ACCA approved paper p1 governance risk and ethics

To download more visit http://freeaccastudymaterial.com co m ial ter ym a • Banks of questions on every syllabus area • Answers with detailed guidance on approaching  questions • Three mock exams with full answers and guidance as cc Look inside fre April 2015 £18.00 Paper P1 Governance, Risk and Ethics Practice & Revision Kit for exams from September 2015 to 31 August 2016 Free access to our Exam Success site ea BPP House 142-144 Uxbridge Road London W12 8AA United Kingdom T 0845 075 1100 (UK) T +44 (0)20 8740 2211 (Overseas) E Learningmedia@bpp.com bpp.com/learningmedia For exams from September 2015 to 31 August 2016 Contact us Practice & Revision Kit tud ACCA Approved To download more visit http://freeaccastudymaterial.com One of a suite of products supporting Paper P1 Governance, Risk and Ethics, for use independently or as part of a package, this Kit is targeted at ACCA’s exams from September 2015 to 31 August 2016 and contains: Practice & Revision Kit Paper P1 Governance, Risk and Ethics This Kit provides material specifically for the practice and revision stage of your studies for Paper P1 Governance, Risk and Ethics that has been comprehensively reviewed by the ACCA examining team This unique review ensures that the questions, solutions and guidance provide the best and most effective resource for practising and revising for the exam Governance, Risk and Ethics BPP Learning Media is dedicated to supporting aspiring business professionals with top-quality learning material as they study for demanding professional exams, often whilst working full time BPP Learning Media’s commitment to student success is shown by our record of quality, innovation and market leadership in paper-based and e-learning materials BPP Learning Media’s study materials are written by professionally qualified specialists who know from personal experience the importance of top-quality materials for exam success ACCA P1 ACCA approved content provider ACCA APPROVED CONTENT PROVIDER join us on facebook @ fb.com/freeaccastudymaterial ACP1RK15 (RICOH).indd 1-3 31/03/2015 11:04 To download more visit http://freeaccastudymaterial.com ACCA APPROVED CONTENT PROVIDER co m As the first accredited publisher of ACCA materials, BPP Learning Media has set the benchmark for producing exceptional study materials for students and tutors alike Our Study Texts, Practice & Revision Kits and i-Passes (for ACCA F1/FIA FAB, ACCA F2/FIA FMA, ACCA F3/ FIA FFA and ACCA F4) are reviewed by the ACCA examining team and are written by our in-house authors with industry and teaching experience who understand what is required for exam success ial ter To help maximise your chances of succeeding in your exams, we’ve put together a suite of exclusive ACCA resources Our Exam Success site provides you with access to a free digital version of this publication, as well as extra resources designed to focus your efforts on exams and study methods ym a To access the Exam Success site, please email learningmedia@bpp.com with the subject line “Access to Exam Success site - eBook”, including your order reference number and the name of the book you’ve bought (ie ACCA F7 Study Text) for your access code Once you have received your code, please follow the instructions below: To access the BPP ACCA Exam Success site for this material please go to: tud www.bpp.com/ExamSuccessSite n Create a user account if you don’t already have one Make sure you reply to the confirmation email as n Log in using your registered username and password Select the paper you wish to access n Enter the code you received when prompted You will only fre ea cc have to this once for each paper you are studying join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com EXAM SUCCESS SITE ial ter PAPER P1 tud ym a GOVERNANCE, RISK AND ETHICS as BPP Learning Media is an ACCA Approved Content Provider for the ACCA qualification This means we work closely with ACCA to ensure our products fully prepare you for your ACCA exams In this Practice and Revision Kit, which has been reviewed by the ACCA examination team, we: Discuss the best strategies for revising and taking your ACCA exams  Ensure you are well prepared for your exam  Provide you with lots of great guidance on tackling questions  Provide you with three mock exams  Provide the ACCA exam answers as well as our own for