X was influenced by G Co's audit report and dividend declaration, and decided to invest in the securities of the company. What should X be cautious about before investing in the shares of the company?
X should be aware that

• A.a declaration of dividend is the ultimate measure of a company's profitability.
• B.the auditor's report refers to the company's prior year financials.
• C.the declaration of dividends assures high earnings per share.
• D.the auditor's report is influenced by the directors.

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Which one of the following statements regarding the IASB's Conceptual Framework for Financial Reporting is correct?

• A.It specifies the concepts that underlie the preparation and presentation of general purpose financial statements.
• B.It specifies the concepts that underlie the preparation and presentation of only consolidated financial statements.
• C.It specifies the concepts that underlie the preparation and presentation of special purpose financial statements.
• D.It overrides any local or international accounting standard.

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Which one of the following examples would not represent an agency cost?

• A.the cost of preparing a cost-benefit report for a new project
• B.the cost of preparing a financial report for shareholders
• C.the cost of employing an internal auditor
• D.the cost of engaging an external auditor

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The body that is part of the international standard-setting framework reporting to the International Financial Reporting Standards Foundation (IFRS Foundation) is the

• A.International Accounting Standards Committee.
• B.Centre on Transnational Corporations.
• C.International Accounting Standards Board.
• D.International Accounting Board.

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Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

• A.The interpretation of financial reporting standards by anybody would be easy.
• B.The financial statements based on these standards would be error-free.
• C.A financial reporting environment based on standardised principles would be created.
• D.The interpretation of non-financial information is made easier.

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