1、2017 年 6 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、You are a manager in Holly and (ii) Recommend any further actions, including relevant audit procedures, to be taken by your firm, prior to finalising the
2、Group auditors report. Note: the split of the mark allocation is shown next to each of the issues above.（分数：25.00）_Section B TWO questions ONLY to be attempted3、You are a manager working in the public sector audit department of Fern we shall need to carry out a review of managements annual impairmen
3、t test to assess its appropriateness and whether any of the goodwill has been impaired by the media coverage of the Chico product allegations. This means that goodwill and operating profit could be overstated if any necessary impairment has not been recognised.Deferred tax liabilityThe finance direc
4、tor states that the change in the deferred tax liability relates to the changes in estimated useful lives of assets and associated accelerated tax depreciation (capital allowances). However, the impact on profit of the change to estimated useful lives amounts to $5 million, so the $8 million increas
5、e in deferred tax seems inappropriate and it is likely that the liability is overstated.The deferred tax liability has increased by five times, and the $10 million recognised in the year-end projection is material at 28% of total assets. The changes in deferred tax and the related property, plant an
6、d equipment therefore does not appear to be proportionate and the amount recognised could be incorrect.Acquisition of Azalea CoThe acquisition is planned to take place in early June and assuming it takes place, it will be a significant event to be disclosed in accordance with IAS 10 Events after the
7、 Reporting Period. Details of the acquisition will also need to be disclosed to comply with IFRS 3 Business Combinations which requires disclosure of information about a business combination whose acquisition date is after the end of the reporting period but before the financial statements are autho
8、rised for issue. There is a risk that the necessary disclosures are not made which would be a significant risk of material misstatement given the materiality of the acquisition.Tutorial note: Credit will be awarded for evaluation of other relevant risks of material misstatement including management
9、bias due to the loan of $130 million being provided, and the complex and acquisitive nature of the Group, which leads to inherent risk of misstatement in relation to business combinations.(c) Audit procedures(i) Impairment of Chico brand Obtain managements calculations relevant to the impairment and
10、 review to understand methodology, for example, whether the brand has been entirely or partly written off Evaluate the assumptions used by management in their impairment review and consider their reasonableness Confirm the carrying value of the Chico brand pre-impairment to prior year financial stat
11、ements or management accounts From management accounts, obtain a breakdown of total revenue by brand, to evaluate the significance of the Chico brand to financial performance and whether it constitutes a separate line of business for disclosure as a discontinued operation If the brand is not fully w
12、ritten off, discuss with management the reasons for this treatment given that the brand is now discontinued Obtain a breakdown of operating expenses to confirm that the impairment is included Review the presentation of the income statement, considering whether separate disclosure of the impairment i
13、s necessary given its materiality(ii) Acquisition of Azalea Co Read board minutes to understand the rationale for the acquisition, and to see that the acquisition is approved. Discuss with Group management the way that control will be exercised over Azalea Co, enquiring as to whether the Group can d
14、etermine the board members of Azalea Co. Review the minutes of relevant meetings held between management of the Group and Azalea Co to confirm matters such as: That the deal is likely to go ahead The likely timescale The amount and nature of consideration to be paid The shareholding to be acquired a
15、nd whether equity or non-equity shares The planned operational integration (if any) of Azalea Co into the Group Obtain any due diligence reports which have been obtained by the Group and review for matters which may need to be disclosed in accordance with IAS 10 or IFRS 3. Obtain copies of the finan
16、ce agreement for the funds used to purchase Azalea Co. After the reporting date, agree the cash consideration paid to bank records.ConclusionThese briefing notes indicate that there are many potentially significant risks of material misstatement to be considered in planning the Group audit. The Grou
17、p should provide the additional information requested to enable a more thorough analytical review to be performed as part of our audit planning. A range of audit procedures has been recommended, which should reduce our detection risk in relation to the impaired brand and the planned acquisition of A
18、zalea Co after the year end.)解析：2、You are responsible for performing Engagement Quality Control Reviews on selected audit clients of Crocus and (ii) Recommend any further actions, including relevant audit procedures, to be taken by your firm, prior to finalising the Group auditors report. Note: the
19、split of the mark allocation is shown next to each of the issues above.（分数：25.00）_正确答案：(a) Hyacinth Co internal controls and results of control testing(i) Audit planning and performanceWhere assessment of internal controls at the initial stage of the audit concludes that controls are ineffective the
20、re is no necessity to perform tests of controls, which was an incorrect response in the Group audit. Tests of controls should not be performed in order to confirm that controls are not effective as, in line with ISA 330 The Auditors Response to Assessed Risks, the auditor should only use tests of co
21、ntrol as a method of gathering evidence where there is an expectation that controls are operating effectively.The correct response should have been to increase substantive audit procedures around the area of intra-group transactions. Given that the Group companies supply each other with chemical pro
22、ducts to use in their manufacturing processes, the volume and monetary amount of the intra-group transactions could be significant. Related party transactions are often an area of significant risk and intra-group balances can be an easy way to manipulate the individual company accounts.The comment m
23、ade by the audit manager that no further work is necessary on the intra-group transactions seems to be based on the concept that intra-group balances are cancelled in the Group financial statements at consolidation. This is true, but audit work should be performed on these transactions because they
24、will still be recognised in the individual financial statements and audit evidence should be obtained to support the value of the transactions and balances. Further, if these balances have not been appropriately reconciled, this could create significant issues on consolidation.In addition, if no aud
25、it work is performed on the intra-group transactions then no assurance can be obtained over the value of adjustments made during the consolidation process to eliminate them. Also audit work should be performed to determine the validity of any provision for unrealised profit recognised in the Group f
