2022ACCA/CAT考试试题题库6篇 第1篇

(b) Router has a number of film studios and office buildings. The office buildings are in prestigious areas whereas

the film studios are located in ‘out of town’ locations. The management of Router wish to apply the ‘revaluation

model’ to the office buildings and the ‘cost model’ to the film studios in the year ended 31 May 2007. At present

both types of buildings are valued using the ‘revaluation model’. One of the film studios has been converted to a

theme park. In this case only, the land and buildings on the park are leased on a single lease from a third party.

The lease term was 30 years in 1990. The lease of the land and buildings was classified as a finance lease even

though the financial statements purport to comply with IAS 17 ‘Leases’.

The terms of the lease were changed on 31 May 2007. Router is now going to terminate the lease early in 2015

in exchange for a payment of $10 million on 31 May 2007 and a reduction in the monthly lease payments.

Router intends to move from the site in 2015. The revised lease terms have not resulted in a change of

classification of the lease in the financial statements of Router. (10 marks)


Discuss how the above items should be dealt with in the group financial statements of Router for the year ended

31 May 2007.

(b) IAS16 ‘Property, Plant and Equipment’ permits assets to be revalued on a class by class basis. The different characteristics
of the buildings allow them to be classified separately. Different measurement models can, therefore, be used for the office
buildings and the film studios. However, IAS8 ‘Accounting policies, changes in accounting estimates and errors’ says that
once an entity has decided on its accounting policies, it should apply them consistently from period to period and across all
relevant transactions. An entity can change its accounting policies but only in specific circumstances. These circumstances
(a) where there is a new accounting standard or interpretation or changes to an accounting standard
(b) where the change results in the financial statements providing reliable and more relevant information about the effects
of transactions, other events or conditions on the entity’s financial position, financial performance, or cash flows
Voluntary changes in accounting policies are quite uncommon but may occur when an accounting policy is no longer
appropriate. Router will have to ensure that the change in accounting policy meets the criteria in IAS8. Additionally,
depreciated historical cost will have to be calculated for the film studios at the commencement of the period and the opening
balance on the revaluation reserve and any other affected component of equity adjusted. The comparative amounts for each
prior period should be presented as if the new accounting policy had always been applied. There are limits on retrospective
application on the grounds of impracticability.
It is surprising that the lease of the land is considered to be a finance lease under IAS17 ‘Leases’. Land is considered to have
an indefinite life and should, therefore normally be classified as an operating lease unless ownership passes to the lessee
during the lease term. The lease of the land should be separated out from the lease and treated individually. The value of the
land so determined would be taken off the balance sheet in terms of the liability and asset and the lease payments treated
as rentals in the income statement. A prior period adjustment should also be made. The buildings would continue to be
treated as property, plant and equipment (PPE) and the carrying amount not adjusted. However, the remaining useful life of
the building should be revised to reflect the shorter lease term. This will result in the carrying amount being depreciated over
the shorter period. This change to the depreciation policy is applied prospectively not retrospectively.
The lease liability must be assessed for derecognition under IAS39 ‘Financial Instruments: Recognition and Measurement’,
because of the revision of the lease terms, in order to determine whether the new terms are substantially different from the
old. The purpose of this is to determine whether the change in terms is a modification or an extinguishment. The change
seems to constitute a ‘modification’ because there is little change to the terms. The lease liability is, therefore, amended by
deducting the one off payment ($10 million) from the carrying amount (after adjustment for the lease of land) together with
any transaction costs. The lease liability is then remeasured to the present value of the revised future cash flows, discounted
using the original effective interest rate. Any adjustment made in remeasuring the lease liability will be taken to the income

(b) Determine whether your decision in (a) would change if you were to use each of the Maximin and Minimax

regret decision criteria.

Your answer should be supported by relevant workings. (6 marks)


(c) Discuss the usefulness of the managerial grid in assessing the attributes of managers. (5 marks)

Part (c):
This all assumes that leadership styles can be categorised into the two dimensions and that the results can be plotted on the grid.
The position of team management is accepted as the best form. of leadership. This may not be practical or indeed advisable. In
many industries, concern for the task may be more important than concern for people, and vice versa. It will always depend on
the individual situation; behaving in a way which is alien to one’s attitudes will be seen as inconsistent and confusing.
However, if the grid has relevance to leadership skills, it can provide the basis for training and for management development. One
way in which it could be useful is (for example) to support a 9,1 leader with a 1,9 subordinate.
The managerial grid also links in to the motivational ideas of Douglas Macgregor. Theory X assumes that the average person has
an inherent dislike of work. The approach is likely to be task driven, and thus managers will have a high score on the x axis.
Theory Y is based on the idea that the goals of the individual and the organisation can be integrated. In this case, the approach
is likely to be concerned with the individual and thus managers will have a high score on the y axis.

