Series: JULY 2023

Search 500 + past questions and counting.

SCS – July 2023 – L3 – Q6b – Conflicts of Interest and Ethical Conflict Resolution

Explain the ICSA guidance on decisions that the board should reserve for itself and not delegate to individual or executive managers.

Question

The Director of Human Resources and Organisational Development is concerned that her recent presentation about matrix management structure and performance management should be sent to the board for approval. Prof. Ernest Kofi Mensah vehemently disagrees. He referred her to the Institute of Chartered Secretaries and Administrators (ICSA) guidance.

Required:
Identify and explain FOUR (4) of the Institute of Chartered Secretaries and Administrators (ICSA) guidance on decision-making responsibilities that the board should reserve to itself and should not be delegated to individual or executive managers to confirm and comment on the view that the Director of Human Resources and Organisational Development’s matrix structure presented is not one of the issues which require board approval before implementation.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Board Responsibilities, Corporate Governance, Decision Making, ICSA Guidance
Level: Level 3

Topic: Conflicts of Interest and Ethical Conflict Resolution
Series: JULY 2023

SCS – July 2023 – L3 – Q6a – Professional Practice and Codes of Ethics

Explain five reasons why the Director of Finance and Operations might project finance over other functions.

Question

Some of the SavvyTech plc management team is concerned that the Director of Finance and Operations is domineering during the acquisition engagement processes at meetings. The Director of Finance and Operations mentioned in anger that ‘arguably, accountancy has an influence on business and government and that is both:
i) continuous and
ii) more extensive than any other profession’.

Required:
As a newly qualified Chartered Accountant responsible for code of ethics in SavvyTech plc, identify and explain FIVE (5) reasons in support of why the Director of Finance and Operations seems to be projecting finance over other functions.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Decision Making, Ethics, Finance Leadership, Influence
Level: Level 3

Topic: Professional practice and codes of ethics
Series: JULY 2023

SCS – July 2023 – L3 – Q5b – Sources of Finance

Explain two benefits of increasing long-term capital using retained profits.

Question

When companies retain profits in the business, the increase in the retained profits adds to equity reserves. This view was suggested by SavvyTech plc management team to the board. The Board is not convinced and seek further explanation.

Required:
Explain TWO (2) benefits to the board of directors on what it means to increase long-term capital using retained profits in SavvyTech plc.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equity, Financial strategy, Long-term Capital, Retained Profits
Level: Level 3

Topic: Sources of Finance
Series: JULY 2023

SCS – July 2023 – L3 – Q5a – International financial management

Calculate the group profits from the sale of HVSC based on the transfer price set at market price and 25% of Utopia's unit cost.

Question

As the Head of Finance of SavvyTech plc, the Director of Finance and Operations has assigned you to use the forecast data (Table 8) and the “additional information” provided to calculate the following to support engagement by the management team with the Board.

Required:
Calculate the group profits to be realised from the sale of HVSC, if the transfer price for the component is set at its market price, which is GH¢26 per unit (total Ghana cost) plus 25% of Utopia’s unit cost.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Calculations, Group Profit, Taxation, Transfer Pricing
Level: Level 3

Topic: International financial management
Series: JULY 2023

SCS – July 2023 – L3 – Q4 – Controlling Risk

Prepare an internal memo on how SavvyTech's board can show commitment to risk management and create a risk-aware culture.

Question

Essential aspects of risk management and control are the culture within the organisation. The culture within the organisation is set by the board of directors and senior management (the tone at the top), but it should be shared by every manager and employee.

Required:
You are the ‘Risk and Assurance Manager’ of SavvyTech plc with the responsibility of creating a culture of risk awareness in the organisation. Prepare an internal memo for the management team to be discussed with the board of directors on what they must do to show their own commitment to risk management in the things that they say and do.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Organizational Culture, Risk Management, Tone at the Top
Level: Level 3

Topic: Controlling Risk
Series: JULY 2023

SCS – July 2023 – L3 – Q3b – Strategy Implementation

Identify and explain four reasons why SavvyTech needs to research, innovate, and develop existing and new products.

Question

Business entities must innovate to survive and grow. The Director of Marketing and Sales, in a meeting, presented a product market annual performance analysis report and highlighted that the sales trend of the ‘Wrist Organiser 3b’, introduced in 2018, reduced by 75% in 2022 and by 50% in 2021.

