ACCA真的很难考吗?为什么大家都说难?

You are an audit manager responsible for providing hot reviews on selected audit clients within your firm of Chartered

Certified Accountants. You are currently reviewing the audit working papers for Pulp Co, a long standing audit client,

for the year ended 31 January 2008. The draft statement of financial position (balance sheet) of Pulp Co shows total

assets of $12 million (2007 – $11·5 million).The audit senior has made the following comment in a summary of

issues for your review:

‘Pulp Co’s statement of financial position (balance sheet) shows a receivable classified as a current asset with a value

of $25,000. The only audit evidence we have requested and obtained is a management representation stating the

following:

(1) that the amount is owed to Pulp Co from Jarvis Co,

(2) that Jarvis Co is controlled by Pulp Co’s chairman, Peter Sheffield, and

(3) that the balance is likely to be received six months after Pulp Co’s year end.

The receivable was also outstanding at the last year end when an identical management representation was provided,

and our working papers noted that because the balance was immaterial no further work was considered necessary.

No disclosure has been made in the financial statements regarding the balance. Jarvis Co is not audited by our firm

and we have verified that Pulp Co does not own any shares in Jarvis Co.’

Required:

(b) In relation to the receivable recognised on the statement of financial position (balance sheet) of Pulp Co as

at 31 January 2008:

(i) Comment on the matters you should consider. (5 marks)

10 Which of the following costs should be included in valuing inventories of finished goods held by a manufacturing

company, according to IAS2 Inventories?

1 Carriage inwards.

2 Carriage outwards.

3 Depreciation of factory plant.

4 Accounts department costs relating to wages for production employees.

A All four items

B 2 and 3 only

C 1, 3 and 4 only

D 1 and 4 only

3 You are an audit manager in Webb & Co, a firm of Chartered Certified Accountants. Your audit client, Mulligan Co,

designs and manufactures wooden tables and chairs. The business has expanded rapidly in the last two years, since

the arrival of Patrick Tiler, an experienced sales and marketing manager.

The directors want to secure a loan of $3 million in order to expand operations, following the design of a completely

new range of wooden garden furniture. The directors have approached LCT Bank for the loan. The bank’s lending

criteria stipulate the following:

‘Loan applications must be accompanied by a detailed business plan, including an analysis of how the finance will

be used. LCT Bank need to see that the finance requested is adequate for the proposed business purpose. The

business plan must be supported by an assurance opinion on the adequacy of the requested finance.’

The $3 million finance raised will be used as follows:

$000

Construction of new factory 1,250

Purchase of new machinery 1,000

Initial supply of timber raw material 250

Advertising and marketing of new product 500

Your firm has agreed to review the business plan and to provide an assurance opinion on the completeness of the

finance request. A meeting will be held tomorrow to discuss this assignment.

Required:

(a) Identify and explain the matters relating to the assurance assignment that should be discussed at the meeting

with Mulligan Co. (8 marks)

2 The draft financial statements of Rampion, a limited liability company, for the year ended 31 December 2005

included the following figures:

$

Profit 684,000

Closing inventory 116,800

Trade receivables 248,000

Allowance for receivables 10,000

No adjustments have yet been made for the following matters:

(1) The company’s inventory count was carried out on 3 January 2006 leading to the figure shown above. Sales

between the close of business on 31 December 2005 and the inventory count totalled $36,000. There were no

deliveries from suppliers in that period. The company fixes selling prices to produce a 40% gross profit on sales.

The $36,000 sales were included in the sales records in January 2006.

(2) $10,000 of goods supplied on sale or return terms in December 2005 have been included as sales and

receivables. They had cost $6,000. On 10 January 2006 the customer returned the goods in good condition.

(3) Goods included in inventory at cost $18,000 were sold in January 2006 for $13,500. Selling expenses were

$500.

(4) $8,000 of trade receivables are to be written off.

(5) The allowance for receivables is to be adjusted to the equivalent of 5% of the trade receivables after allowing for

the above matters, based on past experience.

Required:

(a) Prepare a statement showing the effect of the adjustments on the company’s net profit for the year ended

31 December 2005. (5 marks)