(b) While the refrigeration units were undergoing modernisation Lamont outsourced all its cold storage requirementsto Hogg Warehousing Services. At 31 March 2007 it was not possible to physically inspect Lamont’s inventoryheld by Hogg due to health and sa
题目
(b) While the refrigeration units were undergoing modernisation Lamont outsourced all its cold storage requirements
to Hogg Warehousing Services. At 31 March 2007 it was not possible to physically inspect Lamont’s inventory
held by Hogg due to health and safety requirements preventing unauthorised access to cold storage areas.
Lamont’s management has provided written representation that inventory held at 31 March 2007 was
$10·1 million (2006 – $6·7 million). This amount has been agreed to a costing of Hogg’s monthly return of
quantities held at 31 March 2007. (7 marks)
Required:
For each of the above issues:
(i) comment on the matters that you should consider; and
(ii) state the audit evidence that you should expect to find,
in undertaking your review of the audit working papers and financial statements of Lamont Co for the year ended
31 March 2007.
NOTE: The mark allocation is shown against each of the three issues.
相似考题
参考答案和解析
(b) Outsourced cold storage
(i) Matters
■ Inventory at 31 March 2007 represents 21% of total assets (10·1/48·0) and is therefore a very material item in the
balance sheet.
■ The value of inventory has increased by 50% though revenue has increased by only 7·5%. Inventory may be
overvalued if no allowance has been made for slow-moving/perished items in accordance with IAS 2 Inventories.
■ Inventory turnover has fallen to 6·6 times per annum (2006 – 9·3 times). This may indicate a build up of
unsaleable items.
Tutorial note: In the absence of cost of sales information, this is calculated on revenue. It may also be expressed
as the number of days sales in inventory, having increased from 39 to 55 days.
■ Inability to inspect inventory may amount to a limitation in scope if the auditor cannot obtain sufficient audit
evidence regarding quantity and its condition. This would result in an ‘except for’ opinion.
■ Although Hogg’s monthly return provides third party documentary evidence concerning the quantity of inventory it
does not provide sufficient evidence with regard to its valuation. Inventory will need to be written down if, for
example, it was contaminated by the leakage (before being moved to Hogg’s cold storage) or defrosted during
transfer.
■ Lamont’s written representation does not provide sufficient evidence regarding the valuation of inventory as
presumably Lamont’s management did not have access to physically inspect it either. If this is the case this may
call into question the value of any other representations made by management.
■ Whether, since the balance sheet date, inventory has been moved back from Hogg’s cold storage to Lamont’s
refrigeration units. If so, a physical inspection and roll-back of the most significant fish lines should have been
undertaken.
Tutorial note: Credit will be awarded for other relevant accounting issues. For example a candidate may question
whether, for example, cold storage costs have been capitalised into the cost of inventory. Or whether inventory moves
on a FIFO basis in deep storage (rather than LIFO).
(ii) Audit evidence
■ A copy of the health and safety regulation preventing the auditor from gaining access to Hogg’s cold storage to
inspect Lamont’s inventory.
■ Analysis of Hogg’s monthly returns and agreement of significant movements to purchase/sales invoices.
■ Analytical procedures such as month-on-month comparison of gross profit percentage and inventory turnover to
identify any trend that may account for the increase in inventory valuation (e.g. if Lamont has purchased
replacement inventory but spoiled items have not been written off).
■ Physical inspection of any inventory in Lamont’s refrigeration units after the balance sheet date to confirm its
condition.
■ An aged-inventory analysis and recalculation of any allowance for slow-moving items.
■ A review of after-date sales invoices for large quantities of fish to confirm that fair value (less costs to sell) exceed
carrying amount.
■ A review of after-date credit notes for any returns of contaminated/perished or otherwise substandard fish.
更多“(b) While the refrigeration units were undergoing modernisation Lamont outsourced all its cold storage requirementsto Hogg Warehousing Services. At 31 March 2007 it was not possible to physically inspect Lamont’s inventoryheld by Hogg due to health and sa”相关问题
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第1题：
4 Hogg Products Company (HPC), based in a developing country, was recently wholly acquired by American Overseas
Investments (AOI), a North American holding company. The new owners took the opportunity to completely review
HPC’s management, culture and systems. One of the first things that AOI questioned was HPC’s longstanding
corporate code of ethics.
The board of AOI said that it had a general code of ethics that HPC, as an AOI subsidiary, should adopt. Simon Hogg,
the chief executive of HPC, disagreed however, and explained why HPC should retain its existing code. He said that
HPC had adopted its code of ethics in its home country which was often criticised for its unethical business behaviour.
Some other companies in the country were criticised for their ‘sweat shop’ conditions. HPC’s adoption of its code of
ethics, however, meant that it could always obtain orders from European customers on the guarantee that products
were made ethically and in compliance with its own highly regarded code of ethics. Mr Hogg explained that HPC had
an outstanding ethical reputation both locally and internationally and that reputation could be threatened if it was
forced to replace its existing code of ethics with AOI’s more general code.
When Ed Tanner, a senior director from AOI’s head office, visited Mr Hogg after the acquisition, he was shown HPC’s
operation in action. Mr Hogg pointed out that unlike some other employers in the industry, HPC didn’t employ child
labour. Mr Hogg explained that although it was allowed by law in the country, it was forbidden by HPC’s code of
ethics. Mr Hogg also explained that in his view, employing child labour was always ethically wrong. Mr Tanner asked
whether the money that children earned by working in the relatively safe conditions at HPC was an important source
of income for their families. Mr Hogg said that the money was important to them but even so, it was still wrong to
employ children, as it was exploitative and interfered with their education. He also said that it would alienate the
European customers who bought from HPC partly on the basis of the terms of its code of ethics.