Required:
As a member of SavvyTech plc management team, identify and explain FOUR (4) reasons why it is necessary to research, innovate and develop existing and new products as an organisation.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Growth, Product Innovation, Research and Development
Level: Level 3

Topic: Strategy implementation
Series: JULY 2023

SCS – July 2023 – L3 – Q3a – Strategy Implementation

Identify and explain five internal triggers of change at SavvyTech plc with examples from the case study.

Question

Change happens continually within organisations, and the markets within which SavvyTech plc operate are not an exception. Strategic development inevitably results in some changes, which need careful management. Some of SavvyTech plc’s internal triggers of change are motivated or caused by developments within the organisation.

Required:
Review SavvyTech plc case study, identify, and explain FIVE (5) internal triggers of change with specific examples from the case.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Internal Factors, Organizational Change, Triggers of Change
Level: Level 3

Topic: Strategy implementation
Series: JULY 2023

SCS – July 2023 – L3 – Q2b – Strategy Implementation

Explain three broad corporate parenting styles described by Goold and Campbell that SavvyTech might adopt.

Question

SavvyTech plc’s management team is debating the corporate parenting strategy that should be adopted. Corporate parenting refers to the relationship between the Head Office and the strategic business unit staff in Utopia.

Required:
As a lead consultant, explain to SavvyTech plc management team THREE (3) broad parenting styles that might be adopted as described by Goold and Campbell (1991).

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Units, Corporate Strategy, Parenting Styles, Strategic Control
Level: Level 3

Topic: Strategy implementation
Series: JULY 2023

SCS – July 2023 – L3 – Q2a – Strategy, Stakeholders, and Mission

Explain the stakeholder position/importance matrix and provide guidance to SavvyTech on managing key stakeholders.

Question

The management team of SavvyTech plc is concerned about how the staff union group with 60% shareholding might react if the 2022 dividend payout is withheld to finance the subsidiary acquisition in Utopia, particularly the production staff with 80% shareholding of the total staff union’s interest of 60%. There are a number of stakeholder mappings. Two most popular are the ‘stakeholders position/importance matrix’ and ‘stakeholders power/interest matrix’.

Required:
You have been contracted as an independent consultant by SavvyTech plc to review the stakeholder mapping using the ‘stakeholders position/importance matrix’. Draw the diagram, illustrate, and explain using a brief internal memo to guide the management team’s engagement with the stakeholders as presented in the case study.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Influence, Mapping, Matrix, Stakeholders, Strategic Engagement
Level: Level 3

Topic: Strategy, stakeholders, and mission
Series: JULY 2023

SCS – July 2023 – L3 – Q1b – Controlling Risk

Explain why FCA might be difficult to use for the HVSC discussion at SavvyTech.

Question

After the presentation of the SAM four-step approach to the management team, the Director of Finance and Operations made the following statement: ‘The data required for FCA is usually only available in organisations that are at the forefront in responding to the environmental agenda’ (Bebbington, Gray, Hibbitt, and Kirt, 2001).

Required:
Explain to the management team why it might be difficult to use FCA to support the ongoing discussion about the new product HVSC.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Environmental Data, Full-Cost Accounting, Product lifecycle, Risk Management
Level: Level 3

Topic: Controlling Risk
Series: JULY 2023

AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning

Discuss matters to consider before accepting a review engagement and recommend procedures for examining a cash flow forecast.

Question

Eebuks Ltd is a retailer of academic textbooks that sells through its own network of bookshops and online through its website. The revenue from the website includes both cash sales and sales on credit to educational institutions. The company has provided historical analysis from its trade receivables ledger indicating that for sales made on credit, 25% payment is received in the month of sale, 70% after 30 days, and the remainder are irrecoverable debts.

You are a Manager in Makafui & Associates, a firm of Chartered Accountants offering a range of services from audit to non-audit for its clients. On 1 July 2023, your firm was asked by Eebuks Ltd, a company that is not an audit client of your firm, to consider a potential engagement to review and provide an assurance report on Prospective Financial Information. Makafui & Associates has already conducted specific client identification procedures in line with money laundering regulations with satisfactory results.

Additionally, Eebuks Ltd has approached your firm to obtain an independent assurance opinion on its cash flow forecast, which is being prepared for its bankers in support of an application for an increase in its existing overdraft facility.

