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

Required:
(i) 
Select the term that appropriately fills gap 1 above; i.e. select A, B, C or D. 
‘Recently, a criminal used stolen cash to buy shares in a company. This is an example 
of _2_.’ 
Required: 
(ii) 
Select the type of organisation that appropriately fills gap 2 above; i.e. select 
A, B, C or D. 
(1 mark each = 2 marks in total) 
(Total: 4 marks) 
 
Download Free Acca,ca study materials from WWW.ACCOUNTANCYWALLS.COM

---

PRACTICE MULTI-TASK QUESTIONS : 
S E CTI ON 2
K APLA N PUBLISH ING 
101 
27
 
(a)
 
BBX Co is a small company that manufactures bicycles. It has a small accounts 
department with one main bookkeeper (Mr E) and two assistants. The owners of BBX 
have recently identified a number of factors relating to the accounts department that 
they feel could suggest that fraudulent activity is taking place. 
Consider the following factors relating to BBX: 
A 
Mr E is well paid and happy in his current role 
B 
Opening and recording cash receipts is always done by Mr E and one other, 
rotating member of staff 
C 
The accounts department is dominated by Mr E – he is the only member of the 
accounts staff who is in the office full time 
D 
Mr E has recently moved to a large house in an expensive part of the local area 
E 
BBX’s senior management rarely investigate or query any part of the financial 
statements or budgets for the company 
F 
BBX has significant internal controls which are regularly checked by external 
auditors 
G 
Mr E takes similar holidays each year 
H 
BBX’s managers have noted that payments to suppliers were far higher than 
anticipated over the last year and have been unable to explain this