Required:
(a) Describe the purposes and typical contents of a corporate code of ethics. (9 marks)
正确答案：
(a) Purposes of codes of ethics
To convey the ethical values of the company to interested audiences including employees, customers, communities and
shareholders.
To control unethical practice within the organisation by placing limits on behaviour and prescribing behaviour in given
situations.
To be a stimulant to improved ethical behaviour in the organisation by insisting on full compliance with the code.
[Tutorial note: other purposes, if relevant, will be rewarded]
Contents of a corporate code of ethics
The typical contents of a corporate code of ethics are as follows:
Values of the company. This might include notes on the strategic purpose of the organisation and any underlying beliefs,
values, assumptions or principles. Values may be expressed in terms of social and environmental perspectives, and
expressions of intent regarding compliance with best practice, etc.
Shareholders and suppliers of finance. In particular, how the company views the importance of sources of finances, how it
intends to communicate with them and any indications of how they will be treated in terms of transparency, truthfulness and
honesty.
Employees. Policies towards employees, which might include equal opportunities policies, training and development,
recruitment, retention and removal of staff. In the case of HPC, the policy on child labour will be covered by this part of the
code of ethics.
Customers. How the company intends to treat its customers, typically in terms of policy of customer satisfaction, product mix,
product quality, product information and complaints procedure.
Supply chain/suppliers. This is becoming an increasingly important part of ethical behaviour as stakeholders scrutinise where
and how companies source their products (e.g. farming practice, GM foods, fair trade issues, etc). Ethical policy on supply
chain might include undertakings to buy from certain approved suppliers only, to buy only above a certain level of quality, to
engage constructively with suppliers (e.g. for product development purposes) or not to buy from suppliers who do not meet
with their own ethical standards.
Community and wider society. This section concerns the manner in which the company aims to relate to a range of
stakeholders with whom it does not have a direct economic relationship (e.g. neighbours, opinion formers, pressure groups,
etc). It might include undertakings on consultation, ‘listening’, seeking consent, partnership arrangements (e.g. in community
relationships with local schools) and similar.
[Tutorial note: up to six points to be identified and described but similar valid general contents are acceptable] -
第2题：
(c) Assuming that Stuart:
(i) purchased 201,000 shares in Omega plc on 3 December 2005; and
(ii) dies on 20 December 2007,
calculate the potential inheritance tax (IHT) liability which would arise if Rebecca were to die on 1 March
2008, and no further tax planning measures were taken.
Assume that all asset values remain unchanged and that the current rates of inheritance tax continue to
apply. (6 marks)
正确答案：
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第3题：
(b) Explain by reference to Hira Ltd’s loss position why it may be beneficial for it not to claim any capital
allowances for the year ending 31 March 2007. Support your explanation with relevant calculations.
(6 marks)
正确答案：
(b) The advantage of Hira Ltd not claiming any capital allowances
In the year ending 31 March 2007 Hira Ltd expects to make a tax adjusted trading loss, before deduction of capital
allowances, of ￡55,000 and to surrender the maximum amount possible of trading losses to Belgrove Ltd and Dovedale Ltd.
For the first nine months of the year from 1 April 2006 to 31 December 2006 Hira Ltd is in a loss relief group with Belgrove
Ltd. The maximum surrender to Belgrove Ltd for this period is the lower of:
– the available loss of ￡41,250 (￡55,000 x 9/12); and
– the profits chargeable to corporation tax of Belgrove of ￡28,500 (￡38,000 x 9/12).
i.e. ￡28,500. This leaves losses of ￡12,750 (￡41,250 – ￡28,500) unrelieved.
For the remaining three months from 1 January 2007 to 31 March 2007 Hira Ltd is a consortium company because at least
75% of its share capital is owned by companies, each of which own at least 5%. It can surrender ￡8,938 (￡55,000 x 3/12
x 65%) to Dovedale Ltd and ￡4,812 (￡55,000 x 3/12 x 35%) to Belgrove Ltd as both companies have sufficient taxable
profits to offset the losses. Accordingly, there are no losses remaining from the three-month period.
The unrelieved losses from the first nine months must be carried forward as Hira Ltd has no income or gains in that year or
the previous year. However, the losses cannot be carried forward beyond 1 January 2007 (the date of the change of
ownership of Hira Ltd) if there is a major change in the nature or conduct of the trade of Hira Ltd. Even if the losses can be
carried forward, the earliest year in which they can be relieved is the year ending 31 March 2009 as Hira Ltd is expected to
make a trading loss in the year ending 31 March 2008.
Any capital allowances claimed by Hira Ltd in the year ending 31 March 2007 would increase the tax adjusted trading loss
for that year and consequently the unrelieved losses arising in the first nine months.
If the capital allowances are not claimed, the whole of the tax written down value brought forward of ￡96,000 would be
carried forward to the year ending 31 March 2008 thus increasing the capital allowances and the tax adjusted trading loss,
for that year. By not claiming any capital allowances, Hira Ltd can effectively transfer a current period trading loss, which
would be created by capital allowances, of ￡24,000 (25% x ￡96,000) from the year ending 31 March 2007 to the following
year where it can be surrendered to the two consortium members. -
第4题：
5 (a) Carver Ltd was incorporated and began trading in August 2002. It is a close company with no associated
companies. It has always prepared accounts to 31 December and will continue to do so in the future.
