📘 CPA/ACCA ADVANCED EXAM PAPER
Title: Advanced Financial Reporting, Audit & Strategy – Final Year
CPA/ACCA Paper
Level: Advanced / Final Year (ACCA Strategic Professional equivalent)
Duration: 3 Hours
Total Marks: 100
Instructions: Answer ALL questions in Section A and B, and any ONE
question in Section C.
🔹 SECTION A – MULTIPLE CHOICE QUESTIONS (20 MARKS)
(1 mark each)
1. Under IFRS 3, goodwill is:
A. Amortised over useful life
B. Tested annually for impairment
C. Recognised only when purchased
D. Treated as a liability
✅ Answer: B
2. A key difference between principles-based and rules-based standards
is:
A. Principles-based is more prescriptive
B. Rules-based allows for judgment
C. Principles-based relies on professional judgment
D. Rules-based is easier to interpret
✅ Answer: C
3. Which of the following best describes the objective of audit planning?
, A. To detect fraud
B. To ensure compliance with tax laws
C. To design audit procedures that reduce audit risk
D. To guarantee a clean audit opinion
✅ Answer: C
4. The risk of material misstatement is composed of:
A. Detection and audit risk
B. Control and detection risk
C. Inherent and control risk
D. Audit and inherent risk
✅ Answer: C
5. Which IFRS standard governs leases?
A. IAS 17
B. IFRS 15
C. IFRS 16
D. IFRS 13
✅ Answer: C
🔹 SECTION B – STRUCTURED QUESTIONS (30 MARKS)
(Each question carries 10 marks)
6. Audit Planning
You are planning the audit for NovaTech Ltd, a listed technology company.
The company has just entered new international markets.
Required:
Title: Advanced Financial Reporting, Audit & Strategy – Final Year
CPA/ACCA Paper
Level: Advanced / Final Year (ACCA Strategic Professional equivalent)
Duration: 3 Hours
Total Marks: 100
Instructions: Answer ALL questions in Section A and B, and any ONE
question in Section C.
🔹 SECTION A – MULTIPLE CHOICE QUESTIONS (20 MARKS)
(1 mark each)
1. Under IFRS 3, goodwill is:
A. Amortised over useful life
B. Tested annually for impairment
C. Recognised only when purchased
D. Treated as a liability
✅ Answer: B
2. A key difference between principles-based and rules-based standards
is:
A. Principles-based is more prescriptive
B. Rules-based allows for judgment
C. Principles-based relies on professional judgment
D. Rules-based is easier to interpret
✅ Answer: C
3. Which of the following best describes the objective of audit planning?
, A. To detect fraud
B. To ensure compliance with tax laws
C. To design audit procedures that reduce audit risk
D. To guarantee a clean audit opinion
✅ Answer: C
4. The risk of material misstatement is composed of:
A. Detection and audit risk
B. Control and detection risk
C. Inherent and control risk
D. Audit and inherent risk
✅ Answer: C
5. Which IFRS standard governs leases?
A. IAS 17
B. IFRS 15
C. IFRS 16
D. IFRS 13
✅ Answer: C
🔹 SECTION B – STRUCTURED QUESTIONS (30 MARKS)
(Each question carries 10 marks)
6. Audit Planning
You are planning the audit for NovaTech Ltd, a listed technology company.
The company has just entered new international markets.
Required:
