Question Category Answer Check
Ross Reeves, an accountant in public practice, has been asked to provide strategic advice and services in an area that he knows is beyond his capacity and
that of his organisation.
Accepting this assignment will most heavily affect which of the following fundamental principles?
A) Objectivity
B) Confidentiality ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) Integrity
D) Professional competence and due care
ACCOUNTANT AS A NO
STRATEGIC ADVISER
Today and increasingly into the future, accountants inside companies need understanding and skills beyond their specialisation, as they are frequently
required to collaborate across the organisation and to communicate with other specialists.
Which one of the following statements is most likely correct about the services needed by organisations from today’s accountants?
A) Smaller organistions often require developing their own business knowledge
B) Strong internal business advisory skills are paramount for smaller enterprises ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) Strategic advice is only needed in times of crisis or difficult business situation
D) Accountants need to focus on financial reporting skills only for them to provide strategic advice
Which one of the following statements about the accountant’s input to a business plan is most likely correct?
A) Accountants are only involved in providing financial projections
B) Doing a business plan ensures that adequate research has been made
ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) If the assumption is made by a CPA, it normally does not require justification
D) Being a sunk costs, outstanding loans and overdrafts are usually not disclosed in doing a business plan
Change in the accounting profession is being driven by the coming together of opportunity and need.
Which of the following drivers is considered as the most disruptive force in the accounting industry?
A) Transforming workforce
B) Stakeholder management ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) Technology-enabled innovation
, Question Category Answer Check
Myca Fisher is the senior management accountant for Premium Foods manufacturing operations.
She reports directly to the operations director, with a secondary reporting line to the group CFO.
Working with the operations director, Myca is assessing the viability and recommendation of investment in new technology, which will significantly
improve the sustainability of manufacturing operations, well into the future.
Which of the following views would best describe Myca's role in this case?
A) Adviser
ACCOUNTANT AS A
NO
B) Analyst STRATEGIC ADVISER
C) Partner
D) Management Accountant
The examination of information, including analysis of external factors (such as economic and industry trends), support internal data analysis.
This analysis, combined with a review of processes and systems (such as invoicing procedures and reminder notices to debtors), can lead to improved
cash flows and business efficiency.
Which new role for traditional accounting does this reflect?
A) A strategic advisory role
B) A process improvement role ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) A support role in business planning
D) A receivables management role for working capital management
What capabilities must ‘the accountant of the future’ possess?
I. Using and managing knowledge and technology for competitive advantage
II. Visioning and employing value-adding strategies, in a dynamic and complex setting
III. Spanning boundaries of cultures, business environments, and management know-how
A) I only
B) II only ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) I and II only
D) I, II and III
According to a recent study, business owners are increasingly seeking accountants who can provide which one of the following services?
A) Able to provide taxation services
B) Able to provide engineering services
C) Able to make an analysis of historical data
D) Able to provide appropriate strategic advice
, Question Category Answer Check
You have just completed a survey of accounting staff in medium and small businesses.
The survey suggests that more than 65% of the staff in the industry are unqualified.
You have been asked to compile a report of the advantages of employing qualified accountants in the industry.
What attributes will you highlight in your report?
i) Qualified Accountants exercise due care and diligence, because they are trained to be competent in their field
ii) Qualified Accountants display integrity in professionalism, as they belong to a body of expertise and they abide by the rules
iii) Qualified Accountants can provide advice on many issues outside the core accounting areas
A) i) and ii) ACCOUNTANT AS A
STRATEGIC ADVISER NO
B) i) and iii)
C) ii) and iii)
D) i), ii) and iii)
Which one of the following is an example of a strategic role undertaken by a professional accountant?
A) Allocating resources to increases efficiency & effectiveness
B) Identifying policies and processes and monitoring adherence
ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) Enabling good cost control practices and cash flow management
D) Identifying likely future issues and assessing plans to address them
Which of the following is the most common issue that a family-owned business is likely to encounter?
A) Limited access to traditional means of funding
B) Failure to demonstrate a strong identity and a clear long term vision
ACCOUNTANT AS A NO
C) Conflict due to family members being both shareholders & employees STRATEGIC ADVISER
D) The business concentrating on innovation, resulting in uncertainty and risk
ACCOUNTANT AS A NO
STRATEGIC ADVISER
, Question Category Answer Check
In relation to the chain of events for advisory services, which of the following is related to making sure the process is timely so that inaction or delays do
not become an excuse to not implement?