It has been decided that Carver Ltd will sell its business as a going concern to Blade Ltd, an unconnected
company, on 31 July 2007. Its premises and goodwill will be sold for ￡2,135,000 and ￡290,000 respectively
and its machinery and equipment for ￡187,000. The premises, which do not constitute an industrial building,
were acquired on 1 August 2002 for ￡1,808,000 and the goodwill has been generated internally by the
company. The machinery and equipment cost ￡294,000; no one item will be sold for more than its original cost.
The tax adjusted trading profit of Carver Ltd in 2007, before taking account of both capital allowances and the
sale of the business assets, is expected to be ￡81,000. The balance on the plant and machinery pool for the
purposes of capital allowances as at 31 December 2006 was ￡231,500. Machinery costing ￡38,000 was
purchased on 1 March 2007. Carver Ltd is classified as a small company for the purposes of capital allowances.
On 1 August 2007, the proceeds from the sale of the business will be invested in either an office building or a
portfolio of UK quoted company shares, as follows:
Office building
The office building would be acquired for ￡3,100,000; the vendor is not registered for value added tax (VAT).
Carver Ltd would borrow the additional funds required from a UK bank. The building is let to a number of
commercial tenants who are not connected with Carver Ltd and will pay rent, in total, of ￡54,000 per calendar
quarter, in advance, commencing on 1 August 2007. The company’s expenditure for the period from 1 August
2007 to 31 December 2007 is expected to be:
￡
Loan interest payable to UK bank 16,000
Building maintenance costs 7,500
Share portfolio
Shares would be purchased for the amount of the proceeds from the sale of the business with no need for further
loan finance. It is estimated that the share portfolio would generate dividends of ￡36,000 and capital gains, after
indexation allowance, of ￡10,000 in the period from 1 August 2007 to 31 December 2007.
All figures are stated exclusive of value added tax (VAT).
Required:
(i) Taking account of the proposed sale of the business on 31 July 2007, state with reasons the date(s) on
which Carver Ltd must submit its corporation tax return(s) for the year ending 31 December 2007.
(2 marks)
正确答案：
(a) (i) Due date for submission of corporation tax return
Carver Ltd intends to cease trading on 31 July 2007. This will bring to an end the accounting period that began on
1 January 2007. A new accounting period will commence on 1 August 2007 and end on the company’s accounting
reference date on 31 December 2007.
Carver Ltd is required to submit its corporation tax return by the later of:
– one year after the end of its accounting period; and
– one year after the end of the period of account in which the last day of the accounting period falls.
Accordingly, the company must submit its corporation tax returns for both accounting periods by 31 December 2008. -
第5题：
3 You are the manager responsible for the audit of Lamont Co. The company’s principal activity is wholesaling frozen
fish. The draft consolidated financial statements for the year ended 31 March 2007 show revenue of $67·0 million
(2006 – $62·3 million), profit before taxation of $11·9 million (2006 – $14·2 million) and total assets of
$48·0 million (2006 – $36·4 million).
The following issues arising during the final audit have been noted on a schedule of points for your attention:
(a) In early 2007 a chemical leakage from refrigeration units owned by Lamont caused contamination of some of its
property. Lamont has incurred $0·3 million in clean up costs, $0·6 million in modernisation of the units to
prevent future leakage and a $30,000 fine to a regulatory agency. Apart from the fine, which has been expensed,
these costs have been capitalised as improvements. (7 marks)
Required:
For each of the above issues:
(i) comment on the matters that you should consider; and
(ii) state the audit evidence that you should expect to find,
in undertaking your review of the audit working papers and financial statements of Lamont Co for the year ended
31 March 2007.
NOTE: The mark allocation is shown against each of the three issues.
正确答案：
3 LAMONT CO
(a) Chemical leakage
(i) Matters
■ $30,000 fine is very immaterial (just 1/4% profit before tax). This is revenue expenditure and it is correct that it
has been expensed to the income statement.
■ $0·3 million represents 0·6% total assets and 2·5% profit before tax and is not material on its own. $0·6 million
represents 1·2% total assets and 5% profit before tax and is therefore material to the financial statements.
■ The $0·3 million clean-up costs should not have been capitalised as the condition of the property is not improved
as compared with its condition before the leakage occurred. Although not material in isolation this amount should
be adjusted for and expensed, thereby reducing the aggregate of uncorrected misstatements.
■ It may be correct that $0·6 million incurred in modernising the refrigeration units should be capitalised as a major
overhaul (IAS 16 Property, Plant and Equipment). However, any parts scrapped as a result of the modernisation
should be treated as disposals (i.e. written off to the income statement).
■ The carrying amount of the refrigeration units at 31 March 2007, including the $0·6 million for modernisation,
should not exceed recoverable amount (i.e. the higher of value in use and fair value less costs to sell). If it does,
an allowance for the impairment loss arising must be recognised in accordance with IAS 36 Impairment of Assets.
(ii) Audit evidence
■ A breakdown/analysis of costs incurred on the clean-up and modernisation amounting to $0·3 million and
$0·6 million respectively.
■ Agreement of largest amounts to invoices from suppliers/consultants/sub-contractors, etc and settlement thereof
traced from the cash book to the bank statement.
■ Physical inspection of the refrigeration units to confirm their modernisation and that they are in working order. (Do
they contain frozen fish?)
■ Sample of components selected from the non-current asset register traced to the refrigeration units and inspected
to ensure continuing existence.
■ $30,000 penalty notice from the regulatory agency and corresponding cash book payment/payment per the bank
statement.
