ACCAF4-F9模拟题及解析(5)11817.pdf

财经网络教育领导品牌 _ 高顿网校 All Rights Reserved 版权所有 复制必究 1 ACCA F4-F9 模拟题及解析（5）1.(a)In order for auditors to operate effectively and to provide an opinion on an entitys financial statements,they are given certain rights.Required:State THREE rights of an auditor,excluding those related to resignation and removal.(3 marks)(b)HKSA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment requires auditors to obtain an understanding of control activities relevant to the audit.Control activities are the policies and procedures that help ensure that management directives are carried out;and which are designed to prevent and detect fraud and error occurring.An example of a control activity is themaintenance of a control account.Required:Apart from maintenance of a control account,explain FOUR control activities a company may undertake to prevent and detect fraud and error.(4 marks)(c)Describe THREE limitations of external audits.(3 marks)(10 marks)2.Sunflower Stores Co(Sunflower)operates 25 food supermarkets.The companys year end is 31 December 2012.The audit manager and partner recently attended a planning meeting with the finance director and have provided you with the planning notes below.You are the audit senior,and this is your first year on this audit.In order to familiarise yourself with Sunflower,the audit manager has asked you to undertake some research in order to gain an understanding of Sunflower,so that you are able to assist in the planning process.He has then asked that you identify relevant audit risks from the notes below and also consider how the team should respond to these risks.Sunflower has spent$16 million in refurbishing all of its supermarkets;as part of this refurbishment programme their central warehouse has been extended and a smaller warehouse,which was only occasionally used,has been disposed of at a profit.In order to finance this refurbishment,a sum of$15 million was borrowed from the bank.This is due to be repaid over five years.The company will be performing a year-end inventory count at the central warehouse as well as at all 25 supermarkets on 31 December.Inventory is valued at selling price less an average profit margin as the finance director believes that this is a close approximation to cost.财经网络教育领导品牌 _ 高顿网校 All Rights Reserved 版权所有 复制必究 2 Prior to 2012,each of the supermarkets maintained their own financial records and submitted returns monthly to head office.During 2012 all accounting records have been centralised within head office.Therefore at the beginning of the year,each supermarkets opening balances were transferred into head offices accounting records.The increased workload at head office has led to some changes in the finance department and in November 2012 the financial controller left.His replacement will start in late December.Required:(a)List FIVE sources of information that would be of use in gaining an understanding of Sunflower Stores Co,and for each source describe what you would expect to obtain.(5 marks)(b)Using the information provided,describe FIVE audit risks and explain the auditors response to each risk in planning the audit of Sunflower Stores Co.(10 marks)(c)The finance director of Sunflower Stores Co is considering establishing an internal audit department.Required:Describe the factors the finance director should consider before establishing an internal audit department.(5 marks)(20 marks)3.(a)Identify and explain each of the FIVE fundamental principles contained within ACCAs Code of Ethics and Conduct.(5 marks)(b)Rose Leisure Club Co(Rose)operates a chain of health and fitness clubs.Its year end was 31 October 2012.You are the audit manager and the year-end audit is due to commence shortly.The following three matters have been brought to your attention.(i)Trade payables and accruals Roses finance director has notified you that an error occurred in the closing of the purchase ledger at the year end.Rather than it closing on 1 November,it accidentally closed one week earlier on 25 October.All purchase invoices received between 25 October and the year end have been posted to the 2013 year-end purchase ledger.(6 marks)(ii)Receivables Roses trade receivables have historically been low as most members pay monthly in advance.However,during the year a number of companies have taken up group memberships at Rose and hence the receivables balance is now material.The audit senior has undertaken a receivables circularisation for the balances at the year end;however,there are a number who have not responded and a number of responses with differences.(5 marks)(iii)Reorganisation The company recently announced its plans to reorganise its health and fitness clubs.This will involve closing some clubs for refurbishment,retraining some existing staff 财经网络教育领导品牌 _ 高顿网校 All Rights Reserved 版权所有 复制必究 3 and disposing of some surplus assets.These plans were agreed at a board meeting in October and announced to their shareholders on 29 October.Rose is proposing to make a reorganisation provision in the financial statements.(4 marks)Required:Describe substantive procedures you would perform to obtain sufficient and appropriate audit evidence in relation to the above three matters.Note:The mark allocation is shown against each of the three matters above.(20 marks)4.(a)Explain the purpose of,and procedures for,obtaining written representations.(5 marks)(b)The directors of a company have provided the external audit firm with an oral representation confirming that the bank overdraft balances included within current liabilities are complete.Required:Describe the relevance and reliability of this oral representation as a source of evidence to confirm the completeness of the bank overdraft balances.(3 marks)(c)You are the audit manager of Violet&Co and you are currently reviewing the audit files for several of your clients for which the audit fieldwork is complete.The audit seniors have raised the following issues:Daisy Designs Co(Daisy)Daisys year end is 30 September,however,subsequent to the year end the companys sales ledger has been corrupted by a computer virus.Daisys finance director was able to produce the financial statements prior to this occurring;however,the audit team has been unable to access the sales ledger to undertake detailed testing of revenue or year-end receivables.All other accounting records are unaffected and there are no backups available for the sales ledger.Daisys revenue is$156m,its receivables are$34m and profit before tax is$2m.Fuchsia Enterprises Co(Fuchsia)Fuchsia has experienced difficult trading conditions and as a result it has lost significant market share.The cash flow forecast has been reviewed during the audit fieldwork and it shows a significant net cash outflow.Management are confident that further funding can be obtained and so have prepared the financial statements on a going concern basis with no additional disclosures;the audit senior is highly sceptical about this.The prior year financial statements showed a profit before tax of$12m;however,the current year loss before tax is$44m and the forecast net cash outflow for the next 12 months is$32m.Required:财经网络教育领导品牌 _ 高顿网校 All Rights Reserved 版权所有 复制必究 4 For each of the two issues:(i)Discuss the issue,including an assessment of whether it is material;(ii)Recommend procedures the audit team should undertake at the completion stage to try to resolve the issue;and(iii)Describe the impact on the audit report if the issue remains unresolved.Notes:1 The total marks will be split equally between each issue.2 Audit report extracts are NOT required.