(ii) Explain the accounting treatment under IAS39 of the loan to Bromwich in the financial statements of

Ambush for the year ended 30 November 2005. (4 marks)

(ii) There is objective evidence of impairment because of the financial difficulties and reorganisation of Bromwich. The
impairment loss on the loan will be calculated by discounting the estimated future cash flows. The future cash flows
will be $100,000 on 30 November 2007. This will be discounted at an effective interest rate of 8% to give a present
value of $85,733. The loan will, therefore, be impaired by ($200,000 – $85,733) i.e. $114,267.
(Note: IAS 39 requires accrual of interest on impaired loans at the original effective interest rate. In the year to
30 November 2006 interest of 8% of $85,733 i.e. $6,859 would be accrued.)

4 All organisations require trained employees. However, training can take many forms, some of which are internal to the organisation.


Explain what is meant by the terms:

(a) Computer based training. (3 marks)

4 All organisations need appropriately trained employees. Due to the nature of modern business, especially the professions, much of this training is internal and often on a one to one basis. Accountants as managers should therefore be able to understand the different approaches to training and which of them is the most appropriate and cost effective for the training requirements of the organisation.
(a) Computer based training can be inexpensive and is based upon user friendly interactive computer programs designed to enable trainees to train on their own and at their own pace.

2022ACCA/CAT考试试题题库6篇 第2篇

(iii) assesses TSC in terms of financial performance, competitiveness, service quality, resource utilisation,

flexibility and innovation and discusses the interrelationships between these terms, incorporating

examples from within TSC; and (10 marks)

(iii) The terms listed may be seen as representative of the dimensions of performance. The dimensions may be analysed into
results and determinants.
The results may be measured by focusing on financial performance and competitiveness. Financial performance may
be measured in terms of revenue and profit as shown in the data in the appendix of the question in respect of TSC. The
points system in part (a) of the answer shows which depots have achieved or exceeded the target set. In addition,
liquidity is another aspect of the measurement of financial performance. The points total in part (a) showed that
Leonardotown and Michaelangelotown depots appear to have the best current record in aspects of credit control.
Competitiveness may be measured in terms of sales growth but also in terms of market share, number of new
customers, etc. In the TSC statistics available in (a) we only have data for the current quarter. This shows that three of
the four depots listed have achieved increased revenue compared to target.
The determinants are the factors which may be seen to contribute to the achievement of the results. Quality, resource
utilisation, flexibility and innovation are cited by Fitzgerald and Moon as examples of factors that should contribute to
the achievement of the results in terms of financial performance and competitiveness. In TSC a main quality issue
appears to be customer care and service delivery. The statistics in the points table in part (a) of the answer show that
the Raphaeltown depot appears to have a major problem in this area. It has only achieved one point out of the six
available in this particular segment of the statistics.
Resource utilisation for TSC may be measured by the level of effective use of drivers and vehicles. To some extent, this
is highlighted by the statistics relating to customer care and service delivery. For example, late collection of consignments
from customers may be caused by a shortage of vehicles and/or drivers. Such shortages could be due to staff turnover,
sickness, etc or problems with vehicle maintenance.
Flexibility may be an issue. There may, for example, be a problem with vehicle availability. Possibly an increased focus
on sources for short-term sub-contracting of vehicles/collections/deliveries might help overcome delay problems.
The ‘target v actual points system’ may be seen as an example of innovation by the company. This gives a detailed set
of measures that should provide an incentive for improvement at all depots. The points system may illustrate the extent
of achievement/non-achievement of company strategies for success. For example TSC may have a customer care
commitment policy which identifies factors that should be achieved on a continuing basis. For example, timely collection
of consignments, misdirected consignments re-delivered at no extra charge, prompt responses to customer claims and
compensation for customers.

