Q & A

Questions & Answers

Question 1
Negligence can be defined as:
1) behaviour or inaction of the defendant
2) oral or written communication of a false statement about another that unjustly harms
their reputation and usually constitutes a tort or crime
3) involved increasingly diligent constant activity
4) Doing or not doing what a reasonable person would or would not do

Question 2
In performing an engagement, some of the procedures does not include planning
1) True
2) False

Question 3
Close Corporations Act, 26 of 1988, Section 59 : Appointing of Accounting Officers, may
include which of the following:
a) Every corporation shall, subject to section 60, appoint an accounting officer who has
in writing consented thereto.
b) The appointment of the first accounting officer of a corporation referred to in section
12(g)(i) shall take not effect on the date of the registration of the corporation.
c) If a vacancy occurs in the office of an accounting officer, whether as a result of
removal, resignation or otherwise, the corporation shall within 90 days appoint
another accounting officer.
d) Notification in writing to the Registrar are not a requirement in terms of this Act.
1) 1 & 3
2) 1 & 2
3) Only 3
4) All of the above

Question 4
According to IFAC code of conduct for professional accountants, professional
accountants should adhere to the following:
A professional accountant should be straightforward and honest in all professional and
business relationships. A professional accountant should not allow bias, conflict of
interest or undue influence of others to override professional or business judgments.
1) True
2) False

Question 5
What acceptable reporting accounting framework is used in Namibia?
a) NAC001
b) IFRS for SME
c) IFRS
1) Only IFRS
2) NAC001 –
3) All of the above are acceptable reporting frameworks in Namibia

Question 6
Association Not for Gain, Section 21 Associations – are governed under which of the
following Act?
1) Close Corporations Act 26, of 1988
2) Companies Act 28, of 2004

Question 7
If an Accountant should decide to accept client take-on, what following information
should be included in the engagement letter?
a) Rights of the accounting officer (unlimited access)
b) Effect of reportable irregularities (if review)
c) Reproduction of report
d) Preparation of schedules
e) Working papers
f) File inspection
g) Permission to provide info to regulators on request and fee
h) Conditions that will cause a delay (“without just cause”)
i) Governing legislation
j) Dispute resolution
k) Indemnity and limited liability
l) Fees

1) All of the above
2) b, e, h, j
3) Only e

Question 8
Leadership, responsibilities for quality within the firm requires which of the following:
1) To provide guidance on the fundamental principles which define professional ethics
2) To describe the firm’s responsibilities to promote an internal culture focused on
quality
3) To provide guidance on the monitoring of the firm’s policies and procedures relating
to the systems of quality control,
4) To provide guidance on the firm’s requirements for documentation, both at the
engagement level and for the firm’s quality control
Question 9
The SAIBA Guide for Accounting Officer Engagements based on ISRS4400, includes
which of the following factual findings:
a) Ethics
b) Quality management
c) Acceptance
d) Documentation
e) Performance
f) Reporting

1) b, c, e & f
2) a, c, d & f
3) All of the above
4) None of the above

Question 10
In terms of the Companies Act 28, of 2004 – which of the following statements are true?
a) The Act does not require the appointment of an accountant
b) The Act does not specify rights and duties for accountants
c) However, the Act does allocate liability under certain circumstances to the person that
performs accounting functions
d) The Act does require the appointment of Auditor
e) The Act provides for independence requirements of auditors and auditors subject to
IFAC Code of Ethics
f) The Act does not require ICAN Standards but fair presentation

1) b, d, e & f
2) None of the above
3) Only d
4) All of the above