A) Recommended action.
B) To follow the recommendation.
ACCOUNTANT AS A NO
C) To actually follow the recommendation. STRATEGIC ADVISER
D) To monitor progress or outcomes of the implementation.
Small and Medium enterprises have a range of services that they would like their accountant to support them with.
These include business analytics, planning, budgeting, leasing, insurance and payroll.
Accountants have also been asked to outline what they believe their SME clients desire in terms of services and support.
Which of the following item shows the greatest difference, in terms of accountants not understanding what SMEs would like help with?
A) Financial planning
ACCOUNTANT AS A
B) Technology and IT services STRATEGIC ADVISER NO
C) Property services and advice
D) Business process engineering
Accountants who act as strategic advisers have to be able to tailor their advice to different sized organisations, who will have different needs and face
different issues.
In relation to the differences between small and large enterprises, which of the following is most likely to be correct?
A) Larger enterprises with dedicated executives will be able to respond faster to business change when compared to small enterprises.
B) Entrepreneurial leadership is more likely to be demonstrated in small enterprises, where structures are less formalised and strategy is fluid.
C) Small enterprises are more likely to consider growth through mergers to help gain customers and access to markets faster than growing organically. ACCOUNTANT AS A
STRATEGIC ADVISER NO
D) Larger enterprises will rely on more intuitive management techniques and strategy setting based on broad experience and deep knowledge held by many
employees.
The provision of advice by accountants can often be met with resistance from internal or external clients who don’t want to accept the advice or perhaps
make the necessary changes.
Which of the following are most likely to be a successful approach to addressing this issue?
A) The use of communication and persuasion skills to influence those who are resisting the advice.
B) Providing justification to why alternative approaches or reasons for not following the advice are not desirable.
C) Ensuring that they are ready and able to react to a client when they come for advice so they are seen as a trusted partner.
D) Developing stakeholder engagement plans that identify and provide tactical strategies on how to engage and influence them.
Focusing on technical accuracy to ensure that the advice given to the client will be highly regarded.
ACCOUNTANT AS A NO
A) A
STRATEGIC ADVISER
Ross Reeves, an accountant in public practice, has been asked to provide strategic advice and services in an area that he knows is beyond his capacity and
that of his organisation.
Accepting this assignment will most heavily affect which of the following fundamental principles?
A) Objectivity
B) Confidentiality ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) Integrity
D) Professional competence and due care
ACCOUNTANT AS A NO
STRATEGIC ADVISER
Today and increasingly into the future, accountants inside companies need understanding and skills beyond their specialisation, as they are frequently
required to collaborate across the organisation and to communicate with other specialists.
Which one of the following statements is most likely correct about the services needed by organisations from today’s accountants?
A) Smaller organistions often require developing their own business knowledge
B) Strong internal business advisory skills are paramount for smaller enterprises ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) Strategic advice is only needed in times of crisis or difficult business situation
D) Accountants need to focus on financial reporting skills only for them to provide strategic advice
Which one of the following statements about the accountant’s input to a business plan is most likely correct?
A) Accountants are only involved in providing financial projections
B) Doing a business plan ensures that adequate research has been made
ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) If the assumption is made by a CPA, it normally does not require justification
D) Being a sunk costs, outstanding loans and overdrafts are usually not disclosed in doing a business plan
Change in the accounting profession is being driven by the coming together of opportunity and need.
Which of the following drivers is considered as the most disruptive force in the accounting industry?
A) Transforming workforce
B) Stakeholder management ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) Technology-enabled innovation
, Question Category Answer Check
Myca Fisher is the senior management accountant for Premium Foods manufacturing operations.
She reports directly to the operations director, with a secondary reporting line to the group CFO.
Working with the operations director, Myca is assessing the viability and recommendation of investment in new technology, which will significantly
improve the sustainability of manufacturing operations, well into the future.
Which of the following views would best describe Myca's role in this case?
A) Adviser
ACCOUNTANT AS A
NO
B) Analyst STRATEGIC ADVISER
C) Partner
D) Management Accountant
The examination of information, including analysis of external factors (such as economic and industry trends), support internal data analysis.
This analysis, combined with a review of processes and systems (such as invoicing procedures and reminder notices to debtors), can lead to improved
cash flows and business efficiency.
Which new role for traditional accounting does this reflect?
