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

Required:
Identify which FOUR of the above statements are most likely to indicate an 
increased risk of fraud in BBX by writing down FOUR letters from A-H. 
 
 
 (0.5 marks each = 2 marks total) 
(b) 
YYT is a large company that is listed on its local stock exchange. Just like BBX, it is 
concerned that there may be fraud within its accounts department. One of the 
directors has suggested that YYT has not been effective at combating fraud because it 
is confused about who has the responsibilities regarding the prevention and 
detection of fraud. 
The director has identified three key groups within the organisation: 
A 
Board of Directors
B Audit 
Committee 
C 
All employees generally 
Required: 
Identify the group above which is most associated with each of the following 
responsibilities, by writing A, B or C. 
(i) 
Ongoing monitoring and review of internal control and risk management 
systems 
(ii) 
Maintaining sound systems of internal control 
(iii) 
An implied duty to report suspected fraud to their superiors 
(iv) An annual review of the effectiveness of internal controls and the reporting 
of this to shareholders 
(0.5 marks each, total = 2 marks) 
(Total: 4 marks) 
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
102
KA P LA N 
P UB L IS HI N G 
LEADING AND MANAGING INDIVIDUALS AND TEAMS 
28
(a) 
FFC is a football club, based in country H, which is managed by four main individuals 
While FFC is a listed company, the majority of the shares are owned by a wealthy 
individual.
 
The Chairman of the Board has significant authority within the club as he has been 
appointed directly by the majority shareholder, who listens to his advice on a regular 
basis. The Chairman has no direct control over the pay and conditions of FFC 
employees, but the team typically follows his instructions due to his position. 
FFC’s coach is put in place to help the football team improve their skills. She is well 
respected in the football community and has significant experience of coaching 
football teams. The team follows her leadership as they believe she can significantly 
improve their chances of winning their matches. 
The Chief Executive Officer (CEO) of FFC controls the pay and conditions of all the 
workers in FFC. He decides on bonuses and pay rises for the team and other workers. 
The advisory coach is a retired footballer who has had a successful career in country 
H and is well known by the team. Most of the team players wish to copy his career 
and his skills,. 
Each of these individuals has a particular source of power over the football team: 
A Expert 
B Reward 
C Referent 
D Legitimate