REGULATORY ENVIRONMENT AND CORPORATE GOVERNANCE

Question 1

What is General Accepted Accounting Principles (GAAP)?

Answer 1

GAAP signifies the rules which govern accounting to particular entity. It is a combination of :
- Company law
- Accounting standards (IFRS & IAS)
- Stock exchange requirements

Question 2

What are the 5 threats against Cima’s fundamental principles ?

Answer 2

1.) Self-interest
2.) Self-review
3.) Advocacy
4.) Familiarity
5.) Intimidation