湖北省考生：ACCA国际会计师报考条件中,具有高等专科以上学校毕业学历是什么意思?

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(b) It would appear that JOL’s market share has declined from 30% to (80 – 26)/3 = 18% during the last three years. A 12%
fall in market share is probably very significant with a knock-on effect on profits and resultant cash flows. Obviously such a
declining trend needs to be arrested immediately and this will require a detailed investigation to be undertaken by the directors
of JOL. Consequently loss of market share can be seen to be an indicator of potential corporate failure. Other indicators of
corporate failure are as follows:
Six performance indicators that an organisation might fail are as follows:
Poor cash flow
Poor cash flow might render an organisation unable to pay its debts as and when they fall due for payment. This might mean,
for example, that providers of finance might be able to invoke the terms of a loan covenant and commence legal action against
an organisation which might eventually lead to its winding-up.
Lack of new production/service introduction
Innovation can often be seen to be the difference between ‘life and death’ as new products and services provide continuity
of income streams in an ever-changing business environment. A lack of new product/service introduction may arise from a
shortage of funds available for re-investment. This can lead to organisations attempting to compete with their competitors with
an out of date range of products and services, the consequences of which will invariably turn out to be disastrous.
General economic conditions
Falling demand and increasing interest rates can precipitate the demise of organisations. Highly geared organisations will
suffer as demand falls and the weight of the interest burden increases. Organisations can find themselves in a vicious circle
as increasing amounts of interest payable are paid from diminishing gross margins leading to falling profits/increasing losses
and negative cash flows. This leads to the need for further loan finance and even higher interest burden, further diminution
in margins and so on.
Lack of financial controls
The absence of sound financial controls has proven costly to many organisations. In extreme circumstances it can lead to
outright fraud (e.g. Enron and WorldCom).
Internal rivalry
The extent of internal rivalry that exists within an organisation can prove to be of critical significance to an organisation as
managerial effort is effectively channeled into increasing the amount of internal conflict that exists to the detriment of the
organisation as a whole. Unfortunately the adverse consequences of internal rivalry remain latent until it is too late to redress
them.
Loss of key personnel
In certain types of organisation the loss of key personnel can ‘spell the beginning of the end’ for an organisation. This is
particularly the case when individuals possess knowledge which can be exploited by direct competitors, e.g. sales contacts,
product specifications, product recipes, etc.

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正确答案：
(c) A joint audit is when two or more audit firms are jointly responsible for giving the audit opinion. This is very common in a
group situation where the principal auditor is appointed jointly with the auditor of a subsidiary to provide a joint opinion on
the subsidiary’s financial statements. There are several advantages and disadvantages in a joint audit being performed.
Advantages
It can be beneficial in terms of audit efficiency for a joint audit to be conducted, especially in the case of a new subsidiary.
In this case, Lead & Co will have built up an understanding of Maxwell Co’s business, systems and controls, and financial
statement issues. It will be time efficient for the two firms of auditors to work together in order for Chien & Co to build up
knowledge of the new subsidiary. This is a key issue, as Chien & Co need to acquire a thorough understanding of the
subsidiary in order to assess any risks inherent in the company which could impact on the overall assessment of risk within
the group. Lead & Co will be able to provide a good insight into the company, and advise Chien & Co of the key risk areas
they have previously identified.
On the practical side, it seems that Maxwell Co is a significant addition to the group, as it is expected to increase operating
facilities by 40%. If Chien & Co were appointed as sole auditors to Maxwell Co it may be difficult for the audit firm to provide
adequate resources to conduct the audit at the same time as auditing the other group companies. A joint audit will allow
sufficient resources to be allocated to the audit of Maxwell Co, assuring the quality of the opinion provided.
If there is a tight deadline, as is common with the audit of subsidiaries, which should be completed before the group audit
commences, then having access to two firms’ resources should enable the audit to be completed in good time.
The audit should also benefit from an improvement in quality. The two audit firms may have different points of view, and
would be able to discuss contentious issues throughout the audit process. In particular, the newly appointed audit team will
have a ‘fresh pair of eyes’ and be able to offer new insight to matters identified. It should be easier to challenge management
and therefore ensure that the auditors’ position is taken seriously.
Tutorial note: Candidates may have referred to the recent debate over whether joint audits increase competition in the
profession. In particular, joint audits have been proposed as a way for ‘mid tier’ audit firms to break into the market of
auditing large companies and groups, which at the moment is monopolised by the ‘Big 4’. Although this does not answer
the specific question set, credit will be awarded for demonstration of awareness of this topical issue.
Disadvantages
For the client, it is likely to be more expensive to engage two audit firms than to have the audit opinion provided by one firm.
From a cost/benefit point of view there is clearly no point in paying twice for one opinion to be provided. Despite the audit
workload being shared, both firms will have a high cost for being involved in the audit in terms of senior manager and partner
time. These costs will be passed on to the client within the audit fee.
The two audit firms may use very different audit approaches and terminology. This could make it difficult for the audit firms
to work closely together, negating some of the efficiency and cost benefits discussed above. Problems could arise in deciding
which firm’s method to use, for example, to calculate materiality, design and pick samples for audit procedures, or evaluate
controls within the accounting system. It may be impossible to reconcile two different methods and one firm’s methods may
end up dominating the audit process, which then eliminates the benefit of a joint audit being conducted. It could be time
consuming to develop a ‘joint’ audit approach, based on elements of each of the two firms’ methodologies, time which
obviously would not have been spent if a single firm was providing the audit.
There may be problems for the two audit firms to work together harmoniously. Lead & Co may feel that ultimately they will
be replaced by Chien & Co as audit provider, and therefore could be unwilling to offer assistance and help.
Potentially, problems could arise in terms of liability. In the event of litigation, because both firms have provided the audit
opinion, it follows that the firms would be jointly liable. The firms could blame each other for any negligence which was
discovered, making the litigation process more complex than if a single audit firm had provided the opinion. However, it could
be argued that joint liability is not necessarily a drawback, as the firms should both be covered by professional indemnity
insurance.