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D has contracted to purchase a number of tins of fruit for her business but the seller has now stated that he no longer wishes to proceed with the contract.

E has contracted to sing at a concert organized by F, but E has withdrawn as he has received a more lucrative offer from G.

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Question 2

Which of the following is CORRECT in relation to the Sarbanes-Oxley Act passed in the United States of America in 2002?

i. The Act sought to protect investors by improving the accuracy of corporate disclosure and reporting procedures and increasing corporate openness.

ii. The Sarbanes-Oxley Act 2002 was passed in response to the high-profile Enron and WorldCom financial scandals.

iii. The Act provides that all auditors of public companies must register with the Public Company Accounting Oversight Board.

Options:

(i) and (ii) only

(i) and (iii) only

(ii) and (iii) only

(i), (ii) and (iii)

Question 3

An auditor would trace copies of sales invoices lo shipping documents in order to check for which of the following errors?

Options:

Goods which have been invoiced have not been sent to customers

Goods which were sent to customers have not been recorded in the individual customer's ledger account

Goods which have been invoiced have not been recorded in the sales ledger.

Goods sent to customers have not been invoiced

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