■ Written management representation that there are no further penalties that should be provided for or disclosed other
than the $30,000 that has been accounted for. -
第6题：
(b) You are the audit manager of Petrie Co, a private company, that retails kitchen utensils. The draft financial
statements for the year ended 31 March 2007 show revenue $42·2 million (2006 – $41·8 million), profit before
taxation of $1·8 million (2006 – $2·2 million) and total assets of $30·7 million (2006 – $23·4 million).
You are currently reviewing two matters that have been left for your attention on Petrie’s audit working paper file
for the year ended 31 March 2007:
(i) Petrie’s management board decided to revalue properties for the year ended 31 March 2007 that had
previously all been measured at depreciated cost. At the balance sheet date three properties had been
revalued by a total of $1·7 million. Another nine properties have since been revalued by $5·4 million. The
remaining three properties are expected to be revalued later in 2007. (5 marks)
Required:
Identify and comment on the implications of these two matters for your auditor’s report on the financial
statements of Petrie Co for the year ended 31 March 2007.
NOTE: The mark allocation is shown against each of the matters above.
正确答案：
(b) Implications for auditor’s report
(i) Selective revaluation of premises
The revaluations are clearly material to the balance sheet as $1·7 million and $5·4 million represent 5·5% and 17·6%
of total assets, respectively (and 23·1% in total). As the effects of the revaluation on line items in the financial statements
are clearly identified (e.g. revalued amount, depreciation, surplus in statement of changes in equity) the matter is not
pervasive.
The valuations of the nine properties after the year end provide additional evidence of conditions existing at the year end
and are therefore adjusting events per IAS 10 Events After the Balance Sheet Date.
Tutorial note: It is ‘now’ still less than three months after the year end so these valuations can reasonably be expected
to reflect year end values.
However, IAS 16 Property, Plant and Equipment does not permit the selective revaluation of assets thus the whole class
of premises would need to have been revalued for the year to 31 March 2007 to change the measurement basis for this
reporting period.
The revaluation exercise is incomplete. Unless the remaining three properties are revalued before the auditor’s report on
the financial statements for the year ended 31 March 2007 is signed off:
(1) the $7·1 revaluation made so far must be reversed to show all premises at depreciated cost as in previous years;
OR
(2) the auditor’s report would be qualified ‘except for’ disagreement regarding non-compliance with IAS 16.
When it is appropriate to adopt the revaluation model (e.g. next year) the change in accounting policy (from a cost model
to a revaluation model) should be accounted for in accordance with IAS 16 (i.e. as a revaluation).
Tutorial note: IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors does not apply to the initial
application of a policy to revalue assets in accordance with IAS 16.
Assuming the revaluation is written back, before giving an unmodified opinion, the auditor should consider why the three
properties were not revalued. In particular if there are any indicators of impairment (e.g. physical dilapidation) there
should be sufficient evidence on the working paper file to show that the carrying amount of these properties is not
materially greater than their recoverable amount (i.e. the higher of value in use and fair value less costs to sell).
If there is insufficient evidence to confirm that the three properties are not impaired (e.g. if the auditor was prevented
from inspecting the properties) the auditor’s report would be qualified ‘except for’ on grounds of limitation on scope.
If there is evidence of material impairment but management fail to write down the carrying amount to recoverable
amount the auditor’s report would be qualified ‘except for’ disagreement regarding non-compliance with IAS 36
Impairment of Assets.
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第7题：
The FIRST thing to do to ensure that a refrigeration unit will not start while undergoing repairs, is to _____.
A.secure and tag the electrical circuit
B.place a crow bar in the flywheel of the unit
C.inform. all persons in the area not to start the unit
D.make a log book entry
正确答案：A
-
第8题：
共用题干
The Old Gate
In the Middle Ages the vast majority of European cities had walls around them.This was partly for
_________(51)reasons but another factor was the need to keep out anyone regarded as undesirable,like
people with contagious. _________(52).The Old City of London gates were all__________(53)by the
end of the 18th century.The last of London's gates was removed a century ago,________(54)by a
stroke of luck,it was never destroyed.
This gate is,in__________(55)fact,not called a gate at all;its name is Temple Bar,and it marked
the__________(56)between the Old City of London and Westminster. In 1878 the Council of London took
the Bar _________ (57),numbered the stones and put the gate in storage
___________（58)its design was
unfashionable,it was expensive to __________ (59)and it was blocking the traffic.
The Temple Bar Trust was set up in the 1970s with the__________(60)of returning the gate home.
The aim of the trust is the_________(61)of the nation's architectural heritage.
