天津财经大学 最新ACCA注册会计师考试 p7uk_ 最低第7_dec_q
This is a blank page.The question paper begins on page 3.2Section A –BOTH questions are compulsory and MUST be attempted1Your client, Island Ltd, is a manufacturer of machinery used in the coal extraction industry. You are currently planning the audit of the financial statements for the year ended 30 November 2007. The draft financial statements show turnover 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 Ltd for the first time in June 2007.Island Ltd 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 Ltd. The amount is a disputed stage three payment. Jacks Mine Ltd is refusing to pay until the machinery, which was installed in August 2007, is running at 100% efficiency.One customer, Sawyer Ltd, communicated in November 2007 via its lawyers with Island Ltd, 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 Ltd, has told you that the claim is being ignored as it is generally known that Sawyer Ltd has a poor health and safety record, and thus the accident was their fault. T wo orders which were placed by Sawyer Ltd in October 2007 have been cancelled.Work in progress is valued at £8·5 million at 30 November 2007. A physical stock 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 Ltd, is located in Spain and invoices Island Ltd in euros. There is a trade creditor of £1·5 million owing to Locke Ltd 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 Ltd. She also owns 55% of Pacific Ltd, which leases a head office to Island Ltd. Kate is considering selling some of her shares in Island Ltd 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 beconsidered when planning the final audit for Island Ltd for the year ended 30 November 2007.Note: your answe r should be pre se nte d in the format of brie fing note s to be use d at a planning me e ting.Requirement (a) includes 2 professional marks. (13 marks)(b)Explain the principal audit procedures to be performed during the final audit in respect of the estimatedwarranty provision in the balance sheet of Island Ltd as at 30 November 2007.(5 marks)(c)(i)Identify and describe FOUR quality control procedures that are applicable to the individual auditengagement; and (8 marks) (ii)Discuss TWO problems that may be faced in implementing quality control procedures in a small firm of Chartered Certified Accountants, and recommend how these problems may be overcome. (4 marks)(30 marks)3[P.T.O.2You are the manager responsible for the audit of Sci-T ech Ltd, a pharmaceutical research company. You are planning the substantive audit procedures to be used in the forthcoming audit of intangible assets and operating expenses.Relevant extracts from the financial statements are as follows:30 November 200730 November 2006(draft)Balance Sheet£000£000Intangible assets: Development costsCost2,7502,000Accumulated amortisation(1,450)(850)––––––––––––––1,3001,150––––––––––––––Total assets18,50015,000Profit and Loss AccountTurnover4,5003,800Operating expenses include:Research costs160200Amortisation of development costs600450Salary expenses380400Profit before tax1,8001,530The following is an extract from the notes to the draft financial statements:‘Expenditure on product development is capitalised as an intangible asset from the point at which it is probable that future economic benefits will result from the product once completed. Any product development costs which do not meet the above criteria are expensed as incurred as research costs. Two products are currently in the development phase: Medex, an antiseptic cream; and Flortex, a medicine to reduce the symptoms of fever.Amorti sati on of development costs commences wi th commerci al producti on, the amorti sati on peri od bei ng the estimated life span of the product. Currently two products are being amortised over the following periods:1.Plummet Cold Cure five years2.Blingo Cough Cure three years.’During the initial planning of the audit, the audit senior made the following note on the working papers:‘Bio-Cert Ltd is the main competitor of our client. It appears that Bio-Cert Ltd is developing a rival product to Flortex.This rival product is expected to be launched in June 2008, six months prior to the expected launch of Flortex.’Sci-T ech Ltd decided to outsource its payroll function, commencing in June 2007. The service is being provided by ProPay Ltd, a small local company. All of the accounting records relating to payroll are maintained and kept by ProPay L td. In previous years the audit of salary expenses was performed using a systems based approach with limited substantive procedures.Sci-T ech Ltd receives funding from governmental health departments, as well as several large charitable donations.This funding represents on average 25% of the company’s research and development annual expenditure. The amount of funding received is dependent on three key performance indicator (KPI) targets being met annually. All three of the targets must be met in order to secure the government funding.4Extracts from Sci-T ech Ltd’s operating and financial review are as follows:KPI target Draft KPI 2007 Actual KPI 2006 Pharmaceutical productsdonated free of charge tohealth care charities:1% turnover0·8% turnover1·2% turnoverDonations to, and cost ofinvolvement with, localcommunity charities:0·5% turnover 0·6% turnover0·8% turnoverAccidents in the work place:Less than 5 serious accidentsper year 4 serious accidents 2 serious accidentsIn addition to performing the financial statement audit, your firm is engaged to provide an assurance opinion on the KPIs disclosed in the operating and financial review.Required:(a)Define ‘outsourcing’ and explain the matters to be considered in planning the audit of salary expense.Note: requirement (a) includes 2 professional marks.(9 marks)(b)(i)Explain the matters you should consider to determine whether capitalised development costs areappropriately recognised; and (5 marks) (ii)Describe the evidence you would seek to support the assertion that development costs are technically feasible. (3 marks)(c) Describe the audit procedures you should perform to determine the validity of the amortisation rate of fiveyears being applied to development costs in relation to Plummet. (5 marks)(d)(i)Discuss why it may not be possible to provide a high level of assurance over the stated key performanceindicators; and (4 marks) (ii)Describe the procedures to verify the number of serious accidents in the year ended 30 November 2007.(4 marks)(30 marks)5[P.T.O.Section B –TWO questions ONLY to be attempted3You are an audit manager in Webb & Co, a firm of Chartered Certified Accountants. Your audit client, Mulligan Ltd, 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. L CT 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:£000Construction of new factory1,250Purchase of new machinery1,000Initial supply of timber raw material250Advertising and marketing of new product500Your 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 meetingwith Mulligan Ltd. (8 marks)(b)S tate the enquiries you would make of the directors of Mulligan Ltd to ascertain the adequacy of the£3 million finance requested for the new production facility. (7 marks) During the year the internal auditor of Mulligan L td discovered several discrepancies in the stock records. In a statement made to the board of directors, the internal auditor said:‘I think that someone is taking items from the warehouse. A physical stock count is performed every three months, and it has become apparent that about 200 boxes of flat-packed chairs and tables are disappearing from the warehouse every month. We should get someone to investigate what has happened and quantify the value of the loss.’Required:(c)Define ‘forensic accounting’ and explain its relevance to the statement made by the internal auditor.(5 marks)(20 marks)64You are an audit manager in Nate & Co, a firm of Chartered Certified Accountants. You are reviewing three situations, which were recently discussed at the monthly audit managers’ meeting:(1)Nate & Co has recently been approached by a potential new audit client, Fisher Ltd. Your firm is keen to take theappointment and is currently carrying out client acceptance procedures. Fisher Ltd was recently incorporated by Marcellus Fisher, with its main trade being the retailing of wooden storage boxes.(2)Nate & Co provides the audit service to CF Ltd, a national financial services organisation. Due to a number oferrors in the recording of cash deposits from new customers that have been discovered by CF Ltd’s internal audit team, the directors of CF L td have requested that your firm carry out a review of the financial information technology systems. It has come to your attention that while working on the audit planning of CF Ltd, Jin Sayed, one of the juniors on the audit team, who is a recent information technology graduate, spent three hours providing advice to the internal audit team about how to improve the system. As far as you know, this advice has not been used by the internal audit team.(3) LA Shots Ltd is a manufacturer of bottled drinks, and has been an audit client of Nate & Co for five years. T woaudit juniors attended the annual stock count last Monday. They reported that Brenda Mangle, the new production manager of L A Shots L td, wanted the stock count and audit procedures performed as quickly as possible. As an incentive she offered the two juniors ten free bottles of ‘Super Juice’ from the end of the production line. Brenda also invited them to join the LA Shots Ltd office party, which commenced at the end of the stock count. The stock count and audit procedures were completed within two hours (the previous year’s procedures lasted a full day), and the juniors then spent four hours at the office party.Required:(a)Define ‘money laundering’ and state the procedures specific to money laundering that should be consideredbefore, and on the acceptance of, the audit appointment of Fisher Ltd. (5 marks)(b)With reference to CF Ltd, explain the ethical and other professional issues raised.(9 marks)(c)Identify and discuss the ethical and professional matters raised at the stock count of LA Shots Ltd.(6 marks)(20 marks)7[P.T.O.5You are the audit manager for three clients of Bertie & Co, a firm of Chartered Certified Accountants. The financial year end for each client is 30 September 2007.You are reviewing the audit senior’s proposed audit reports for two clients, Alpha Plc and Deema Ltd.Alpha Plc permanently closed several factories in May 2007, with all costs of closure finalised and paid in August 2007. The factories all produced the same item, which contributed 10% of Alpha Plc’s total turnover for the year ended 30 September 2007 (2006 –23%). The closure has been discussed accurately and fully in the chairman’s statement and Directors’ Report. However, the closure is not mentioned in the notes to the financial statements, nor separately disclosed on the financial statements.The audit senior has proposed an unmodified audit opinion for Alpha Plc as the matter has been fully addressed in the chairman’s statement and Directors’ Report.In October 2007 a legal claim was filed against Deema Ltd, a retailer of toys. The claim is from a customer who slipped on a greasy step outside one of the retail outlets. The matter has been fully disclosed as a material contingent liability in the notes to the financial statements, and audit working papers provide sufficient evidence that no provision is necessary as Deema Ltd’s lawyers have stated in writing that the likelihood of the claim succeeding is only possible.The amount of the claim is fixed and is adequately covered by cash resources.The audit senior proposes that the audit opinion for Deema Ltd should not be qualified, but that an emphasis of matter paragraph should be included after the audit opinion to highlight the situation.Hugh Ltd was incorporated in October 2006, using a bank loan for finance. T urnover for the first year of trading is £750,000, and there are hopes of rapid growth in the next few years. The business retails luxury hand made wooden toys, currently in a single retail outlet. The two directors (who also own all of the shares in Hugh Ltd) are aware that due to the small size of the company, the financial statements do not have to be subject to annual external audit, but they are unsure whether there would be any benefit in a voluntary audit of the first year financial statements. The directors are also aware that a review of the financial statements could be performed as an alternative to a full audit.Hugh L td currently employs a part-time, part-qualified accountant, Monty Parkes, who has prepared a year end balance sheet and profit and loss account, and who produces summary management accounts every three months.Required:(a)Evaluate whether the audit senior’s proposed audit report is appropriate, and where you disagree with theproposed report, recommend the amendment necessary to the audit report of:(i)Alpha Plc;(6 marks)(ii)Deema Ltd. (4 marks)(b)Describe the potential benefits for Hugh Ltd in choosing to have a financial statement audit. (4 marks)(c)With specific reference to Hugh Ltd, discuss the objective of a review engagement and contrast the level ofassurance provided with that provided in an audit of financial statements.(6 marks)(20 marks)End of Question Paper8。
2022年天津注册会计师考试科目及范围(最新)
天津2022年注会考试科目和考试范围专业阶段考试科目：会计、审计、财务成本管理、公司战略与风险管理、经济法、税法。
专业阶段考试报名人员可以同时报考6个科目，也可以选择报考部分科目。
综合阶段考试科目：职业能力综合测试（试卷一、试卷二）。
考试范围：《注册会计师全国统一考试大纲——专业阶段考试（2022年）》和《注册会计师全国统一考试大纲——综合阶段考试（2022年）》确定的考试范围。
考试时间安排专业阶段考试：2022年8月26日(星期五)08:30-11:30 会计(第一场)13:00-15:00 税法(第一场)17:00-19:00 经济法(第一场)2022年8月27日（星期六）08:30-11:00 审计08:30-11:00 财务成本管理（第一场）13:00-15:30 财务成本管理（第二场）17:00-19:00 公司战略与风险管理2022年8月28日（星期日）08:30-11:30 会计（第二场）13:00-15:00 税法（第二场）17:00-19:00 经济法（第二场）综合阶段考试：2022年8月27日（星期六）8:30-12:00 职业能力综合测试（试卷一）14:00-17:30 职业能力综合测试（试卷二）（一）考试时间天津2022年注会综合阶段考试：2022年8月27日（星期六）8:30-12:00 职业能力综合测试（试卷一）14:00-17:30 职业能力综合测试（试卷二）（二）考试地点考试地点安排在各省、自治区、直辖市设立的考区。
（三）关于在部分考区安排会计、税法、经济法、财务成本管理四个科目两场考试考虑到参加会计、税法、经济法、财务成本管理四个科目考试考生人数较多，考点和机位相对紧张，为优化考点和机位资源，拟在部分考区对会计、税法、经济法、财务成本管理等四个科目安排两场考试。
具体安排以准考证为准。
财政部注册会计师考试委员会办公室（简称财政部考办）将根据报名及机位准备情况统筹安排考生参加相关场次的考试，每位考生只允许参加同一科目的一场考试，请广大考生务必按照准考证上载明的场次和时间参加考试。
天津财经大学孟茜老师挂牌会计学复习参考题期末范围题库
复习参考题
简述什么是账簿的平行登记以及平行登记的要点
简述科目汇总表会计核算形式的程序
什么是借贷记账法？简述借贷记账法的基本内容
列出会计里利润的营业利润、利润总额和净利润的计算那个公式
简述固定资产处置的程序包括的内容（固定资产清理借方、贷方反映的内容）简述记账凭证会计核算形成的程序
简述会计科目与会计账户的联系和区别
简述利润表的结构
简述会计基本假设的含义和意义
核算及计算题
1.银行存款余额调节表的编制
2.采用先进先出法和加权平均法
3.计算折旧的四种方法
4.采用品种法计算产品成本
5.增加固定资产、计提折旧、进行清理
6.综合题目
7.报表只涉及资表、利润表和现金流量表概念
了解内容
第五章第四节应付债券
第六章第四节持有至到期投资
第六章第五节长期股权投资
第七章供应过程计划成本核算
第八章第五节分批法分步法
第九章销售过程贴现的内容
第十四章财务报告的现金流量表的编制
第十五章会计循环和会计账务处理程序的区别。
天津财经大学 最新ACCA注册会计师考试 p6uk_ 最低第8_jun_a
Professional Level –Options Module, Paper P6 (UK)Advanced Taxation (United Kingdom)June 2008 Answers1MemorandumTo Tax managerFrom Tax assistantDate 2 June 2008Subject Saturn Ltd group of companiesThis memorandum considers a number of issues raised by Daniel Dare (DD), the managing director of Saturn Ltd.(a)(i)Dione Ltd – Value of tax loss–Any amount of the loss can be surrendered to the UK resident members of the 75% loss group, i.e. Saturn Ltd and Rhea Ltd.–The maximum tax saving will be obtained by offsetting the loss against profits between the limits for the small companies rate of corporation tax. The limits are divided by four as there are four associated companies (Titan Incis included as overseas companies are associated for the purposes of determining the rate of corporation tax).Accordingly, for the year ending 30 June 2008 the limits are £75,000 and £375,000.–The maximum tax saving will be achieved by surrendering the loss to Saturn Ltd. The first £10,000 of loss will relieve profits at the full rate of tax and the balance of the loss will save tax at 32·5%. Surrendering the loss toRhea Ltd would only save tax at 30%.–The dividend received by Saturn Ltd does not affect its corporation tax liability. Dividends received from UK resident companies are not subject to corporation tax and dividends received from a 51% subsidiary are not frankedinvestment income.–The corporation tax saved via the offset of the loss will be £60,525 ((£10,000 x 30%) + (£177,000 x 32·5%)).–The claim must be submitted by 30 June 2010 (one year after the filing date of the corporation tax return).Further information required:–Income and gains of Dione Ltd for the year ended 30 June 2007The loss could be carried back for offset against the total profits of Dione Ltd for the year ended 30 June 2007.Whether or not this would be advantageous would depend on the company’s total profits for that year. Althoughthe maximum additional tax saving would be very small, there would be a cashflow benefit.(ii)Tethys Ltd –Use of trading loss–The two companies will not be in a group relief group as Saturn Ltd will not own 75% of T ethys Ltd.–For a consortium to exist, 75% of the ordinary share capital of T ethys Ltd must be held by companies which each hold at least 5%. Accordingly, T ethys Ltd will be a consortium company if the balance of its share capital is ownedby Clangers Ltd but not if it is owned by Edith Clanger.–If T ethys Ltd qualifies as a consortium company: 65% of its trading losses in the period from 1 August 2008 to31 December 2008 can be surrendered to Saturn Ltd, i.e. £21,667 (£80,000 x 5/12 x 65%).–If T ethys Ltd does not qualify as a consortium company: none of its loss can be surrendered to Saturn Ltd.–The acquisition of 65% of T ethys Ltd is a change in ownership of the company. If there is a major change in the nature or conduct of the trade of T ethys Ltd within three years of 1 August 2008, the loss arising prior to that datecannot be carried forward for relief in the future.Further information required:–Ownership of the balance of the share capital of T ethys Ltd.(iii)Tethys Ltd –Sale of the manufacturing premisesValue added tax (VAT)–The building is not a new building (i.e. it is more than three years old). Accordingly, the sale of the building is an exempt supply and VAT should not be charged unless T ethys Ltd has opted to tax the building in the past.T axable profits on sale–There will be no balancing adjustment in respect of industrial building allowances as the building is to be sold on or after 21 March 2007.–The capital gain arising on the sale of the building will be £97,760 (£240,000 – (£112,000 x 1·27)).Rollover relief–T ethys Ltd is not in a capital gains group with Saturn Ltd. Accordingly, rollover relief will only be available if T ethys Ltd, rather than any of the other Saturn Ltd group companies, acquires sufficient qualifying business assets.