Required:

a) In line with ISAE 3400: The Examination of Prospective Financial Information, discuss FIVE (5) matters to be considered by Makafui & Associates before accepting the engagement to review and report on Eebuks Ltd’s Prospective Financial Information. (10 marks)

b) Assuming Makafui & Associates accepts the engagement, recommend EIGHT (8) procedures to be performed in respect of Eebuks Ltd’s cash flow forecast. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assurance Services, Audit Procedures, Cash Flow Forecast, ISAE 3400, Prospective financial information, Review Engagement
Level: Level 3

Topic: Assurance services, Planning, The audit approach
Series: JULY 2023

AAA – July 2023 – L3 – Q1b – Rules of professional conduct | Professional responsibility and liability | Reporting

Assess ethical and professional implications in scenarios involving audit team members and client requests.

Question

You are the Audit Manager at Ndaa & Associates whose client portfolio includes ABC Credit Plc, a listed financial institution offering loans and credit facilities to both commercial and retail customers. You have received an email from the Audit Supervisor who is currently supervising interim testing on systems and controls in relation to the audit of ABC Credit Plc for the year ending 31 October 2022. The email gives the following details for your consideration:

One of the audit team members, Obiba JK, has provisionally agreed to apply for a loan from ABC Credit Plc to finance the purchase of a domestic residence. The loan will be secured on a property, and the client’s business manager has promised Obiba JK that he will ensure that she gets ‘the very best deal which the bank can offer.’ (5 marks)
The payroll manager at ABC Credit Plc has asked the audit supervisor if it would be possible for Ndaa & Associates to provide a member of staff on secondment to work in the payroll department. The payroll manager has struggled to recruit a new supervisor for the organisation’s main payroll system and wants to assign a qualified member of the audit firm’s staff for an initial period of six months. (5 marks)

Required:
Assess the ethical and professional implications of the issues raised in respect of the audit of ABC Credit Plc and recommend actions to be taken in each case by the audit firm.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor Independence, Ethics, Loan Arrangements, Professional Conduct, Staff Assignments
Level: Level 3

Topic: Professional responsibility and liability, Reporting, Rules of professional conduct
Series: JULY 2023

AAA – July 2023 – L3 – Q1a – The audit approach | Audit-related services Planning |

Discuss five factors to consider before developing an audit proposal for a multinational company facing financial challenges.

Question

Your firm has been approached to tender for an audit assignment by STK Ghana Ltd. The company is a multinational with its headquarters in Europe. STK Ghana Ltd is a manufacturing company that has operated in Ghana since 2010 and has made steady profits over the years. However, over the past few years, the company’s profits have been dwindling, and the group director in charge of Anglophone West Africa subsidiaries has charged the company to reduce its costs.

In a meeting with the country manager, you ascertained the following information:

Several creditors are pursuing the company for payment of their outstanding debt, including the previous auditor who is being owed for the past three years of audit work. The company has negotiated a payment plan for all its creditors.
Staff wages have been frozen, staff morale is very low, and several have left.
The company’s liquidity challenges commenced when the license of Glow Savings and Loans was revoked as part of the banking sector crisis with STK Ghana Ltd funds exceeding GH¢1 million locked up in short and long-term investments.

In the Terms of Reference (TOR) for the audit engagement, you are required to provide timelines for the overall audit and a financial proposal that is competitive. Upon receiving the TOR, a debate ensued among the partners on the relevance of submitting a proposal in response to the TOR.

Required:
Discuss FIVE (5) factors to be considered prior to developing a proposal for submission. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Proposal, Audit risks, Ethical Issues, Liquidity Challenges, Multinational Audit
Level: Level 3

Topic: Audit-related services, Planning, The audit approach
Series: JULY 2023

BCL – July 2023 – L1 – Q5c – Legal Implications Relating to Companies in Difficulty or in Crisis

Explain the consequences of winding-up a company by private liquidation.

Question

Three brothers Aba, Bawa, and Caroline registered a company (ABC Ltd) to supply cocoa products. The most influential member of the Board, Caroline, died five years into the life of the business. The surviving two directors decided to pass a special resolution by private liquidation to wind-up the business.

Required:

Explain FIVE (5) consequences of winding-up ABC Ltd by private liquidation. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Winding-Up, Corporate Law, Insolvency, Private Liquidation
Level: Level 1

Topic: Legal implications relating to companies in difficulty or in crisis
Series: JULY 2023

BCL – July 2023 – L1 – Q5b – Types of Capital and the Financing of Companies

Distinguish between equity shares and preference shares in three ways.

