ACCA P1 – June 2014

(historical experience and crystal ball used by Radka –> accepts no liability :-)

Areas of focus – June 2014

Stakeholders (ch. 7 - e.g. normative vs. instrumental view, categories of stakeholders)

Reporting / Disclosure (& relations with shareholders) – can relate to various areas, e.g. controls,
risks, governance, ...
External audit + Independence (ch. 9 + article on independence)
Ethical theories (ch. 12 –Kohlberg, 7 positions by Gray, Owen & Adams)
Transaction cost theory (ch. 1 - not examined before)
Internal controls (Turnbull – sound system, COSO – effective IC, roles & responsibilities, reporting),
Enterprise risk management (article Apr13)
Environmental issues (ch. 15 - envir. accounting and/or management systems -TBL, Full cost
accounting, EMAS; footprints, sustainability, reporting)
Directors’ service contract

Frequently examined areas:

Underlying principles (key concepts) of CG

Board of directors (ch. 3 – anything from this chapter can come up – maybe chairman)
Professional ethics, corporate ethics
Approaches to corporate governance – rules vs. principles
Risk management (any topic – ch. 11 or ch. 10)
CG in non-corporate organisations (article Oct10)

Other topics not examined before:

stages and factors of ethical decision-making (ch. 14)

performance evaluation of committees and whole board

+ anything else can come up as the examiner tends to repeat some topics in subsequent sittings
and always has a wide coverage of syllabus in every exam

Note: real cases are used as basis for scenarios – watch for recent significant events (e.g. some
question on environmental issues / risks & controls / ethics could be inspired by Fukushima
accident). Other stories: Icelandic volcano eruption (impact on air travel), Arab spring, Chile miners
rescue, Concordia accident...