–The amount of sales proceeds not spent in the qualifying period is chargeable, i.e. £40,000 (£240,000 –£200,000). The balance of the gain, £57,760 (£97,760 – £40,000), can be rolled over.–Qualifying business assets include land and buildings and fixed plant and machinery. The assets must be brought into immediate use in the company’s trade.–The assets must be acquired in the four-year period beginning one year prior to the sale of the manufacturing premises.Further information required:–Whether or not T ethys Ltd has opted to tax the building in the past for the purposes of VAT.(iv)Stamp duty and stamp duty land tax–The purchase of T ethys Ltd will give rise to a liability to ad valorem stamp duty of £1,175 (£235,000 x 0·5%).The stamp duty must be paid by Saturn Ltd within 30 days of the share transfer in order to avoid interest beingcharged. It is not an allowable expense for the purposes of corporation tax.(b)Before agreeing to become tax advisers to the Saturn Ltd groupInformation needed:–Proof of incorporation and primary business address and registered office.–The structure, directors and shareholders of the company.–The identities of those persons instructing the firm on behalf of the company and those persons that are authorised to do so.Action to take:–Consider whether becoming tax advisers to the Saturn Ltd group would create any threats to compliance with the fundamental principles of professional ethics, for example integrity and professional competence. Where such threatsexist, we should not accept the appointment unless the threats can be reduced to an acceptable level via theimplementation of safeguards.–Contact the existing tax adviser in order to ensure that there has been no action by the Saturn Ltd group that would, on ethical grounds, preclude us from accepting appointment.2(a)John and Maureen Robinson – Additional tax payableAdditional income tax payable – 2005/06££2,550 x 22% (property income (W1))5611,587 x 20% (interest income (W1))317–––––4,137 (remainder of basic rate band (W2))–––––1,443 x 40% (interest income (£3,030 – £1,587))5779,840 x 32·5% (dividend income (W1))3,198–––––––4,653 Less:T ax credits£3,030 x 20%(606)£9,840 x 10%(984)–––––––3,063 T ax paid by Maureen (W3)(561)–––––––Additional income tax payable2,502–––––––Additional capital gains tax payable – 2005/06£Chargeable gain13,470Annual exemption(9,200)–––––––T axable gain4,270–––––––Additional capital gains tax payable (£4,270 x (40% – 20%)) (Note)854–––––––Note: The taxable gain fell into Maureen’s basic rate band but will now be taxed at 40% in John’s hands.Tutorial noteThe gift of the property to Maureen would not be effective for capital gains tax purposes due to the prior agreement whereby Maureen gave the sales proceeds to John.Additional income tax payable – 2006/07££393 x 20% (interest income (W1))79––––––393 (remainder of basic rate band (W2))––––––2,827 x 40% (interest income (£3,220 – £393))1,131144 x 40% (interest income – Penny (W1))5810,120 x 32.5% (dividend income (W1))3,289––––––4,557Less:T ax credits£3,220 x 20%(644)£10,120 x 10%(1,012)––––––2,901T ax paid by Maureen (W4)(473)––––––Additional income tax payable2,428––––––T otal additional tax payable (£2,502 + £854 + £2,428)5,784––––––Workings1.John – Additional taxable income2005/062006/07££Arising on inherited assets:Property income2,550–Interest income (£2,424/£2,576 x 100/80)3,0303,220Dividend income (£8,856/£9,108 x 100/90)9,84010,120 Children’s bank accounts:Will – below de minimis limit of £100––Penny –1442.John – Remainder of basic rate band2005/062006/07££Salary29,40030,500Car benefit:15 + (185 – 140)/5 = 24%£17,400 x 24% x 8/122,784£17,400 x 24%4,176 Fuel benefit:£14,400 x 24% x 8/122,304£14,400 x 24%3,456 T rust income (£720/£780 x 100/60)1,2001,300Less:Personal allowance(5,225)(5,225)––––––––––––––30,46334,207 Basic rate band34,60034,600––––––––––––––Remainder of basic rate band4,137393––––––––––––––3.Maureen – T ax paid on investment income 2005/06£T rading income (W5)11,845Property income 2,550Interest income (W1)3,030Dividend income (W1)9,840–––––––27,265 Less:Personal allowance(5,225)–––––––T axable income22,040–––––––T ax on property income (Note)£2,550 x 22%561–––––––Note:All of the investment income fell into the basic rate band. The tax liability in respect of the interest and dividend income was covered by the related tax credits. Accordingly, in respect of the income arising on the inherited assets, only the property income gave rise to income tax payable.4.Maureen – T ax paid on investment income 2006/07£T rading income (W5)28,590Interest income (W1)3,220Dividend income (W1)10,120–––––––41,930Less:Personal allowance(5,225)–––––––T axable income36,705–––––––T ax on dividend income in higher rate band (Note)£2,105 x 32·5%684Less:T ax credit£2,105 x 10%(211)–––––––473–––––––Note:The tax liability in respect of the investment income that fell into the basic rate band was covered by the related tax credits. Accordingly, income tax was payable in respect of the dividend income that fell into the higher rateband only, i.e. £2,105 (£36,705 – £34,600).5.Maureen – T rading incomePeriod ended Year ended30 September 200630 September 2007££Adjusted trading profit28,40031,240Less:Capital allowances (£5,850 x 40%)(2,340)(£5,850 – £2,340) x 25%(878)––––––––––––––26,06030,362––––––––––––––2005/061 November 2005 to 5 April 2006 (£26,060 x 5/11)11,845–––––––2006/071 November 2005 to 31 October 20061 November 2005 to 30 September 200626,0601 October 2006 to 31 October 2006 (£30,362 x 1/12)2,530–––––––28,590–––––––(b)Advice on Maureen’s VAT positionDeregistrationIn order to voluntarily deregister for VAT you must satisfy HMRC that the value of your taxable supplies in the next twelve months will not exceed £62,000. You will then be deregistered with effect from the date of your request or a later date as agreed with HMRC.On deregistering you are regarded as making a supply of all stocks and equipment in respect of which input tax has been claimed. However, the VAT on this deemed supply need only be paid to HMRC if it exceeds £1,000.Once you have deregistered, you must no longer charge VAT on your sales. You will also be unable to recover the input tax on the costs incurred by your business. Instead, the VAT you pay on your costs will be allowable when computing your taxable profits.You should monitor your sales on a monthly basis; if your sales in a twelve-month period exceed £64,000 you must notify HMRC within the 30 days following the end of the twelve-month period. You will be registered from the end of the month following the end of the twelve-month period.Flat rate schemeRather than deregistering you may wish to consider operating the flat rate scheme. This would reduce the amount of administration as you would no longer need to record and claim input tax in respect of the costs incurred by your business.Under the flat rate scheme you would continue to charge your customers VAT in the way that you do at the moment. You would then pay HMRC a fixed percentage of your VAT inclusive turnover each quarter rather than calculating output tax less input tax. This may be financially advantageous as compared with deregistering; I would be happy to prepare calculations for you if you wish.3(a)Spica(i)The most beneficial tax treatment of the payment receivedThe payment received by Spica will be treated as either an income distribution or as capital.Income treatment£Payment received (8,000 x £8)64,000Less:Original subscription price (8,000 x £1·90)(15,200)––––––––Distribution48,800––––––––T axable dividend income (£48,800 x 100/90)54,222Less:Personal allowance(5,225)––––––––T axable income48,997––––––––Income tax£34,600 x 10%3,46014,397 x 32·5%4,679–––––––48,997–––––––––––––––8,139Less:Income tax credit (£54,222 x 10%)(5,422)––––––––Income tax payable2,717––––––––Tutorial noteA capital loss of £800 [8,000 x (£2·00 –£1·90)] will also arise. Spica cannot claim to offset this capital loss againstincome as she did not subscribe for the shares.Capital treatment£Sales proceeds (8,000 x £8)64,000Less:Cost (8,000 x £2)(16,000)––––––––48,000––––––––The shares are business assets that have been owned for more than two years.T axable gains (£48,000 x 25%)12,000Less:Remainder of the annual exemption (£9,200 – £3,800)(5,400)––––––––6,600––––––––Capital gains tax£2,230 x 10%2234,370 x 20%874––––––6,600––––––––––––––Capital gains tax payable1,097––––––––The capital treatment gives rise to the lower tax liability.(ii)Ensuring capital treatmentFor the capital treatment to apply, a number of conditions need to be satisfied such that the following points need to beconfirmed.–The business of Acrux Ltd consists wholly or mainly of the carrying on of a trade as opposed to the making of investments.–Spica is UK resident and ordinarily resident despite living in both the UK and Solaris.–The transaction is being carried out for the purpose of the company’s trade and is not part of a scheme intended to avoid tax. This is likely to be the case as HMRC accept that a management disagreement over the running ofthe company has an adverse effect on the running of the business.I n addition, Spica must have owned the shares for at least five years so the transaction must not take place until1 October 2008.(b)Rate of tax on profits of non-UK resident investee companiesUndistributed profitsThe companies will be subject to tax in the countries in which they are resident; this is because of their residency status or because they have a permanent establishment in that country. Undistributed profits will not be taxed in the UK.The rate of tax on undistributed profits will therefore be the rate of tax in the country of residency of the respective companies.Distributed profits with double tax treatyThe dividends received by Acrux Ltd from each of the overseas companies will be grossed up in respect of underlying tax (the overseas corporation tax paid on the distributed profits) because Acrux Ltd will own at least 10% of the overseas companies.The gross amount will then be included in Acrux Ltd’s profits chargeable to corporation tax.The treaty will provide double tax relief in the UK for the overseas tax suffered in respect of each dividend up to a maximum of the UK tax on the grossed up overseas dividend. As a result of the double tax relief, the overall rate of tax suffered will be the higher of the UK rate paid by Acrux Ltd and the overseas tax rate borne by the overseas company.Where the rate of overseas tax in respect of a particular dividend exceeds the rate of corporation tax in the UK, excess foreign tax will arise. This can be relieved, via onshore pooling, against the UK tax due on those dividends where the rate of tax in the UK exceeds the rate overseas. This will reduce the overall rate of tax suffered on the total overseas profits of the overseas companies as a whole.Distributed profits with no double tax treatyWhere there is no double tax treaty, unilateral double tax relief will be available in the UK. This relief will operate in the same way as double tax relief under a double tax treaty such that the overall rate of tax on each dividend will be the higher of the UK rate paid by Acrux Ltd and the overseas rate borne by the overseas company. Relief via onshore pooling will also be available.4(a)(i)Galileo – Inheritance tax payableThe gift of shares to Galileo was a potentially exempt transfer. It has become chargeable due to Kepler’s death withinseven years of the gift.£Value of Kepler’s holding prior to the gift to Galileo (2,000 x £485)970,000Less:Value of Kepler’s holding after the gift (1,400 x £310)(434,000)–––––––––536,000Business property relief (W1)(367,843)Less:Annual exemption 2004/05(3,000)Less:Annual exemption 2003/04 (£3,000 – (£900 x 2))(1,200)–––––––––163,957Available nil rate band (£300,000 –(£298,000 – £6,000)(8,000)–––––––––155,957–––––––––Inheritance tax at 40%62,383T aper relief (3–4 years) (£62,383 x 20%)(12,477)–––––––––Inheritance tax payable49,906–––––––––The inheritance tax payable in respect of the shares in the death estate will be paid by the executors and borne byHerschel, the residuary legatee. None of the tax will be payable by Galileo.Workings1Business property relief£536,000 x 100% x (£1,050,000/£1,530,000) (W2)£367,8432Excepted assets and total assets££Total Non-exceptedassets assetsPremises900,000900,000Surplus land480,000–Vehicles100,000100,000Current assets50,00050,000––––––––––––––––––––1,530,0001,050,000––––––––––––––––––––(ii)Payment by instalmentsThe inheritance tax can be paid by instalments because Messier Ltd is an unquoted company controlled by Kepler atthe time of the gift and is still unquoted at the time of his death.The tax is due in ten equal annual instalments starting on 30 November 2008.Interest will be charged on any instalments paid late; otherwise the instalments will be interest free because Messier isa trading company that does not deal in property or financial assets.All of the outstanding inheritance tax will become payable if Galileo sells the shares in Messier Ltd.Tutorial noteCandidates were also given credit for stating that payment by instalments is available because the shares represent atleast 10% of the company’s share capital and are valued at £20,000 or more.(b)Minimising capital gains tax on the sale of the paintingsGalileo will become resident and ordinarily resident from the date he arrives in the UK as he intends to stay for more than three years. Prior to that date he will be neither resident nor ordinarily resident such that he will not be subject to UK capital gains tax.Galileo should sell the paintings before he leaves Astronomeria; this will avoid UK capital gains tax completely.Tutorial noteThe gains would be taxable on the remittance basis if the paintings were sold after Galileo’s arrival in the UK. However, this would not help Galileo to minimise the capital gains tax due as he needs to bring the sales proceeds into the UK in order to purchase a house.(c)(i)Relocation costsDirect assistanceMessier Ltd can bear the cost of certain qualifying relocation costs of Galileo up to a maximum of £8,000 withoutincreasing his UK income tax liability. Qualifying costs include the legal, professional and other fees in relation to thepurchase of a house, the costs of travelling to the UK and the cost of transporting his belongings. The costs must beincurred before the end of the tax year following the year of the relocation, i.e. by 5 April 2010.Assistance in the form of a loanMessier Ltd can provide Galileo with an interest-free loan of up to £5,000 without giving rise to any UK income tax.(ii)Tax-free accommodationIt is not possible for Messier Ltd to provide Galileo with tax-free accommodation. The provision of accommodation by anemployer to an employee will give rise to a taxable benefit unless it is:–necessary for the proper performance of the employee’s duties, e.g. a caretaker; or–for the better performance of the employee’s duties and customary, e.g. a hotel manager; or–part of arrangements arising out of threats to the employee’s security, e.g. a government minister.As a manager of Messier Ltd Galileo is unable to satisfy any of the above conditions.5(a)(i)The tax incentives immediately availableIncome tax–The investor’s income tax liability for 2008/09 will be reduced by 20% of the amount subscribed for the shares.–Up to half of the amount invested can be treated as if paid in 2007/08 rather than 2008/09. This is subject to a maximum carryback of £50,000.This ability to carryback relief to the previous year is useful where the investor’s income in 2008/09 is insufficientto absorb all of the relief available.Tutorial noteThere would be no change to the income tax liability of 2007/08 where an amount is treated as if paid in that year.This ensures that such a claim does not affect payments on account under the self assessment system. Instead, thetax refund due is calculated by reference to 2007/08 but is deducted from the next payment of tax due from thetaxpayer or is repaid to the taxpayer.Capital gains tax deferral–For every £1 invested in Vostok Ltd, an investor can defer £1 of capital gain and thus, potentially, 40 pence of capital gains tax.–The gain deferred can be in respect of the disposal of any asset.–The shares must be subscribed for within the four year period starting one year prior to the date on which the disposal giving rise to the gain took place.(ii)Answers to questions from potential investorsMaximum investment–For the relief to be available, a shareholder (together with spouse and children) cannot own more than 30% of the company. Accordingly, the maximum investment by a single subscriber will be £315,000 (15,000 x £21).Borrowing to finance the purchase–There would normally be tax relief for the interest paid on a loan taken out to acquire shares in a close company such as Vostok Ltd. However, this relief is not available when the shares qualify for relief under the enterpriseinvestment scheme.Implications of a subscriber selling the shares in Vostok Ltd–The income tax relief will be withdrawn if the shares in Vostok Ltd are sold within three years of subscription.–Any profit arising on the sale of the shares in Vostok Ltd on which income tax relief has been given will be exempt from capital gains tax provided the shares have been held for three years.–Any capital loss arising on the sale of the shares will be allowable regardless of how long the shares have been held. However, the loss will be reduced by the amount of income tax relief obtained in respect of the investment.The loss may be used to reduce the investor’s taxable income, and hence his income tax liability, for the tax yearof loss and/or the preceding tax year.–Any gain deferred at the time of subscription will become chargeable in the year in which the shares in Vostok Ltd are sold.(b)Recoverable input tax in respect of new premisesVostok Ltd will recover £47,880 (£446,500 x 7/47 x 72%) in the year ending 31 March 2009.The capital goods scheme will apply to the purchase of the building because it is to cost more than £250,000. Under the scheme, the total amount of input tax recovered reflects the use of the building over the period of ownership, up to a maximum of ten years, rather than merely the year of purchase.Further input tax will be recovered in future years as the percentage of exempt supplies falls. (If the percentage of exempt supplies were to rise, Vostok Ltd would have to repay input tax to HMRC.)The additional recoverable input tax will be computed by reference to the percentage of taxable supplies in each year including the year of sale. For example, if the percentage of taxable supplies in a particular subsequent year were to be 80%, the additional recoverable input tax would be computed as follows.