题目
The audit work for the year ended 30 June 2015 is nearly complete, and you are reviewing the draft audit report which has been prepared by the audit senior. During the year the Hopper Group purchased a new subsidiary company, Seurat Sweeteners Co, which has expertise in the research and design of sugar alternatives. The draft financial statements of the Hopper Group for the year ended 30 June 2015 recognise profit before tax of $495 million (2014 – $462 million) and total assets of $4,617 million (2014: $4,751 million). An extract from the draft audit report is shown below:
Basis of modified opinion (extract)
In their calculation of goodwill on the acquisition of the new subsidiary, the directors have failed to recognise consideration which is contingent upon meeting certain development targets. The directors believe that it is unlikely that these targets will be met by the subsidiary company and, therefore, have not recorded the contingent consideration in the cost of the acquisition. They have disclosed this contingent liability fully in the notes to the financial statements. We do not feel that the directors’ treatment of the contingent consideration is correct and, therefore, do not believe that the criteria of the relevant standard have been met. If this is the case, it would be appropriate to adjust the goodwill balance in the statement of financial position.
We believe that any required adjustment may materially affect the goodwill balance in the statement of financial position. Therefore, in our opinion, the financial statements do not give a true and fair view of the financial position of the Hopper Group and of the Hopper Group’s financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards.
Emphasis of Matter Paragraph
We draw attention to the note to the financial statements which describes the uncertainty relating to the contingent consideration described above. The note provides further information necessary to understand the potential implications of the contingency.
Required:
(a) Critically appraise the draft audit report of the Hopper Group for the year ended 30 June 2015, prepared by the audit senior.
Note: You are NOT required to re-draft the extracts from the audit report. (10 marks)
(b) The audit of the new subsidiary, Seurat Sweeteners Co, was performed by a different firm of auditors, Fish Associates. During your review of the communication from Fish Associates, you note that they were unable to obtain sufficient appropriate evidence with regard to the breakdown of research expenses. The total of research costs expensed by Seurat Sweeteners Co during the year was $1·2 million. Fish Associates has issued a qualified audit opinion on the financial statements of Seurat Sweeteners Co due to this inability to obtain sufficient appropriate evidence.
Required:
Comment on the actions which Rockwell & Co should take as the auditor of the Hopper Group, and the implications for the auditor’s report on the Hopper Group financial statements. (6 marks)
(c) Discuss the quality control procedures which should be carried out by Rockwell & Co prior to the audit report on the Hopper Group being issued. (4 marks)
第1题
A.Picasso
B.Van Gogh
C.Monet
D.Rembrandt
第2题
(b) Illustrate how you might use analytical procedures to provide audit evidence and reduce the level of detailed
substantive procedures. (7 marks)
第4题
(c) Describe the audit procedures you should perform. to determine the validity of the amortisation rate of five
years being applied to development costs in relation to Plummet. (5 marks)
第5题
(c) Explain the extent to which you should plan to place reliance on analytical procedures as audit evidence.
(6 marks)
第6题
A into ;
B in ;
C from
第7题
A.Re-install the audit plugin
B.Execute the command FLUSH LOGS
C.Execute the command SET GLOBAL audit_log_fiush= ON
D.Move or rename the existing audit.log file
第8题
A. SYS, SYSTEM
B. SCOTT
C. Only for successful executions
D. Only for failed executions
E. Both successful and failed executions
第9题
A.FORCE_PLUS_PERMANENT is not valid for the audit-log option
B.The audit_log.so library does not exist
C.The audit_log.so library is in a location that is different from that defined by the plugin_dir option
D.The audit plugin must be loaded dynamically by using the INSTALL PLUGIN command
E.The audit log file does not exist in which to write audit events
F.The audit_log.so library is not an executable file
第11题
A. It provides reliable input for verifying network consistency.
B. It requires a network audit to support some upgrade decisions.
C. It requires a network audit to support any network restructuring.
D. It begins with gathering organizational input that may be inaccurate.
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