2016年12月ACCA考试P7高级审计与认证业务真题及答案解析.doc

1、2016 年 12 月 ACCA 考试 P7 高级审计与认证业务真题及答案解析(总分：120.00，做题时间：195 分钟)案例分析题(总题数：5，分数：120.00)Section A BOTH questions are compulsory and MUST be attempted1、The Zed Communications Group (ZCG) is an audit client of your firm, Tarantino the unsubstantiated expense claims amounted to $575,000. Inadequate access

2、controls over the Groups IT systems; this resulted in a payroll fraud amounting to $750,000.Financial information extracts from latest management accountsRequired: Respond to the instructions in the audit engagement partners email. (31 marks)Note: The split of the mark allocation is shown in the par

3、tners email.Professional marks will be awarded for the presentation of the briefing notes and the clarity of the explanations provided. (4 marks)（分数：35.00）_2、You are the manager responsible for the audit of Thurman Co, a manufacturing company which supplies stainless steel components to a wide range

4、 of industries. The companys financial year ended on 31 July 2016 and you are reviewing the audit work which has been completed on a number of material balances and transactions: assets held for sale, capital expenditure and payroll expenses. A summary of the work which has been performed is given b

5、elow and in each case the description of the audit work indicates the full extent of the audit procedures carried out by the audit team.(a) Assets held for saleDue to the planned disposal of one of Thurman Cos factory sites, the property and associated assets have been classified as held for sale in

6、 the financial statements. A manual journal has been posted by the finance director to reclassify the assets as current assets and to adjust the value of the assets for impairment and reversal of depreciation charged from the date at which the assets met the criteria to be classified as held for sal

7、e. The finance director asked the audit senior to check the journal before it was posted on the basis of there being no one with the relevant knowledge to do this at Thurman Co.The planned disposal was discussed with management. A brief note has been put into the audit working papers stating that in

8、 managements opinion the accounting treatment to classify the factory as held for sale is correct. The manual journal has been arithmetically checked by a different member of the audit team, and the amounts agreed back to the non-current asset register. (9 marks)(b) Capital expenditureWhen auditing

9、the companys capital expenditure, the audit team selected a material transaction to test and found that key internal controls over capital expenditure were not operating effectively. Authorisation had not been obtained for an order placed for several vehicles, and appropriate segregation of duties o

10、ver initiating and processing the transaction was not maintained.The audit team noted details of the internal control deficiencies and updated the systems notes on the permanent audit file to reflect the deficiencies. The audit work completed on this order was to agree the purchase of the vehicles t

11、o purchase invoices and to the cash book and bank statement. The rest of the audit work on capital expenditure was completed in accordance with the audit programme. (7 marks)(c) Payroll expensesThe payroll function is outsourced to Jackson Co, a service organisation which processes all of Thurman Co

12、s salary expenses. The payroll expenses recognised in the financial statements have been traced back to year-end reports issued by Jackson Co. The audit team has had no direct contact with Jackson Co as the year-end reports were sent to Thurman Cos finance director who then passed them to the audit

13、team.Thurman Co employs a few casual workers who are paid in cash at the end of each month and are not entered into the payroll system. The audit team has agreed the cash payment made back to the petty cash records and the amounts involved are considered immaterial. (9 marks)Required: In respect of

14、each of the three matters described above:(i) Comment on the sufficiency and appropriateness of the audit evidence obtained;(ii) Recommend further audit procedures to be performed by the audit team; and(iii) Explain the matters which should be included in a report in accordance with ISA 265 Communic

15、ating Deficiencies in Internal Controls to Those Charged with Governance and Management.Note: The split of the mark allocation is shown against each of the matters above.（分数：25.00）_Section B TWO questions ONLY to be attempted3、You are the manager responsible for the audit of Rope Co for the year end

16、ed 30 September 2016. During a visit to the team performing the fieldwork, the audit senior shows you a cash flow forecast covering six-month periods to 30 September 2018 as prepared by management as part of their assessment of the going concern status of the company. The audit senior asks whether a

