速来，2021年6月ACCA官方考试时间已公布！

正确答案：
(c) Non-consolidated entities under common control
■ Horizontal groups of entities under common control were a significant feature of the Enron and Parmalat business
empires.
■ Such business empires increase audit risk as fraud is often disguised through labyrinthine group structures. Hence
auditors need to understand and confirm the economic purpose of entities within business empires (as well as special
purpose entities (SPEs) and non-trading entities).
■ Horizontal groups fall outside the requirement for the preparation of group accounts. It is not only finance that is offbalance
sheet when controlled entities are excluded from consolidated financial statements.
■ In the absence of consolidated financial statements, users of accounts of entities in horizontal groups have to rely on the
disclosure of related party transactions and control relationships for information about transactions and arrangements
with other group entities. Difficulties faced by auditors include:
? failing to detect related party transactions and control relationships;
? not understanding the substance of transactions with entities under common control;
? excessively creative tax planning;
? the implications of transfer pricing (e.g. failure to recognise profits unrealised at the business empire level);
? a lack of access to relevant confidential information held by others;
? relying on representations made in good faith by those whom the auditors believe manage the company when
control rests elsewhere.
■ Audit work is inevitably increased if an auditor is put upon inquiry to investigate dubious transactions and arrangements.
However, the complexity of business empires across multiple jurisdictions with different auditors may deter auditors from
liaising with other auditors (especially where legal or professional confidentiality considerations prevent this).

正确答案：

 

正确答案：
(ii) The use of its own tree plantations as a source of raw materials not only ensures available supplies of timber but may
also demonstrate that the directors of Our Timbers Ltd are mindful of the need for careful planning in the consumption
of natural resources. This concern with the need to protect the environment will enhance the reputation of Our Timbers
Ltd as an environmentally-conscious organisation which in turn may translate into a source of competitive advantage
since contemporary thought is very much focused on the environmental responsibilities of organisations with particular
regard to the use of natural resources such as timber.

正确答案：
(a) Backflush accounting focuses upon output of an organisation and then works backwards when allocating costs between cost
of goods sold and inventories. It can be argued that backflush accounting simplifies costing since it ignores both labour
variances and work-in-progress. Whilst in a perfect just-in-time environment there would be no work-in-progress at all, there
will in practice be a small amount of work-in-progress in the system at any point in time. This amount, however, is likely to
be negligible in quantity and therefore not significant in terms of value. Thus, a backflush accounting system simplifies the
accounting records by avoiding the need to follow the movement of materials and work-in-progress through the manufacturing
process within the organisation.
The backflush accounting system is likely to involve the maintenance of a raw materials and work-in–progress account
together with a finished goods account. The use of standard costs and variances is likely to be incorporated into the
accounting entries. Transfers from raw materials and work-in-progress account to finished goods (or cost of sales) will probably
be made at standard cost. The difference between the actual inputs and the standard charges from the raw materials and
work-in-progress account will be recorded as a residual variance, which will be recorded in the profit and loss account. Thus,
it is essential that standard costs are a good surrogate for actual costs if large variances are to be avoided. Backflush
accounting is ideally suited to a just-in-time philosophy and is employed where the overall cycle time is relatively short and
inventory levels are low. Naturally, management will still be eager to ascertain the cause of any variances that arise from the
inefficient usage of materials, labour and overhead. However investigations are far more likely to be undertaken using nonfinancial
performance indicators as opposed to detailed cost variances.