selected questions ea cc  fre Our Passcard product also supports this paper FOR EXAMS FROM SEPTEMBER 2015 TO 31 AUGUST 2016 join us on facebook @ fb.com/freeaccastudymaterial P R A C T I C E & R E V I S I O N K I T To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com ial ter First edition 2007 Ninth edition April 2015 ISBN 9781 4727 2692 e-ISBN 9781 4727 2744 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library www.bpp.com/learningmedia We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions The suggested solutions in the practice answer bank have been prepared by BPP Learning Media Ltd, except where otherwise stated © BPP Learning Media Ltd 2015 fre ea cc Printed in the United Kingdom by as BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA Ricoh UK Limited Unit Wells Place Merstham RH1 3LG All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of BPP Learning Media Ltd tud Published by ym a (previous ISBN 9781 4727 1107 6) Your learning materials, published by BPP Learning Media Ltd, are printed on paper obtained from traceable, sustainable sources ii join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com To download more visit http://freeaccastudymaterial.com Contents Page Finding questions co m Question index v Topic index viii Helping you with your revision xi Revising P1 ial To download more visit http://freeaccastudymaterial.com Topics to revise xii Reading articles xii Question practice xii Passing the P1 exam xiii Exam information xx Useful websites xxii ter Questions and answers Questions Answers 75 ym a Exam practice Mock exam  Questions 337  Plan of attack .343  Answers .345 tud Mock exam  Questions 363  Plan of attack .369  Answers .371 as Mock exam (December 2014)  Questions 387  Plan of attack .395  Answers .397 fre ea Review form cc ACCA's exam answers  June 2014 413  December 2014 425 iii join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com A note about copyright Dear Customer What does the little © mean and why does it matter? co m Your market-leading BPP books, course materials and e-learning materials not write and update themselves People write them: on their own behalf or as employees of an organisation that invests in this activity Copyright law protects their livelihoods It does so by creating rights over the use of the content Breach of copyright is a form of theft – as well as being a criminal offence in some jurisdictions, it is potentially a serious breach of professional ethics With current technology, things might seem a bit hazy but, basically, without the express permission of BPP Learning Media:  Scanning, ripcasting or conversion of our digital materials into different file formats, uploading them to Facebook or emailing them to your friends is a breach of copyright ial Photocopying our materials is a breach of copyright ter You can, of course, sell your books, in the form in which you have bought them – once you have finished with them (Is this fair to your fellow students? We update for a reason.) Please note the e-products are sold on a single user licence basis: we not supply 'unlock' codes to people who have bought them second-hand fre ea cc as tud ym a And what about outside the UK? BPP Learning Media strives to make our materials available at prices students can afford by local printing arrangements, pricing policies and partnerships which are clearly listed on our website A tiny minority ignore this and indulge in criminal activity by illegally photocopying our material or supporting organisations that If they act illegally and unethically in one area, can you really trust them? iv join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com  To download more visit http://freeaccastudymaterial.com Question index The headings in this checklist/index indicate the main topics of questions, but questions are expected to cover several different topics Time Page number Ins Marks allocation Question Answer Mins 25 MegaMart 25 PKG High School 25 LL 25 Sentosa House (Examiner question) 25 Frank Finn (Pilot paper) 25 Seamus O'Brien (12/07) 25 West vs Leroi (6/08) 25 TQ (6/09) 25 45 75 45 77 45 80 45 83 45 85 45 88 45 91 45 95 45 97 25 ial Taraton Area Council 45 101 25 45 10 104 25 45 11 107 25 45 12 110 25 45 12 113 25 45 13 116 25 45 14 119 25 45 14 122 25 45 15 125 25 45 16 128 25 45 16 131 25 45 17 134 25 45 17 136 25 45 18 139 25 45 19 141 25 45 19 143 26 