Transporting the gate will mean physically pulling it_________(62),stone by stone,removing and
rebuilding it near St Paul's Cathedral.Most of the facade of the gate will probably be___________(63),
though there is a good__________(64)that the basic structure will be sound. The hardest_________(65)of
all,however,will be to recreate the statues of the monarchs that once stood on top of the gate._________(57)
A:along
B:down
C:up
D:away答案：B解析：根据常识及上下文意思可知，城墙的功能之一是为了防御外敌，defensive的意思是“防 御的”，符合文义，为正确答案。sensitive敏感的；offensive进攻的；primitive原始的。
contagious意为“传染的”，后应该跟的是表示疾病的词，由此可知正确答案为A。 injury 伤害，受伤；symptom症状；cold感冒。
根据上下文意思可知，这里说的是“伦敦古城的城门均在18世纪末被拆除”。devote 意为“献身于······”;declare意为“公开宣布”;decrease意为“减少”;demolish意为“拆毁，破 坏”，符合句意。
前面讲“城门都被拆除”，后面讲“它们没有被破坏”，因此中间应该用一个表转折的词 连接，故C选项正确。
in actual fact为固定搭配，意思是“事实上”，等于actually或as a matter of fact。
此句句意为“它的名字叫圣殿酒吧区，是伦敦古城与威斯敏斯特的分界线”。border的 意思为“边界，国界”，后加between或with，符合文义，为正确答案。part部分；limit界限，界线； line路线，排。
从下文的“给石头编号，并将城门保存下来”可知，应该是把城门推倒了，因此应该 选B。
后面说的都是推倒城门的原因，因此此处应填表原因的连接词，因此选D。
此句意为“······维护费用昂贵，并且堵塞交通”。discover意为“发现”;repair意为 “修”;fix意为“修理，安装”。“（对建筑物的）维护”应为maintain。故选D。
with the intention of意为“为了，以······为目的”，符合文义。
此句句意为“目的是保存国家的建筑遗产”。preservation意为“（古物，建筑）的保存”, 与句意相符。conversion转变，变换；reservation保留，预定；registration登记，注册。
pull up意为“向上拉”;puil over意为“（车）向路边停靠”;pull on意为“狠抽，猛吸”；只 有pull down意思是“摧毁，推倒”，与句意相符。
store意为“储存”;exchange意为“交换”;replace意为“替换，更新”，符合文义；recognize 意为“识别”。
there is a good chance that的意思是“很有可能发生某事，有……的机会”，符合文义
此处意为“最艰难的工作”,the hardest job of all为常用说法。case事例，情况；voice声 音；type类型。 -
第9题：
A customer has been receiving warning alerts on their storage units. All data is protected nightlyby a backup and has been tested without any issues. What should the customer do prior tocontacting IBM Support？（）
- A、collect all support data
- B、implement a current backup
- C、update all firmware levels
- D、shut down the storage system
正确答案:A -
第10题：
单选题All units of the first batch were to be recalled due to the design flaws in ______.Aits color.
Bits shape.
Cits quality.
DAll of the above.
正确答案： C解析：
录音中给出Apple召回第一批所有产品的原因是：表面容易破裂；黄白色粘稠体外渗；长期使用后机器内部出现咯咯的声音。上述都属于质量的问题。
【录音原文】
Apple released its first mobile phone in August. It’s plain white, has no buttons and looks like an egg. All units of the first batch had to be recalled due to design flaw: the surface cracks easily, and white and yellow goo leaks out. Long-term users complained of hearing clucking noises from inside. -
第11题：
单选题The author most probably agrees that artificial sweetened gum _____Ais not effective in reducing stress.
Bmay cause some health problems.
Cshould be avoided although it is healthful.
Dis harmful for one’s health due to its sugar containing.
正确答案： D解析：
由题干关键词artificial sweetened gum定位到第六段第二句“(Avoid artificial sweetened gum, though—some are linked to health issues.)”，由括号里面的some are linked to health issues可知嚼人造加糖，香糖会引起健康问题，B与此内容最为相近，故本题应选B。 -
第12题：
单选题The FIRST thing to do to ensure that a refrigeration unit will not start while undergoing repairs, is to （）.Asecure and tag the electrical circuit
Bplace a crow bar in the flywheel of the unit
Cinform all persons in the area not to start the unit
Dmake a log book entry
正确答案： D解析： 暂无解析 -
第13题：
(c) Assess Mr Hogg’s belief that employing child labour is ‘always ethically wrong’ from deontological and
teleological (consequentialist) ethical perspectives. (9 marks)
正确答案：
(c) Mr Hogg’s belief that employing child labour is ‘always ethically wrong’
Deontological perspective:
In the case scenario, Mr Hogg is demonstrating a deontological position on child labour by saying that it is ‘always’ wrong.
He is adopting an absolutist rather than a relativist or situational stance in arguing that there are no situations in which child
labour might be ethically acceptable. The deontological view is that an act is right or wrong in itself and does not depend
upon any other considerations (such as economic necessity or the extent of the child’s willingness to work). If child labour is
wrong in one situation, it follows that it is wrong in all situations because of the Kantian principle of generalisability (in the
categorical imperative). Because child labour is wrong and potentially exploitative in some situations, the deontological
position says that it must be assumed to be wrong in all situations. The fact that it may cause favourable outcomes in some
situations does not make it ethically right, because the deontological position is not situational and the quality of the outcome
is not taken into account.
Teleological perspective:
According to the teleological perspective, an act is right or wrong depending on the favourableness of the outcome. It is
sometimes called the consequentialist perspective because the consequences of the action are considered more important
than the act itself.
In the teleological perspective, ethics is situational and not absolute. Therefore child labour is morally justified if the outcome
is favourable. The economic support of a child’s family by provision of wages for family support might be considered to be a
favourable outcome that justifies child labour. There is an ethical trade-off between the importance of the family income from
child labour and the need to avoid exploitation and interfere with the child’s education. Education is clearly important but
family financial support might be a more favourable outcome, at least in the short term, and if so, this would justify the child
working rather than being in school. For HPC, child labour is likely to be cheaper than adult labour but will alienate European
buyers and be in breach of its code of ethics. Child labour may be ethically acceptable if the negative consequences can be
addressed and overcome.
[Tutorial note: other, equally relevant points made in evaluating Mr Hogg’s opinion will be valid. The texts discuss teleology
in terms of utilitarianism and egoism. Although this distinction is not relevant to the question, candidates should not be
penalised for introducing the distinction if the other points raised are relevant] -
第14题：
3 On 1 January 2007 Dovedale Ltd, a company with no subsidiaries, intends to purchase 65% of the ordinary share
capital of Hira Ltd from Belgrove Ltd. Belgrove Ltd currently owns 100% of the share capital of Hira Ltd and has no
other subsidiaries. All three companies have their head offices in the UK and are UK resident.