£446,500 x 7/47 x 1/10 x (80% – 72%) = £532.Further input tax will be recovered in the year of sale as if Vostok Ltd’s supplies in the remaining years of the ten-year period are fully vatable. For example, if the building is sold in year seven, the additional recoverable amount for the remaining three years will be calculated as follows.£446,500 x 7/47 x 1/10 x (100% – 72%) x 3 = £5,586.Professional Level –Options Module, Paper P6 (UK)Advanced Taxation (United Kingdom)June 2008 Marking SchemeAvailable Maximum1(a)(i)Identification of group members1Identification of strategy1Calculation of corporation tax rate limits1Advice1Relevance of dividend received by Saturn Ltd1T ax saving1Submission date for group relief claim1Loss carryback1·5–––––8·57–––––(ii)Not in group relief group1Recognition of condition for consortium to exist/information required2Relief available if consortium exists1·5Relief available if no consortium1Possible restriction on ability to carry forward loss2–––––7·56–––––(iii)Value added tax/information required2No balancing charge1Capital gain1Rollover relief:Assets to be acquired by T ethys Ltd1·5Amount of relief available1Relevant assets1Qualifying period1–––––8·57–––––(iv)Stamp duty2–––––22–––––Appropriate style and presentation1Effectiveness of communication1–––––22–––––(b)Information needed – 1 mark each3Action to takeThreats and safeguards2Contact existing tax adviser1–––––65––––––––Total29–––Available Maximum 2(a)The additional income:Interest – 0·5 for each year1Dividends – 0·5 for each year1Property income0·5Children’s interest – identification of issue1De minimis1 John’s income tax:2005/06:Car benefit1Fuel benefit0·5T rust income1Personal allowance0·5Remainder of basic rate band0·5Additional tax liability2T ax credits1Comparison with the tax paid by Maureen0·52006/07:Car0·5Fuel benefit0·5T rust income0·5Personal allowance0·5Remainder of basic rate band0·5Additional tax liability2T ax credits1Comparison with the tax paid by Maureen0·5 Maureen’s income tax:T rading income:Capital allowances12005/06 assessment12006/07 assessment1·5T ax on investment income:2005/062·52006/072·5 Additional capital gains tax due:Annual exemption0·5Additional tax1·5 T otal additional tax due0·5–––––28·526–––––Clarity of presentation and use of headings1Logical structure1–––––22–––––(b)Conditions for voluntary deregistration1Effective date0·5Deemed supply1De minimis limit1Stop charging VAT0·5Cannot recover input tax0·5Deductible for income tax0·5Need to monitor turnover1Suggestion of flat rate scheme1Operation of the scheme2Possible financial advantage0·5–––––9·58–––––Effectiveness of communication1–––––11––––––––T otal37–––。
天津财经大学 最新ACCA注册会计师考试 UK 模拟及答案
Financial Accounting (United Kingdom)Time allowed: 2 hoursALL FIFTY questions are compulsory and MUST be attempted.Do NOT open this paper until instructed by the supervisor.This question paper must not be removed from the examination hall.Fundamentals Pilot Paper – Knowledge moduleP a p e r F 3 (U K )The Association of Chartered Certified AccountantsALL 50 questions are compulsory and MUST be attemptedPlease use the Candidate Registration Sheet provided to indicate your chosen answer to each multiple choice question.1 Should details of material adjusting or material non-adjusting events after the balance sheet date be disclosed inthe notes to financial statements according to FRS 21 Events After the Balance Sheet Date?A Adjusting eventsB Non-Adjusting events(1 mark) 2At 30 June 2005 a company’s allowance for debtors was £39,000. At 30 June 2006 trade debtors totalled £517,000.It was decided to write off debts totalling £37,000 and to adjust the allowance for debtors to the equivalent of 5 per cent of the trade debtors based on past events.What figure should appear in the profit and loss account for the year ended 30 June 2006 for these items?A£61,000B£22,000C£24,000D£23,850(2 marks)3 In times of rising prices, what effect does the use of the historical cost concept have on a company’s asset valuesand profit?A Asset values and profit both understatedB Asset values and profit both overstatedC Asset values understated and profit overstatedD Asset values overstated and profit understated.(2 marks) 4The ASB’s Statement of principles for financial reporting gives qualitative characteristics that make financial informationreliable.Which of the following are examples of those qualitative characteristics?A Faithful representation, neutrality and prudenceB Neutrality, comparability and true and fair viewC Prudence, comparability and accrualsD Neutrality, accruals and going concern(2 marks)5The following bank reconciliation statement has been prepared by a trainee accountant:£Overdraft per bank statement 3,860less: Outstanding cheques 9,1605,300add: Deposits credited after date 16,690Cash at bank as calculated above 21,990What should be the correct balance per the cash book?A£21,990 balance at bank as statedB£3,670 balance at bankC£11,390 balance at bankD£3,670 overdrawn.(2 marks)6 Which of the following calculates a trader’s net profit for a period?A Closing net assets + drawings – capital introduced – opening net assetsB Closing net assets – drawings + capital introduced – opening net assetsC Closing net assets – drawings – capital introduced – opening net assetsD Closing net assets + drawings + capital introduced – opening net assets.(2 marks) 7 A sole trader took some goods costing £800 from stock for his own use. The normal selling price of the goods is£1,600.Which of the following journal entries would correctly record this?Dr Cr£ £A Drawings account 800Stock account 800B Drawings account 800Purchases account 800C Sales account 1,600Drawings account 1,600(1 mark)8The debit side of a company’s trial balance totals £800 more than the credit side.Which one of the following errors would fully account for the difference?A£400 paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account.B Discount received £400 has been debited to discount allowed accountC A receipt of £800 for commission receivable has been omitted from the recordsD The petty cash balance of £800 has been omitted from the trial balance.(2 marks)9 A company’s profit and loss account for the year ended 31 December 2005 showed a net profit of £83,600. It waslater found that £18,000 paid for the purchase of a motor van had been debited to the motor expenses account. It is the company’s policy to depreciate motor vans at 25 per cent per year on the straight line basis, with a full year’s charge in the year of acquisition.What would the net profit be after adjusting for this error?A£106,100B£70,100C£97,100D£101,600(2 marks)10 Should dividends paid appear on the face of a company’s profit and loss account?A YesB No(1 mark)11The following control account has been prepared by a trainee accountant:Debtors ledger control account£ £Opening balance 308,600 Cash received from credit customers 147,200 Credit sales 154,200 Discounts allowed to credit customers 1,400 Cash sales 88,100 Interest charged on overdue accounts 2,400 Contras against credit balances in creditors ledger 4,600 Bad debts written off 4,900Allowance for debtors 2,800Closing balance 396,800555,500 555,500 What should the closing balance be when all the errors made in preparing the debtors ledger control account have been corrected?A£395,200B£304,300C£309,500D£307,100(2 marks)12At 31 December 2004 Q, a limited liability company, owned a building that cost £800,000 on 1 January 1995. It was being depreciated at two per cent per year.On 1 January 2005 a revaluation to £1,000,000 was recognised. At this date the building had a remaining useful life of 40 years.What is the depreciation charge for the yeae ended 31 December 2005 and the revaluation reserve balance as at1 January 2005?Depreciation charge Revaluation reservefor year ended 31 December 2005 as at 1 January 2005£ £A25,000 200,000B25,000 360,000C20,000 200,000D20,000 360,000(2 marks)13P and Q are in partnership, sharing profits equally.On 30 June 2005, R joined the partnership and it was agreed that from that date all three partners should share equally in the profit.In the year ended 31 December 2005 the profit amounted to £300,000, accruing evenly over the year, after charginga bad debt of £30,000 which it was agreed should be borne equally by P and Q only.What should P’s total profit share be for the year ended 31 December 2005?A £95,000B£122,500C£125,000D £110,000(2 marks)14 A company has made a material change to an accounting policy in preparing its current financial statements.Which of the following disclosures are required by FRS 18 Accounting policies in the financial statements?1 The reasons for the change.2 The amount of the adjustment in the current period and in comparative information for prior periods.3 An estimate of the effect of the change on the next five accounting periods.A 1 and 2 onlyB 1 and 3 onlyC 2 and 3 onlyD1, 2 and 3(2 marks)15According to SSAP 9 Stocks and long-term contracts, which of the following costs should be included in valuing the stock of a manufacturing company?(1) Carriage inwards(2) Carriage outwards(3) Depreciation of factory plant(4) General administrative overheadsA All four itemsB1, 2 and 4 onlyC 2 and 3 onlyD 1 and 3 only(2 marks)16Part of a company’s cash flow statement is shown below:£’000Operating profit 8,640Depreciation charges (2,160)Increase in stock (330)Increase in trade creditors 440The following criticisms of the extract have been made:(1) Depreciation charges should have been added, not deducted.(2) Increase in stock should have been added, not deducted.(3) Increase in trade creditors should have been deducted, not added.Which of the criticisms are valid?A 2 and 3 onlyB 1 onlyC 1 and 3 onlyD 2 only(2 marks)17 Which of the following explains the imprest system of operating petty cash?A Weekly expenditure cannot exceed a set amount.B The exact amount of expenditure is reimbursed at intervals to maintain a fixed float.C All expenditure out of the petty cash must be properly authorised.D Regular equal amounts of cash are transferred into petty cash at intervals.(2 marks)18 Which of the following are differences between sole traders and limited liability companies?(1) A sole traders’ financial statements are private; a company’s financial statements are sent to shareholders and maybe publicly filed(2) Only companies have capital invested into the business(3) A sole trader is fully and personally liable for any losses that the business might make; a company’s shareholdersare not personally liable for any losses that the company might make.A 1 and 2 onlyB 2 and 3 onlyC 1 and 3 onlyD1, 2 and 3(2 marks)19 Which of the following documents should accompany a payment made to a supplier?A Supplier statementB Remittance adviceC Purchase invoice(1 mark)20 Goodwill should never be shown on the balance sheet of a partnership.Is this statement true or false?A FalseB True(1 mark)21 Which of the following journal entries are correct, according to their narratives?Dr CR£ £1 Suspense account 18,000Rent received account 18,000Correction of error in posting £24,000 cash receivedfor rent to the rent received account as £42,0002 Share premium account 400,000Share capital account 400,0001 for 3 bonus issue on share capital of 1,200,00050p shares3 Trade investment in X 750,000Share capital account 250,000Share premium account 500,000500,000 50p shares issued at £1.50 per share inexchange for shares in XA 1 and 2B 2 and 3C 1 onlyD 3 only(2 marks)22The plant and machinery account (at cost) of a business for the year ended 31 December 2005 was as follows:Plant and machinery – cost2005 2005£ £1 Jan Balance 240,000 31 March Transfer disposal account 60,00030 June Cash – purchase of plant 160,000 31 Dec Balance 340,000400,000 400,000 The company’s policy is to charge depreciation at 20% per year on the straight line basis, with proportionate depreciation in the years of purchase and disposal.What should be the depreciation charge for the year ended 31 December 2005?A£68,000B£64,000C£61,000D£55,000(2 marks)23 Which of the following should appear in a company’s statement of total recognised gains and losses?1 Profit for the financial year2 Amortisation of capitalised development costs3 Surplus on revaluation of fixed assetsA All three itemsB 2 and 3 onlyC 1 and 3 onlyD 1 and 2 only(2 marks)24 Which of the following statements are correct?(1) Capitalised development expenditure must be amortised over a period not exceeding five years.(2) Capitalised development costs are shown in the balance sheet under the heading of Fixed Assets(3) If certain criteria are met, research expenditure must be recognised as an intangible asset.A 2 onlyB 2 and 3C 1 onlyD 1 and 3(2 marks)25 A fire on 30 September destroyed some of a company’s stock and its stock records.The following information is available:£Stock 1 September 318,000Sales for September 612,000Purchases for September 412,000Stock in good condition at 30 September 214,000Standard gross profit percentage on sales is 25%Based on this information, what is the value of the stock lost?A£96,000B£271,000C£26,400D£57,000(2 marks) 26At 31 December 2004 a company’s capital structure was as follows:£Ordinary share capital(500,000 shares of 25p each) 125,000Share premium account 100,000In the year ended 31 December 2005 the company made a rights issue of 1 share for every 2 held at £1 per share and this was taken up in full. Later in the year the company made a bonus issue of 1 share for every 5 held, using the share premium account for the purpose.What was the company’s capital structure at 31 December 2005?Ordinary share capital Share premium account£ £A450,000 25,000B225,000 250,000C225,000 325,000D212,500 262,500(2 marks) 27The stock value for the financial statements of Q for the year ended 31 May 2006 was based on a stock count on 4 June 2006, which gave a total stock value of £836,200.Between 31 May and 4 June 2006, the following transactions took place:£Purchases of goods 8,600Sales of goods (profit margin 30% on sales) 14,000Goods returned by Q to supplier 700What adjusted figure should be included in the financial statements for stock at 31 May 2006?A£838,100B£853,900C£818,500D£834,300(2 marks)28In preparing a company’s bank reconciliation statement at March 2006, the following items are causing the difference between the cash book balance and the bank statement balance:(1) Bank charges £380(2) Error by bank £1,000 (cheque incorrectly debited to the account)(3) Lodgements not credited £4,580(4) Outstanding cheques £1,475(5) Direct debit £350(6) Cheque paid in by the company and dishonoured £400.Which of these items will require an entry in the cash book?A2, 4 and 6B1, 5 and 6C3, 4 and 5D1, 2 and 3(2 marks)29At 31 December 2005 the following require inclusion in a company’s financial statements:(1) On 1 January 2005 the company made a loan of £12,000 to an employee, repayable on 1 January 2006,charging interest at 2 per cent per year. On the due date she repaid the loan and paid the whole of the interest due on the loan to that date.(2) The company has paid insurance £9,000 in 2005, covering the year ending 31 August 2006.(3) In January 2006 the company received rent from a tenant £4,000 covering the six months to 31 December2005.For these items, what total figures should be included in the company’s balance sheet at 31 December 2005?Current assets Current liabilities£ £A10,000 12,240B22,240 nilC10,240 nilD16,240 6,000(2 marks) 30How should a contingent liability be included in a company’s financial statements if the likelihood of a transfer of economic benefits to settle it is remote?A Disclosed by note with no provision being madeB No disclosure or provision is required(1 mark)31Which of the following material events after the balance sheet date and before the financial statements are approved are adjusting events?(1) A valuation of property providing evidence of impairment in value at the balance sheet date.(2) Sale of stock held at the balance sheet date for less than cost.(3) Discovery of fraud or error affecting the financial statements.(4) The insolvency of a customer with a debt owing at the balance sheet date which is still outstanding.A1, 2, 3 and 4B1, 2 and 4 onlyC 3 and 4 onlyD1, 2 and 3 only.(2 marks)32Alpha received a statement of account from a supplier Beta, showing a balance to be paid of £8,950. Alpha’s purchase ledger account for Beta shows a balance due to Beta of £4,140.Investigation reveals the following:(1) Cash paid to Beta £4,080 has not been allowed for by Beta(2) Alpha’s ledger account has not been adjusted for £40 of cash discount disallowed by Beta.What discrepancy remains between Alpha’s and Beta’s records after allowing for these items?A£690B£770C£9,850D£9,930(2 marks)33 The business entity concept requires that a business is treated as being separate from its owners.Is this statement true or false?A TrueB False(1 mark) 34Theta prepares its financial statements for the year to 30 April each year. The company pays rent for its premises quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was £84,000 per year until 30 June 2005. It was increased from that date to £96,000 per year.What rent expense and end of year prepayment should be included in the financial statements for the year ended30 April 2006?Expense PrepaymentA£93,000 £8,000B£93,000 £16,000C£94,000 £8,000D£94,000 £16,000(2 marks)35 Which of the following items could appear in a company’s cash flow statement?