RSA Module 4 Test

Test Summary

0 of 23 Questions completed

Questions:

You have already completed the test before. Hence you can not start it again.

Test is loading…

You must sign in or sign up to start the test.

You must first complete the following:

Results

Test complete. Results are being recorded.

Results

0 of 23 Questions answered correctly

Your time:

You have reached 0 of 0 point(s), (0)

Current
Review
Answered
Correct
Incorrect

Question 1 of 23

1. Question

SECTION 13.0 AUDITING REQUIREMENTS

13.1 Is the following statement true?

It is a legal requirement in terms of the relevant legislation for every organisation to appoint an auditor, which may be an individual or a firm of auditors.

Yes

No
Question 2 of 23

2. Question

13.2 Which of the following statements is incorrect?

Every organisation must calculate its ‘public interest score’ at the end of each financial year.

If an auditor is appointed by the organisation they should be independent and not have business interests in, or dealings with the organisation that would influence their function.

The primary role of the auditor is to report on whether the organisations financial results fairly present the financial position, results and cash flow in all material respects.

The governing body members have no role to play in the work of the Auditors.

The auditors have rights to access the books of account and to be heard at any general meeting of the organisation.
Question 3 of 23

3. Question

13.3 Which of the following statements is correct?

The relevant legislation requires that organisation keep such accounting records as are necessary to fairly present the state of affairs of the business, which include:

The assets and liabilities of the organisation.

The income and expenditure of the organisation.

Explanations of the transactions and financial position of the business of the organisation.

The date of the production of the accounting records and the accounting period.

Records of all purchases made and where applicable, of goods or services sold.

All of the above.
Question 4 of 23

4. Question

13.4 Is the following statement true?

Although it is the organisations duty to keep these records, the governing body members are responsible for ensuring that they are being kept and they should be open at all times to inspection by any governing body member.

Yes

No
Question 5 of 23

5. Question

13.5 Which of the following statements is incorrect?

The annual financial statements comprise the following of the organisation:

A balance sheet.

An income statement.

State of Affairs and the business.

A Manager’s report.

A governing body report.

An Auditor’s report, if the statements are audited.
Question 6 of 23

6. Question

13.6 Is the following statement true?

The governing body members are responsible for the preparation and presentation of the annual financial statements.

Yes

No
Question 7 of 23

7. Question

13.7 Which of the following statements is correct?

It is the duty of the Auditor, where applicable, to examine the annual Financial Statements to be laid before an AGM or GM to satisfy themselves that:

Proper accounting records required by the Act have been kept.

The minute books and attendance registers for Company meetings have been kept.

A register of interest in contracts has been kept.

That the Financial Statements are in agreement with its accounting records and returns.

Statements made by the Governing body members do not conflict with fair interpretation, or distort the meaning of the Financial Statements and accompanying notes.

To satisfy themselves that the Company complies with all the relevant sections of the Act covering the duties of the Auditor.

All of the above
Question 8 of 23

8. Question

13.8 Which of the following statements is correct?

The Non-Profit organisation may appoint the following person as an auditor:

A governing body member of the organisation.

A prescribed officer of the organisation.

An employee of the person appointed as the company secretary of the organisation.

A registered auditor which is independent from the organisation.

An employee or consultant of the organisation who was or has been engaged for more than one year in the maintenance of the organisations financial records.
Question 9 of 23

9. Question

SECTION 14.0 LEGAL AND STATUTORY REQUIREMENTS

14.1 Is the following statement true?

The legal and statutory requirements that apply to the work of governing body members are both extensive and onerous and those accepting appointments to positions on governing bodies should be fully cognizant of their implications.

Yes

No
Question 10 of 23

10. Question

14.2 Which of the following has the most bearing on the governance of non-profit companies?

The Public Finance Management Act.

The Insolvency Act.

The Companies Act.

The Public Accountants and Auditors Act.

The Basic Conditions of Employment Act.
Question 11 of 23

11. Question

14.3 Which of the following statements is incorrect?

Governing body members can be held liable if they do not comply with the standard of conduct required in terms of the relevant Act.

Governing body members liability may be incurred from failure by them to comply with the provisions of the relevant legislation.

Governing body members share equal responsibility whether they are executive or non-executive and regardless of any specific duties.

Failure by governing body members to fulfill their duties may present grounds for their removal.

Non-executive governing body members have the same legal rights as employees of the organisation.

Managing recklessly, negligently or fraudulently may leave governing body members open to civil and, in some instances, criminal proceedings.
Question 12 of 23

12. Question

14.4 Which of the following statements is correct?

If the organisation becomes insolvent, the Insolvency Act imposes various duties and requirements on governing body members to protect the interest of creditors.