(d) Sirus raised a loan with a bank of $2 million on 1 May 2007. The market interest rate of 8% per annum is to

be paid annually in arrears and the principal is to be repaid in 10 years time. The terms of the loan allow Sirus

to redeem the loan after seven years by paying the full amount of the interest to be charged over the ten year

period, plus a penalty of $200,000 and the principal of $2 million. The effective interest rate of the repayment

option is 9·1%. The directors of Sirus are currently restructuring the funding of the company and are in initial

discussions with the bank about the possibility of repaying the loan within the next financial year. Sirus is

uncertain about the accounting treatment for the current loan agreement and whether the loan can be shown as

a current liability because of the discussions with the bank. (6 marks)

Appropriateness of the format and presentation of the report and quality of discussion (2 marks)


Draft a report to the directors of Sirus which discusses the principles and nature of the accounting treatment of

the above elements under International Financial Reporting Standards in the financial statements for the year

ended 30 April 2008.

(d) Repayment of the loan
If at the beginning of the loan agreement, it was expected that the repayment option would not be exercised, then the effective
interest rate would be 8% and at 30 April 2008, the loan would be stated at $2 million in the statement of financial position
with interest of $160,000 having been paid and accounted for. If, however, at 1 May 2007, the option was expected to be
exercised, then the effective interest rate would be 9·1% and at 30 April 2008, the cash interest paid would have been
$160,000 and the interest charged to the income statement would have been (9·1% x $2 million) $182,000, giving a
statement of financial position figure of $2,022,000 for the amount of the financial liability. However, IAS39 requires the
carrying amount of the financial instrument to be adjusted to reflect actual and revised estimated cash flows. Thus, even if
the option was not expected to be exercised at the outset but at a later date exercise became likely, then the carrying amount
would be revised so that it represented the expected future cash flows using the effective interest rate. As regards the
discussions with the bank over repayment in the next financial year, if the loan was shown as current, then the requirements
of IAS1 ‘Presentation of Financial Statements’ would not be met. Sirus has an unconditional right to defer settlement for longer
than twelve months and the liability is not due to be legally settled in 12 months. Sirus’s discussions should not be considered
when determining the loan’s classification.
It is hoped that the above report clarifies matters.

(c) (i) Identify and describe FOUR quality control procedures that are applicable to the individual audit

engagement; and (8 marks)

(c) (i) ISQC 1 Quality Control for Firms That Perform. Audits and Reviews of Historical Financial Information and Other
Assurance and Related Services Engagements provides guidance on the overall quality control systems that should be
implemented by an audit firm. ISA 220 Quality Control for Audits of Historical Financial Information specifies the quality
control procedures that should be applied by the engagement team in individual audit assignments.
Procedures include the following:
Client acceptance procedures
There should be full documentation, and conclusion on, ethical and client acceptance issues in each audit assignment.
The engagement partner should consider whether members of the audit team have complied with ethical requirements,
for example, whether all members of the team are independent of the client. Additionally, the engagement partner should
conclude whether all acceptance procedures have been followed, for example, that the audit firm has considered the
integrity of the principal owners and key management of the client. Other procedures on client acceptance should
– Obtaining professional clearance from previous auditors
– Consideration of any conflict of interest
– Money laundering (client identification) procedures.
Engagement team
Procedures should be followed to ensure that the engagement team collectively has the skills, competence and time to
perform. the audit engagement. The engagement partner should assess that the audit team, for example:
– Has the appropriate level of technical knowledge
– Has experience of audit engagements of a similar nature and complexity
– Has the ability to apply professional judgement
– Understands professional standards, and regulatory and legal requirements.
The engagement team should be directed by the engagement partner. Procedures such as an engagement planning
meeting should be undertaken to ensure that the team understands:
– Their responsibilities
– The objectives of the work they are to perform
– The nature of the client’s business
– Risk related issues
– How to deal with any problems that may arise; and
– The detailed approach to the performance of the audit.
The planning meeting should be led by the partner and should include all people involved with the audit. There should
be a discussion of the key issues identified at the planning stage.
Supervision should be continuous during the engagement. Any problems that arise during the audit should be rectified
as soon as possible. Attention should be focused on ensuring that members of the audit team are carrying out their work
in accordance with the planned approach to the engagement. Significant matters should be brought to the attention of
senior members of the audit team. Documentation should be made of key decisions made during the audit engagement.
The review process is one of the key quality control procedures. All work performed must be reviewed by a more senior
member of the audit team. Reviewers should consider for example whether:
– Work has been performed in accordance with professional standards
– The objectives of the procedures performed have been achieved
– Work supports conclusions drawn and is appropriately documented.
The review process itself must be evidenced.
Finally the engagement partner should arrange consultation on difficult or contentious matters. This is a procedure
whereby the matter is discussed with a professional outside the engagement team, and sometimes outside the audit
firm. Consultations must be documented to show:
– The issue on which the consultation was sought; and
– The results of the consultation.

