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

184 D 
The purposes of organisational control are to safeguard company assets, ensure efficiency 
and prevent fraud and errors.
 
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P AP E R F 1 ( F A B )
: A CCOU N TAN T IN B US INES S
 
146 
KA P LA N P UBL I SH IN G 
185 C 
Errors in manual systems can be corrected via use of whitening fluid, etc. 
In fact, automated systems have fewer errors, more security (passwords) and are easier to 
audit than manual systems. 
186 B 
As long as the system has been programmed accurately, XCX should see its calculations 
improve in accuracy due to automation. However, staff will need retraining on the new 
systems and there is the risk of a computer system crashing and losing all data (disaster 
recovery will need to be implemented to reduce this risk). However, the automated system 
is likely to ensure that only authorised employees have access to XCX’s sensitive 
information. 
THE RELATIONSHIP OF ACCOUNTING WITH OTHER BUSINESS 
FUNCTIONS 
187 D 
The accounting department can help ensure a profitable selling price is used for E’s 
products.
188 A 
Option A would most likely be a marketing or service provision crossover with the 
accounting department. 
189 C 
The four features are: intangibility, inseparability, Perishability and variability. 
190 D 
Inseparability looks at the fact that services cannot easily be distinguished from the person 
providing the service. If the taxi driver behaves badly, the customer will perceive the service 
itself as being poor. 
AUDIT AND FINANCIAL CONTROL 
191 B 
The internal audit also makes recommendations for the achievement of company 
objectives. 
C is the role of the external auditors. 
192 A 
Statement 2 is part of the definition of internal control – while there is crossover between 
the two topics, make sure you know the differences between them! 
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ANSWERS TO PRA C TICE O BJECTIVE TEST QUESTIONS :