四大offer已经拿到，那接下来如何搞定P3呢...

正确答案：
(b) Unmodified auditor’s reports
Ethical and professional issues
■ An unmodified opinion means, inter alia, that:
– there are no material matters giving rise to disagreement with the auditor; and
– the auditor’s report does not include an emphasis of matter paragraph (e.g. regarding going concern).
■ By implication the auditor must have obtained sufficient appropriate evidence that notwithstanding the losses:
– the going concern basis is appropriate to Ayora’s financial statements and any related matters (e.g. parental
support) are adequately disclosed therein;
– goodwill in Chatam’s consolidated financial statements is not materially impaired.
■ Management’s written representation (that the goodwill is not impaired) must have been necessary (otherwise it should
not have been asked for). This means that Bartolome does not have sufficient other audit evidence. This seems dubious
as management should have carried out an impairment test to satisfy themselves that goodwill is not impaired. This
test should similarly have satisfied Bartolome.
■ If there is evidence that goodwill is impaired management’s refusal to write it down might be considered a fraud.
■ The matter may cast doubt on the quality of audit evidence obtained in other areas. All other matters on which
management representations have been obtained should be reviewed by another audit partner/manager.
■ Charles Barrington is retiring next year and his share options would presumably be worth less if goodwill were written
down. His position in this long-standing client suggests a familiarity threat.
■ Bartolome may be threatened by self-interest to accept the representation as sufficient in order to retain the client.
■ Bartolome may be unduly influenced by a combination of factors (familiarity and previous experience) and failing to
exercise the necessary degree of professional scepticism.
Implications for continuation with assignment
There is no reason why the audit should not be continued. However, a change in senior audit staff and audit manager may
be overdue. The unmodified auditor’s reports should be subject to a cold review and any quality control issues raised with
the staff who conducted the audit.

正确答案：
(d) (i) The main reason why it may not be possible to provide a high level of assurance is that the KPIs are not defined
precisely:
– The value of donated pharmaceutical products is compared to revenue to provide a percentage. However, it will be
difficult to accurately value the donated products – are they valued at cost, or at sales price? Are delivery costs
included in the valuation? The intrinsic value may be lower than sales value as Sci-Tech Co may decide to donate
products which are not useful or relevant to the charities they are donated to.
– The value of ‘cost of involvement with local charities’ is also not defined. If the donations are purely cash, then it
should be easy to verify donations using normal audit procedures to verify cash payments. However, the
‘involvement with local charities’ is not defined and will be difficult to quantify as a percentage of revenue. For
example, involvement may include:
? Time spent by Sci-Tech Co employees at local charity events
? Education and training provided to members of the local community in health care matters
– Number of serious accidents is also difficult to quantify as what constitutes a ‘serious’ accident is subjective. For
example, is an accident serious if it results in a hospitalisation of the employee? Or serious if it results in more than
five days absence from work while recovering?
In addition, the sufficiency of evidence available is doubtful, as such matters will not form. part of the accounting records
and thus there may be limited and possibly only unreliable sources of evidence available.
– Donated goods may not be separately recorded in inventory movement records. It may not be possible to
distinguish donated goods from sold or destroyed items.
– Unless time sheets are maintained, there is unlikely to be any detailed records of ‘involvement’ in local charities.

正确答案：
Part (c)
There can be significant problems with references, these include the fact that most referees are well known to the applicant and
hesitate to say anything critical. However, the more skilful reference reader learns to look for what is conspicuous by omission
although there is always the risk that the writer merely forgot.
Often there are glowing tributes designed to aid the candidate on their way and some can be too ambiguous to be useful.
It is also important to note that references are poor predictors of future performance, are time consuming for the referee and the
subsequent reader. A particular problem is that employers who want to rid themselves of unsatisfactory employees could write an
enthusiastic reference, or at best one which leaves a lot unsaid.
However, care should be taken when providing references. Potentially, there can be legal consequences if a reference is misleading
or misrepresents the person for whom the reference is provided.
In addition, problems can arise when references are sought too early in the recruitment process and therefore breach confidentiality.