Churchill Ice Cream has to date made two unsuccessful attempts to become an international company.

(d) What reasons would you suggest to explain this failure of Churchill Ice Cream to become an international

company? (5 marks)

(d) The two international strategies pursued to date are through organic growth (the stores in North America) and acquisition (the
companies in Germany and Italy). Neither seems to have worked. Here there seem to be some contradictions while global
tastes and lifestyles are argued to have developed – convergence of consumer tastes lies at the heart of this – but this does
not seem to have benefited Churchill. One questions the learning that these two unfortunate experiences have created. Of the
three core methods of achieving growth, namely organic, acquisition and joint venture, only joint venture remains to be tried.
The reasons for the international failures are clearly complex but one could argue that the strategy has been curiously na?ve.
Certainly, it has pursued a high-risk strategy. Exporting, perhaps through identifying a suitable partner, might create the
learning to lead to a more significant market entry. There is a need to understand local tastes; indeed the whole of the
marketing mix in the chosen market(s), and decide on appropriate strategy. A strategy based upon the acquisition of
companies and their consequent development represents a large investment of capital and requires considerable managerial
attention and expertise. Equally, the attempt to use the Churchill domestic format of opening its own stores creates both a
major financial commitment and the need to manage a radically different operation. One must seriously question whether
Churchill has these capabilities within a family-owned business. Clearly there are differences between the ice cream markets
in various countries, though the emergence of global brands suggests some convergence of tastes. Such differences reflect
differing cultures, tastes and competitive behaviour in each country. The lesson from Churchill’s international initiatives is that
national differences need to be carefully understood. There is little evidence that Churchill has understood these differencesor indeed learnt from them.

5 An enterprise has made a material change to an accounting policy in preparing its current financial statements.

Which of the following disclosures are required by IAS 8 Accounting policies, changes in accounting estimates

and errors in these financial statements?

1 The reasons for the change.

2 The amount of the consequent adjustment in the current period and in comparative information for prior periods.

3 An estimate of the effect of the change on future periods, where possible.

A 1 and 2 only

B 1 and 3 only

C 2 and 3 only

D All three items


2022ACCA/CAT考试试题题库6篇 第3篇

21 Which of the following items must be disclosed in a company’s published financial statements?

1 Authorised share capital

2 Movements in reserves

3 Finance costs

4 Movements in non-current assets

A 1, 2 and 3 only

B 1, 2 and 4 only

C 2, 3 and 4 only

D All four items


(iii) Identify and discuss an alternative strategy that may assist in improving the performance of CTC with

effect from 1 May 2009 (where only the products in (a) and (b) above are available for manufacture).

(4 marks)

(iii) If no new products are available then CTC must look to boost revenues obtained from its existing product portolio whilst
seeking to reduce product specific fixed overheads and the company’s other fixed overheads. In order to do this attention
should be focused on the marketing activities currently undertaken.
CTC should consider selling all of its products in ‘multi product’ packages as it might well be the case that the increased
contribution achieved from increased sales volumes would outweigh the diminution in contribution arising from
reductions in the selling price per unit of each product.
CTC could also apply target costing principles in order to reduce costs and thereby increase the margins on each of its
products. Value analysis should be undertaken in order to evaluate the value-added features of each product. For
example, the use of non-combustible materials in manufacture would be a valued added feature of such products
whereas the use of pins and metal fastenings which are potentially harmful to children would obviously not comprise
value added features. CTC should focus on delivering ‘value’ to the customer and in attempting to do so should seek to
identify all non-value activities in order that they may be eliminated and hence margins improved.

Glove Co makes high quality, hand-made gloves which it sells for an average of $180 per pair. The standard cost of labour for each pair is $42 and the standard labour time for each pair is three hours. In the last quarter, Glove Co had budgeted production of 12,000 pairs, although actual production was 12,600 pairs in order to meet demand.

37,000 hours were used to complete the work and there was no idle time. The total labour cost for the quarter was $531,930.

