考前必看！如何才能避免英语水平不足而导致无法顺利通过考试

正确答案：

正确答案：
(b) ISA 540 Audit of Accounting Estimates requires that auditors should obtain sufficient audit evidence as to whether an
accounting estimate, such as a warranty provision, is reasonable given the entity’s circumstances, and that disclosure is
appropriate. One, or a combination of the following approaches should be used:
Review and test the process used by management to develop the estimate
– Review contracts or orders for the terms of the warranty to gain an understanding of the obligation of Island Co
– Review correspondence with customers during the year to gain an understanding of claims already in progress at the
year end
– Perform. analytical procedures to compare the level of warranty provision year on year, and compare actual to budgeted
provisions. If possible disaggregate the data, for example, compare provision for specific types of machinery or customer
by customer
– Re-calculate the warranty provision
– Agree the percentage applied in the calculation to the stated accounting policy of Island Co
– Review board minutes for discussion of on-going warranty claims, and for approval of the amount provided
– Use management accounts to ascertain normal level of warranty rectification costs during the year
– Discuss with Kate Shannon the assumptions she used to determine the percentage used in her calculations
– Consider whether assumptions used are consistent with the auditors’ understanding of the business
– Compare prior year provision with actual expenditure on warranty claims in the accounting period
– Compare the current year provision with prior year and discuss any fluctuation with Kate Shannon.
Review subsequent events which confirm the estimate made
– Review any work carried out post year end on specific faults that have been provided for. Agree that all costs are included
in the year end provision.
– Agree cash expended on rectification work in the post balance sheet period to the cash book
– Agree cash expended on rectification work post year end to suppliers’ invoices, or to internal cost ledgers if work carried
out by employees of Island Co
– Read customer correspondence received post year end for any claims received since the year end.

正确答案：
5 (a) Objectives may be viewed as profit and market share in a profit-oriented organisation or the achievement of ‘value for money’
in a not-for-profit organisation (NFP). The overall objective of an organisation may be expressed in the wording of its mission
statement.
In order to achieve the objectives, long-term strategies will be required. In a profit-oriented organisation, this may incorporate
the evaluation of strategies that might include price reductions, product design changes, advertising campaign, product mix
change and methods changes, embracing change techniques such as BPR, JIT, TQM and ABM. In NFP situations, strategies
might address the need to achieve ‘economy’ through reduction in average cost per unit; ‘efficiency’ through maximisation of
the input:output ratio, whilst checking on ‘effectiveness’ through monitoring whether the objectives are achieved.
The annual budget will quantify the short-term results anticipated of the strategies. These results may be seen as the level of
financial performance and competitiveness achieved. This quantification may be compared with previous years and with
actual performance on an ongoing basis. Financial performance may be measured in terms of profit, liquidity, capital structure
and a range of ratios. Competitiveness may be measured by sales growth, market share and the number of new customers.
In a not-for-profit organisation, the results may be monitored by checking on the effectiveness of actions aimed at the
achievement of the objectives. For instance, the effectiveness of a University may be measured by the number of degrees
awarded and the grades achieved. The level of student ‘drop-outs’ each year may also be seen as a measure of ineffectiveness.
The determinants of results may consist of a number of measures. These may include the level of quality, customer
satisfaction, resource utilisation, innovation and flexibility that are achieved. Such determinants may focus on a range of nonfinancial
measures that may be monitored on an ongoing basis, as part of the feedback information in conjunction with
financial data.
A range of business change techniques may be used to enhance performance management.
Techniques may include:
Business process re-engineering (BPR) which involves the examination of business processes with a view to improving the
way in which each is implemented. A major focus may be on the production cycle, but it will also be applicable in areas such
as the accounting department.
Just-in-time (JIT) which requires commitment to the pursuit of ‘excellence’ in all aspects of an organisation.
Total quality management (TQM) which aims for continuous quality improvement in all aspects of the operation of an
organisation.
Activity based management systems (ABM) which focus on activities that are required in an organisation and the cost drivers
for such activities, with a view to identifying and improving activities that add value and eliminating those activities that do
not add value.
Long-term performance management is likely to embrace elements of BPR, JIT, TQM and ABM. All of these will be reflected
in the annual budget on an ongoing basis.