Governing body members must take all appropriate steps to minimise the creditors potential losses.

Breach of provisions of the Insolvency Act may involve governing body members in personal liability, and/or criminal prosecution.

If governing body members are unaware that insolvency of the organisation is inevitable they cannot be held liable.

Losses eventually incurred by creditors are part of normal business risk.

All of the above.

Only (a), (b) and (c).
Question 13 of 23

13. Question

14.5 Is the following statement true?

A non-profit organisation cannot exempt its governing body members from liability, whether express or implied, to the extent that it would relieve a governing body member from breaching its fiduciary duty and the standard of conduct as contemplated in the relevant legislation.

Yes

No
Question 14 of 23

14. Question

14.6 Which of the following persons cannot become governing body members of a Non-Profit organisations?

A juristic person.

An unemancipated minor.

A person who has been removed from office of trust on the grounds of misconduct involving dishonesty.

An unrehabilitated insolvent.

A person declared a delinquent in terms of the Close Corporations Act.

All of the above.
Question 15 of 23

15. Question

14.7 Is the following statement true?

Every organisation is required to file a notice within 10 business days after someone becomes or ceases to be a governing body member of the organisation.

Yes

No
Question 16 of 23

16. Question

SECTION 15.0 CODE OF CONDUCT AND ETHICS

15.1 Which of the following statements is incorrect?

Economic and commercial endeavours cannot be pursued without certain moral and ethical limitations that protect the rights of all members of society.

In the business world ethical behaviour is conventionally defined as honouring the unwritten moral rule of not causing harm to others through unfair and uncompetitive practices.

Business ethics is therefore the study of what constitutes right or wrong or good or bad human conduct in a business context.

There is no right or wrong in business dealings and every act must be seen according to its merits.

The purpose of a organisations code of conduct is to clearly and expressly state the organisation’s position and therefore the obligations of its members, governing body members, managers and employees.
Question 17 of 23

17. Question

15.2 Is the following statement true?

The Institute of Directors in Southern Africa states that, “It is the responsibility of the governing body members to determine the moral and ethical climate of the business”.

Yes

No
Question 18 of 23

18. Question

15.3 Which of the following statements is correct?

The requirements that refer to moral behaviours in business can be described as a code of conduct.

By their business practice, shared values and applied ethics, the governing body members of an organisation set the moral standard and culture of an organisation.

Only those values seen consistently at work over time can be regarded as the shared values of an organisation.

It is important that the code of conduct adopted by the Board be well communicated at an early stage in the operation and management of the Company.

All of the above.

Only (a) and (b).
Question 19 of 23

19. Question

15.4 Is the following statement true?

A code of conduct is not a set of business processes or procedures, but refers to a set of expected behaviours from all people that the organisation values above other ways of doing things.

Yes

No
Question 20 of 23

20. Question

15. 5 Which of the following statements is incorrect?

The code must be made available to everyone in the Organisation.

It must include the respect of political, religious, ethnic and other attributes of diverseness that will be encountered within the Organisation.

All people must fulfil their obligations in such a manner as to conduct business effectively without causing unfair or illegitimate harm to other parties.

Provided the organisation condones the behaviours, people in the firm may act as they wish

Both the spirit and the letter of agreements with suppliers of goods and services should be honoured.
Question 21 of 23

21. Question

15.6 Is the following statement true?

The organisation must create such a transparency about the business and its management that information on its performance and conduct can be presented by any stakeholder without fear of reprisal.

Yes

No
Question 22 of 23

22. Question

15.7 Which of the following statements is correct?

Everyone must strive to reduce inefficiencies and the wastage or abuse of the organisations resources

The assets of creditors must not be placed at risk.

The assets of the organisation may not be used for personal benefit or for uses not authorised by the Board.

Not to engage in or to sanction any bribery and to immediately disclose such acts as may become known.

All of the above.
Question 23 of 23

23. Question

15.8 Is the following statement true?

A code of conduct must require that everyone in the organisation deal courteously with all stakeholders, having due respect for cultural sensitivities, different business methods and individual dignity.

Yes

No

Test Summary

Information

Results

Results

Categories

1. Question

SECTION 13.0 AUDITING REQUIREMENTS

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

SECTION 14.0 LEGAL AND STATUTORY REQUIREMENTS

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

SECTION 15.0 CODE OF CONDUCT AND ETHICS

17. Question

18. Question

19. Question

20. Question

21. Question

22. Question

23. Question