1、2018 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、The Bassett Group (the Group) is a publisher of newspapers and magazines, academic journals, and books. The Group, a listed entity, has a financial year e
2、nding 30 April 2018, and your firm, Whippet and(ii) Explain the importance of obtaining customer due diligence and recommend the information which should be obtained. (16 marks)(b) Pointer the engagement will be a review of prospective financial information which is needed to support the companys ov
3、erdraft facilities. Vizsla Co had a financial year ended 30 September 2017, and an unmodified opinion was issued on these financial statements last month. Pointer due to management bias, the allocation of revenue, expenses and assets between segments could be subject to manipulation, for example, to
4、 mask the declining performance of the book and newspaper and magazine operating segments. Allocation is determined by management, and this judgement should be approached with scepticism, especially given the potential lack of integrity displayed by the CFO as indicated by the communication from Gre
5、y it is potentially complex and prone to contain errors, giving rise to risk of material misstatement given that Borzoi Co is a significant component of the Group (this will be discussed in more detail later in these briefing notes).Transfer of softwareThe transfer of software gives rise to several
6、audit risks. First, there is a risk that the software was overvalued when it was transferred from Bassett Co to Borzoi Co. The fair value which was recognised in the parent company accounts immediately prior to the transfer of the asset was determined by Group management, and while revaluation is pe
7、rmitted by IAS 38 where an active market for the asset exists, this fair value could be inappropriate. In the absence of an active market, it is unlikely the revaluation should have been recognised at all. There is a significant difference between the carrying amount of the software and the fair val
8、ue determined by management, $1 million and $54 million respectively, giving rise to a revaluation of $44 million which was recognised by Bassett Co immediately prior to the transfer. The audit risk is that in the parent company, the revaluation should not have been recognised, or, if revaluation is
9、 appropriate, the amount recognised was based on an inappropriate value. In the individual financial statements of Borzoi Co, the asset could be overstated in value. Any overstatement of the asset has implications for subsequent amortisation charges, which would also be overstated in the financial s
10、tatements of Borzoi Co.The audit team should approach this issue with appropriate professional scepticism the revaluation of the software will need to be justified by management as it could be a mechanism being used by Group management to inflate the assets of Borzoi Co and the Group as a whole. The
11、 audit team should also challenge the assertion made by management that a sufficiently active market exists to enable a reliable and realistic fair value to be determined for the software.At Group level the transfer is an intercompany transaction and the consolidated financial statements should be p
12、repared as if the transaction had not occurred. This is an additional and separate audit risk from the risk that the valuation of the asset is not appropriate. There is an audit risk if the elimination of the intercompany transaction does not take place as part of the consolidation process. Adjustme
13、nts should be made to cancel out the intercompany payable and receivable in respect of the $54 million which is outstanding between Borzoi Co and Basset Co.Corporate governance arrangementsThe Group CFO blocking access to the audit committee is not acceptable. Corporate governance principles as well
14、 as ISA 260 Communication With Those Charged With Governance require that the external auditor should have unrestricted and effective communication with the audit committee and the CFO should not interfere with these communications. This situation could indicate that the CFO has something to hide, a
15、nd that the control environment within the Group is not strong and this risk is augmented by the points already raised in relation to management bias. Certainly there would not seem to be a good ethical culture if the CFO is acting in this way. In line with corporate governance guidelines, the audit
16、 committee is required to assess the effectiveness of the external audit process and a key part of this is likely to be done via the direct communication the auditor and the audit committee have. As such it would appear as though the CFO may lack integrity or possibly does not understand the relevan
17、t corporate governance principles and is potentially disrupting the audit committees ability to discharge its responsibilities.In addition, ISA 260 specifies that the auditor should determine the appropriate persons within the entitys governance structure with whom to communicate. Further as per ISA
18、 210 Agreeing the Terms of Audit Engagements, providing unrestricted access to persons within the entity is one of the preconditions for the audit. As such, the CFO is potentially imposing a limitation on the scope of the audit by not facilitating unrestricted and effective communication with the au
19、dit committee and the CFO should therefore not interfere with these communications.All of these issues increase audit risk and the need for approaching the audit with professional scepticism, especially when dealing with estimates and judgements which have been determined by the CFO.Tutorial note: C
20、redit will be awarded for other relevant audit risks and associated matters relating to professional scepticism, for example, whether an appropriate amortisation policy has been applied to the software in which the Group had invested during the year, and whether Borzoi Co (and any other subsidiaries
21、) has different accounting policies to the rest of the Group which would require adjustment at consolidation.(b) (i) Assessment of whether Borzoi Co is a significant component of the GroupISA 600 Special Considerations Audits of Group Financial Statements (Including the Work of Component Auditors) r
22、equires the Group auditor to determine whether a component is a significant component. One of the reasons for this is because it determines the type and extent of involvement which the Group auditor should have with the work of the component auditor.ISA 600 defines a significant component as a compo
23、nent identified by the group engagement team which is of individual financial significance to the group, or which, due to its specific nature or circumstances, is likely to include significant risks of material misstatement of the group financial statements.ISA 600 suggests that benchmarks such as p
24、rofit and assets should be assessed when determining significance but it does not require a specific threshold to be used. The standard does suggest that 15% could be an appropriate cut-off point for determining significance.The total assets of Borzoi Co are 68 million Oska and if retranslated using
25、 the current exchange rate of 4 Oska:1$, its assets are $17 million. This represents 179% of Group assets and therefore based on the information at todays date, Borzoi Co is a significant component of the Group.It is important to note that given the volatility of the Oska currency, the value of the
