. BBX’s managers have noted that payments to suppliers were far higher than anticipated over
the last year and have been unable to explain this
Required:
Identify which FOUR of the above statements are most likely to indicate an increased risk of fraud
in BBX.
(0.5 marks each = 2 marks total)

(b) YYT is a large company that is listed on its local stock exchange. Just like BBX, it is concerned
that there may be fraud within its accounts department. One of the directors has suggested that
YYT has not been effective at combating fraud because it is confused about who has the
responsibilities regarding the prevention and detection of fraud.
The director has identified three key groups within the organisation:
A Board of Directors
B Audit Committee
C All employees generally
Required:
Identify the group above which is most associated with each of the following responsibilities, by
writing A, B or C.
(i) Ongoing monitoring and review of internal control and risk management systems
(ii) Maintaining sound systems of internal control
(iii) An implied duty to report suspected fraud to their superiors
(iv) An annual review of the effectiveness of internal controls and the reporting of this to
shareholders (0.5 marks each = 2 marks total)

99. 4 marks
a) CRU makes and sells garden furniture. The company is considering branching out into making
household furniture and has set up a team to discuss how best to proceed with this new strategy.
The team is chaired by (I) – she is currently co-ordinating the different team members and
ensuring that they meet regularly and stick to the agreed agenda. She has recently appointed (II)
to the team. B has not proven to be a popular addition to the team as she tends to criticise any
ideas thought up by other team members – though she has yet to produce any new ideas herself.
(III) is the main generator of ideas for the group. She has come up with designs for a wide range
of possible products for CRU to make and sell. The other team member, (IV), has been put in
charge of ensuring that the team’s goals are achieved on time and has chased other team
members to ensure they complete agreed tasks on time.
According to Belbin’s team roles theory, there are a number of roles that need to be fulfilled in
any team, including:
A Shaper
B Plant
C Leader
D Monitor-evaluator
E Resource-investigator
F Team worker
G Company worker
H Finisher
Required:
Identify which FOUR of the above have been filled within CRU’s project team by writing down
FOUR letters from A-H. (0.5 marks each = 2 marks total)
(b) The managers of CRU are concerned that the team headed up by A is not working as
effectively as possible. They are aware that, according to Tuckman’s stages of group
development model, the team should progress through a number of key stages, including:
A Norming
B Storming
C Dorming
D Performing
Required:
Identify the above stage which is most associated with each of the following
statements, by writing A, B, C or D.
(i) The team decides on acceptable behaviour – including deciding what order each member
presents their ideas in group meetings, as well as how other team members feedback their
thoughts on these ideas
(ii) The team reaches its full potential and operates with maximum efficiency, with little conflict
between the four members
(iii) The team has yet to decide on an acceptable format for criticism of ideas, meaning that
meetings often descend into arguments
(iv) The team has generated a large number of ideas and the meetings typically turn into social
gatherings where little is accomplished.
(0.5 marks each, total = 2 marks)

100. UHPD is a police force based in a town in country B. It is government funded and has a
number of officers, who operate a wide range of roles – from patrols on foot around the town,
highway and vehicle patrols, forensic analysis and administration. Morale in the force has been
low for several years, leading to a staffing crisis due to the high levels of staff turnover. Y is the
head of the UHPD and has decided to investigate ways of motivating his workforce. Y has
investigated two major models to do with motivation – Herzberg’s two-factor theory and
McGregor’s Theory X and Theory Y.
Several key terms relating to these models are:
A Hygiene factor
B Job enrichment
C Job rotation
D Motivator
E Theory X
F Theory Y
The following sentences contain gaps which should contain one of the above four terms.
Y is considering the launch of a new policy that ensures that all members of staff are given an
appropriate level of pay by formalising the grade boundaries of all staff. This will make pay fairer
and will act as a ____1____ for workers, hopefully reducing staff turnover.
Required:
(i) Select the term that appropriately fills gap 1 above; i.e. select A-F.
Y has informed all managers within UHPD that they will be expected to delegate some
responsibility down to more capable junior staff to improve UHPD’s employee job design. Y
referred to this in his report as ______2______.
Required:
(ii) Select the term that appropriately fills gap 2 above; i.e. select A-F.

Y has identified four managers within UHPD that have received high levels of complaints from
their staff. They have adopted an authoritarian management style, assuming that employees are
_______3____. In fact, this is not the case and this mismatch in style has caused significant
morale problems.
(iii) Select the term that appropriately fills gap 3 above; i.e. select A-F.

Y has decided against ______4______ within UHPD as he is concerned that if staff are regularly
moved between departments, their overall efficiency will drop.
Required:
(iv) Select the term that appropriately fills gap 4 above; i.e. select A-F.
(1 mark each = 4 marks)

NOTHING IS IMPOSSIBLE UNTIL AND UNLESS YOU FEEL SO.

*ALL THE BEST*