(1) Surplus on revaluation of fixed assets(2) Proceeds of issue of shares(3) Proposed dividend(4) Dividends receivedA 1 and 2B 3 and 4C 1 and 3D 2 and 4(2 marks)36 What is the role of the Financial Reporting Review Panel?A To create a set of accounting standardsB To ensure public and large private companies comply with relevant reporting requirements(1 mark) 37Q’s trial balance failed to agree and a suspense account was opened for the difference.Q does not keep debtors and creditors control accounts. The following errors were found in Q’s accounting records:(1) In recording an issue of shares at par, cash received of £333,000 was credited to the ordinary share capitalaccount as £330,000(2) Cash £2,800 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant assetaccount(3) The petty cash book balance £500 had been omitted from the trial balance(4) A cheque for £78,400 paid for the purchase of a motor car was debited to the motor vehicles account as£87,400.Which of the errors will require an entry to the suspense account to correct them?A1, 2 and 4 onlyB1, 2, 3 and 4C 1 and 4 onlyD 2 and 3 only(2 marks) 38Mountain sells goods on credit to Hill. Hill receives a 10% trade discount from Mountain and a further 5% settlement discount if goods are paid for within 14 days. Hill bought goods with a list price of £200,000 from Mountain. VAT is at 17.5%.What amount should be included in Mountain’s sales ledger for this transaction?A£235,000B£211,500C£200,925D£209,925(2 marks)39 A computerised accounting system operates using the principle of double entry accounting.Is this statement true or false?A FalseB True(1 mark) 40 A company receives rent from a large number of properties. The total received in the year ended 30 April 2006 was£481,200.The following were the amounts of rent in advance and in arrears at 30 April 2005 and 2006:30 April 2005 30 April 2006£ £Rent received in advance 28,700 31,200Rent in arrears (all subsequently received) 21,200 18,400What amount of rental income should appear in the company’s profit and loss account for the year ended 30 April 2006?A£486,500B£460,900C£501,500D£475,900(2 marks) 41Annie is a sole trader who does not keep full accounting records. The following details relate to her transactions withcredit customers and suppliers for the year ended 30 June 2006:£Trade debtors, 1 July 2005 130,000Trade creditors, 1 July 2005 60,000Cash received from customers 686,400Cash paid to suppliers 302,800Discounts allowed 1,400Discounts received 2,960Contra between purchase and sales ledgers 2,000Trade debtors, 30 June 2006 181,000Trade creditors, 30 June 2006 84,000What figure should appear in Annie’s profit and loss account for the year ended 30 June 2006 for purchases?A£331,760B£740,800C£283,760D£330,200(2 marks)42The bookkeeper of Field made the following mistakes:Discounts allowed £3,840 was credited to the discounts received accountDiscounts received £2,960 was debited to the discounts allowed accountWhich journal entry will correct the errors?DR CRA Discounts allowed £7,680Discounts received £5,920Suspense account £1,760B Discounts allowed £880Discounts received £880Suspense account £1,760C Discounts allowed £6,800Discounts received £6,800D Discounts allowed £3,840Discounts received £2,960Suspense account £880(2 marks)43 Which of the following statements are correct?(1) Materiality means that only items having a physical existence may be recognised as assets.(2) The substance over form convention means that the legal form of a transaction must always be shown in financialstatements even if this differs from the commercial effect.(3) The money measurement concept is that only items capable of being measured in monetary terms can berecognised in financial statements.A 2 onlyB1, 2 and 3C 1 onlyD 3 only(2 marks) 44The total of the list of balances in Valley’s purchase ledger was £438,900 at 30 June 2006. This balance did not agree with Valley’s purchase ledger control account balance. The following errors were discovered:1 A contra entry of £980 was recorded in the purchase ledger control account, but not in the purchase ledger.2 The total of the purchase returns daybook was undercast by £1,000.3 An invoice for £4,344 was posted to the supplier’s account as £4,434.What amount should Valley report in its balance sheet as trade creditors at 30 June 2006?A£436,830B£438,010C£439,790D£437,830(2 marks)45 Which of the following statements are correct?(1) A cash flow statement prepared using the direct method produces a different figure for operating cash flow fromthat produced if the indirect method is used.(2) Rights issues of shares do not feature in cash flow statements.(3) A surplus on revaluation of a fixed asset will not appear as an item in a cash flow statement(4) A profit on the sale of a fixed asset will appear as an item under Capital Expenditure in a cash flow statement.A 1 and 4B 2 and 3C 3 onlyD 2 and 4(2 marks) 46Gareth, a VAT registered trader purchased a computer for use in his business. The invoice for the computer showed thefollowing costs related to the purchase:£Computer 890Additional memory 95Delivery 10Installation 20Maintenance (1 year) 251,040VAT (17.5%) 182Total 1,222How much should Gareth capitalise as a fixed asset in relation to the purchase?A£1,222B£1,040C£890D£1,015(2 marks) 47 A and B are in partnership sharing profits and losses in the ratio 3:2 respectively. Profit for the year was £86,500.The partners’ capital and current account balances at the beginning of the year were as follows:A B£ £Current accounts 5,750CR 1,200CRCapital accounts 10,000CR 8,000CRA’s drawings during the year were £4,300, and B’s were £2,430.What should A’s current account balance be at the end of the year?A£57,650B£51,900C£61,950D£53,350(2 marks)48 What is the correct double entry to record the depreciation charge for a period?A DR Depreciation expenseCR Accumulated depreciationB DR Accumulated depreciationCR Depreciation expense(1 mark)49 A company values its stock using the first in, first out (FIFO) method. At 1 May 2005 the company had 700 enginesin stock, valued at £190 each.During the year ended 30 April 2006 the following transactions took place:20051 July Purchased 500 engines at £220 each1 November Sold 400 engines for £160,00020061 February Purchased 300 engines at £230 each15 April Sold 250 engines for £125,000What is the value of the company’s closing stock of engines at 30 April 2006?A£188,500B£195,500C£166,000D£106,000(2 marks)50 A company’s motor vehicles at cost account at 30 June 2006 is as follows:Motor vehicles – cost£ £Balance b/f 35,800 Disposal 12,000Additions 12,950 Balance c/f 36,75048,750 48,750What opening balance should be included in the following period’s trial balance for motor vehicles – cost at 1 July 2006?A£36,750 DRB£48,750 DRC£36,750 CRD£48,750 CR(2 marks)AnswersPilot Paper F3 (UK) Answers Financial Accounting (United Kingdom)1 B2 B 37,000 + ((517,000 – 37,000)*5%) –39,000) = 22,0003 C4 A5 B -3,860 – 9,160 + 16,690 = 3,6706 A7 B8 B9 C 83,600 +18,000 – (18,000*25%) = 97,10010 B11 D Debtors ledger control account£ £Opening balance 308,600 Contras 4,600Credit sales 154,200 Cash received 147,200Interest charged 2,400 Discounts allowed 1,400Bad debts 4,900Closing balance 307,100465,200 465,20012 B 1,000,000/40years = 25,000; 1,000,000 – (800,000 – (800,000*2%*10years)) = 360,00013 B ((300,000 + 30,000) / 2 * ½ ) + (300,000 + 30,000) / 2 * 1/3) – (30,000 * ½ ) = 122,50014 A15 D16 B17 B18 C19 B20 A21 D22 D (240,000*20%) + (6/12*160,000*20%) – (9/12*60,000*20%) = 55,00023 C24 A25 D (318,000 + 412,000 – 214,000) – (612,000*75%) = 57,00026 B 125,000 + (500,000*1/2*25p) + (750,000*1/5*25p) = 225,000; 100,000 + (500,000*1/2*75p) –(750,000*1/5*25p) = 250,00027 A 836,200 – 8,600 + (14,000*70%) + 700 = 838,10028 B29 B 12,000 + (12,000*2%) + (9,000*8/12) + 4,000 = 22,24030 B31 A32 A (8,950 – 4,080) – (4,140 + 40) = 69033 A34 D (84,000*2/12) + (96,000*10/12) = 94,000; 96,000*2/12 = 16,00035 D36 B37 B38 D List Price 200,000Trade discount (20,000)180,000VAT (17.5%*95%*180,000) 29,925209,92539 B40 D Rent receivable£ £O/Balance 21,200 O/Balance 28,700Profit and Loss 475,900 Disposal 481,200C/Balance 31,200 C/Balance 18,400528,300 528,30041 A Purchase ledger£ £Cash paid 302,800 O/balance 60,000 Discounts received 2,960 Purchases 331,760 Contra 2,000C/balance 84,000391,760 391,76042 B43 D44 D 438,900 – 980-90 = 437,83045 C46 D 890 + 95 + 10 + 20 = 1,01547 D 5,750 + (86,500*3/5) – 4,300 = 53,35048 A49 A (300@230) + (500@220) + (50@190) = 188,50050 A。
天津财经大学 最新ACCA注册会计师考试 f8uk_ 最低第8_jun_a
–Select the balances to be tested, with specific reference to the categories of debtor noted below.–Extract details of each debtor selected from the ledger and prepare circularisation letters.–Ask the chief accountant at Seeley (or other responsible official) to sign the letters.–The auditor posts or faxes the letters to the individual debtors.(ii)Specific debtors for selection:rge or material items. These will be selected partly to ensure that no material error has occurred and partly toincrease the overall value of items tested.2.Negative balances. There are 15 negative balances on Seeley’s list of debtors. Some of these will be tested toensure the credit balance is correct and to ensure that payments have not been posted to the wrong ledger account.3.Debtors in the range £0 to £20,000. This group is unusual because it has a relatively higher proportion of olderdebts. Additional testing may be necessary to ensure that the debtors exist and to confirm that Seeley is notoverstating sales income by including many smaller debtors balances in the ledger.4.Debtors with balances more than two months old. Debtors with old balances may indicate a provision is requiredfor non-payment. The lack of analysis in Seeley Co’s debtor information indicates a high risk of non-payment asthe age of many debts is unknown.5.Random sample of remaining balances to provide an overall view of the accuracy of the debtors balance.2(a)Sufficiency of evidence–Assessment of risk at the financial statement level and/or the individual transaction level. As risk increases then more evidence is required.–The materiality of the item. More evidence will normally be collected on material items whereas immaterial items may simply be reviewed to ensure they appear correct.–The nature of the accounting and internal control systems. The auditor will place more reliance on good accounting and internal control systems limiting the amount of audit evidence required.–The auditor’s knowledge and experience of the business. Where the auditor has good past knowledge of the business and trusts the integrity of staff then less evidence will be required.–The findings of audit procedures. Where findings from related audit procedures are satisfactory (e.g. tests of controls over debtors) then substantive evidence will be collected.–The source and reliability of the information. Where evidence is obtained from reliable sources (e.g. written evidence) then less evidence is required than if the source was unreliable (e.g. verbal evidence).(b)Management representation letter contents–No irregularities involving management or employees that could have a material effect on the financial statements–All books of account and supporting documentation have been made available to the auditors–Information and disclosures with reference to related parties is complete–Financial statements are free from material misstatements including omissions–No non-compliance with any statute or regulatory authority–No plans that will materially alter the carrying value or classification of assets or liabilities in the financial statements –No plans to abandon any product lines that will result in any excess or obsolete stock–No events, unless already disclosed, after the balance sheet date that need disclosure in the financial statements.(c)Additional audit procedures–The auditor could expand the amount of test of controls in that audit area. This may indicate that the control weakness was not as bad as initially thought.–The problem could be raised with the directors, either verbally or in a management letter, to ensure that they are aware of the problem.–The auditor could perform additional substantive procedures on the audit area. This action will help to quantify the extent of the error and makes the implicit assumption that the control system is not operating correctly.–If the matter is not resolved, then the auditor will also need to consider a qualification in the audit report; the exact wording depending on the materiality of the errors found.3(a)(i)Explanation of analytical proceduresAnalytical procedures are used in obtaining an understanding of an entity and its environment and in the overall reviewat the end of the audit.‘Analytical procedures’ actually means the evaluation of financial and other information, and the review of plausiblerelationships in that information. The review also includes identifying fluctuations and relationships that do not appearconsistent with other relevant information or results.(ii)Types of analytical proceduresAnalytical procedures can be used as:–Comparison of comparable information to prior periods to identify unusual changes or fluctuations in amounts.–Comparison of actual or anticipated results of the entity with budgets and/or forecasts, or the expectations of the auditor in order to determine the potential accuracy of those results.–Comparison to industry information either for the industry as a whole or by comparison to entities of similar size to the client to determine whether debtor days, for example, are reasonable.(iii)Use of analytical proceduresRisk assessment proceduresAnalytical procedures are used at the beginning of the audit to help the auditor obtain an understanding of the entityand assess the risk of material misstatement. Audit procedures can then be directed to these ‘risky’ areas.Analytical procedures as substantive proceduresAnalytical procedures can be used as substantive procedures in determining the risk of material misstatement at theassertion level during work on the profit and loss account and balance sheet.Analytical procedures in the overall review at the end of the auditAnalytical procedures help the auditor at the end of the audit in forming an overall conclusion as to whether the financialstatements as a whole are consistent with the auditor’s understanding of the entity.(b)Net profitOverall, Zak’s result has changed from a net loss to a net profit. Given that sales have only increased by 17% and that expenses, at least administration expenses, appear low, then there is the possibility that expenditure may be understated.Sales – increase 17%According to the directors, Zak has had a ‘difficult year’. Reasons for the increase in sales income must be ascertained as the change does not conform to the directors’ comments. It is possible that the industry as a whole, has been growing allowing Zak to produce this good result.Cost of sales – fall 17%A fall in cost of sales is unusual given that sales have increased significantly. This may have been caused by an incorrectinventory valuation and the use of different (cheaper) suppliers which may cause problems with faulty goods in the next year.Gross profit (GP) – increase 88%This is a significant increase with the GP% changing from 33% last year to 53% in 2008. Identifying reasons for this change will need to focus initially on the change in sales and cost of sales.Administration – fall 6%A fall is unusual given that sales are increasing and so an increase in administration to support those sales would be expected.Expenditure may be understated, or there has been a decrease in the number of administration staff.Selling and distribution – increase 42%This increase does not appear to be in line with the increase in sales – selling and distribution would be expected to increase in line with sales. There may be a mis-allocation of expenses from administration or the age of Zak’s delivery vans is increasing resulting in additional service costs.Interest payable – small fallGiven that Zak has a considerable cash surplus this year, continuing to pay interest is surprising. The amount may be overstated – reasons for lack of fall in interest payment e.g. loans that cannot be repaid early, must be determined.Investment income – new this yearThis is expected given cash surplus on the year, although the amount is still very high indicating possible errors in the amount or other income generating assets not disclosed on the balance sheet extract.(c)Obtaining a bank letter–Review the need to obtain a bank letter from the information obtained from the preliminary risk assessment of Zak.–Prepare a standard bank letter in the format agreed with banks in your jurisdiction.–Obtain authorisation on that letter from a director of Zak for the bank to disclose information to the auditor.–Where Zak has provided their bank with a standing authority to disclose information to the auditors, refer to this authority in the bank letter.–The auditor sends the letter directly to Zak’s bank with a request to send the reply directly back to the auditors.4(a)Outsourcing internal auditAdvantages of outsourcing internal auditStaff recruitmentThere will be no need to recruit staff for the internal audit department; the outsourcing company will provide all staff and ensure staff are of the appropriate quality.SkillsThe outsourcing company will have a large pool of staff available to provide the internal audit service. This will provide access to specialist skills that the company may not be able to afford if the internal audit department was run internally.Set up timeThe department can be set up in a few weeks rather than taking months to advertise and recruit appropriate staff.CostsCosts for the service will be agreed in advance. This makes budgeting easier for the recipient company as the cost and standard of service expected are fixed.Flexibility (staffing arrangements)Staff can be hired to suit the workloads and requirements of the recipient company rather than full-time staff being idle for some parts of the year.Disadvantages of outsourcing internal auditStaff turnoverThe internal audit staff allocated to one company may change frequently; this means that company systems may not always be fully understood, decreasing the quality of the service provided.External auditorsWhere external auditors provide the internal audit service there may be a conflict of interest (self-review threat), where internal audit work is then relied upon by external auditors.CostThe cost of the outsourced service may be too high for the company, which means that an internal audit department is not established at all. There may be an assumption that internal provision would be even more expensive.ConfidentialityKnowledge of company systems and confidential data will be available to a third party. Although the service agreement should provide confidentiality clauses, this may not stop breaches of confidentiality e.g. individuals selling data fraudulently.ControlWhere internal audit is provided in-house, the company will have more control over the activities of the department; there is less need to discuss work patterns or suggest areas of work to the internal audit department.