Southern Continents (12/07 amended) 25 45 20 146 27 H & Z (6/09) 25 45 21 149 25 45 21 153 25 45 22 156 30 Dubland (6/13) 25 45 23 159 31 PNY 25 45 23 162 25 45 24 165 33 Gluck and Goodman (12/08) 25 45 25 168 34 Saltoc (12/09) 25 45 25 171 35 COSO (6/10) 25 45 26 174 36 Yaya (12/12) 25 45 27 176 37 Blup (6/13) 25 45 27 179 38 Bob Wong (6/14) 25 45 28 182 ter 10 Sam Mesentery (12/09) 11 Tomato Bank (6/10) 12 KK (12/10) 13 HHO (6/11) ym a 14 Geeland (12/11) 15 Dale Gas (12/11) 16 Lum (6/12) 17 Oland (12/12) 18 Boom (6/13) 20 Help-with-life (12/13) Part B: Internal control and risk 21 Gogone as 22 Doctors' practice 23 Ceedee 24 Cerberus cc 25 B Bank ea 28 YGT (6/11) 29 Zogs (6/12) tud 19 Sarbanes-Oxley (12/13) fre 32 Franks & Fisher (Examiner question) To download more visit http://freeaccastudymaterial.com co m Part A: Governance and responsibility v join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com Time Page number Marks allocation Mins Question Answer 39 Crawley Gossop 25 45 29 184 40 Environmental and social issues 25 45 29 187 41 Edted 25 45 30 189 42 CDC 25 43 Practice question: David Hunter 25 44 Penrice 25 45 JH Graphics (Examiner question) 25 46 Football club (12/07) 25 47 Anne Hayes (6/08) 25 48 Hogg Products (12/08) 25 co m In 49 Policy speech (6/09) 25 50 John Wang (12/09) 25 51 Happy and healthy (6/10) 25 52 JGP (12/10) 25 30 192 45 31 195 45 32 197 45 32 199 45 33 202 45 34 205 45 34 208 45 35 212 45 36 214 45 36 217 37 220 45 38 222 25 45 39 225 25 45 39 228 25 45 40 231 25 45 41 234 25 45 41 237 25 45 42 239 50 90 43 241 50 90 44 246 50 90 46 251 50 90 47 256 50 90 48 262 50 90 50 267 50 90 51 273 50 90 53 278 50 90 54 283 50 90 57 288 50 ter 45 25 54 Biggo (12/11) ym a 55 Jojo (6/12) 56 RDC (12/12) 57 Lobo (12/13) 58 Hum and Hoo (06/14) 59 Mahmood (06/14) 60 Wilberforce Humphries 61 Integrated Broadcasting Organisation 63 Worldwide Minerals (12/07) 64 Rowlands and Medeleev (6/08) 65 Swan Hill (12/08) 67 Mary Jane (12/09) 68 Hesket Nuclear (6/10) 69 ZPT (12/10) cc 66 Global-bank (6/09) as 62 Chemco (Pilot paper) tud Section A questions 59 295 50 90 60 300 72 Hayho (6/12) 50 90 62 306 50 90 64 312 74 Hoppo (6/13) 50 90 66 316 75 Wyland (12/13) 50 90 68 321 76 World Justice (06/14) 50 90 70 327 fre 73 P & J (12/12) ea 90 71 Coastal Oil (12/11) vi join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com 53 Ann Koo (6/11) 70 Bobo (6/11) 45 ial Part C: Professional values and ethics To download more visit http://freeaccastudymaterial.com Mock exam Mock exam fre ea cc as tud ym a ter ial To download more visit http://freeaccastudymaterial.com co m Mock exam (December 2014) vii join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com Topic index Listed below are the key Paper P1 syllabus topics and the numbers of the questions in this Kit covering those topics If you need to concentrate your practice and revision on certain topics or if you want to attempt all available questions that refer to a particular subject, you will find this index useful Absolutist approach 47(c), 69(b) Accountability 1(c), 7(b), 17(c), 65(d), 72(d), Mock Q1 Accountancy as a profession Mock Q2(c) Agency 2, 3(d), 5(a), 19, 66(c), 68(c), 72(d), Mock Q2(a) ALARP 21(b), 23(b), 71(c) American Accounting Association model 43(a), 67(a), 72(b) Audit committee 1(a), 13(c), 33(c), 37(b), Mock Q4(b) Board of directors 2, 3, 4(c), 7, 10(b), 16, 17(c), 24, 61(b), 62, 67, 67(d), Mock Q4 Bribery and corruption 42 Chairman 7, 9, 10(c), 14(b) Charities 13 Chief executive 7, 9(a), 14(b), 15(a), 66(e), 70(d), Mock Q3 ym a ter ial co m Question numbers Conflicts of interest 6, 12(a), 60(a), Mock Q3 Confidentiality 64(d), 65, 67(a) Continuing professional development 16(b), Mock Q4 Control environment Mock Q1(a) 41(a), 60(c), Mock Q1 tud Corporate citizen Corporate ethical codes 45, 48, 61(d), 71(a) 1-18, 24, 51(a), 61-63, 69, 76, Mock Q1, Mock Q4, Mock Q1, Mock Q2 Corporate governance codes Corporate governance concepts Directors' remuneration cc Deontological approach as Corporate governance 5(d), 7(c), 18(a) 17(c), 60(b) 48(c), 61(c), 74(d), Mock Q3(c) 2, 6, 9(c), 11, 15(a), 18(b), 25(a), 26(c), Mock Q1(d) 9(a) Diversity 20, 60(e) ea Directors' vacation of office 47, Mock Q2(c) Entrepreneurial risk 27(c) Environmental auditing 44(b), 52(b), 58 Environmental issues 39-42, 44, 52, 62(e), 64(d), 68(d), 71, Mock Q1 Environmental management systems 