Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

150 B 
Other duties of the committee secretary include preparing the location; assisting the chair; 
acting on and communicating decisions. 
151 D 
The remuneration committee is usually focused on Director’s remuneration package. It 
does not examine the pay and grading for all employees. 
 
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P AP E R F 1 ( F A B )
: A CCOU N TAN T IN B US INES S
 
142 
KA P LA N P UBL I SH IN G 
152 B – FALSE
Committees tend to be slower at decision making than individuals as there is more 
conflict/disagreement between individual members.
153 A – TRUE
Decisions are often compromises, meaning that decisive action may not be taken.
LAW AND REGULATION GOVERNING ACCOUNTING
154 D 
Companies house deals with incorporation and dissolution on companies, as it examines 
and stores companies’ information as per Companies Act requirements. 
155 B 
National legislation places a requirement on companies in respect of mandatory reports to 
government and shareholders (and usually both). This is to ensure that limited companies 
adhere to certain minimum standards. In many countries an underlying purpose of this is to 
protect prospective and existing investors in the company, and to minimise the possibility 
of tax evasion.
Codes of corporate governance are now used extensively in countries that adopt a 
principles-based approach to corporate governance. Such codes are not underpinned by 
legislation and are voluntary in nature. Companies and other organisations are expected to 
comply with the provisions of the codes, or to explain to shareholders why they are not 
doing so.
International Accounting Standards seek to achieve consistency in reporting across 
international frontiers. They affect the content and presentation of the company accounts, 
but it is up to governments and their agents to decide on the requirements for preparation 
and filing of accounts. 
156 D 
Company financial statements must be free from material misstatement. They may still 
contain immaterial or insignificant mistakes or errors and be considered true and fair.