Hira Ltd had trading losses brought forward, as at 1 April 2006, of ￡18,600 and no income or gains against which
to offset losses in the year ended 31 March 2006. In the year ending 31 March 2007 the company expects to make
further tax adjusted trading losses of ￡55,000 before deduction of capital allowances, and to have no other income
or gains. The tax written down value of Hira Ltd’s plant and machinery as at 31 March 2006 was ￡96,000 and
there will be no fixed asset additions or disposals in the year ending 31 March 2007. In the year ending 31 March
2008 a small tax adjusted trading loss is anticipated. Hira Ltd will surrender the maximum possible trading losses
to Belgrove Ltd and Dovedale Ltd.
The tax adjusted trading profit of Dovedale Ltd for the year ending 31 March 2007 is expected to be ￡875,000 and
to continue at this level in the future. The profits chargeable to corporation tax of Belgrove Ltd are expected to be
￡38,000 for the year ending 31 March 2007 and to increase in the future.
On 1 February 2007 Dovedale Ltd will sell a small office building to Hira Ltd for its market value of ￡234,000.
Dovedale Ltd purchased the building in March 2005 for ￡210,000. In October 2004 Dovedale Ltd sold a factory
for ￡277,450 making a capital gain of ￡84,217. A claim was made to roll over the gain on the sale of the factory
against the acquisition cost of the office building.
On 1 April 2007 Dovedale Ltd intends to acquire the whole of the ordinary share capital of Atapo Inc, an unquoted
company resident in the country of Morovia. Atapo Inc sells components to Dovedale Ltd as well as to other
companies in Morovia and around the world.
It is estimated that Atapo Inc will make a profit before tax of ￡160,000 in the year ending 31 March 2008 and will
pay a dividend to Dovedale Ltd of ￡105,000. It can be assumed that Atapo Inc’s taxable profits are equal to its profit
before tax. The rate of corporation tax in Morovia is 9%. There is a withholding tax of 3% on dividends paid to
non-Morovian resident shareholders. There is no double tax agreement between the UK and Morovia.
Required:
(a) Advise Belgrove Ltd of any capital gains that may arise as a result of the sale of the shares in Hira Ltd. You
are not required to calculate any capital gains in this part of the question. (4 marks)
正确答案：
(a) Capital gains that may arise on the sale by Belgrove Ltd of shares in Hira Ltd
Belgrove Ltd will realise a capital gain on the sale of the shares unless the substantial shareholding exemption applies. The
exemption will be given automatically provided all of the following conditions are satisfied.
– Belgrove Ltd has owned at least 10% of Hira Ltd for a minimum of 12 months during the two years prior to the sale.
– Belgrove Ltd is a trading company or a member of a trading group during that 12-month period and immediately after
the sale.
– Hira Ltd is a trading company or the holding company of a trading group during that 12-month period and immediately
after the sale.
Hira Ltd will no longer be in a capital gains group with Belgrove Ltd after the sale. Accordingly, a capital gain, known as a
degrouping charge, may arise in Hira Ltd. A degrouping charge will arise if, at the time it leaves the Belgrove Ltd group, Hira
Ltd owns any capital assets which were transferred to it at no gain, no loss within the previous six years by a member of the
Belgrove Ltd capital gains group. -
第15题：
(c) Calculate the expected corporation tax liability of Dovedale Ltd for the year ending 31 March 2007 on the
assumption that all available reliefs are claimed by Dovedale Ltd but that Hira Ltd will not claim any capital
allowances in that year. (4 marks)
正确答案：
-
第16题：
(ii) Explain how the inclusion of rental income in Coral’s UK income tax computation could affect the
income tax due on her dividend income. (2 marks)
You are not required to prepare calculations for part (b) of this question.
Note: you should assume that the tax rates and allowances for the tax year 2006/07 and for the financial year to
31 March 2007 will continue to apply for the foreseeable future.
正确答案：
(ii) The effect of taxable rental income on the tax due on Coral’s dividend income
Remitting rental income to the UK may cause some of Coral’s dividend income currently falling within the basic rate
band to fall within the higher rate band. The effect of this would be to increase the tax on the gross dividend income
from 0% (10% less the 10% tax credit) to 221/2% (321/2% less 10%).
Tutorial note
It would be equally acceptable to state that the effective rate of tax on the dividend income would increase from 0%
to 25%. -
第17题：
(c) Lamont owns a residential apartment above its head office. Until 31 December 2006 it was let for $3,000 a
month. Since 1 January 2007 it has been occupied rent-free by the senior sales executive. (6 marks)
Required:
For each of the above issues:
(i) comment on the matters that you should consider; and
(ii) state the audit evidence that you should expect to find,
in undertaking your review of the audit working papers and financial statements of Lamont Co for the year ended
31 March 2007.
NOTE: The mark allocation is shown against each of the three issues.
正确答案：
(c) Rent-free accommodation
(i) Matters
■ The senior sales executive is a member of Lamont’s key management personnel and is therefore a related party.
■ The occupation of Lamont’s residential apartment by the senior sales executive is therefore a related party
transaction, even though no price is charged (IAS 24 Related Party Disclosures).
■ Related party transactions are material by nature and information about them should be disclosed so that users of
financial statements understand the potential effect of related party relationships on the financial statements.