17、ny of the forecast cash flows disclosed require any further investigation during the audit fieldwork.The actual and forecast six-monthly cash flows for Rope Co for the periods ended:The following additional information has been provided in support of the forecasts: Receipts from customers and paymen

18、ts to suppliers have been estimated based on detailed sales forecasts prepared by the sales director. Salaries and overheads have been estimated as the prior year cost plus general inflation of 2%. The bank loan expires on 5 January 2018. The finance director expects to take out a matching facility

19、with the current lender to pay off the existing debt. On 1 October 2015, the chief executive, Mr J Stewart, gave the company a three-year, interest free loan secured by a fixed charge over the operational assets of Rope Co. The audit team was unaware of this loan prior to obtaining the cash flow for

20、ecast. The directors plan to sell some investments in listed shares to fund the repayment of the chief executives loan. At 30 September 2016, the investments were carried in the statement of financial position at their fair value of $350,000.Required:（分数：20）(a) Evaluate the appropriateness of the ca

21、sh flow forecast prepared by Rope Co and recommend the further audit procedures which should be performed.（分数：14）_(b) Comment on the matters to be considered in respect of the loan from Mr J Stewart and recommend the further audit procedures to be performed.（分数：6）_4、You are an audit manager at Thorn

22、hill (ii) The implications the governance structure and proposed listing may have on the audit process.Note: The total marks will be split equally between each part. (10 marks)(b) The audit of Crow Co, a designer and manufacturer of mobile information technologies, for the year ended 30 June 2016 is

23、 nearly complete and the auditors report is to be signed imminently. The following outstanding matters still require your consideration. The draft reported profit before tax and total assets for the year are $65 million (2015 $111 million) and $650 million (2015 $910 million) respectively. Crow Co i

24、s not a listed company.Military research projectDuring the year $7 million of expenses relating to a new military research project were recorded in the statement of profit or loss. The audit team was given brief summaries of the costs incurred but when asked for further corroborating evidence, manag

25、ement stated that they had signed a confidentiality agreement with the military and were unable to provide any further details. The only additional information provided was that they anticipated the project to last for three years and that it may lead to a highly lucrative contract.FireDuring the ye

26、ar a major catastrophe took place when a fire caused significant damage to the operations of the company, leading to production ceasing for several months. While operations have resumed, repairs are ongoing and it is anticipated that full production will not resume for at least another six months. A

27、udit procedures revealed that the matter has been fully and satisfactorily reflected and disclosed in the financial statements and that it does not pose a significant risk to the going concern status of Crow Co.Required:In respect of each of the matters described above, discuss the implications for

28、the auditors report and recommend any further actions necessary. Note: The total marks will be split equally between each matter. (10 marks)（分数：20.00）_2016 年 12 月 ACCA 考试 P7 高级审计与认证业务真题答案解析(总分：120.00，做题时间：195 分钟)案例分析题(总题数：5，分数：120.00)Section A BOTH questions are compulsory and MUST be attempted1、The

29、 Zed Communications Group (ZCG) is an audit client of your firm, Tarantino the unsubstantiated expense claims amounted to $575,000. Inadequate access controls over the Groups IT systems; this resulted in a payroll fraud amounting to $750,000.Financial information extracts from latest management acco

30、untsRequired: Respond to the instructions in the audit engagement partners email. (31 marks)Note: The split of the mark allocation is shown in the partners email.Professional marks will be awarded for the presentation of the briefing notes and the clarity of the explanations provided. (4 marks)（分数：3

31、5.00）_正确答案：(Briefing notesTo: Vincent Vega, audit engagement partnerFrom: Audit engagement managerSubject: Audit planning ZCGIntroductionThese briefing notes have been prepared to assist in the audit planning of ZCG, and contain an evaluation of audit risk and a discussion of the matters to be consi