(12 marks)(20 marks)试题及答案 1.(a)Auditors rights Right of access at all times to the companys books,accounts and vouchers.Right to require from an officer of the company such information or explanations as they think necessary for the performance of their duties as auditors.Right to receive all communications relating to written resolutions.Right to receive all notices of,and other communications relating to,any general meeting which a member of the company is entitled to receive.Right to attend any general meeting of the company.Right to be heard at any general meeting which an auditor attends on any part of the business of the meeting which concerns them as auditor.(b)Control activities Segregation of duties assignment of roles/responsibilities to different people,thereby reducing the risk of fraud and error occurring.Information processing computer controls including general IT controls,which cover a range of applications and support the overall IT environment and application controls which are manual or automated controls which operate on a cycle/business process level.Authorisation approval of transactions by a suitably responsible official to ensure transactions are genuine.Physical controls restricting access to physical assets such as cash,inventory and plant and equipment,thereby reducing the risk of theft.Performance reviews comparison or review of the performance of the business by looking at areas such as budget v actual results.Arithmetical controls controls which check the arithmetical accuracy of accounting records.Account reconciliations comparison of an account balance with another source;often this source is from a third party,such as the bank,with differences being investigated.财经网络教育领导品牌 _ 高顿网校 All Rights Reserved 版权所有 复制必究 5(c)Limitations of external audits An external audit has a number of limitations which reduce its usefulness:Sampling it is not practical for an auditor to test 100%of transactions and so they have to apply sampling methodologies in selecting balances/transactions to test.Therefore,there could be an error in an item not selected for testing by the auditor.Subjectivity financial statements include judgemental and subjective areas and therefore the auditor is required to use their judgement in assessing whether the financial statements are true and fair.Inherent limitations of internal control systems an internal control system is operated by people and hence is liable to human error.In addition,there is the possibility of controls override by management and of collusion and fraud.It is impossible to remove all of these inherent limitations and as the auditor relies on the internal control systems,this can reduce the usefulness of the audit.Evidence is persuasive not conclusive the opinion is based on audit evidence gathered;however,while this evidence can indicate possible issues affecting the audit opinion,evidence involves estimates and judgements and hence does not give a definite conclusion.Audit report format the format of the opinion is determined by International Standards on Auditing.However,the terminology used is not usually understood by non-accountants.This means that users may not actually understand the audit opinion given.Historic information the audit report is often issued some time after the year end,and so the financial information can be quite different to the current position.In the current marketplace where companies financial positions can change quite quickly,the audit opinion may no longer be relevant as it is out of date.2(a)Understanding an entity Source of information Information expect to obtain Prior year audit file Identification of issues that arose in the prior year audit and how these were resolved.Also whether any points brought forward were noted for consideration for this years audit.Prior year financial statements Provides information in relation to the size of the entity as well as the key accounting policies and disclosure notes.Accounting systems notes Provides information on how each of the key accounting systems operates.Discussions with management Provides information in relation to any important issues which have 财经网络教育领导品牌 _ 高顿网校 All Rights Reserved 版权所有 复制必究 6 arisen or changes to the company during the year.Current year budgets and management Provides relevant financial information for the year to date.Will help accounts of Sunflower Stores Co(Sunflower)the auditor to identify whether Sunflower has changed materially since last year.In addition,this will be useful for preliminary analytical review and risk identification.Permanent audit file Provides information in relation to matters of continuing importance for the company and the audit team,such as statutory books information or important agreements.Sunflowers website Recent press releases from the company may provide background on changes to the business during the year as this could lead to additional audit risks.Prior year report to management Provides information on the internal control deficiencies noted in the prior year;if these have not been rectified by management then they could arise in the current year audit as well.Financial statements of competitors This will provide information about Sunflowers competitors,in relation to their financial results and their accounting policies.This will be important in assessing Sunflowers performance in the year and also when undertaking the going concern review.(b)Audit risks and auditor responses Audit risk Auditor response Sunflower has spent$16m on refurbishing its 25 food supermarkets.This expenditure needs to be reviewed to assess whether it is of a capital nature and should be included within non-current assets or expensed as repairs.Review a breakdown of the costs and agree to invoices to assess the nature of the expenditure and,if capital,agree to inclusion within the asset register and,if repairs,agree to the income statement.During the year a small warehouse has been disposed of at a profit.The asset needs to have been correctly removed from property plant and equipment to ensure the non-current asset register is not overstated,and the profit on disposal should be included within the income statement.Review the non-current asset register to ensure that the asset has been removed.Also confirm the disposal proceeds as well as recalculating the profit on disposal.Consideration should be given as to whether the profit on disposal is significant enough to warrant separate disclosure within the income statement.Sunflower has borrowed$15m from the bank via a five year loan.This loan needs to be correctly split between current and non-current liabilities.In addition,Sunflower may have given the bank a charge over its assets as security for the loan.There is a risk that the disclosure of any security given is not complete.During the audit the team would need to confirm that the$15m loan finance was received.In addition,the split between current and non-current liabilities and the disclosures for this loan 财经网络教育领导品牌 _ 高顿网校 All Rights Reserved 版权所有 复制必究 7 should be reviewed in detail to ensure compliance with relevant accounting standards.The loan agreement should be reviewed to ascertain whether any security has been given,and this bank should be circularised as part of the bank confirmation process.Sunflower will be und