■ The provision of ‘housing’ is a non-monetary benefit that should be included in the disclosure of key management
personnel compensation (within the category of short-term employee benefits).
■ The financial statements for the year ended 31 March 2007 should disclose the arrangement for providing the
senior sales executive with rent-free accommodation and its fair value (i.e. $3,000 per month).
Tutorial note: Since no price is charged for the transaction, rote-learned disclosures such as ‘the amount of outstanding
balances’ and ‘expense recognised in respect of bad debts’ are irrelevant.
(ii) Audit evidence
■ Physical inspection of the apartment to confirm that it is occupied.
■ Written representation from the senior sales executive that he is occupying the apartment free of charge.
■ Written representation from the management board confirming that there are no related party transactions requiring
disclosure other than those that have been disclosed.
■ Inspection of the lease agreement with (or payments received from) the previous tenant to confirm the $3,000
monthly rental value. -
第18题：
(ii) On 1 July 2006 Petrie introduced a 10-year warranty on all sales of its entire range of stainless steel
cookware. Sales of stainless steel cookware for the year ended 31 March 2007 totalled $18·2 million. The
notes to the financial statements disclose the following:
‘Since 1 July 2006, the company’s stainless steel cookware is guaranteed to be free from defects in
materials and workmanship under normal household use within a 10-year guarantee period. No provision
has been recognised as the amount of the obligation cannot be measured with sufficient reliability.’
(4 marks)
Your auditor’s report on the financial statements for the year ended 31 March 2006 was unmodified.
Required:
Identify and comment on the implications of these two matters for your auditor’s report on the financial
statements of Petrie Co for the year ended 31 March 2007.
NOTE: The mark allocation is shown against each of the matters above.
正确答案：
(ii) 10-year guarantee
$18·2 million stainless steel cookware sales amount to 43·1% of revenue and are therefore material. However, the
guarantee was only introduced three months into the year, say in respect of $13·6 million (3/4 × 18·2 million) i.e.
approximately 32% of revenue.
The draft note disclosure could indicate that Petrie’s management believes that Petrie has a legal obligation in respect
of the guarantee, that is not remote and likely to be material (otherwise no disclosure would have been required).
A best estimate of the obligation amounting to 5% profit before tax (or more) is likely to be considered material, i.e.
$90,000 (or more). Therefore, if it is probable that 0·66% of sales made under guarantee will be returned for refund,
this would require a warranty provision that would be material.
Tutorial note: The return of 2/3% of sales over a 10-year period may well be probable.
Clearly there is a present obligation as a result of a past obligating event for sales made during the nine months to
31 March 2007. Although the likelihood of outflow under the guarantee is likely to be insignificant (even remote) it is
probable that some outflow will be needed to settle the class of such obligations.
The note in the financial statements is disclosing this matter as a contingent liability. This term encompasses liabilities
that do not meet the recognition criteria (e.g. of reliable measurement in accordance with IAS 37 Provisions, Contingent
Liabilities and Contingent Assets).
However, it is extremely rare that no reliable estimate can be made (IAS 37) – the use of estimates being essential to
the preparation of financial statements. Petrie’s management must make a best estimate of the cost of refunds/repairs
under guarantee taking into account, for example:
■ the proportion of sales during the nine months to 31 March 2007 that have been returned under guarantee at the
balance sheet date (and in the post balance sheet event period);
■ the average age of cookware showing a defect;
■ the expected cost of a replacement item (as a refund of replacement is more likely than a repair, say).
If management do not make a provision for the best estimate of the obligation the audit opinion should be qualified
‘except for’ non-compliance with IAS 37 (no provision made). The disclosure made in the note to the financial
statements, however detailed, is not a substitute for making the provision.
Tutorial note: No marks will be awarded for suggesting that an emphasis of matter of paragraph would be appropriate
(drawing attention to the matter more fully explained in the note).
Management’s claim that the obligation cannot be measured with sufficient reliability does not give rise to a limitation
on scope on the audit. The auditor has sufficient evidence of the non-compliance with IAS 37 and disagrees with it. -
第19题：
共用题干
第一篇
Child maltreatment is a global problem with serious life long consequences.There are no reliable global estimates for the prevalence of child maltreatment. Data for many countries,especially low and middle income countries,are lacking.
Child maltreatment is complex and difficult to study. Current estimates vary widely depending on the country and the method of research used.Nonetheless,international studies reveal that approximately 20% of women and 5%一10% of men report being sexually abused as children.While 25%一50%of all children report being physically abused. Additionally,many children are subject to emotional abuse(sometimes referred to as psychological abuse).
Every year,there are an estimated 31 ,000 homicide（他杀）deaths in children under 15. This number underestimates the true extent of the problem,as a significant proportion of deaths due to child maltreatment are incorrectly attributed to（归因于）falls, burns and drowning.
Child maltreatment causes suffering to children and families and can have long-term consequences.Maltreatment causes stress that is associated with disruption in early brain development. Extreme stress can impair the development of the nervous and immune systems.Consequently,as adults,maltreated children are at increased risk for behavioural,physical and mental health problems.Via the behavioural and mental health consequences,maltreatment can contribute to heart disease,cancer,suicide and sexually transmitted infections.
Beyond the health consequences of child maltreatment,there is an economic impact,including :ost of hospitalization,mental health treatment,child welfare,and longer-term health cost.
A number of risk factor for child maltreatment has been identified.These risk factors are not present in all social and cultural contexts,but provide an overview when attempting to understand the causes of child maltreatment.
