ACCA AK Business & Technology 4 — Questions and Answers
Question 1: Which of the following best describes 'professional scepticism' in the context of accountancy?
- Refusing to accept any information provided by management
- Maintaining a questioning mind and critically assessing evidence (Correct answer)
- Assuming all management representations are false
- Avoiding difficult conversations with clients
Correct answer: Maintaining a questioning mind and critically assessing evidence
Professional scepticism means having a questioning mind, being alert to conditions that may indicate misstatement, and critically evaluating audit evidence.
Question 2: A SWOT analysis examines:
- Strategy, Workflow, Operations and Tactics
- Strengths, Weaknesses, Opportunities and Threats (Correct answer)
- Sales, Wages, Overheads and Tax
- Systems, Workers, Objectives and Targets
Correct answer: Strengths, Weaknesses, Opportunities and Threats
SWOT analysis is a strategic planning tool assessing internal Strengths and Weaknesses, and external Opportunities and Threats facing an organisation.
Question 3: Which of the following is an example of an 'autocratic' leadership style?
- The leader consults widely before making decisions
- The leader delegates most decisions to team members
- The leader makes decisions alone without consulting others (Correct answer)
- The leader facilitates group consensus on all matters
Correct answer: The leader makes decisions alone without consulting others
Autocratic leaders make decisions unilaterally without consulting subordinates, retaining tight control. This can be efficient in crises but may reduce motivation.
Question 4: The primary objective of a private sector company is generally considered to be:
- Maximising employee welfare
- Maximising shareholder wealth (Correct answer)
- Minimising tax liabilities
- Achieving the largest market share
Correct answer: Maximising shareholder wealth
In traditional financial theory, the primary objective of a company is to maximise shareholder wealth (value), though this must be balanced with stakeholder and ethical considerations.
Question 5: Which of the following correctly describes 'delegation'?
- Transferring legal ownership of a task to another person
- Assigning responsibility and authority for a task to a subordinate while retaining accountability (Correct answer)
- Removing a manager from their role
- Outsourcing work to an external contractor
Correct answer: Assigning responsibility and authority for a task to a subordinate while retaining accountability
Delegation means giving a subordinate the authority and responsibility to carry out a task, though the delegating manager remains ultimately accountable for the outcome.
Question 6: Tuckman's model of team development lists stages in which order?
- Forming, Norming, Storming, Performing
- Forming, Storming, Norming, Performing (Correct answer)
- Storming, Forming, Norming, Performing
- Norming, Forming, Storming, Performing
Correct answer: Forming, Storming, Norming, Performing
Tuckman identified four stages: Forming (orientation), Storming (conflict), Norming (cohesion), Performing (productive work), later adding Adjourning.
ACCA AK Business & Technology 4
Which of the following best describes 'professional scepticism' in the context of accountancy?