天津市考生注意：2020年ACCA考试，科目要这么选！

(b) Provide an example that illustrates a structured application of the terms contained in the above statement in

respect of a profit-seeking organisation OR a not-for-profit organisation of your own choice. (6 marks)

Cherry Blossom Co (Cherry) manufactures custom made furniture and its year end is 30 April. The company purchases its raw materials from a wide range of suppliers. Below is a description of Cherry’s purchasing system.

When production supervisors require raw materials, they complete a requisition form. and this is submitted to the purchase ordering department. Requisition forms do not require authorisation and no reference is made to the current inventory levels of the materials being requested. Staff in the purchase ordering department use the requisitions to raise sequentially numbered purchase orders based on the approved suppliers list, which was last updated 24 months ago. The purchasing director authorises the orders prior to these being sent to the suppliers.

When the goods are received, the warehouse department verifies the quantity to the suppliers despatch note and checks that the quality of the goods received are satisfactory. They complete a sequentially numbered goods received note (GRN) and send a copy of the GRN to the finance department.

Purchase invoices are sent directly to the purchase ledger clerk, who stores them in a manual file until the end of each week. He then inputs them into the purchase ledger using batch controls and gives each invoice a unique number based on the supplier code. The invoices are reviewed and authorised for payment by the finance director, but the actual payment is only made 60 days after the invoice is input into the system.

Required:

In respect of the purchasing system of Cherry Blossom Co:

(i) Identify and explain FIVE deficiencies; and

(ii) Recommend a control to address each of these deficiencies.

Note: The total marks will be split equally between each part.

2 John Dixon is the recently appointed Chief of Police for a major city in the UK. He has inherited a major problem in

that its residents are very concerned with various forms of antisocial behaviour and minor crimes carried out by a

small number of people, which makes living, working, travelling and socialising in the city centre unpleasant rather

than life threatening. The city’s residents have recently voted for it being one of the five worst cities in the UK in which

to live. There is little or no contact between the police and these residents.

The city is split into a number of police districts, each with its own senior officer in charge. Their focus is on the

response to emergency calls and solving serious crimes in their district rather than the less urgent crimes affecting

everyday living in the city. Response times and serious crime solution rates are the traditional measures by which their

performance is measured and leave them open to criticism of simply reacting to events. There is little sense of being

part of a city police force and, consequently, little sharing of information and experience between the different districts.

The failure in policing antisocial behaviour in the city is seen as being largely the result of a shortage of resources.

There are also important internal and external groups varying in their support or resistance to any necessary change

in policing strategy. Key players include the mayor of the city anxious to improve the reputation of the city, the city’s

press, traditionally used to highlighting police failures rather than successes and finally the courts of justice, which

are reluctant to take on the increased workload that any moves towards reducing antisocial behaviour would produce.

John is aware of the complexity of the problem he faces in changing the way the city is policed to improve the quality

of life of its citizens. He has, however, an impressive track record as a change agent in previous appointments and is

confident that he can bring about the necessary change.

Required:

(a) Using change management models where appropriate, provide John with a brief report on the nature of

change needed in the way the city is policed in order to improve the city’s quality of life. (12 marks)

(b) Peter, one of Linden Limited’s non-executive directors, having lived and worked in the UK for most of his adult

life, sold his home near London on 22 March 2006 and, together with his wife (a French citizen), moved to live

in a villa which she owns in the south of France. Peter is now demanding that the tax deducted from his director’s

fees, for the board meetings held on 18 April and 16 May 2006, be refunded, on the grounds that, as he is no

longer resident in the UK, he is no longer liable to UK income tax. All of the company’s board meetings are held

at its offices in Cambridge.

Despite Peter’s assurance that none of the other companies of which he is a director has disputed his change of

tax status, Damian is uncertain whether he should make the refunds requested. However, as Peter is a friend of

the company’s founder, Linden Limited’s managing director is urging him to do so, stating that if the tax does

have to be paid, then Linden Limited could always bear the cost.

Required:

Advise Damian whether Peter is correct in his assertion regarding his tax position and in the case that there

is a UK tax liability the implications of the managing director’s suggestion. You are not required to consider

national insurance (NIC) issues. (4 marks)