(b)Need for internal auditFor establishing an internal audit departmentValue for money (VFM) auditsMonteHodge has some relatively complex systems such as the stock market monitoring systems. Internal audit may be able to offer VFM services or review potential upgrades to these systems checking again whether value for money is provided.Accounting systemWhile not complex, accounting systems must provide accurate information. Internal audit can audit these systems in detail ensuring that fee calculations, for example, are correct.Computer systemsMaintenance of computer systems is critical to MonteHodge’s business. Without computers, the company cannot operate.Internal audit could review the effectiveness of backup and disaster recovery arrangements.Internal control systemsInternal control systems appear to be limited. Internal audit could check whether basic control systems are needed, recommending implementation of controls where appropriate.Effect on audit feeProvision of internal audit may decrease the audit fee where external auditors can place reliance on the work of internal audit.This is unlikely to happen during the first year of internal audit due to lack of experience.Image to clientsProvision of internal audit will enable MonteHodge Ltd to provide a better ‘image’ to its clients. Good controls imply client monies are safe with MonteHodge.Corporate governanceAlthough MonteHodge does not need to comply with corporate governance regulations, internal audit could still recommend policies for good corporate governance. For example, suggesting that the chairman and chief executive officer roles are split.Compliance with regulationsMonteHodge is in the financial services industry. In most jurisdictions, this industry has a significant amount of regulation.An internal audit department could help ensure compliance with those regulations, especially as additional regulations are expected in the future.Assistance to financial accountantThe financial accountant in MonteHodge is not qualified. Internal audit could therefore provide assistance in compliance with financial reporting standards, etc as well as recommending control systems.Against establishing of internal audit departmentNo statutory requirementAs there is no statutory requirement, the directors may see internal audit as a waste of time and money and therefore not consider establishing the department.Accounting systemsMany accounting systems are not necessarily complex so the directors may not see the need for another department to review their operations, check integrity, etc.Family businessMonteHodge is owned by a few shareholders in the same family. There is therefore not the need to provide assurance to other shareholders on the effectiveness of controls, accuracy of financial accounting systems, etc.Potential costThere would be a cost of establishing and maintaining the internal audit department. Given that the directors consider focus on profit and trusting employees to be important, then it is unlikely that they would consider the additional cost of establishing internal audit.Review threatSome directors may feel challenged by an internal audit department reviewing their work (especially the financial accountant).They are likely therefore not to want to establish an internal audit department.5(a)Going concernGoing concern means that the enterprise will continue in operational existence for the foreseeable future without the intention or necessity of liquidation or otherwise ceasing trade. It is one of the fundamental accounting concepts used by auditors and stated in FRS 18 Accounting policies.The auditor’s responsibility in respect of going concern is explained in ISA 570 (UK and Ireland) Going concern. The ISA states ‘when planning and performing audit procedures and in evaluating the results thereof, the auditor should consider the appropriateness of management’s use of the going concern assumption in the preparation of the financial statements’.The auditor’s responsibility therefore falls into three areas:(i)T o carry out appropriate audit procedures that will identify whether or not an organisation can continue as a goingconcern.(ii)T o ensure that the organisation’s management have been realistic in their use of the going concern assumption when preparing the financial statements.(iii)T o report to the members where they consider that the going concern assumption has been used inappropriately, for example, when the financial statements indicate that the organisation is a going concern, but audit procedures indicate this may not be the case.(b)Audit procedures regarding going concern–Obtain a copy of the cash flow forecast and discuss the results of this with the directors.–Discuss with the directors their view on whether Smithson can continue as a going concern. Ask for their reasons and try and determine whether these are accurate.–Enquire of the directors whether they have considered any other forms of finance for Smithson to make up the cash shortfall identified in the cash flow forecast.–Obtain a copy of any interim financial statements of Smithson to determine the level of sales/income after the year-end and whether this matches the cash flow forecast.–Enquire about the possible lack of capital investment within Smithson identified by the employee leaving. Review current levels of fixed assets with similar companies and review purchase policy with the directors.–Consider the extent to which Smithson relied on the senior employee who recently left the company. Ask the human resources department whether the employee will be replaced and if so how soon.–Obtain a solicitor’s letter and review to identify any legal claims against Smithson related to below standard services being provided to clients. Where possible, consider the financial impact on Smithson and whether insurance is available to mitigate any claims.–Review Smithson’s order book and client lists to try and determine the value of future orders compared to previous years.–Review the bank letter to determine the extent of any bank loans and whether repayments due in the next 12 months can be made without further borrowing.–Review other events after the end of the financial year and determine whether these have an impact on Smithson.–Obtain a letter of representation point confirming the directors’ opinion that Smithson is a going concern.(c)Audit procedures if Smithson is not considered to be a going concern–Discuss the situation again with the directors. Consider whether additional disclosures are required in the financial statements or whether the financial statements should be prepared on a ‘break up’ basis.–Explain to the directors that if additional disclosure or restatement of the financial statements is not made then the auditor will have to modify the audit report.–Consider how the audit report should be modified. Where the directors provide adequate disclosure of the going concern situation of Smithson, then an emphasis of matter paragraph is likely to be appropriate to draw attention to the going concern disclosures.–Where the directors do not make adequate disclosure of the going concern situation then qualify the audit report making reference to the going concern problem. The qualification will be an ‘except for’ opinion or an adverse opinion depending on the auditor’s opinion of the situation.(d)Negative assuranceNegative assurance means that nothing has come to the attention of an auditor which indicates that the cash flow forecast contains any material errors. The assurance is therefore given on the absence of any indication to the contrary.In contrast, the audit report on statutory financial statements provides positive or reasonable assurance; that is the financial statements do show a true and fair view.Using negative assurance, the auditor is warning users that the cash flow forecast may be inaccurate. Less reliance can therefore be placed on the forecast than the financial statements, where the positive assurance was given.With negative assurance, the auditor is also warning that there were limited audit procedures that could be used; the cash flow relates to the future and therefore the auditor cannot obtain all the evidence to guarantee its accuracy. Financial statements relate to the past, and so the auditor should be able to obtain the information to confirm they are correct; hence the use of positive assurance.Fundamentals Level –Skills Module, F8 (UK)Audit and Assurance (United Kingdom)June 2008 Marking SchemeMarks1(a)Accuracy of internal control questionnaires1 for each well-explained step–Prior year audit file–System weaknesses identified not actioned by client–Review system documentation–Interview client staff–Walk-through check–Identify controls in above–Other relevant procedures–––Maximum marks4–––(b)Tests of control despatch and sales system1 for stating procedure and 1 for the reason for that procedure. Limit marks to 0·5 where the reason is not fully explained.Maximum 2 marks per point.Procedure–GDN signature – despatch staff–GDN signature – accounts staff–Observe despatch system–Error report GDN numeric sequence–Credit limit control–Invoices –signed–Credit checking –either account setup or prior to despatch of goods–GDN signed by customer –shows receipt of goods–Observe the despatch system–Other relevant procedures–––Maximum marks12–––(c)Assertions – direct confirmation of debtors1 for each good explanation. (Note any asssertion is allowed if showed linked to debtors circularisation)Assertions–Existence–Rights and obligations–Valuation and allocation (normally needs links to liquidator)–Completeness (where linked to invoices not recorded by client co)–Other relevant points–––Maximum marks4–––(d)Debtors circularisation procedures1 mark per procedure(i)Procedure–List of debtors–Sampling method–Select balances for testing–Extract details from ledger–Prepare letters – client sign–Post letters–Choose date if not year end–Confirm with management can circularise debtors–Other relevant points5 (ii)Specific debtors for selection – 1 mark each explained point (must include reason for selection for full mark)–Negative balances–Material balances–£0 to £20,000 balances–Old balances–Random sample remaining balances–Other relevant points5–––Maximum marks10–––30––––––2(a)Sufficiency of evidence1 for each point–Financial statement risk–Materiality–Accounting/internal control systems–Auditor’s knowledge–Audit procedures–Source and reliability–Sampling method used–Other relevant points–––Maximum marks4–––(b)Management representation letter contents0·5 mark per valid point–––Maximum marks3–––(c) 1 for each point with explanation–Increase tests of controls–Discuss with management–Substantive procedures–Qualification of audit report–Include in management letter–Discuss with audit committee–––Maximum marks3–––10––––––3(a)Analytical procedures1 mark for each valid, well explained, point(i)–Obtain information on client situation–Evaluation financial information(ii)–Comparison prior periods–Comparison actual/anticipated results–Comparison industry information–Specific procedures for individual account balances (e.g. debtors)–Ratio analysis e.g. GP% year on year–Proof in total e.g. total wages = employees * average wage(iii)–Risk assessment procedures–Substantive procedures–End of audit analytical procedures–––Maximum marks8–––(b)Risks – profit and loss account0·5 mark, for identifying unusual changes in profit and loss account. Award up to 1 more mark. T otal 1·5 marks per point.–Net profit–Sales–Cost of sales–Gross profit–Administration–Selling and distribution–Interest payable–Interest receivable (must be linked to the change in bank balance –not enough cash for interest received)–Other relevant points–––Maximum marks9–––(c)Bank letter1 mark for each audit procedure–Evaluate need for letter–Prepare bank letter – standard form–Client permission–Refer to standing authority at bank–Letter direct to bank–––Maximum marks3–––20––––––Marks 4(a) 1 mark for each well-explained pointFor outsourcing internal audit–Staff recruitment–Skills–Set up time–Costs–Flexibility of staffing arrangements–Independence of external firm–Other valid pointsAgainst outsourcing internal audit–Staff turnover–External auditors–Cost–Confidentiality–Control–Independence (where services provided by same firm)–Other valid points–––Maximum marks8–––Note to markers – there is no split of marks between advantages and disadvantages.(b)Up to 2 marks for each well-explained pointFor internal audit–VFM audits–Accounting system–Computer systems–Internal control systems–Effect on audit fee–Image to clients–Corporate governance–Lack of control–Law change–Assistance to financial accountant–Nature of industry (financial services)–Other relevant pointsAgainst internal audit–No statutory requirement–Family business–Potential cost–Review threat–Other relevant points–––Maximum marks12–––20––––––Marks 5(a)Going concern meaning1 mark each for:–Definition–ISA 570 explanation (don’t need the ISA number)–Audit procedures–Realistic use of assumption–Report to members–Report to audit committee and/or directors–Discussion with management on going concern–Other relevant points–––Maximum marks4–––(b)Audit procedures on going concern1 mark per procedure (0·5 if brief or unclear e.g. ‘check the cash flow’)–Cash flow–Directors’ view going concern–Other finance–Interim financial statements–Lack of fixed assets–Reliance on senior employee–Solicitor’s letter–Review order book–Review bank letter–Review other post balance sheet events–Management representation–Other relevant points–––Maximum marks8–––(c)Audit procedures company may not be a going concern1 mark per action (0·5 if brief or unclear e.g. ‘discuss with directors’)–Discuss with directors–Need to modify audit report–Possible emphasis of matter–Possible qualification–Letter of representation–Other relevant points–––Maximum marks4–––(d)Negative assurance1 mark per action (0·5 if brief or unclear e.g. ‘warning cash flow may be inaccurate’)–Definition–Audit report = positive assurance–Level of reliance–Limited audit procedures–Other relevant points–––Maximum marks4–––20––––––。
天津财经大学会计学专业考研真题资料含答案解析
天津财经大学会计学专业考研真题资料含答案解析天津财经大学会计学专业考研复习都是有依据可循的,考研学子关注事项流程为：考研报录比-大纲-参考书-资料-真题-复习经验-辅导-复试-导师，缺一不可。
一天又一天，一年又一年，二战的我终于如愿以偿地考上了天津财经大学会计学专业的研究生。
对于二战来说，最让我感到累觉不爱的其实就是巨大的心理压力，不过好在有了一个happy ending。
虽然不是一战就考上，但是两年的备考也让我有更多的感悟，之前有给大家写过经验文，今天写的是真题资料文，因为很多的小伙伴们都不知道该如何选择资料，迷茫无措，所以我把自己的备考资料简单给大家介绍一下。
下面是给大家找出来的天津财经大学会计学专业考研真题解析含答案部分。
天津财经大学810经济学与管理学综合（会计学）2016年考研真题参考答案经济学部分1、利用商品价格变动的替代效应和收入效应，阐明正常商品和低档商品的区别，并画图加以说明。
（20分）【出题思路】这道题考察频率非常高，在往常真题中多次出现。
考的是书上的纯知识点，第三章的内容，这道题就是提醒考生，不仅要会背书上的文字，还要与图形结合，学会理解。
本身这道题是没有难度的，但是却会有很多考生不会画图。
【答题思路】先对收入效应和替代效应进行解释，再对正常物品的低档物品进行区别，最后画图利用收入效应和替代效应进行分析。
【参考答案】（1）一种商品价格变动引起该商品需求量变动的总效应可以分为收入效应和替代效应。
替代效应应是由商品的价格变动引起商品相对价格的变动，进而由商品的相对价格变动所引起的商品需求量的变动。
收入效应是由商品的价格变动引起实际收入水平的变动，进而由实际收入水平的变动所引起的商品需求量的变动。
替代效应不改变消费者的效应水平，而收入效应则表示消费者的效用水平发生了变化。
……以上真题答案解析都是来自:“天津财经大学经济学与管理学综合（会计学）考研红宝书”资料。
这份免费的讲解视频是：天津财经大学810经济学与管理学综合（会计学）考研真题解析，这套资料中不仅包含历年真题的答案解析，纵向讲解近数年的真题，同时真题试题的讲解过程中要糅合进相应的知识点，通过分析真题带领考生掌握历年命题规律，预测下一年的考试重点。
2023年ACCA考试真题及答案
2023年ACCA考试真题及答案2023年ACCA考试已经圆满结束，作为全球范围内最具影响力的会计考试之一，ACCA考试吸引了众多学子的关注和参与。
本文将为您详细介绍2023年ACCA考试的真题及答案，帮助您了解考试内容和复习重点。
一、财务管理（F9）真题及答案1. 国家XYZ的经济正在经历快速发展阶段，请根据以下数据回答问题：GDP年增长率：2019年- 5%；2020年- 8%；2021年- 10%；2022年- 12%通货膨胀率：2019年- 2%；2020年- 3%；2021年- 4%；2022年- 5%失业率：2019年- 6%；2020年- 5%；2021年- 4%；2022年- 3%问题：根据以上数据，请分析国家XYZ的经济状况，并预测未来的趋势。
答案：根据数据可知，国家XYZ的经济在过去四年中保持了持续增长的趋势。
GDP增长率逐年提高，表明国家经济正迅速发展。
同时，通货膨胀率逐年上升，进一步反映了经济状况的好转。
失业率逐年下降，说明就业市场的改善。
根据这些数据，可以预测国家XYZ的经济将继续保持稳定增长的态势。
二、管理会计（P5）真题及答案1. 公司ABC近期引入了新的成本管理系统，以下是该系统的数据输出示例：产品编号：1234产品名称：电子设备原材料成本：1000元直接人工成本：500元制造费用：300元总成本：1800元问题：请根据以上数据，计算产品的成本利润率和销售价格。
答案：根据给定数据，产品的总成本为1800元。
成本利润率可以通过公式：成本利润率 =（销售价格 - 总成本）/ 销售价格 * 100%计算得到。
假设产品的销售价格为X元，则成本利润率为：（X - 1800） / X * 100% = 成本利润率同时，销售价格也可以通过成本和利润率的关系计算得到：X = 总成本 /（1 - 利润率）综上所述，通过以上计算可以得到产品的成本利润率和销售价格。
三、审计与公共财务报告（AAA）真题及答案1. 公司XYZ的财务报表显示了以下信息：资产总额：100,000元负债总额：60,000元所有者权益：40,000元净利润：10,000元问题：请根据以上数据，计算公司XYZ的财务杠杆比率和净资产收益率。
acca阶段划分
acca阶段划分
ACCA 考试分为四个阶段，每个阶段都需要通过相应的考试才能进入下一阶段：
1. 知识课程（F1-F3）：这是 ACCA 考试的第一阶段，主要涉及基础的财务和管理知识，包括财务会计、管理会计、商业法等。
这一阶段的考试主要测试学生对基本概念和原理的理解。
2. 技能课程（F4-F9）：这是 ACCA 考试的第二阶段，主要涉及更深入的财务和管理技能，包括财务报告、审计、税务、财务管理等。
这一阶段的考试主要测试学生在实际工作中应用知识的能力。
3. 核心课程（P1-P3）：这是 ACCA 考试的第三阶段，主要涉及战略管理和领导能力，包括公司治理、风险管理、战略财务管理等。
这一阶段的考试主要测试学生在复杂的商业环境中做出决策和管理的能力。
4. 选修课程（P4-P7）：这是 ACCA 考试的最后一个阶段，学生可以选择自己感兴趣的领域进行深入学习，包括高级财务管理、高级审计与认证业务、高级税务等。
通过完成这四个阶段的考试，学生可以获得 ACCA 资格证书，并成为全球认可的专业会计师。
每个阶段的考试都需要学生具备相应的知识和技能，并且需要进行系统的学习和准备。
天津财经大学 最新ACCA注册会计师考试 f8uk_ 最低第0_ans
