Testing times

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Which of the following could lead to NRV falling below cost? (i) Changes in exchange rates for a company importing raw materials; (ii) Changes in exchange rates for a company exporting finished goods; (iii) Increased audit fee due to extra work required in the credit crisis; (iv) Increased demand for the company's products

  2. Which of the following could lead to non-current assets being impaired?

  3. Which of the following will increase a company's net pension liability?

  4. Which of the following financial assets should be valued at fair value?

  5. Which of the following is not a characteristic of a transaction at fair value?

  6. Which of the following is not an assumption of the Black-Scholes option pricing model?

  7. Which of the following is not a requirement in order to re-classify a financial asset?

  8. Which of the following increases the risk of management bias?

  9. What audit report is appropriate if the company is a going concern because the parent company has agreed to support it and this fact has been disclosed?

  10. What audit report is appropriate if the company is not a going concern, does not use the going concern basis and makes disclosure of this?