ACCA考试 2022_02_10 每日一练
(b) Explain the corporation tax and value added tax (VAT) implications of the following aspects of the proposed
restructuring of the Rapier Ltd group.
(i) The immediate tax implications of the restructuring. (6 marks)
4 You are an audit manager in Nate & Co, a firm of Chartered Certified Accountants. You are reviewing three situations,
which were recently discussed at the monthly audit managers’ meeting:
(1) Nate & Co has recently been approached by a potential new audit client, Fisher Co. Your firm is keen to take the
appointment and is currently carrying out client acceptance procedures. Fisher Co was recently incorporated by
Marcellus Fisher, with its main trade being the retailing of wooden storage boxes.
(2) Nate & Co provides the audit service to CF Co, a national financial services organisation. Due to a number of
errors in the recording of cash deposits from new customers that have been discovered by CF Co’s internal audit
team, the directors of CF Co have requested that your firm carry out a review of the financial information
technology systems. It has come to your attention that while working on the audit planning of CF Co, Jin Sayed,
one of the juniors on the audit team, who is a recent information technology graduate, spent three hours
providing advice to the internal audit team about how to improve the system. As far as you know, this advice has
not been used by the internal audit team.
(3) LA Shots Co is a manufacturer of bottled drinks, and has been an audit client of Nate & Co for five years. Two
audit juniors attended the annual inventory count last Monday. They reported that Brenda Mangle, the new
production manager of LA Shots Co, wanted the inventory count and audit procedures performed as quickly as
possible. As an incentive she offered the two juniors ten free bottles of ‘Super Juice’ from the end of the
production line. Brenda also invited them to join the LA Shots Co office party, which commenced at the end of
the inventory count. The inventory count and audit procedures were completed within two hours (the previous
year’s procedures lasted a full day), and the juniors then spent four hours at the office party.
Required:
(a) Define ‘money laundering’ and state the procedures specific to money laundering that should be considered
before, and on the acceptance of, the audit appointment of Fisher Co. (5 marks)
(ii) Briefly explain the extent to which the application of sensitivity analysis might be useful in deciding
which refrigeration system to purchase and discuss the limitations inherent in its use. (3 marks)
(c) You have just been advised of management’s intention to publish its yearly marketing report in the annual report
that will contain the financial statements for the year ending 31 December 2005. Extracts from the marketing
report include the following:
‘Shire Oil Co sponsors national school sports championships and the ‘Shire Ward’ at the national teaching
hospital. The company’s vision is to continue its investment in health and safety and the environment.
‘Our health and safety, security and environmental policies are of the highest standard in the energy sector. We
aim to operate under principles of no-harm to people and the environment.
‘Shire Oil Co’s main contribution to sustainable development comes from providing extra energy in a cleaner and
more socially responsible way. This means improving the environmental and social performance of our
operations. Regrettably, five employees lost their lives at work during the year.’
Required:
Suggest performance indicators that could reflect the extent to which Shire Oil Co’s social and environmental
responsibilities are being met, and the evidence that should be available to provide assurance on their
accuracy. (6 marks)
(b) The Sarbanes-Oxley Act contains provisions for the attestation (verification) and reporting to shareholders of
internal controls over financial reporting.
Required:
Describe the typical contents of an external report on internal controls. (8 marks)