题目
the audit of the financial statements for the year ended 30 November 2007. The draft financial statements show
revenue of $125 million (2006 – $103 million), profit before tax of $5·6 million (2006 – $5·1 million) and total
assets of $95 million (2006 – $90 million). Your firm was appointed as auditor to Island Co for the first time in June
2007.
Island Co designs, constructs and installs machinery for five key customers. Payment is due in three instalments: 50%
is due when the order is confirmed (stage one), 25% on delivery of the machinery (stage two), and 25% on successful
installation in the customer’s coal mine (stage three). Generally it takes six months from the order being finalised until
the final installation.
At 30 November, there is an amount outstanding of $2·85 million from Jacks Mine Co. The amount is a disputed
stage three payment. Jacks Mine Co is refusing to pay until the machinery, which was installed in August 2007, is
running at 100% efficiency.
One customer, Sawyer Co, communicated in November 2007, via its lawyers with Island Co, claiming damages for
injuries suffered by a drilling machine operator whose arm was severely injured when a machine malfunctioned. Kate
Shannon, the chief executive officer of Island Co, has told you that the claim is being ignored as it is generally known
that Sawyer Co has a poor health and safety record, and thus the accident was their fault. Two orders which were
placed by Sawyer Co in October 2007 have been cancelled.
Work in progress is valued at $8·5 million at 30 November 2007. A physical inventory count was held on
17 November 2007. The chief engineer estimated the stage of completion of each machine at that date. One of the
major components included in the coal extracting machinery is now being sourced from overseas. The new supplier,
Locke Co, is located in Spain and invoices Island Co in euros. There is a trade payable of $1·5 million owing to Locke
Co recorded within current liabilities.
All machines are supplied carrying a one year warranty. A warranty provision is recognised on the balance sheet at
$2·5 million (2006 – $2·4 million). Kate Shannon estimates the cost of repairing defective machinery reported by
customers, and this estimate forms the basis of the provision.
Kate Shannon owns 60% of the shares in Island Co. She also owns 55% of Pacific Co, which leases a head office to
Island Co. Kate is considering selling some of her shares in Island Co in late January 2008, and would like the audit
to be finished by that time.
Required:
(a) Using the information provided, identify and explain the principal audit risks, and any other matters to be
considered when planning the final audit for Island Co for the year ended 30 November 2007.
Note: your answer should be presented in the format of briefing notes to be used at a planning meeting.
Requirement (a) includes 2 professional marks. (13 marks)
第1题
第2题
A. Configure the burst handling option on DC2.
B. Configure DC1 and DC2 as WINS push/pull replication partners.
C. In the WINS server properties on DC1, increase the Renew interval setting to 1 day.
D. In the WINS server properties on DC2, increase the Renew interval setting to 1 day.
第3题
根据写作要求,写出一篇作文。
You have made an appointment with your client, but failed to keep it. Write a letter of apology to your client according to the information below.
1. apologize for your failure to keep the appointment;
2. explain your reason to your client; and
3. express your wish to make another appointment.
第4题
B.serve your client’s spouse first
C.serve you and your spouse last.
第6题
It is important that your client() the relevant L/C not later than April 15. 20….
A、must open
B、has to open
C、open
D、opens
第7题
A.make sure your cell phone is charged up and turned on
B.set your cell phone ring volume to high to ensure you hear any calls
C.turn your cell phone off
D.tell your client you are expecting a phone call
第8题
A.serve your spouse first.
B.serve your friend’s spouse first.
C.serve you and your spouse last.
D.serve your client last.
第9题
A.engineer
B.cardiac
C.security
D.esteem
第10题
Your Windows Communication Foundation (WCF) client application uses HTTP to communicate with the service.You need to enable message logging and include all security information such as tokens and nonces in logged messages.What should you do?()
A.
B.
C.
D.
第11题
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