26、subsidiary may change by the reporting date meaning that it is no longer significant due to its size. However, Borzoi Co could be significant due to its specific nature or circumstances, being the Groups only foreign subsidiary, which brings specific risks of material misstatement as outlined earlie
27、r in these briefing notes. There may also be regulatory or economic issues specific to the company, especially due to the political difficulties in its jurisdiction, which also impact on the Group and give rise to risks. Therefore regardless of its monetary size, it is likely that Borzoi Co will be
28、considered to be a significant component of the Group.(ii) The extent of involvement which our firm should have with the work of Saluki AssociatesWhen working with a component auditor, the group engagement team should obtain an understanding on a number of matters as required by ISA 600. These matte
29、rs include the competence of the component auditor, whether the component auditor understands the ethical framework relevant to the Group audit and is independent, and the regulatory environment in which the component auditor operates. The extent of involvement which our firm will have with Saluki A
30、ssociates depends to an extent on the evaluation of these matters. If there are concerns over the competence, independence or diligence of Saluki Associates or the jurisdiction in which they operate, the level of involvement with their work should be increased in response.According to ISA 600, if a
31、component auditor performs an audit of the financial information of a significant component, the group engagement team is required to be involved in the component auditors risk assessment to identify significant risks of material misstatement of the group financial statements. The nature, timing and
32、 extent of this involvement are affected by the group engagement teams understanding of the component auditor, but at a minimum should include the following: Discussing with the component auditor or component management the components business activities which are significant to the group; Discussin
33、g with the component auditor the susceptibility of the component to material misstatement of the financial information due to fraud or error; Reviewing the component auditors documentation of identified significant risks of material misstatement of the group financial statements. Such documentation
34、may take the form of a memorandum which reflects the component auditors conclusion with regard to the identified significant risks; Evaluating the component auditors communication on matters relevant to the group audit and discuss any significant matters arising from that evaluation with the compone
35、nt auditor, component management or group management as appropriate; and Determining whether it is necessary to review other relevant parts of the component auditors audit documentation.The Group audit team may need to have further involvement in the audit of the component where significant risks of
36、 material misstatement of the Group financial statements have been identified in a component. In this case, the Group audit team shall evaluate the appropriateness of the further audit procedures to be performed to respond to the identified significant risks of material misstatement of the Group fin
37、ancial statements. Based on its understanding of the component auditor, the Group audit team will then determine whether it is necessary to be involved in the further audit procedures.ConclusionThese briefing notes indicate a range of audit risks to be considered in planning the Group audit. In part
38、icular, there are significant risks of misstatement in relation to intangible assets and a foreign subsidiary. There is also a significant risk of management bias, and the audit will need to be planned and performed with appropriate levels of professional scepticism, especially given that this is a
39、new audit client. Borzoi Co, a foreign subsidiary, is a significant component of the Group and we must have involvement with risk assessment in relation to the planning of its audit.)解析：2、(a) You are an audit manager in Pointer and(ii) Explain the importance of obtaining customer due diligence and r
40、ecommend the information which should be obtained. (16 marks)(b) Pointer the engagement will be a review of prospective financial information which is needed to support the companys overdraft facilities. Vizsla Co had a financial year ended 30 September 2017, and an unmodified opinion was issued on
41、these financial statements last month. Pointer & Cos partner responsible for ethics has agreed that any threats to objectivity will be reduced to an acceptable level through the use of a team separate from the audit team to perform the work.The operating profit forecast for the two years to 31 March
42、 2020 prepared by a member of the accounting team of Vizsla Co is shown below, along with some accompanying notesNotes:1. Vizsla Co is a producer of greetings cards and giftware, the demand for which is seasonal in nature.2. Design costs are mostly payroll costs of the staff working in the companys
43、design team, and the costs relate to the design and development of new product ranges.3. Vizsla Co has agreed with its bank to clear its overdraft by 1 September 2019, and the management team is confident that after that point the company will not need an overdraft facility.4. The total Other expens
44、es is calculated based on 30% of the projected revenue for the six-month period.Required:Recommend the examination procedures which should be used in the review of the profit forecast. (9 marks)（分数：25.00）_正确答案：(a) (i) Ethical and other matters to be considered before accepting Setter Co as a client
45、of the firmRequirements and guidance relevant to accepting and continuing client relationships is contained in ISQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Statements and Other Assurance and Related Services Engagements. The fundamental requirements are that a firm m
46、ust consider: Its competence to perform the engagement and whether the firm has the capabilities, including time and resources to do so, Whether the relevant ethical requirements can be complied with, and The integrity of the client, and whether there is information which would lead it to conclude t
47、hat the client lacks integrity.Competence and resourcesLooking at each consideration in turn, there seems no reason why Pointer & Co would not have the competence to carry out the assignment, which is a limited assurance review of historical financial statements. Being a firm of Chartered Certified
48、Accountants, and performing assurance services such as the audit of Vizsla Co, means that the firm has the relevant knowledge and experience to perform a high quality limited assurance review.However, the pressure to perform the audit for a low fee could impact on Pointer & Cos ability to perform a
49、high quality limited assurance review if insufficient resources are made available, given the potential restriction on the fee which can be charged to provide the service. ISQC 1 also mentions that where the client is aggressively concerned with maintaining the firms fees as low as possible, this can indicate a lack of integrity of the client.Ethical issueIn terms of ethics there are several matters to consider. First, it appears that Vizsla Co is putting pressure
