The developing countries in Asia, Africa and Latin America （)the third world.

existing client, Sycamore Science Co (Sycamore), whose year end was 30 April 2015. Sycamore is a pharmaceutical company, which manufactures and supplies a wide range of medical supplies. The draft financial statements show revenue of $35·6 million and profit before tax of $5·9 million.

Sycamore’s previous finance director left the company in December 2014 after it was discovered that he had been claiming fraudulent expenses from the company for a significant period of time. A new finance director was appointed in January 2015 who was previously a financial controller of a bank, and she has expressed surprise that Maple & Co had not uncovered the fraud during last year’s audit.

During the year Sycamore has spent $1·8 million on developing several new products. These projects are at different stages of development and the draft financial statements show the full amount of $1·8 million within intangible assets. In order to fund this development, $2·0 million was borrowed from the bank and is due for repayment over a ten-year period. The bank has attached minimum profit targets as part of the loan covenants.

The new finance director has informed the audit partner that since the year end there has been an increased number of sales returns and that in the month of May over $0·5 million of goods sold in April were returned.

Maple & Co attended the year-end inventory count at Sycamore’s warehouse. The auditor present raised concerns that during the count there were movements of goods in and out the warehouse and this process did not seem well controlled.

During the year, a review of plant and equipment in the factory was undertaken and surplus plant was sold, resulting in a profit on disposal of $210,000.

Required:

(a) State Maples & Co’s responsibilities in relation to the prevention and detection of fraud and error. (4 marks)

(b) Describe SIX audit risks, and explain the auditor’s response to each risk, in planning the audit of Sycamore Science Co. (12 marks)

(c) Sycamore’s new finance director has read about review engagements and is interested in the possibility of Maple & Co undertaking these in the future. However, she is unsure how these engagements differ from an external audit and how much assurance would be gained from this type of engagement.

Required:

(i) Explain the purpose of review engagements and how these differ from external audits; and (2 marks)

(ii) Describe the level of assurance provided by external audits and review engagements. (2 marks)

t through a working day．But here’s what I did know：something huge was happenin9．It was stirring economies and imaginations and possibilities like nothing I had ever known．I knew the world was changing in ways that meant I shouldn’t count on old assumptions．And I knew I had dreams I still hadn’t fulfilled.But I didn’t know how to realize them until I met with my old friend，Rollys Rouse，when we happened to move into the same neighborhood．

Rolly often called me with a stream of ideas．His rate of idea production per second seemed al- most incredible．Soon we were on the phone with each other every day．Talking about the Internet． TalMng about starting a new online company-maybe together． He was then developing a plan and he wanted me to be a part of it：we would give people wonderful，whole electronic houses on a CD-ROM and let them modify those homes to their own needs．Try out different windows and doors，different paint colors and furnishings．When they were satisfied，we would enable them to go online to make the project happen，to get the products and the financing and the。professional design and construction to help to do it outright． BuildingBlocks was the name Rolly came up with for his new enterprise．Rolly took the plunge first．He simply dropped his profitable energy—consulting business to commit himself full time to BuildingBlocks．I soon joined him after I quit my well—paid job at a newspaper． Together we developed a demo to show the features of our CD—ROM，“The New American Dream Home”．Then we took it to the annual convention of the National Association of Home Builders in Boston．All the big companies were there showing off their。latest products． To our delight，nearly everyone was eager to see what we were showin9，．including the top executives of some enormous companies．When we left，we had invitations from them to come to their offices to tell them more about BuildingBlocks. That was the start of my real lifetime dream and BuildBlocks，our company，has been prospering ever since． 回答下列各题： By“something huge was happenin9”，the writer refers to_________．

A.house designing

B.home decoration

C.furniture production

D.high-tech development

A.in developing

B.developing

C.to develop

D.to developing

A.developed…developed

B.developing … developing

C.developed…developing

D.developing … developed

A.develop; developed

B.developing; developed

C.developing; develop

D.develop; developing

.()

The population of cities in developing nations is getting smaller.()

A、highly developing

B、highly developed

C、high developing

D、high developed

A lot of the developing countries' ______ are still illiterate.

A．habit B．habitat C．inhibition D．inhabitants

A.A.go

B.B.take