西藏考生注意：2020年ACCA考试，科目要这么选！

正确答案：
(b) It would appear that JOL’s market share has declined from 30% to (80 – 26)/3 = 18% during the last three years. A 12%
fall in market share is probably very significant with a knock-on effect on profits and resultant cash flows. Obviously such a
declining trend needs to be arrested immediately and this will require a detailed investigation to be undertaken by the directors
of JOL. Consequently loss of market share can be seen to be an indicator of potential corporate failure. Other indicators of
corporate failure are as follows:
Six performance indicators that an organisation might fail are as follows:
Poor cash flow
Poor cash flow might render an organisation unable to pay its debts as and when they fall due for payment. This might mean,
for example, that providers of finance might be able to invoke the terms of a loan covenant and commence legal action against
an organisation which might eventually lead to its winding-up.
Lack of new production/service introduction
Innovation can often be seen to be the difference between ‘life and death’ as new products and services provide continuity
of income streams in an ever-changing business environment. A lack of new product/service introduction may arise from a
shortage of funds available for re-investment. This can lead to organisations attempting to compete with their competitors with
an out of date range of products and services, the consequences of which will invariably turn out to be disastrous.
General economic conditions
Falling demand and increasing interest rates can precipitate the demise of organisations. Highly geared organisations will
suffer as demand falls and the weight of the interest burden increases. Organisations can find themselves in a vicious circle
as increasing amounts of interest payable are paid from diminishing gross margins leading to falling profits/increasing losses
and negative cash flows. This leads to the need for further loan finance and even higher interest burden, further diminution
in margins and so on.
Lack of financial controls
The absence of sound financial controls has proven costly to many organisations. In extreme circumstances it can lead to
outright fraud (e.g. Enron and WorldCom).
Internal rivalry
The extent of internal rivalry that exists within an organisation can prove to be of critical significance to an organisation as
managerial effort is effectively channeled into increasing the amount of internal conflict that exists to the detriment of the
organisation as a whole. Unfortunately the adverse consequences of internal rivalry remain latent until it is too late to redress
them.
Loss of key personnel
In certain types of organisation the loss of key personnel can ‘spell the beginning of the end’ for an organisation. This is
particularly the case when individuals possess knowledge which can be exploited by direct competitors, e.g. sales contacts,
product specifications, product recipes, etc.

正确答案：
2 Crocus Co
(a) (i) Forensic accounting utilises accounting, auditing, and investigative skills to conduct an examination into a company’s
financial statements. The aim of forensic accounting is to provide an accounting analysis that is potentially suitable for
use in court. Forensic accounting is an umbrella term encompassing both forensic investigations and forensic audits. It
includes the audit of financial information to prove or disprove a fraud, the interview process used during an
investigation, and the act of serving as an expert witness.
Tutorial note: Forensic accounting can be used in a very wide range of situations, e.g. settling monetary disputes in
relation to a business closure, marriage break up, insurance claim, etc. Credit will be awarded for any reasonable
examples provided.
(ii) A forensic investigation is a process whereby a forensic accountant carries out procedures to gather evidence, which
could ultimately be used in legal proceedings or to settle disputes. This could include, for example, an investigation into
money laundering. A forensic investigation involves many stages (similar to an audit), including planning, evidence
gathering, quality control reviews, and finally results in the production of a report.
(iii) Forensic auditing is the specific use of audit procedures within a forensic investigation to find facts and gather evidence,
usually focused on the quantification of a financial loss. This could include, for example, the use of analytical
procedures, and substantive procedures to determine the amount of an insurance claim.

正确答案：
(b) Draft guidance
(i) Gifts and hospitality
Gifts and hospitality may be offered as an inducement i.e. to unduly influence actions or decisions, encourage illegal or
dishonest behaviour or to obtain confidential information. An offer of gifts and/or hospitality from a client ordinarily gives
rise to threats to compliance with the fundamental principles, for example:
■ self-interest threats to objectivity and/or confidentiality may be created if a gift from a client is accepted;
■ intimidation threats to objectivity and/or confidentiality may arise through the possibility of such offers being made
public and damaging the reputation of the professional accountant (or close family member).
The significance of such threats will depend on the nature, value and intent behind the offer. There may be no significant
threat to compliance with the fundamental principles if a reasonable and informed third party would consider gifts and
hospitality to be clearly insignificant. For example, if the offer of gifts or hospitality is made in the normal course of
business without the specific intent to influence decision making or to obtain information.
If evaluated threats are other than clearly insignificant, safeguards should be considered and applied as necessary to
eliminate them or reduce them to an acceptable level.
Offers of gifts and hospitality should not be accepted if the threats cannot be eliminated or reduced to an acceptable
level through the application of safeguards.
As the real or apparent threats to compliance with the fundamental principles do not merely arise from acceptance of
an inducement but, sometimes, merely from the fact of the offer having been made, additional safeguards should be
adopted. For example:
■ immediately informing higher levels of management or those charged with governance that an inducement has
been offered;
■ informing third parties (e.g. a professional body) of the offer (after seeking legal advice);
■ advising immediate or close family members of relevant threats and safeguards where they are potentially in
positions that might result in offers of inducements (e.g. as a result of their employment situation); and
■ informing higher levels of management or those charged with governance where immediate or close family
members are employed by competitors or potential suppliers of that organisation.