INFOLINK UNIVERSITY COLLEGE HAWASSA CAMPUS

DEPARTMENT OF ACCOUNTING AND FINANCE

FINAL EXAM FOR THE COURSE OF PROFESSIONAL PRACTICE IN ACCOUNTING

Academic year: 2014 E.C. Instructor: Alemayehu T. (MSc)

Time allowed: 1hourMarks allotted: 40 %

Year three – Extension

NAME____________________________ID.NO___________PROGRAMME_____________

I. Choose the correct answer from the given alternatives for the following questions (1 .5 point each)
1. One of the following is not the scope of accounting profession
A) Practiceincommerceandindustry
B) Practiceofpublicaccountancy
C) Practiceineducationoracademe
D) Practiceingovernment
E) Non
2. One of the following is not true about accounting
A) Accounting isapracticethatunderliesandenablesorganizationalactionandmuchofhuman activity
B) Accounting isfundamentally asocialpractice,whichguidesandinfluences
thebehaviorofpeopleinorganizationsandsociety
C) Accounting impacting our lives, as well as organizational and social functioning and development.
D) Accounting is an information providing service
E) Non
3. Which one of the following is wrong statement
A) theroleofprofessionalaccountantsinbusinessinensuringthequality of financialreporting
B) Professionalaccountantsinbusinessoftenfind themselves being at the frontline of safeguarding the integrity
of financial reporting.
C) professional accountants in businesses therefore have the task of defending the quality of financial
reporting right at the sourcewherethe numbers and figures areproduced
D) all E) None
4. ______is the rule of accounting toadhereahighstandardsofbehaviore.g.honestyinthecourseof
theirworkandintheirrelationshipswiththestaffoftheirclientsand employer
A) Objectivity B) Independence and Conflicts of Interest C) Professional Competence D) Integrity
5. __________is the rule of Professional accountants who are exposed to situations, which involve the
possibility of pressures being exerted on them during their professional judgment
A) Objectivity B) Integrity C) confidentiality D) Professional Competence
6. Which one of the following is wrong statement
A) Professionalaccountantsshouldbehaveinawaythatincrease,orinnoway
diminishes,theirindependenceProfessional accountantsshould maintaina nindependentstance&remain impartialin
factsandappearance.
B) Professional accountants should strive, in all matters relating to their work, not to be impaired by personal
or external interests.
C) Professional accountants have an obligation to refrain from becoming involved in all matters
D) None
7. ______is occuriftheprofessionalaccountant orhisorherfirmhasa relationship with another person, entity,
product, or service that could, in the his/her professionaljudgment, be viewed by the client, employer, or
other appropriatepartiesas impairing theprofessionalaccountant's objectivity
A) Violation of integrity B) Violation of objectivity C) conflictofinterest D) None
8. _____is serves as the authority to incur expenditure on the approved areas. And assists management to
achieve its financial objectives of economic, efficiency and effectiveness.
A) Documentation B) Receipt C) Budget D) taxation
9. One of the following is wrong statement about the duty of external auditors
A) An annual independent review of accounts will be carried out
B) conducting an annual audit, an assurance of the accuracy of financial reports is obtained
C) Annual independent audit will be conducted according to organization legislation
D) Monitor and evaluate how well risks are being managed, the organization is being governed and
internal processes are working.
10. During auditing all expenses incurred by government organization must fulfill
A) adequate documentation
B) Meet applicable MoFED’s regulations and organization policies
C) Be appropriate for the scope and objectives of the organization
D) All E) All except B
11. “Not make exaggerated claims for the services they are able to offer, the qualifications they possess, or
experience they have gained”. It is the rule of _________
A) Integrity B) Publicity C) Cross Border Activities D) Confidentiality
12. One of the following is wrong statement about the duty of Internal auditors
A) Ensure the healthy movement of activities of the organization
B) Ensure the conformity of internal policies and procedures against local laws of Ethiopia,
C) Ensure how staff of organization is aligning themselves in regard to the financial policies
D) Non E) All except B
13. One of the following is not the Practice of public accountancy
A) The audit or verification of financial transaction and accounting records.
B) The design, installation, and revision of accounting system and controls
C) The preparation of income tax returns when related to accounting procedures.
D) The preparation, signing or certification for clients of reports of audit, balance sheet, and other
financial, accounting and related schedules
E) Non
14. Professional accountants have an obligation to respect the security of an information about a client’s or employer’s
affairs acquired in the course of professional services
A) Rule of Tax Practice B) Rule of Cross Border Activities C) Rule of Confidentiality D) Rule of Objectivity
15. When practicing an accounting in Ethiopian government organization what basis of accounting you should be
follow?
A) Accrual base B) Cash base C) Modified accrual Modified D) Non

I. Say “True” if the statement is correct or say “False” if the statement if wrong (1 point each)
1. Their counterparts in taxation or auditing, professional accountants in business play important roles that
contribute to the overall stability and progress of society.
2. Accountants will lose their legitimacy as protectors of public interest if there is no public trust
3. Internal audit is one of the functions in an organization working to monitor and evaluate how well risks
are being managed, the organization is being governed and internal processes are working
4. Accounting information measure only an effectiveness of the organization
5. Accounting professional determines what is good or bad for the client and the client accedes to this
professional judgment
6. A professional accountant should always observe confidentiality unless specific authority has been
given to disclose information or there is a legal or professional duty to disclose.
7. Professional competence requires a continuing awareness of developments in the accountancy
profession including relevant national and international pronouncements on accounting.
8. Knowledge of all accounting standards and principles are enough for every accounting and finance
practice
9. Not making exaggerated claims for the services they are able to offer, the qualifications they possess, or
experience they have gained is one of the rule of cross boarder activity in accounting profession
10. The attainment of professional competence requires initially a high standard of general education
followed by specific education, training and examination in professionally relevant subjects.
 II. Matching Items “A” with Items “B”(1 .5 point each)

A B

1. Integrity A) misleading of revenue authority

Answers for the Multiple Choice Questions

1. __________ 5. __________ 9. __________ 13. __________

2. __________ 6. __________ 10. __________ 14. __________

3. __________ 7. __________ 11. __________ 15. __________

4. _________ 8. __________ 12. _____________

Answers for True-False Questions

1. __________ 4. __________ 7 __________ 9. __________

2. __________ 5. __________ 8. __________ 10.. __________

3. __________ 6. _____________

Answer for matching questions

1. __________

2. __________

3. __________

4. _________

5. __________