It is important to emphasize that children are the victims and are never to blame（责怪）for maltreatment.A number of characteristics of an individual child may increase the likelihood of being maltreated,such as being either under four years old or an adolescent,being unwanted,or failing to fulfill the expectations of parents and having special need,crying persistently or having abnormal physical features.Which of the following statements is ture according to the passage?
A:20% of women got sexually abused in their childhood.
B:25%一50%of all children were reported to have been physically abused.
C:25%一50%of children were psychologically abused.
D:60%—75%of children were neglected by their parents.答案：B解析：文中第一段提到了虐待儿童是一个全球性问题，无法获得中低收入国家中儿童受虐数字资料；第二段开头提到了儿童受虐数字难以统计的另外一个原因，即研究方法的差异性。只有专业统计人员是否缺乏没有提及，因此答案为C。
文中第二段对数字有明确说明。
文中第三段指出每年巧岁以下儿童死亡人数大概在31 000人。该数字大大低估了实际情况，因为有相当多的由于受虐而致死的儿童被归因为摔死、烧死、淹死。文中没有明确指出腹泻，因此可推断出该题答案为B。
文中提到虐待儿童会导致其身体发育出现问题，包括神经系统、免疫系统、大脑发育，以及成年后会出现的疾病，但都没有提到是否会对其记忆力产生影响。因此，答案为A。
最后一段说，有几大特征会增加儿童受虐待的可能性，例如，4岁以下或者不受欢迎、不能满足父母的期望、有特殊需求、不停哭闹或是身体有异常的青少年。 -
第20题：
共用题干
Warm People Likely to Keep Cold at Bay
Staying positive through the cold season could be your best defense against getting ill,new study findings suggest.In an experiment that exposed healthy volunteers to a cold or flu virus,researchers found that people with a generally sunny disposition were less likely to fall ill.
The findings,published in the journal Psychosomatic Medicine,build on evidence that a"positive emotional style"can help ward off the common cold and other illnesses.Researchers believe the reasons may be both objective as in happiness boosting immune function and subjective as in happy people being less troubled by a scratchy throat or runny nose?
"People with a positive emotional style may have different immune responses to the virus,"explained lead study author Dr Sheldon Cohen of Carnegie Mellon University in Pittsburgh."And when they do get a cold,they may interpret their illness as being less severe."
Cohen and his colleagues had found in a previous study that happier people seemed less susceptible to catching a cold,but some questions remained as to whether the emotional trait itself had the effect.
For the new study,the researchers had 193 healthy adults complete standard measures of personality traits,self-perceived health and emotional"style".Those who tended to be happy,energetic and easy-going were judged as having a positive emotional style,while those who were often unhappy,tense and hostile had a negative style.
The researchers gave them nasal drops containing either a cold virus or a particular flu virus.Over the next six days,the volunteers reported on any aches,pains,sneezing or congestion they had,while the researchers collected objective data,like daily mucus production.Cohen and his colleagues found that based on objective measures of nasal woes,happy people were less likely to develop a cold.The study inferred that there's no relations between positive emotional style and getting cold.
A:Right
B:Wrong
C:Not mentioned答案：B解析：由文章第一段第二句的后半部分“…researchersfoundthatpeoplewithagenerallysunnydispositionwerelesslikelytofallill.”可知，性格阳光的人不太容易生病，但不是对疾病免疫。
由文章第四段，"…happierpeopleseemedlesssusceptibletocatchingacold…”可知，快乐的人更不易感冒。
由文章第六段最后一句可知，科恩和同事根据由鼻涕化验结果而得出的客观的测验数据而非主观测验发现，乐观的人患感冒的几率更小。
由文章第五段第二句可知，这些研究对象中既包括积极乐观的人，也包括悲观的人。
由文章第二段第一句可知，积极的情绪类型有助于预防感冒和其他疾病。
由文章第二段第二句可知，研究者相信快乐能够增强人的免疫系统。
文章中并未提及家庭和个人情绪类型的关系，因此本题答案为C。 -
第21题：
Unicast Reverse Path Forwarding can perform all of these actions except which one？（）
- A、examine all packets received to make sure that the source addresses and source interfaces appear in the routing table and match the interfaces where the packets were received
- B、check to see if any packet received at a router interface arrives on the best return path
- C、combine with a configured ACL
- D、log its events，if you specify the logging options for the ACL entries used by the unicast rpf command
- E、inspect IP packets encapsulated in tunnels， such as GRE
正确答案:E -
第22题：
单选题Cold weather starting of a diesel engine is more difficult than warm weather starting due to（）Ause of low viscosity oil in cold weather
Bincreased moisture content of inlet air in cold weather
Cincreased drag of pistons and bearings due to increased oil viscosity
Dhigher compression pressures reached due to smaller clearances existing in the engine during cold weather
正确答案： C解析： 暂无解析 -
第23题：
单选题What’s the meaning of “This is a business philosophy, not a social philosophy” in the fourth paragraph?AWal-Mart predicts huge profits in its green activity.
BWal-Mart aims to solve its health-insurance practice.
CWal-Mart’s green activity is just a window dressing.
DWal-Mart doesn’t have any social responsibility at all.
正确答案： C解析：
语义理解题。第四段首句提到，Cynics认为沃尔玛的所做所为是为了转移人们对其健康保险计划的注意，并没有提到沃尔玛要解决这个问题，故选项B错误。由该段第二句可排除C项。D项属于过度推断，可排除。由第四段第二句（这不是做表面文章，沃尔玛在绿色行动上看到了收益）和第三句（我们不是利他的）可知，正是由于巨大的商业利益沃尔玛才会选择绿色行动，故答案为A项。