Question

In THREE (3) ways, distinguish between equity shares and preference shares. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate finance, Equity Shares, Preference shares, Shareholder Rights
Level: Level 1

Topic: Types of capital and the financing of companies
Series: JULY 2023

BCL – July 2023 – L1 – Q5a – Types of Capital and the Financing of Companies

Explain the concepts of bonds and debentures as investment vehicles.

Question

Yao Tsito has been paid his end of service benefit after retiring. He plans to invest the benefits in bonds and debentures.

Required:

Explain the following:

Bond (2 marks)
Debenture (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bonds, Corporate finance, Debentures, Investment
Level: Level 1

Topic: Types of capital and the financing of companies
Series: JULY 2023

BCL – July 2023 – L1 – Q4d – Alternative Forms and Constitutions of Business Organizations

Identify conditions under which the Registrar of Companies may refuse to register a partnership.

Question

Kwami Tihosu, James Jamara, Kisifri Kodiabe decided to form a partnership for their professional business. They submitted particulars for registration. The Registrar of Companies has refused to register the partnership.

Required:

Under what FOUR (4) conditions may the Registrar of Companies refuse to register a partnership? (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Partnership Registration, Registrar of Companies
Level: Level 1

Topic: Alternative forms and constitutions of business organisations
Series: JULY 2023

BCL – July 2023 – L1 – Q4c – Company Directors and Other Officers

Describe the fiduciary duties of a promoter prior to the formation of a company.

Question

Certain key persons before and after the formation of a company stand in a fiduciary relationship to the company.

Required:

Describe the promoter’s fiduciary duties prior to the formation of a company. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Formation, Fiduciary Duties, Promoter
Level: Level 1

Topic: Company directors and other officers
Series: JULY 2023

BCL – July 2023 – L1 – Q4b – Employment Law

List factors that lead to the fair termination of employment under the Labour Act, 2003 (Act 651).

Question

Termination of a contract of employment under the Labour Act, 2003 (Act 651) of Ghana may be fair or unfair.

Required:

State THREE (3) factors that will lead to the fair termination of the employment of a worker/employee by the employer. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Employment Termination, Fair Termination, Labour Act
Level: Level 1

Topic: Employment law
Series: JULY 2023

BCL – July 2023 – L1 – Q4a – Employment Law

Analyze the breach of natural justice in the termination of an employee and the obligations of an administrative body under the Constitution of Ghana.

Question

Abaase Larbi is an accountant working in an accounting firm. The Managing Partner was of the view that Abaase Larbi was involved in fraudulent transactions with some clients of the firm. At a meeting, the Partners of the Firm concluded that Abaase Larbi had brought the name of the Firm into disrepute. As a result, the Firm terminated the appointment of Abaase Larbi. Abaase Larbi feels he has not been dealt with fairly.

Required:

i) From the facts above, explain whether there is any breach of natural justice? (3 marks)

ii) As an administrative body, state the obligation that lies on the Firm to deal fairly with Abaase Larbi in respect of the Constitution of the Republic of Ghana, 1992. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Constitution of Ghana, Employment Termination, Fair Hearing, Natural Justice
Level: Level 1

Topic: Employment law
Series: JULY 2023

Series: JULY 2023

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

SCS – July 2023 – L3 – Q6b – Conflicts of Interest and Ethical Conflict Resolution

Explain the ICSA guidance on decisions that the board should reserve for itself and not delegate to individual or executive managers.

You're reporting an error for "SCS – July 2023 – L3 – Q6b – Conflicts of Interest and Ethical Conflict Resolution"

SCS – July 2023 – L3 – Q6a – Professional Practice and Codes of Ethics

Explain five reasons why the Director of Finance and Operations might project finance over other functions.

You're reporting an error for "SCS – July 2023 – L3 – Q6a – Professional Practice and Codes of Ethics"

SCS – July 2023 – L3 – Q5b – Sources of Finance

Explain two benefits of increasing long-term capital using retained profits.

You're reporting an error for "SCS – July 2023 – L3 – Q5b – Sources of Finance"

SCS – July 2023 – L3 – Q5a – International financial management

Calculate the group profits from the sale of HVSC based on the transfer price set at market price and 25% of Utopia's unit cost.

