（b) Seymour offers health-related information services through a wholly-owned subsidiary,

ion, proprietary foods and

medical innovations designed to improve the quality of life. (Proprietary foods are marketed under and protected by

registered names.) The draft consolidated financial statements for the year ended 30 September 2006 show revenue

of $74·4 million (2005 – $69·2 million), profit before taxation of $13·2 million (2005 – $15·8 million) and total

assets of $53·3 million (2005 – $40·5 million).

The following issues arising during the final audit have been noted on a schedule of points for your attention:

(a) In 2001, Seymour had been awarded a 20-year patent on a new drug, Tournose, that was also approved for

food use. The drug had been developed at a cost of $4 million which is being amortised over the life of the

patent. The patent cost $11,600. In September 2006 a competitor announced the successful completion of

preliminary trials on an alternative drug with the same beneficial properties as Tournose. The alternative drug is

expected to be readily available in two years time. (7 marks)

Required:

For each of the above issues:

(i) comment on the matters that you should consider; and

(ii) state the audit evidence that you should expect to find,

in undertaking your review of the audit working papers and financial statements of Seymour Co for the year ended

30 September 2006.

NOTE: The mark allocation is shown against each of the three issues.

The book offers a（)glimpse of the lives of the rich and the famous in that region in t

he late 30s.

A、render

B、professional

C、indifferent

D、indebted

E、regarding

F、concern

G、fascinate

H、pursue

I、favorable

J、the case

(c) In November 2006 Seymour announced the recall and discontinuation of a range of petcare products. The

product recall was prompted by the high level of customer returns due to claims of poor quality. For the year to

30 September 2006, the product range represented $8·9 million of consolidated revenue (2005 – $9·6 million)

and $1·3 million loss before tax (2005 – $0·4 million profit before tax). The results of the ‘petcare’ operations

are disclosed separately on the face of the income statement. (6 marks)

Required:

For each of the above issues:

(i) comment on the matters that you should consider; and

(ii) state the audit evidence that you should expect to find,

in undertaking your review of the audit working papers and financial statements of Seymour Co for the year ended

30 September 2006.

NOTE: The mark allocation is shown against each of the three issues.

e the government. Unemployment increases the chances of divorce， child abuse， and alcoholism， a new federal survey shows. Some experts say the problem is only orary that new technology will eventually create as many jobs as it destroys. But futurologist Hymen Seymour says the astonishing efficiency of the new technology means there will be a simple net reduction in the amount of human labor that needs to be done. "We should treat this as an opportunity to give people more leisure. It may not be easy， but society will have to reach a new agreement on the division and distribution of labor. "Seymour says.

A.Wood，Bruner & Ross

B.Vygotsky

C.James Ashe

D.Jerome Seymour Bruner

A.Wood，Bruner & Ross

B.Vygotsky

C.James Asher

D.Jerome Seymour Bruner

A.Wood，Bruner & Ross

B.Vygotsky

C.James Ashe

D.Jerome Seymour Bruner