AnswersFundamentals Level – Skills Module, Paper F8 (UK)Audit and Assurance (United Kingdom) June 2010 Answers 1 (a)Identifi cation of risk Explanation of riskSmoothbrush supplies 60% of its goods to Homewares Per SSAP 9 Stocks and long-term contracts, stock shouldat a signifi cantly reduced selling price, hence stock may be stated at the lower of cost and net realisable valuebe overvalued. (NRV). Therefore, as selling prices are much lower forgoods sold to Homewares, there is a risk that the NRV ofsome stock items may be lower than cost and hence thatstock could be overvalued.Recoverability of debtor balances as credit period Smoothbrush has extended its credit terms to Homewares extended. from one month to four months. Hence there is anincreased risk as balances outstanding become older, thatthey may become irrecoverable.Valuation of plant and machinery. The production facility has a large amount of unused plantand machinery. As per FRS 15 Tangible fi xed assets andImpairment of fi xed assets and goodwill, this plant11FRSand machinery should be stated at the lower of its carryingvalue and recoverable amount, which may be at scrap valuedepending on its age and condition.Cut-off of purchases and stock may not be accurate. Smoothbrush imports goods from South Asia and thepaint can be in transit for up to two months. Thecompany accounts for goods when they receive them.Therefore at the year end only goods that have beenreceived into the warehouse should be included in thestock balance and a respective creditor balance recognised.New stock system introduced in the year. This could Smoothbrush has introduced a continuous/perpetual stock result in stock balances being misstated. counting system in the year. These records will be usedfor recording stock at the year end. If the records and newsystem have not initially been set up correctly then there isa risk that the year end balances may not be fairly stated.Stock may be overstated as Smoothbrush no longer Previously Smoothbrush maintained a stock provision ofhas a slow moving provision. 1%, however, this year it has decided to remove this.Unless all slow moving/obsolete items are identifi ed at theyear end and their value adjusted, there is a risk that theoverall value of stock may be overstated.Provisions/contingent liability disclosures may not be The company’s fi nance director (FD) has left and iscomplete. intending to sue Smoothbrush for unfair dismissal.However, the company does not intend to make anyprovision/disclosures for sums due to the FD.12Provisions, contingent liabilities andFRSUnderassets, if there is a present obligation, acontingentprobable outfl ow of resources to settle the obligation anda reliable estimate can be made of the obligation then aprovision should be recognised.If the obligation is only possible, or if there is a presentobligation but it is not recognised as there is not aprobable outfl ow of resources, or the amount of theobligation cannot be measured with suffi cient reliabilitythen a contingent liability should be disclosed, unlessthe likelihood of payment is remote.Inherent risk is higher due to the changes in the The fi nancial controller has been appointed as temporaryfi nance department. FD and this lack of experience could result in an increasedrisk of errors arising in the fi nancial statements. In additionthe previous FD is not available to help the fi nance or auditteam.Identifi cation of risk Explanation of riskStock may be over or understated if the perpetual The stock counts are to cover all of the stock lines. If any stock counts are not complete and accurate. areas of the warehouse are not counted then this will needto be done at the year end.In addition stock adjustments arising from the counts mustbe verifi ed and updated by an appropriate member of thefi nance team to ensure that the records are accurate.(b)ISA 315 (UK and Ireland) Identifying and assessing the risks of material misstatement through understanding the entity andits environment, requires auditors ‘to identify and assess the risks of material misstatement, whether due to fraud or error, at the fi nancial statement and assertion levels’.It is vitally important for auditors to assess engagement risks at the planning stage, this will ensure that attention is focused early on the areas most likely to cause material misstatements.A thorough risk assessment will also help the auditor to fully understand the entity, which is vital for an effective audit.Any unusual transactions or balances would also be identifi ed early, so that these could be addressed in a timely manner.In addition, as most auditors adopt a risks based audit approach then these risks need to be assessed early in order for the audit strategy and detailed work programmes to be developed.Assessing risks early should also result in an efficient audit. The team will only focus their time and effort on key areas as opposed to balances or transactions that might be immaterial or unlikely to contain errors.In addition assessing risk early should ensure that the most appropriate team is selected with more experienced staff allocated to higher risk audits and high risk balances.A thorough risk analysis should ultimately reduce the risk of an inappropriate audit opinion being given. The audit would havefocused on the main risk areas and hence all material misstatements should have been identified, resulting in the correct opinion being given.It should enable the auditor to have a good understanding of the risks of fraud, money laundering, etc.Assessing risk should enable the auditor to assess whether the client is a going concern.(c)Controls over the perpetual/continuous stock system.Control ExplanationThe stock count team should be independent of Currently the team includes a warehouse staff member and the warehouse team. an internal auditor. There should be segregation of rolesbetween those who have day-to-day responsibility for stockand those who are checking it. If the same team areresponsible for maintaining and checking stock, then errorsand fraud could be hidden.Timetable of counts should be regularly reviewed The warehouse has been divided into 12 areas that are to ensure that all areas are counted. each due to be counted once over the year. All stock isrequired to be counted once a year, hence if the timetable isnot monitored then some areas could be missed out.Movements of stock should be stopped from the Goods will continue to move in and out of the warehouse designated areas during continuous/perpetual stock during the counts. Stock records could be under/over stated counts. if product lines are missed or double counted due tomovements in the warehouse.Stock counting sheets should be pre-printed with The stock sheets produced for the count have thea description or item code of the goods, but quantities pre-printed, therefore a risk arises that thethe quantities per the records should not be counting team could just agree with the record quantities, pre-recorded. making under counting more likely, rather than countingthe stock lines correctly.A second independent team should check By counting the lines twice this should help to ensurethe counts performed by the stock count team. completeness and accuracy of the counts, and hence thatany stock adjustments are appropriate.Stock checks should be performed from stock Currently the team is comparing the records to the stock in physically present in the warehouse to the records. the warehouse. If the count is performed from the recordsto the warehouse then this will only ensure existence oroverstatement of the records. T o ensure completeness isaddressed the stock in the warehouse must be comparedto the records as this will identify any goods physicallypresent but not included in the records.Control ExplanationAny damaged or obsolete goods should be moved to Damaged or obsolete goods should be written down ora designated area, where a responsible offi cial then provided against to ensure that they are stated at the lowerinspects it, it should not be removed from the sheets. of cost and NRV. This may not involve fully writing off thestock item as is currently occurring. This is an assessmentthat should only be performed by a suitably trained memberof the fi nance team, as opposed to the stock count team.After the count, the stock count sheets should be At the year end the stock of Smoothbrush will be based on compared to the stock records, any adjustments the records maintained. Hence the records must beshould be investigated and if appropriate the records complete, accurate and valid. It is important that onlyupdated in a prompt manner by an authorised person. individuals authorised to do so can amend records.Senior members of the fi nance team should regularly reviewthe types and levels of adjustments, as recurring stockadjustments could indicate possible fraud.(d) Substantive procedures to confi rm valuation of stock– Select a representative sample of goods in stock at the year end, agree the cost per the records to a recent purchase invoice and ensure that the cost is correctly stated.– Select a sample of year end goods and review post year end sales invoices to ascertain if NRV is above cost or if an adjustment is required.– For a sample of manufactured items obtain cost sheets and confi rm:– raw material costs to recent purchase invoices– labour costs to time sheets or wage records– overheads allocated are of a production nature.– Review aged stock reports and identify any slow moving goods, discuss with management why these items have not been written down.– Compare the level/value of aged product lines to the total stock value to assess whether the provision for slow moving goods of 1% should be reinstated.– Review the stock records to identify the level of adjustments made throughout the year for damaged/obsolete items. If signifi cant consider whether the year end records require further adjustments and discuss with management whether anyfurther write downs/provision may be required.– Follow up any damaged/obsolete items noted by the auditor at the stock counts attended, to ensure that the stock records have been updated correctly.– Perform a review of the average stock days for the current year and compare to prior year stock days. Discuss any signifi cant variations with management.– Compare the gross margin for current year with prior year. Fluctuations in gross margin could be due to stock valuation issues. Discuss signifi cant variations in the margin with management.Substantive procedures to confi rm completeness of provisions or contingent liability– Discuss with management the nature of the dispute between Smoothbrush and the former fi nance director (FD), to ensure that a full understanding of the issue is obtained and to assess whether an obligation exists.– Review any correspondence with the former FD to assess if a reliable estimate of any potential payments can be made.– Write to the company’s lawyers to obtain their views as to the probability of the FD’s claim being successful.– Review board minutes and any company correspondence to assess whether there is any evidence to support the former FD’s claims of unfair dismissal.– Obtain a written representation from the directors of Smoothbrush confi rming their view that the former FD’s chances ofa successful claim are remote, and hence no provision or contingent liability is required.Credit will be awarded for any substantive procedures which test for additional provisions or contingent liabilities of Smoothbrush.2 (a)An assurance engagement will involve three separate parties;– The intended user who is the person who requires the assurance report.– The responsible party, which is the organisation responsible for preparing the subject matter to be reviewed.– The practitioner (i.e. an accountant) who is the professional who will review the subject matter and provide the assurance.A second element is a suitable subject matter. The subject matter is the data that the responsible party has prepared and whichrequires verifi cation.Suitable criteria are required in an assurance engagement. The subject matter is compared to the criteria in order for it to be assessed and an opinion provided.Appropriate evidence has to be obtained by the practitioner in order to give the required level of assurance.An assurance report is the opinion that is given by the practitioner to the intended user and the responsible party.(b) Materiality is defi ned as follows:‘Misstatements, including omissions, are considered to be material if they, individually or in the aggregate, could reasonably be expected to infl uence the economic decisions of users taken on the basis of the fi nancial statements.’In assessing the level of materiality there are a number of areas that should be considered. Firstly the auditor must consider both the amount (quantity) and the nature (quality) of any misstatements, or a combination of both. The quantity of the misstatement refers to the relative size of it and the quality refers to an amount that might be low in value but due to its prominence could infl uence the user’s decision, for example, directors’ transactions.In assessing materiality the auditor must consider that a number of errors each with a low value may when aggregated amount to a material misstatement.The assessment of what is material is ultimately a matter of the auditors’ professional judgement, and it is affected by the auditors’ perception of the fi nancial information needs of users of the fi nancial statements.In calculating materiality the auditor should also consider setting the performance materiality level. This is the amount set by the auditor, it is below materiality, and is used for particular transactions, account balances and disclosures.As per ISA 320 (UK and Ireland) materiality is often calculated using benchmarks such as 5% of profi t before tax or 1% of gross revenue. These values are useful as a starting point for assessing materiality.3 (a) (i)T ests of control test the operating effectiveness of controls in preventing, detecting or correcting material misstatements.Substantive procedures are aimed at detecting material misstatements at the assertion level. They include tests of detailof transactions, balances, disclosures and substantive analytical procedures.(ii)Example tests of control over sales invoicing– Inspect numerical sequence of sales invoices, if any breaks in the sequence noted, enquire of management as to missing invoices.– Review a sample of sales invoices for evidence of authorisation by a responsible offi cial of any discounts allowed.– Inspect customer statements for evidence of regular preparation.Example substantive procedures over sales invoicing– Select a sample of pre and post year end goods despatch notes and follow through to pre or post year end sales invoices, to ensure the sales cut-off has been correctly applied.– Perform an analytical review of monthly sales, compare any trends to prior years and discuss signifi cant fl uctuations with management.– Review post year end credit notes to identify if any pre year end sales should be removed.(b)Deficiency Control Test of ControlA junior clerk opens the post A second member of the accounts Observe the mail openingunsupervised. This could result team or staff independent of the process, to assess if thein cash being misappropriated. accounts team should assist with control is operating effectively.the mail, one should open the postand the second should record cashreceived in the cash log.Cash and cheques are secured in a Cash and cheques should be ideally Enquire of managementsmall locked box and only banked banked daily, if not then it should be where the cash receiptsevery few days. A small locked box is stored in a fire proof safe, and access not banked are stored.not adequate for security of considerable to this safe should be restricted Inspect the location tocash receipts, as it can easily be stolen. to supervised individuals. ensure cash is suitablysecure.Cash and cheques are only banked Cash and cheques should be banked Inspect the paying-in-books every few days and any member of every day. to see if cash and chequesthe finance team performs this. have been banked daily orfrequently.lessstatementsbankReviewagainst the cash received logto confirm all amounts wered promptly.bankeCash should ideally not be held The cashier should prepare Enquire of staff as toover-night as it is not secure. the paying-in-book from the who performs theAlso if any member of the team cash received log. banking process andbanks cash, then this could result Then a separate responsible confirm this person isin very junior clerks having access individual should have suitably responsible.to significant amounts of money. responsibility for bankingcash.thisDeficiency Control Test of ControlThe cashier updates both the cash The cashier should update Observe the processbook and the sales ledger. This is the cash book from the cash for recording cash receivedweak segregation of duties, as the received log. A member into the relevant ledgerscashier could incorrectly enter a of the sales ledger team and note if thereceipt and this would impact should update the sales ledger. segregation of dutiesboth the cash book and the sales is occurring.ledger. In addition weak segregationof duties could increase the risk of a‘teeming and lading’ fraud.Bank reconciliations are not Bank reconciliations should Review the file ofperformed every month and be performed monthly. reconciliations for evidence of they do not appear to be reviewed A responsible individual regular performance andby a senior member of the finance should then review them. review by senior financedepartment. Errors in the cash cycle team members.may not be promptly identified ifreconciliations are performed infrequently.(c)Substantive procedures over bank balance:– Obtain the company’s bank reconciliation and check the additions to ensure arithmetical accuracy.– Obtain a bank confi rmation letter from the company’s bankers.– Verify the balance per the bank statement to an original year end bank statement and also to the bank confirmation letter.– Verify the reconciliation’s balance per the cash book to the year end cash book.– T race all of the outstanding lodgements to the pre year end cash book, post year end bank statement and also to paying-in-book pre year end.– Examine any old unpresented cheques to assess if they need to be written back into the purchase ledger as they are no longer valid to be presented.– T race all unpresented cheques through to a pre year end cash book and post year end statement. For any unusual amounts or signifi cant delays obtain explanations from management.– Agree all balances listed on the bank confirmation letter to the company’s bank reconciliations or the trial balance to ensure completeness of bank balances.– Review the cash book and bank statements for any unusual items or large transfers around the year end, as this could be evidence of window dressing.– Examine the bank confi rmation letter for details of any security provided by the company or any legal right of set-off as this may require disclosure.4 (a) Compliance with ACCA’s Code of Ethics and Conduct fundamental principles can be threatened by a number of areas. The fi vecategories of threats, which may impact on ethical risk, are:– Self-interest– Self-review– Advocacy– Familiarity– Intimidation.Examples for each category (Only one example required per threat):s tSelf-intere– Undue dependence on fee income from one client– Close personal or business relationships– Financial interest in a clientarrangementsfee– Incentive– Concern over employment security– Commercial pressure from outside the employing organisation– Inappropriate personal use of corporate assets.Self-review– Member of assurance team being or recently having been employed by the client in a position to infl uence the subject matter being reviewed– Involvement in implementation of fi nancial system and subsequently reporting on the operation of said system– Same person reviewing decisions or data that prepared them– An analyst, or member of a board, audit committee or audit fi rm being in a position to exert a direct or signifi cant infl uence over the fi nancial reports– The discovery of a signifi cant error during a re-evaluation of the work undertaken by the member– Performing a service for a client that directly affects the subject matter of an assurance engagement.Advocacy– Acting as an advocate on behalf of a client in litigation or disputes– Promoting shares in a listed audit client– Commenting publicly on future events in particular circumstances– Where information is incomplete or advocating an argument which is unlawful.Familiarity– Long association with a client– Acceptance of gifts or preferential treatment (signifi cant value)– Over familiarity with management– Former partner of fi rm being employed by client– A person in a position to infl uence fi nancial or non-fi nancial reporting or business decisions having an immediate or close family member who is in a position to benefi t from that infl uence.Intimidationlitigationof– Threat– Threat of removal as assurance fi rm– Dominant personality of client director attempting to infl uence decisions– Pressure to reduce inappropriately the extent of work performed in order to reduce fees.