You're reporting an error for "SCS – July 2023 – L3 – Q5a – International financial management"

SCS – July 2023 – L3 – Q4 – Controlling Risk

Prepare an internal memo on how SavvyTech's board can show commitment to risk management and create a risk-aware culture.

You're reporting an error for "SCS – July 2023 – L3 – Q4 – Controlling Risk"

SCS – July 2023 – L3 – Q3b – Strategy Implementation

Identify and explain four reasons why SavvyTech needs to research, innovate, and develop existing and new products.

You're reporting an error for "SCS – July 2023 – L3 – Q3b – Strategy Implementation"

SCS – July 2023 – L3 – Q3a – Strategy Implementation

Identify and explain five internal triggers of change at SavvyTech plc with examples from the case study.

You're reporting an error for "SCS – July 2023 – L3 – Q3a – Strategy Implementation"

SCS – July 2023 – L3 – Q2b – Strategy Implementation

Explain three broad corporate parenting styles described by Goold and Campbell that SavvyTech might adopt.

You're reporting an error for "SCS – July 2023 – L3 – Q2b – Strategy Implementation"

SCS – July 2023 – L3 – Q2a – Strategy, Stakeholders, and Mission

Explain the stakeholder position/importance matrix and provide guidance to SavvyTech on managing key stakeholders.

You're reporting an error for "SCS – July 2023 – L3 – Q2a – Strategy, Stakeholders, and Mission"

SCS – July 2023 – L3 – Q1b – Controlling Risk

Explain why FCA might be difficult to use for the HVSC discussion at SavvyTech.

You're reporting an error for "SCS – July 2023 – L3 – Q1b – Controlling Risk"

AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning

Discuss matters to consider before accepting a review engagement and recommend procedures for examining a cash flow forecast.

You're reporting an error for "AAA – July 2023 – L3 – Q2 – Assurance services | The audit approach | Planning"

AAA – July 2023 – L3 – Q1b – Rules of professional conduct | Professional responsibility and liability | Reporting

Assess ethical and professional implications in scenarios involving audit team members and client requests.

You're reporting an error for "AAA – July 2023 – L3 – Q1b – Rules of professional conduct | Professional responsibility and liability | Reporting"

AAA – July 2023 – L3 – Q1a – The audit approach | Audit-related services Planning |

Discuss five factors to consider before developing an audit proposal for a multinational company facing financial challenges.

You're reporting an error for "AAA – July 2023 – L3 – Q1a – The audit approach | Audit-related services Planning |"

BCL – July 2023 – L1 – Q5c – Legal Implications Relating to Companies in Difficulty or in Crisis

Explain the consequences of winding-up a company by private liquidation.

You're reporting an error for "BCL – July 2023 – L1 – Q5c – Legal Implications Relating to Companies in Difficulty or in Crisis"

BCL – July 2023 – L1 – Q5b – Types of Capital and the Financing of Companies

Distinguish between equity shares and preference shares in three ways.

You're reporting an error for "BCL – July 2023 – L1 – Q5b – Types of Capital and the Financing of Companies"

BCL – July 2023 – L1 – Q5a – Types of Capital and the Financing of Companies

Explain the concepts of bonds and debentures as investment vehicles.

You're reporting an error for "BCL – July 2023 – L1 – Q5a – Types of Capital and the Financing of Companies"

BCL – July 2023 – L1 – Q4d – Alternative Forms and Constitutions of Business Organizations

Identify conditions under which the Registrar of Companies may refuse to register a partnership.

You're reporting an error for "BCL – July 2023 – L1 – Q4d – Alternative Forms and Constitutions of Business Organizations"

BCL – July 2023 – L1 – Q4c – Company Directors and Other Officers

Describe the fiduciary duties of a promoter prior to the formation of a company.

You're reporting an error for "BCL – July 2023 – L1 – Q4c – Company Directors and Other Officers"

BCL – July 2023 – L1 – Q4b – Employment Law

List factors that lead to the fair termination of employment under the Labour Act, 2003 (Act 651).

You're reporting an error for "BCL – July 2023 – L1 – Q4b – Employment Law"

BCL – July 2023 – L1 – Q4a – Employment Law

Analyze the breach of natural justice in the termination of an employee and the obligations of an administrative body under the Constitution of Ghana.

You're reporting an error for "BCL – July 2023 – L1 – Q4a – Employment Law"

Our offerings

Contact Info

Customer

Get In Touch

admin