ACCA所有科目都是全英文考试吗？

正确答案：
(b) Criticisms
The audit committee is chaired by an executive director. One of the most important roles of an audit committee is to review
and monitor internal controls. An executive director is not an independent person and so having Mr Chester as chairman
undermines the purpose of the committee as far as its role in governance is concerned.
Mr Chester, the audit committee chairman, considers only financial controls to be important and undermines the purpose of
the committee as far as its role in governance is concerned. There is no recognition of other risks and there is a belief that
management accounting can provide all necessary information. This viewpoint fails to recognise the importance of other
control mechanisms such as technical and operational controls.
Mr Hardanger’s performance was trusted without supporting evidence because of his reputation as a good manager. An audit
committee must be blind to reputation and treat all parts of the business equally. All functions can be subject to monitor and
review without ‘fear or favour’ and the complexity of the production facility makes it an obvious subject of frequent attention.
The audit committee does not enjoy the full support of the non-executive chairman, Mr Allejandra. On the contrary in fact,
he is sceptical about its value. In most situations, the audit committee reports to the chairman and so it is very important
that the chairman protects the audit committee from criticism from executive colleagues, which is unlikely given the situation
at Gluck and Goodman.
There is no internal auditor to report to the committee and hence no flow of information upon which to make control decisions.
Internal auditors are the operational ‘arms’ of an audit committee and without them, the audit committee will have little or no
relevant data upon which to monitor and review control systems in the company.
The ineffectiveness of the internal audit could increase the cost of the external audit. If external auditors view internal controls
as weak they would be likely to require increased attention to audit trails, etc. that would, in turn, increase cost.

正确答案：
(a) Risks at Southland and management strategies
Risk management strategies
There are four strategies for managing risk and these can be undertaken in sequence. In the first instance, the organisation
should ask whether the risk, once recognised, can be transferred or avoided.
Transference means passing the risk on to another party which, in practice means an insurer or a business partner in another
part of the supply chain (such as a supplier or a customer).
Avoidance means asking whether or not the organisation needs to engage in the activity or area in which the risk is incurred.
If it is decided that the risk cannot be transferred nor avoided, it might be asked whether or not something can be done to
reduce or mitigate the risk. This might mean, for example, reducing the expected return in order to diversify the risk or
re-engineer a process to bring about the reduction.
Risk sharing involves finding a party that is willing to enter into a partnership so that the risks of a venture might be spread
between the two parties. For example an investor might be found to provide partial funding for an overseas investment in
exchange for a share of the returns.
Finally, an organisation might accept or retain the risk, believing there to be no other feasible option. Such retention should
be accepted when the risk characteristics are clearly known (the possible hazard, the probability of the risk materialising and
the return expected as a consequence of bearing the risk).
Risks in the case and strategy
There are three risks to the Southland factory described in the case.
Risk to the security of the factory in Southland. This risk could be transferred. The transference of this risk would be through
insurance where an insurance company will assume the potential liability on payment, by SCC, of an appropriate insurance
premium.
Risk to the supply of one of the key raw materials that experienced fluctuations in world supply. This risk will probably have
to be accepted although it may be possible, with redesigning processes, to reduce the risk.
If the raw material is strategically important (i.e. its use cannot be substituted or reduced), risk acceptance will be the only
possible strategy. If products or process can be redesigned to substitute or replace its use in the factory, the supply risk can
be reduced.
The environmental risk that concerned a possibility of a poisonous emission can be reduced by appropriate environmental
controls in the factory. This may require some process changes such as inventory storage or amendments to internal systems
to ensure that the sources of emissions can be carefully monitored.
Tutorial note: the strategies for the individual risks identified in the case are not the only appropriate responses and other
strategies are equally valid providing they are supported with adequate explanation.

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正确答案：
(ii) Principal audit procedures – recoverability of deferred tax asset
– Obtain a copy of Bluebell Co’s current tax computation and deferred tax calculations and agree figures to any
relevant tax correspondence and/or underlying accounting records.
– Develop an independent expectation of the estimate to corroborate the reasonableness of management’s estimate.
– Obtain forecasts of profitability and agree that there is sufficient forecast taxable profit available for the losses to be
offset against. Evaluate the assumptions used in the forecast against business understanding. In particular consider
assumptions regarding the growth rate of taxable profit in light of the underlying detrimental trend in profit before
tax.
– Assess the time period it will take to generate sufficient profits to utilise the tax losses. If it is going to take a number
of years to generate such profits, it may be that the recognition of the asset should be restricted.
– Using tax correspondence, verify that there is no restriction on the ability of Bluebell Co to carry the losses forward
and to use the losses against future taxable profits.
Tutorial note: in many tax jurisdictions losses can only be carried forward to be utilised against profits generated
from the same trade. Although in the scenario there is no evidence of such a change in trade, or indeed any kind
of restriction on the use of losses, it is still a valid audit procedure to verify that this is the case