(b)Ethical threat Managing riskThe audit team has in previous years been offered The audit fi rm should ascertain whether the discounta staff discount of 10% on purchasing luxury mobile is to be offered to staff this year.phones.This is a familiarity threat. It would need to be confi rmed If it is then the discount should be reviewed forif this discount is to be offered to this year’s team as well, signifi cance. If it is deemed to be of signifi cantas only goods of an insignifi cant value are allowed to be value then the offer of discount should be declined.accepted. A discount of 10% may not appear to besignifi cant, but as these are luxury mobile phones thenthis may still be a signifi cant value.An audit senior of Jones & Co has been on secondment The fi rm should clarify exactly what areasas the fi nancial controller of LV Fones and is currently the senior assisted the client on. If he worked on areaspart of the audit team. not related to the fi nancial statements then he may beable to remain in the audit team.There is a self-review threat if the senior has prepared However it is likely that he has worked on some relatedrecords or schedules that support the year end fi nancial schedules and therefore he should be removed fromstatements and he then audits these same documents. the audit team to ensure that independence is notthreatened.The total fee income from LV Fones is 16% of the The fi rm should assess if the recurring fees will exceedtotal fees for the audit fi rm. If the fees for audit and 15%. If this is the case then it might need to considerrecurring work exceed 15% then there is a self-interest whether the appearance of independence willthreat. still be met if the tax and audit work is retained.The fees for LV Fones include tax and audit that are No further work should be accepted in the current yearassumed to be recurring, however the secondment from the client, and it might be advisable to performfees would not recur each year. external quality control reviews. It may also becomenecessary to consider resigning from either the tax or theauditengagement.The partner and the fi nance director know each other The personal relationship should be reviewed in linesocially and have holidayed together. Personal with Jones’s ethical policies.relationships between the client and members of theaudit team can create a familiarity or self-interest threat.ACCA’s Code of Ethics and Conduct does not specifi cally Consideration should be given to rotating the partnerprohibit friendships between the audit client and the team. off this engagement and replacing with an alternativeHowever, due to the senior positions held by both parties partner.then there is a risk that independence may be perceived tothreatened.beenhaveLast year’s audit fee is still outstanding. This amounts to Jones & Co should chase the outstanding fees.20% of the total fee and is likely to be a signifi cant value.Ethical threat Managing riskA self-interest threat can arise if the fees remain outstanding, If they remain outstanding, the fi rm should discussas Jones & Co may feel pressure to agree to certain with those charged with governance the reasonsaccounting adjustments in order to have the previous year for the continued non-payment, and ideally agree aand the current year fee paid. payment schedule which will result in the feesbeing settled before much more work is performedfor the current year audit.In addition outstanding fees could be perceived as a loanto a client, this is strictly prohibited.(c)Prior to acceptingPrior to accepting an audit engagement the fi rm should consider any issues which might arise which could threaten compliance with ACCA’s Code of Ethics and Conduct or any local legislation. If issues arise then their signifi cance must be considered.The fi rm should consider whether they are competent to perform the work and whether they would have appropriate resources available, as well as any specialist knowledge and skills.The prospective fi rm must communicate with the outgoing auditor to assess if there are any ethical or professional reasons why they should not accept appointment.The prospective firm must obtain permission from the client to contact the existing auditor, if this is not given then the engagement should be refused.The existing auditor must obtain permission from the client to respond, if not given then the prospective auditor should refuse the engagement.If given permission to respond, then the existing auditor should reply to the prospective auditor, who should then carefully review the response for any issues that could affect acceptance.In addition the audit fi rm should undertake client screening procedures such as considering management integrity and assessing whether any confl ict of interest with existing clients would arise.Further client screening procedures would include assessing the level of audit risk of the client and whether the expected engagement fee would be suffi cient for the level of anticipated risk.5 (a)The going concern assumption means that management believes the company will continue in business for the foreseeablefuture.Foreseeable future is not defi ned in ISA 570 (UK and Ireland) Going concern. However under FRS 18 Accounting policies, this period is a minimum of 12 months after the year end.Accounting policies require s that management automatically prepare fi nancial statements on a going concern basis FRS18unless they believe that the company will soon be liquidated or cease trading.(b)Indicator Why could impact going concernMedimade has seen a signifi cant decline in demand If the company is not able to increase demand for itsfor its products. products then it will struggle to generate suffi cient operatingcash fl ows leading to going concern diffi culties.Medimade generates 90% of its turnover through As the market is very competitive and Medimade has onlysales of just two products, and this market has two products then it is very dependent on these and mustnow become very competitive. ensure that it makes suffi cient sales as otherwise it mayface diffi culties in meeting all expenses.Lack of investment in future product development As current products reach the end of their life-cycle theywill bring in diminishing cash fl ows. Without new productsto generate future income operating cash fl ows will bestrained.The company is struggling to recruit suitably trained The company has decided that it needs to develop newscientifi c staff to develop new products. products, however, this is a highly specialised area andtherefore it needs suffi ciently trained staff. If it cannot recruitenough staff then it could hold up the product developmentand stop the company from increasing turnover.Medimade was unable to obtain suitable funding If Medimade was unable to obtain fi nance for its investment, for its £2m investment in plant and machinery. then this could indicate that the banks deem the companyto be too risky to lend money to. They may be concernedthat Medimade is unable to meet its loan payments,suggesting cash fl ow problems.。
天津财经大学 最新ACCA注册会计师考试 p5_ 最低第7_dec_a
Professional Level –Options Module, Paper P5Advanced Performance Management December 2007 Answers 1(a)Operating performanceBus occupancy is the critical operating statistic in assessing the operating performance of GBC and TTC since it is the number of fare-paying passengers which drives the revenue generation of each organisation. Indeed, passenger fares constitute the only source of income of each of the respective organisations.Actual and budgeted levels of total bus occupancy (fare-paying and non fare-paying passengers) achieved/to be achieved were as follows:GBC TTCYear20062007(actual)2007(budget)20062007(actual)2007(budget)% occupancy(working 2)RouteEastern656060608075Southern807560608075Western32·53060–––Hopper656060608075However, GBC provides free transport for passengers on its Eastern, Western and Hopper routes and the % occupancy of fare-paying passengers only is as follows:Year20062007% occupancy% occupancyRouteEastern5550Southern8075Western2522·5Hopper5550Hence it can be seen that GBC’s bus actual occupancy has fallen from the levels achieved during the previous year. On the other hand, TTC has achieved average increases of 20% with regard to all three routes it operated and also exceeded a more demanding budget of 75% average bus occupancy with regard to each route.It is quite conceivable that TTC has gained business at the expense of GBC by virtue of the fact that it provides a higher quality of service for which customers are willing to pay the average 20% premium charged by TTC. The fact that TTC operates fewer vehicles than GBC together with its higher depreciation charge in respect of vehicles suggests that the fleet of buses operated by TTC is newer than that of GBC.It is interesting to note that, on average each GBC bus was in operation for 320 days whereas each TTC bus was in operation for 340 days. This might well be indicative of the fact that the fleet of buses operated by GBC is much older than that of TTC,a fact seemingly supported by the much higher repairs and maintenance costs incurred by GBC.Financial performance200620072007200620072007GBC GBC GBC TTC TTC TTCActual Actual Budget Actual Actual Budget T urnover($)5,670,4005,222,4005,683,2004,308,4805,744,6405,385,600Net profit ($)1,513,800816,7201,453,200870,1002,199,8401,823,600Assets (nbv) ($)700,000630,000630,0002,500,0002,250,0002,250,000Profit/Assets (%)216·3129·64230·734·897·881·0Profit/Sales (%)26·715·6425·620·238·333·9GBC had a much poorer year in 2007 than it had anticipated. It made a profit of $816,720 which is a reduction of $697,080 (46%) from that of the previous year. During the previous year GBC had made a profit of $1,513,800. GBC had budgeted for a fall in profit of $60,600 ($1,513,800 –$1,453,200) but such a large deviation from plan would certainly alarm its stakeholders. By contrast, TTC has had an excellent year in 2007 achieving a net profit amounting to $2,199,840 which is more than 2·5 times the level of profit achieved in 2006 ($870,100). TTC also exceeded its budgeted profit by $376,240 (20·6%).Revenues from fares within GBC during 2007 have fallen by $448,000 (7·9%) from the previous year, whereas revenue from fares within TTC during 2007 have increased by $1,436,160 (33·33%) over the previous year’s level.Variable costs per mile are 10 cents per bus mile higher in GBC than they are in TTC. The fact that GBC has opted to use environmentally friendly fuel in its vehicles is evidence of its concern for society. The use of environmentally friendly fuel caused increases in average variable costs amounting to $126,080 (1,260,800 x ($2·10 –$2)) during 2007.Fixed costs during 2006 within GBC were above budget with salaries, repairs and maintenance, and other operating expenses exceeding budgeted levels by $25,000, $40,000 and $13,000 respectively and were $50,000, $60,000 and $13,000 above the levels incurred during 2006. By contrast, TTC salaries were as per budget whilst repairs and maintenance andother operating expenses were $2,000 and $20,000 below budgeted levels. Salaries increased by $10,000 whilst other operating costs by $20,000 over the previous year’s levels. Repairs and maintenance costs remained at $40,000, the same level as incurred during 2006.Workings:(1)Calculation of figures marked with an asterisk(*):Buses Journeys Days in Fare-paying Fare per$per per operation passengers passengerroute route($) GBC Eastern revenue (2006)623204410= 1,689,600 GBC Southern revenue (2007)623206010= 2,304,000 TTC Southern revenue (2007)423406412= 2,088,960 TTC Hopper budgeted revenue (2007)213406036= 1,468,800Buses Days Kilometres Journeys Cost ($)perrouteGBC Eastern variable costs (2007)6320100 22·1= 806,400 TTC Southern variable costs (2007)434012022= 652,800(2)GBC –Level of total occupancy:Route No. of fare-paying No. of non fare-paying Total Occupancypassengers passengers%Eastern4485265Southern6406480Western2062632·5Hopper4485265(b)The relative performance of GBC and TTC is difficult to assess due to the following:(i)They would appear to have differing objectives. GBC provides free transport for senior citizens and charges lower faresthan TTC. GBC also uses environmentally friendly fuel. Each of these factors inhibits a direct comparison of the two organisations.(ii)The organisations are funded differently. It is evident that TTC uses loan finance to fund operations which gives rise to interest charges which are not incurred by GBC. On the other hand GBC is funded by the government.(iii)TTC has higher fixed asset values which precipitate much higher depreciation charges.(iv)There is also a lack of non-financial performance indicators such as the number of on-time arrivals, number of accidents, complaints re passenger dissatisfaction, staff turnover, adherence to relevant legislation, convenience of pick-up/drop-off points etc.The following items of additional information would assist in assessing the financial and operating performance of the two companies:(1)The number of staff employed by each organisation would assist in the assessment of the financial and operatingperformance. Ratios such as revenue generated per employee and operating costs per employee might provide useful comparators of financial and operating efficiency.(2)Safety and accident records of each organisation would give an indication of the reliability and safety afforded topassengers by each organisation. Passenger safety is of paramount importance to all passenger transport businesses.(3)Records of late/cancelled buses together with the number of complaints received from the passengers would provide anindication of the efficiency of the service provided by each organisation.(4)The accessibility of the services, location of pick-up/drop-off points would provide an indication of the flexibility of servicedelivery provided by each organisation.(5)The comfort, cleanliness and age of the respective bus fleets would provide a further indication of the level of servicequality provided by each organisation.(6)The fuel emission levels of the buses operated by each organisation would provide an indication of the extent of their‘social responsibility’.Notes:(i)Only three items of additional information were required.(ii)Alternative relevant discussion and examples would be acceptable.(c)It would appear that in operating a bus service to the Western region of Geeland that GBC is fulfilling a social objective sincea contribution loss amounting to $38,400 ($230,400 –$268,800) was made as a consequence of operating the route tothe Western region during 2007. As an organisation which is partially funded by the government it is highly probable that GBC has objectives which differ from those of TTC which is a profit-seeking organisation.The value of a social service such as the provision of public transport can be quantified, albeit, in non-financial times. It is possible to apply quantitative measures to the bus service itself, the most obvious ones being the number of passengers carried and the number of passenger miles travelled.The cost of the provision of alternative transport to the Western region might also enable a value to be placed on the current service by GBC.It might be possible to estimate quantitatively some of the social benefits resulting from the provision of the transport facility to and from the Western region. For example, GBC could undertake a survey of the population of the Western region in order to help estimate the extent to which rural depopulation would otherwise have occurred had the transport facility not been made.The application of the technique of cost-benefit analysis makes it possible to estimate money values for non-monetary benefits. Social benefits can therefore be expressed in financial terms. It is highly probable that the fact that the Western region is served by GBC will increase the attractiveness of living in a rural area, which may in turn precipitate an increase in property values in the Western region and the financial benefit could be expressed in terms of the aggregate increase in property values in the region as a whole.2(a)(i)$mYear1Year2Year3$m$m$mNet cash inflow12·518·527·0Less:Depreciation15·015·015·0–––––––––––––––Profit/(loss)(2·5)3·512·0Less:cost of capital (at 10% of wdv)(4·5)(3·0)(1·5)–––––––––––––––RI(7·0)0·510·5–––––––––––––––A positive NPV of $1·937m indicates that the performance is acceptable over the three-year life of the proposal.The RI shows a negative value of $7m in year 1. This is likely to lead to its rejection by the management of AlphaDivision because they participate in a bonus scheme that is based on short-term performance evaluation.The short-term focus on performance evaluation might lead to the rejection of investment opportunities such as the oneunder consideration which would be detrimental to the Delta Group. Management of the Delta Group should giveimmediate consideration to changing the focus of the bonus scheme.