26、inancial statements. There does not appear to be any audit evidence at all to support the necessary consolidation adjustments which is a significant deficiency in the quality of the group audit. It seems that the communications between Group and component auditors is not robust. The instructions giv
27、en by Crocus the level of detail that is provided; and their responses should the reported performance measures differ from their expectations.Each of the calculations of the performance measures should be obtained. Using the figures supplied by management these should be recalculated by the audit t
28、eam to ensure mathematical accuracy.The performance measures should be analytically reviewed against historic performance levels, on a monthly basis if such information is available, to identify any significant fluctuations in reported performance levels. Where fluctuations occur reasons should be s
29、ought through management enquiry, which should then be corroborated with evidence wherever possible.Tutorial note: Other, relevant general procedures will also be awarded credit but will only be awarded credit once, i.e. candidates will not be given credit for repeating the same general procedure fo
30、r each performance measure.Patient/nurse ratioObtain copies of the original document in which the basis for calculating the performance measures were agreed; this may be in the form of a strategic document agreed with national health service agencies or it may even be the minutes of the executive bo
31、ard. From this, identify whether any specific definition is provided of the term average or whether a specific formula is provided. In particular, it is important to ascertain over what period the average must be calculated.From the same document ascertain which patients must be included in the calc
32、ulation, i.e. should this include emergency patients or just patients admitted for treatment by appointment.Confirm the calculation of the number of patients treated through inspection of underlying treatment and appointment records.Confirm the calculation of the number of nurses through inspection
33、of underlying staff rotas and records of hours worked supplied to human resources and payroll departments.Surgical room usageEnquire of the manager responsible for planning and co-ordinating surgical operations what the normal period of time (i.e. excluding emergencies) is during which surgical proc
34、edures may be performed, i.e. which hours during the day and whether there are any days where scheduled procedures would not be performed.Obtain and inspect the hospital plans to identify the total number of surgical rooms availableUsing the information above calculate the total number of surgical h
35、ours available to the hospital. Compare the figure calculated to the figure used in managements calculation to identify any significant variances.Obtain a schedule of the total hours of surgery performed during the year. Confirm a sample of the times recorded to underlying hospital records to confir
36、m the accuracy of the figures used in this calculation.Admissions for previously treated conditionsEnquire of management how they define a previously treated condition. For example, does this depend upon the underlying symptoms or the diagnosis of the medical practitioner?Obtain a copy of the patien
37、t admissions records. Use computer assisted audit techniques (CAATs) to identify patients admitted to the hospital within 28 days of a previous admission. If possible, inspect the underlying patient records to identify whether the patient was treated for either the same or a similar condition. If no
38、t enquire of the medical practitioners responsible for their care during their admission.Where the above procedure identifies patients admitted for the same condition ensure that these patients are recorded in managements calculation of the performance measure to ensure the completeness of the infor
39、mation used in the calculation.)解析：4、You are the manager responsible for the audit of Osier Co, a jewellery manufacturer and retailer. The final audit for the year ended 31 March 2017 is nearing completion and you are reviewing the audit working papers. The draft financial statements recognise total
40、 assets of $1,919 million (2016 $1,889 million), revenue of $1,052 million (2016 $997 million) and profit before tax of $107 million (2016 $110 million). Three issues from the audit working papers are summarised below:(a) Cost of inventoryInventory costs include all purchase costs and the costs of c
41、onversion of raw materials into finished goods. Conversion costs include direct labour costs and an allocation of production overheads. Direct labour costs are calculated based on the average production time per unit of inventory, which is estimated by the production manager, multiplied by the estim
42、ated labour cost per hour, which is calculated using the forecast annual wages of production staff divided by the annual scheduled hours of production. Production overheads are all fixed and are allocated based upon the forecast annual units of production. At the year end inventory was valued at $21
43、 million (2016 $20 million). (7 marks)(b) ImpairmentAt the year end management performed an impairment review on its retail outlets, which are a cash generating unit for the purpose of conducting an impairment review. While internet sales grew rapidly during the year, sales from retail outlets decli
44、ned, prompting the review. At 31 March 2017 the carrying amount of the assets directly attributable to the retail outlets totalled $137 million, this includes both tangible assets and goodwill.During the year management received a number of offers from parties interested in purchasing the retail out
45、lets for an average of $125 million. They also estimated the disposal costs to be $15 million, based upon their experience of corporate acquisitions and disposals. Management estimated the value in use to be $128 million. This was based upon the historic cash flows attributable to retail outlets inf
46、lated at a general rate of 1% per annum. This, they argued, reflects the poor performance of the retail outlets.Consequently the retail outlets were impaired by $9 million to restate them to their estimated recoverable amount of $128 million. The impairment was allocated against the tangible assets
47、of the outlets on a pro rata basis, based upon the original carrying amount of each asset in the unit. (7 marks)(c) Warranty provisionEach year management makes a provision for jewellery returned under warranty. It is based upon an estimate of returns levels for each product type (rings, bracelets,
48、necklaces, watches, earrings, etc) and is calculated on an annual basis by the sales director. The breakdown for the current provision, as extracted from the notes to the financial statements, is as follows:(6 marks)Required: Comment on the matters to be considered, and explain the audit evidence you should expect to find during your file review in respect of each of the issues described above.Note: The split of the mark allocation is shown against each of the issues above. You are not required to discuss any potential implications for the auditors report.（分数：20.00）_正确答案