39(a), 41(b) Environmental reporting 39, 40, 42(c), 44(a), 58, 62(e), 71(b), 74(b), Mock Q1(c) fre Employee responsibilities viii join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com Syllabus topic fre ea cc as tud ym a ter ial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com Notes join us on facebook @ fb.com/freeaccastudymaterial ial ter ym a tud as cc ea fre Notes join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com fre ea cc as tud ym a ter ial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com Notes join us on facebook @ fb.com/freeaccastudymaterial ial ter ym a tud as cc ea fre Notes join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com fre ea cc as tud ym a ter ial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com Notes join us on facebook @ fb.com/freeaccastudymaterial ial ter ym a tud as cc ea fre Notes join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com fre ea cc as tud ym a ter ial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com Notes join us on facebook @ fb.com/freeaccastudymaterial ial ter ym a tud as cc ea fre Notes join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com fre ea cc as tud ym a ter ial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com Notes join us on facebook @ fb.com/freeaccastudymaterial ial ter ym a tud as cc ea fre Notes join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com fre ea cc as tud ym a ter ial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com Notes join us on facebook @ fb.com/freeaccastudymaterial ial ter ym a tud as cc ea fre Notes join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com To download more visit http://freeaccastudymaterial.com Review Form – Paper P1 Governance, Risk and Ethics (04/15) Name: Address: How have you used this Kit? (Tick one box only) During the past six months you recall seeing/receiving any of the following? (Tick as many boxes as are relevant) co m Home study (book only) On a course: college Our advertisement in Student Accountant With 'correspondence' package Our advertisement in Pass Other Our advertisement in PQ Our brochure with a letter through the post Why did you decide to purchase this Kit? (Tick one box only) Our website www.bpp.com ial Have used other BPP products in the past Recommendation by friend/colleague Prices and publication dates of new editions Information on product content Saw advertising Facility to order books off-the-page Other None of the above Which BPP products have you used? Text Passcards Kit i-Pass ym a ter Recommendation by a lecturer at college Home Study Package Your ratings, comments and suggestions would be appreciated on the following areas Questions Top Tips etc in answers Mock exam answers cc Overall opinion of this Kit as Content and structure of answers Very useful Useful Not useful Good Adequate Poor Yes No tud Passing P1 Excellent Do you intend to continue using BPP products? The BPP author of this edition can be emailed at: accaqueries@bpp.com fre ea Please return this form to: Head of ACCA & FIA Programmes, BPP Learning Media Ltd, FREEPOST, London, W12 8AA join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com Which (if any) aspects of our advertising you find useful? (Tick as many boxes as are relevant) Have used the complementary Study text To download more visit http://freeaccastudymaterial.com Review Form (continued) TELL US WHAT YOU THINK ial ter ym a tud as cc ea fre join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com co m Please note any further comments and suggestions/errors below ial ter ym a as tud http://freeaccastudymaterial.com fre ea cc fb.com/freeaccastudymaterial join us on facebook @ fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com co m To download more visit http://freeaccastudymaterial.com ... fb.com/freeaccastudymaterial To download more visit http://freeaccastudymaterial.com EXAM SUCCESS SITE ial ter PAPER P1 tud ym a GOVERNANCE, RISK AND ETHICS as BPP Learning Media is an ACCA Approved. .. students and tutors alike Our Study Texts, Practice & Revision Kits and i-Passes (for ACCA F1/FIA FAB, ACCA F2/FIA FMA, ACCA F3/ FIA FFA and ACCA F4) are reviewed by the ACCA examining team and are... ial 1c 1a,c ter 2b J09 1d IDENTIFYING AND ASSESSING RISK Risk and the risk management process Risk categories fre 5, 7, ea 5, Risk identification, measurement and assessment 1c 2a 1a 2b 1d 3c 4b