(ii)Measures of divisional profitability may be viewed as evaluating managerial performance and/or economic performance of the division. Management are likely to take the view that any contribution value used as a measure of theirperformance should only contain revenue or cost elements over which they have control. If each of the measures 1 to3 shown in the question are considered the following analysis may be made:1. Variable short run contribution margin:This measure may be viewed as unacceptable to divisional management where it contains inter-divisional transfers. Inthis case this should not be a problem since the use of adjusted market price is in effect equivalent to external sellingprice after the deduction of cost elements (e.g. special packaging) that are not appropriate to inter-divisional transfers.2. Controllable profit:This measure will be calculated by deducting controllable fixed costs from the variable short-run contribution. Thesecosts may include labour costs and/or equipment rental costs that are fixed in the short term but are subject to someinfluence by divisional management. For example, divisional management action may enable efficiency gains to beachieved in order to reduce the level of fixed labour or equipment rental costs that are incurred. In addition, it will berelevant to determine whether divisional management is free to source such items as they wish or if there is somedirection for them to use, for example, a Delta Group Service Division for equipment rental requirements.The inclusion of depreciation of fixed assets as a charge in evaluating controllable contribution may be debateddepending on the extent to which divisional management has control over investment decisions.3. Divisional profit:Depending on the extent to which investment decisions relating to Alpha Division are ultimately authorised at DeltaGroup level, depreciation may be viewed as a non-controllable cost, chargeable in arriving at the divisional profit andhence as part of divisional economic performance measurement.Other non-controllable costs attributed to the division may be a share of Group finance and legal staff costs for servicesprovided to the division. Such costs are non-controllable by divisional management and may be viewed as avoidableonly if the division was closed.The divisional profit figure is useful in evaluating the economic performance of the division in that it represents thecontribution made by Alpha Division towards the overall profitability of the Delta Group.(b)(i)In order to compute EVA, adjustments must be made to the conventional after tax profit measures of $67m and $82mshown in the summary income statements. Since we know that financial accounting depreciation is equal to economic depreciation then no adjustment is required to take into account the fact that economic depreciation differs from financial accounting depreciation. In calculating EVA the calculation of adjusted profit represents an attempt to approximate cash flow after taking into account a charge in respect of economic depreciation. Hence non-cash expenses are added back to the profit reported in the income statement. Net interest is also added back to the reported profit because the returns required by the providers of funds are reflected in the cost of capital adjustment. It is the net interest i.e. interest after tax that is added back to reported profit because interest will already have been allowed as an expense in the computation of the taxation liability.In computing EVA, the calculation of capital employed should be based on adjustments which seek to approximate economic value at the commencement of each period. Due to the lack of sufficient information the book value of shareholders’ funds plus long-term capital loans at the end of 2005 is used as a basis for the determination of economic capital employed at the commencement of 2006.Goodwill is a measure of the price paid for a business in excess of the current cost of the net separable assets of the business. Payments in respect of goodwill may be viewed as adding value to the company. Therefore any amounts in respect of goodwill amortisation appearing in the income statement are added back to reported profit since they represent part of the intangible asset value of the business.By the same token, the cumulative write off of $45 million is added back to capital employed in order to show a more realistic value of the capital base realistic value of the capital employed. This is because goodwill represents an element of the total value of a business. The value placed on goodwill should be regularly reviewed and any diminution in its value should be recognised immediately in the income statement.The calculation of EVA in respect of the two years under consideration is as follows:20062007Adjusted profit:$m$mProfit after tax6782Amortisation of goodwill55Other non-cash expenses1212Interest expense 4·24·2––––––––––Adjusted profit88·2103·2––––––––––Adjusted capital employed:$m$mYear beginning279340Non-capitalised leases1616Goodwill4550––––––––––Adjusted capital employed340406––––––––––The weighted average cost of capital should be based on the target capital structure of 50% Debt: 50% Equity.The calculations are as follows:WACC 2006: (16% x 50%) + (10% x 0·7 x 50%) = 11·5%WACC 2007: (18% x 50%) + (10% x 0·7 x 50%) = 12·5%Therefore EVA in respect of both years can be calculated as follows:EVA 2006 = 88·2 – (340 x 11·5%) = $49·1 millionEVA 2007 = 103·2 – (406 x 12·5%) = $52·45 millionThe EVA measures indicate that the Gamma Group has added significant value during each year under consideration and thereby achieved a satisfactory level of performance.(ii)Disadvantages of an EVA approach to the measurement of financial performance include:(i)The calculation of EVA may be complicated due to the number of adjustments required.(ii)It is difficult to use EVA for inter-firm and inter-divisional comparisons because it is not a ratio measure.(iii)Economic depreciation is difficult to estimate and conflicts with generally accepted accounting principles.Note: Other relevant discussion would be acceptable.3(a)Forecast Income Statement of HSC for the year ending 31 December 2008:$000Revenue45,000Materials17,500Packaging3,750Distribution3,600Fixed costs5,401–––––––T otal costs30,251Profit14,749Profit/sales (%)32·78%T arget rate of return (%)32·00%T arget return ($000)14,400$Materials can increase by the excess profit over budget349,000Material costs could increase to17,849,000Therefore increase =1·994%Based on the information provided an expected return on sales amounting to 32·78% of revenue would be made in which case the statement made by the finance director was correct.The finance director was correct to be concerned with an increase in the cost of all ingredients as the return % is very sensitive to an increase in the price of ingredients purchased by HEG, as material costs cannot rise in price by more than $349,000 which represents an average increase amounting to 1·994%.(b)Critical success factors are as follows:Product qualityThe fact that the production staff have no previous experience in a food production environment is likely to prove problematic.It is vital that a comprehensive training programme is put in place at the earliest opportunity. HSC need to reach and maintain the highest level of product quality as soon as possible.Supply qualityThe quality of delivery into SFG supermarkets assumes critical significance. Time literally will be of the essence since 90% of all sandwiches are sold in SFG’s supermarkets before 2 pm each day. Hence supply chain management must be extremely robust as there is very little scope for error.Technical qualityCompliance with existing regulations regarding food production including all relevant factory health and safety requirements is vital in order to establish and maintain the reputation of HSC as a supplier of quality products. The ability to store products at the correct temperature is critical because sandwiches are produced for human consumption and in extreme circumstance could cause fatalities.External credibilityAccreditation by relevant trade associations/regulators will be essential if nationwide acceptance of HSC as a major producer of sandwiches is to be established.New product developmentWhilst HSC have developed a range of healthy eating sandwiches it must be recognised that consumer tastes change and that in the face of competition there will always be a need for a continuous focus on new product development.MarginWhilst HSC need to recognise all other critical success factors they should always be mindful that the need to obtain the desired levels of gross and net margin remain of the utmost importance.Notes:(i)Only five critical success factors were required.(ii)Alternative relevant discussion and examples would be acceptable.(c)The introduction of ERPS has the potential to have a significant impact on the work of management accountants. The use ofERPS causes a substantial reduction in the gathering and processing of routine information by management accountants.Instead of relying on management accountants to provide them with information, managers are able to access the system to obtain the information they require directly via a suitable electronic access medium.ERPS integrate separate business functions in one system for the entire organisation and therefore co-ordination is usually undertaken centrally by information management specialists who have a dual responsibility for the implementation and operation of the system.ERPS perform routine tasks that not so long ago were seen as an essential part of the daily routines of management accountants, for example perpetual inventory valuation. Therefore if the value of the role of management accountants is not to be diminished then it is of necessity that management accountants should seek to expand their roles within their organisations.The management accountant will also control and audit the ERPS data input and analysis. Hence the implementation of ERPS provides the management accountant with an opportunity to change the emphasis of their role from information gathering and processing to that of the role of advisers and internal consultants to their organisations. This new role will require management accountants to be involved in interpreting the information generated from the ERPS and to provide business support for all levels of management within an organisation.4(a)Order Number 377Summary total cost statement$’000$’000 Unit-based costs:Direct material cost ($180 x 5,000)900Direct labour cost ($150 x 5,000)750Power cost ($120 x 5,000)6002,250–––––Batch-related costs:Design work ($30,000 x 5)150Machine set up ($34,000 x 5)170Production scheduling ($60,000 x 5)300Selling – batch expediting – ($60,000 x 5)300Admin. – invoicing & accounting ($24,000 x 5)) 120Distribution ($12,000 x 5)601,100–––––Product sustaining costs:Engineering design & support (per order)350Production line maintenance (per order)1,100Marketing (per order)2001,650–––––––––––T otal cost excluding business/facility sustaining costs5,000Business/Facility sustaining costs:Relating to production, administration, selling &distribution based on overall business/facility time used.30% x $5,000,0001,500––––––T otal cost of order6,500––––––Note:number of batches = 5,000units/1,000 = 5 batches(b) A cost driver is the factor that determines the level of resource required for an activity. This may be illustrated by consideringcosts for each of the four levels in Order Number 377.Unit based costs:Direct material costs are driven by the quantity, range, quality and price of materials required per product unit according to the specification for the order.Direct labour costs are driven by the number of hours required per product unit and the rate per hour that has been agreed for each labour grade.Batch related costs:The number of machine set-ups per batch is the cost driver for machines used.The number of design hours per batch is the cost driver for design work.Product sustaining costs:The number of marketing visits to a client per order is the cost driver for marketing cost chargeable to the order.The number of hours of production line maintenance per order is the cost driver for production line cost.Business sustaining costs:These costs are absorbed at a rate of 30% of total cost excluding business sustaining costs. This is an arbitrary rate which indicates the difficulty in identifying a suitable cost driver/drivers for the range of residual costs in this category. Wherever possible efforts should be made to identify aspects of this residual cost that can be added to the unit, batch or product related analysis.The cost drivers are useful in that they provide a basis for an accurate allocation of the cost of resources consumed by an order. In addition, investigation of the cause(s) of a cost driver occurring at its present level allows action to be considered that will lead to a reduction in the cost per unit of cost driver.Examples of causes that might be identified are:Material price may be higher than necessary due to inefficient sourcing of materials. This may be overcome through efforts to review sourcing policy and possibly provide additional training to staff responsible for the sourcing of materials.The number of machine set-ups per batch may be due to lack of planning of batch sizes. It may be possible for batch sizes in this order to be increased to 1,250 units which would reduce the number of batches required to fulfil the order from five to four. This should reduce overall costs.The amount of production line maintenance (and hence cost) required per order may be reduced by examining causes such as level of skill of maintenance carried out – by GMB’s own staff or out-sourced provision. Action would involve re-training of own staff or recruitment of new staff or changing of out-source providers.(alternative relevant examples and discussion would be acceptable for all aspects of part (b))(c)The benefits of an activity-based system as the basis for product cost/profit estimation may not be straightforward. A numberof problems may be identified.The selection of relevant activities and cost drivers may be complicated where there are many activities and cost drivers in complex business situations.There may be difficulty in the collection of data to enable accurate cost driver rates to be calculated. This is also likely to require an extensive data collection and analysis system.The problem of ‘cost driver denominator level’ may also prove difficult. This is similar to the problem in a traditional volume related system. This is linked to the problem of fixed/variable cost analysis. For example the cost per batch may be fixed. Its impact may be reduced, however, where the batch size can be increased without a proportionate increase in cost.The achievement of the required level of management skill and commitment to change may also detract from the implementation of the new system. Management may feel that the activity based approach contains too many assumptions and estimates about activities and cost drivers. There may be doubt as to the degree of increased accuracy which it provides.(alternative relevant examples and discussion would be acceptable)5(a)In order to assess the attractiveness of the option to enter the market for spirally-wound paper tubes, the directors of BPC could make use of Michael Porter’s ‘five forces model’.In applying this model to the given scenario one might conclude that the relatively low cost of the machine together with the fact that an unskilled person would only require one day’s training in order to be able to operate a machine, constitute relatively low costs of entry to the market. Therefore one might reasonably conclude that the threat of new entrants might be high. This is especially the case where the market is highly fragmented.The fact that products are usually purchased in very large quantities by customers together with the fact that there is little real difference between the products of alternative suppliers suggests that customer (buyer) power might well be very high. The fact that the paper tubes on average only comprise between 1% and 2% of the total cost of the purchaser’s finished product also suggests that buyer power may well be very high.The threat from suppliers could be high due to the fact that the specially formulated paper from which the tubes are made is sometimes in short supply. Hence suppliers might increase their prices with consequential diminution in gross margin of the firms in the marketplace.The threat from competitive rivals will be strong as the four major players in the market are of similar size and that the market is a slow growing market. The market leader currently has 26% of the market and the three nearest competitors hold approximately 18% of the market.The fact that Plastic T ubes Co (PTC) produces a narrow range of plastic tubes constitutes a threat from a substitute product.This threat will increase if the product range of PTC is extended and the price of plastic tubes is reduced.The fact that a foreign-based multinational company is considering entering this market represents a significant threat from a potential new entrant as it would appear that the multinational company might well be able to derive economies of scale from large scale automated machinery and has manufacturing flexibility.Low capital barriers to entry might appeal to BPC but they would also appeal to other potential entrants. The low growth market, the ease of entry, the existence of established competitors, a credible threat of backward vertical integration by suppliers, the imminent entry by a multi-national, a struggling established competitor and the difficulty of differentiating an industrial commodity should call into question the potential of BPC to achieve any sort of competitive advantage. If BPC can achieve the position of lowest cost producer within the industry then entry into the market might be a good move. In order to assess whether this is possible BPC must consider any potential synergies that would exist between its cardboard business and that of the tubes operation.From the information available, the option to enter the market for cardboard tubes appears to be unattractive. The directors of BPC should seek alternative performance improvement strategies.(b)It would appear that JOL’s market share has declined from 30% to (80 –26)/3 = 18% during the last three years. A 12%fall in market share is probably very significant with a knock-on effect on profits and resultant cash flows. Obviously such a declining trend needs to be arrested immediately and this will require a detailed investigation to be undertaken by the directors of JOL. Consequently loss of market share can be seen to be an indicator of potential corporate failure. Other indicators of corporate failure are as follows:。