A) A strategic advisory role
B) A process improvement role ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) A support role in business planning
D) A receivables management role for working capital management
What capabilities must ‘the accountant of the future’ possess?
I. Using and managing knowledge and technology for competitive advantage
II. Visioning and employing value-adding strategies, in a dynamic and complex setting
III. Spanning boundaries of cultures, business environments, and management know-how
A) I only
B) II only ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) I and II only
D) I, II and III
According to a recent study, business owners are increasingly seeking accountants who can provide which one of the following services?
A) Able to provide taxation services
B) Able to provide engineering services
C) Able to make an analysis of historical data
D) Able to provide appropriate strategic advice
, Question Category Answer Check
You have just completed a survey of accounting staff in medium and small businesses.
The survey suggests that more than 65% of the staff in the industry are unqualified.
You have been asked to compile a report of the advantages of employing qualified accountants in the industry.
What attributes will you highlight in your report?
i) Qualified Accountants exercise due care and diligence, because they are trained to be competent in their field
ii) Qualified Accountants display integrity in professionalism, as they belong to a body of expertise and they abide by the rules
iii) Qualified Accountants can provide advice on many issues outside the core accounting areas
A) i) and ii) ACCOUNTANT AS A
STRATEGIC ADVISER NO
B) i) and iii)
C) ii) and iii)
D) i), ii) and iii)
Which one of the following is an example of a strategic role undertaken by a professional accountant?
A) Allocating resources to increases efficiency & effectiveness
B) Identifying policies and processes and monitoring adherence
ACCOUNTANT AS A
STRATEGIC ADVISER NO
C) Enabling good cost control practices and cash flow management
D) Identifying likely future issues and assessing plans to address them
Which of the following is the most common issue that a family-owned business is likely to encounter?
A) Limited access to traditional means of funding
B) Failure to demonstrate a strong identity and a clear long term vision
ACCOUNTANT AS A NO
C) Conflict due to family members being both shareholders & employees STRATEGIC ADVISER
D) The business concentrating on innovation, resulting in uncertainty and risk
ACCOUNTANT AS A NO
STRATEGIC ADVISER
, Question Category Answer Check
In relation to the chain of events for advisory services, which of the following is related to making sure the process is timely so that inaction or delays do
not become an excuse to not implement?
A) Recommended action.
B) To follow the recommendation.
ACCOUNTANT AS A NO
C) To actually follow the recommendation. STRATEGIC ADVISER
D) To monitor progress or outcomes of the implementation.
Small and Medium enterprises have a range of services that they would like their accountant to support them with.
These include business analytics, planning, budgeting, leasing, insurance and payroll.
Accountants have also been asked to outline what they believe their SME clients desire in terms of services and support.
Which of the following item shows the greatest difference, in terms of accountants not understanding what SMEs would like help with?
A) Financial planning
ACCOUNTANT AS A
B) Technology and IT services STRATEGIC ADVISER NO
C) Property services and advice
D) Business process engineering
Accountants who act as strategic advisers have to be able to tailor their advice to different sized organisations, who will have different needs and face
different issues.
In relation to the differences between small and large enterprises, which of the following is most likely to be correct?
A) Larger enterprises with dedicated executives will be able to respond faster to business change when compared to small enterprises.
B) Entrepreneurial leadership is more likely to be demonstrated in small enterprises, where structures are less formalised and strategy is fluid.
C) Small enterprises are more likely to consider growth through mergers to help gain customers and access to markets faster than growing organically. ACCOUNTANT AS A
STRATEGIC ADVISER NO
D) Larger enterprises will rely on more intuitive management techniques and strategy setting based on broad experience and deep knowledge held by many
employees.
The provision of advice by accountants can often be met with resistance from internal or external clients who don’t want to accept the advice or perhaps
make the necessary changes.
Which of the following are most likely to be a successful approach to addressing this issue?
A) The use of communication and persuasion skills to influence those who are resisting the advice.
B) Providing justification to why alternative approaches or reasons for not following the advice are not desirable.
C) Ensuring that they are ready and able to react to a client when they come for advice so they are seen as a trusted partner.
D) Developing stakeholder engagement plans that identify and provide tactical strategies on how to engage and influence them.
Focusing on technical accuracy to ensure that the advice given to the client will be highly regarded.
ACCOUNTANT AS A NO
A) A
STRATEGIC ADVISER