32、dered in determining whether to place reliance on the Groups internal audit department. The notes also include the recommended audit procedures to be performed on the classification of the investment in WTC and on the measurement of a licence acquired on 1 January 2015.(a) Evaluation of audit risksR

33、ecognition of 50% equity shareholding in WTCThe 50% equity shareholding is likely to give rise to a joint venture under which control of WTC is shared between ZCG and Wolf Communications Co. IFRS 11 Joint Arrangements requires that an investor which has joint control over a joint venture should reco

34、gnise its investment using the equity method of accounting. Audit risk arises in that despite owning 50% of the equity shares of WTC, ZCG may not actually share control with Wolf Communications, for example, if Wolf Communications retains a right to veto decisions or if ZCG cannot appoint an equal n

35、umber of board members in order to make joint decisions with board members appointed by Wolf Communications. If ZCG does not have joint control, then WTC should not be treated as a joint venture.Assuming that there is shared control, an audit risk arises in that ZCG may not have correctly applied eq

36、uity accounting, thereby potentially over or understating ZCGs investment and resulting in incorrect presentation in the consolidated statement of financial position and statement of profit or loss. The cost of the investment in WTC represents 75% of ZCGs total assets at 31 August 2016, thus the inv

37、estment is material to the Group.Amortisation of licence to operate in FarlandThe licence acquired on 1 January 2015 should be recognised as an intangible asset and amortised on a systematic basis over its useful life. According to IAS 38 Intangible Assets, the amortisation method should reflect the

38、 pattern of benefits, or if the pattern cannot be determined reliably, the straight-line method of amortisation should be used. Amortisation should begin when the asset is available for use, meaning when it is in the location and condition necessary for it to be capable of operating in the manner wh

39、ich management intends. ZCG therefore should begin to amortise the licence on 1 July 2016 and amortise over the remaining licence period of eight and a half years. The audit risk is that amortisation did not commence at the right point in time or that it has been determined using an inappropriate us

40、eful life, leading to over or understatement of the amortisation charge to profit as well as the carrying value of the intangible asset.Assuming that it is appropriate to use the straight-line method, amortisation for the year to 31 December 2016 should be $38 million (65/85 x 6/12). This represents

41、 13% of extrapolated revenue for the year of $297 million (198 x 12/8) and is therefore material, and the amortisation will be more material next year when a full years charge to profit is made.Impairment of the Farland licenceIAS 38 does not require an annual impairment review to be conducted for a

42、ll intangible assets. However, management should consider whether there are indicators of impairment and if necessary perform an impairment review on the licence. The competitors actions which appear to have reduced customer demand to a level below that anticipated is an indicator of potential impai

43、rment, so management must calculate the recoverable amount of the licence and compare to its carrying value in order to determine if the asset is impaired. Therefore there is a risk that the licence is overstated in value, and operating profit also overstated if any necessary impairment has not been

44、 recognised.Revenue recognitionRevenue recognition is complex and is a significant accounting issue with the risk of error increased by the fact that the Group is implementing the new requirements of IFRS 15 Revenue from Contracts with Customers for the first time this year. With the adoption of any

45、 new financial reporting standard, there is an audit risk in that the new requirements are unfamiliar to the preparers of the financial statements. There may be errors in the understanding and application of the new rules, especially in areas of judgement, and controls may not have been sufficiently

46、 robust over any necessary systems changes. Further, it is surprising that there are no comments in the latest internal audit report on the new controls which should have been implemented during the year in relation to the new requirements of IFRS 15. It is anticipated that internal audit should hav

47、e been involved in testing the newly implemented controls for effectiveness. This may imply that the controls may not be fit for purpose and again increases control risk and therefore audit risk in this area. We will need to ensure that we document the systems and controls in place and evaluate the

48、significance of any control risk in order that we respond appropriately to any risks of material misstatement which are identified.The audit team members themselves may be unfamiliar with the new requirements, creating a detection risk. Any necessary changes in accounting policy may not have been appropriatel