At the beginning of the last quarter, the design of the gloves was changed slightly. The new design required workers to sew the company’s logo on to the back of every glove made and the estimated time to do this was 15 minutes for each pair. However, no-one told the accountant responsible for updating standard costs that the standard time per pair of gloves needed to be changed. Similarly, although all workers were given a 2% pay rise at the beginning of the last quarter, the accountant was not told about this either. Consequently, the standard was not updated to reflect these changes.

When overtime is required, workers are paid 25% more than their usual hourly rate.


(a) Calculate the total labour rate and total labour efficiency variances for the last quarter. (2 marks)

(b) Analyse the above total variances into component parts for planning and operational variances in as much detail as the information allows. (6 marks)

(c) Assess the performance of the production manager for the last quarter. (7 marks)


16 Which of the following events between the balance sheet date and the date the financial statements are

authorised for issue must be adjusted in the financial statements?

1 Declaration of equity dividends.

2 Decline in market value of investments.

3 The announcement of changes in tax rates.

4 The announcement of a major restructuring.

A 1

A 1 only

B 2 and 4

C 3 only

D None of them


A manufacturing company, Man Co, has two divisions: Division L and Division M. Both divisions make a single standardised product. Division L makes component L, which is supplied to both Division M and external customers.

Division M makes product M using one unit of component L and other materials. It then sells the completed

product M to external customers. To date, Division M has always bought component L from Division L.

The following information is available:

Division L charges the same price for component L to both Division M and external customers. However, it does not incur the selling and distribution costs when transferring internally.

Division M has just been approached by a new supplier who has offered to supply it with component L for $37 per unit. Prior to this offer, the cheapest price which Division M could have bought component L for from outside the group was $42 per unit.

It is head office policy to let the divisions operate autonomously without interference at all.


(a) Calculate the incremental profit/(loss) per component for the group if Division M accepts the new supplier’s

offer and recommend how many components Division L should sell to Division M if group profits are to be

maximised. (3 marks)

(b) Using the quantities calculated in (a) and the current transfer price, calculate the total annual profits of each division and the group as a whole. (6 marks)

(c) Discuss the problems which will arise if the transfer price remains unchanged and advise the divisions on a suitable alternative transfer price for component L. (6 marks)


2022ACCA/CAT考试试题题库6篇 第4篇

(ii) Deema Co. (4 marks)

(ii) Deema Co
The claim is an event after the balance sheet date. If the accident occurred prior to the year end of 30 September 2007,
the claim gives additional evidence of a year end condition, and thus meets the definition of an adjusting post balance
sheet event. In this case the matter appears to have been properly disclosed in the notes to the financial statements per
IAS 10 Events After the Balance Sheet Date and IAS 37 Provisions, Contingent Liabilities and Contingent Assets. A
provision would only be necessary if the claim was probable to succeed and there is sufficient appropriate evidence that
this is not the case. There is therefore no disagreement, and no limitation on scope.
Therefore the senior is correct to propose an unqualified opinion.
However, it is not necessary for the audit report to contain an emphasis of matter paragraph.
ISA 701 Modifications to the Independent Auditor’s Report states that an emphasis of matter paragraph should be used
to highlight a matter where there is significant uncertainty.
Uncertainties are normally only regarded as significant if they involve a level of concern about the going concern status
of the company or would have an unusually great effect on the financial statements. This is not the case here as there
is enough cash to pay the damages in the unlikely event that the claim goes against Deema Co. This appears to be a
one-off situation with a low risk of the estimate being subject to change and thus there is no significant uncertainty.

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).


(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)

(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.

4 (a) Explain the auditor’s responsibilities in respect of subsequent events. (5 marks)


Identify and comment on the implications of the above matters for the auditor’s report on the financial

statements of Jinack Co for the year ended 30 September 2005 and, where appropriate, the year ending

30 September 2006.

NOTE: The mark allocation is shown against each of the matters.

(a) Auditor’s responsibilities for subsequent events
■ Auditors must consider the effect of subsequent events on:
– the financial statements;
– the auditor’s report.
■ Subsequent events are all events occurring after a period end (i.e. reporting date) i.e.:
– events after the balance sheet date (as defined in IAS 10); and
– events after the financial statements have been authorised for issue.
Events occurring up to date of auditor’s report
■ The auditor is responsible for carrying out procedures designed to obtain sufficient appropriate audit evidence that all
events up to the date of the auditor’s report that may require adjustment of, or disclosure in, the financial statements
have been identified.
■ These procedures are in addition to those applied to specific transactions occurring after the period end that provide
audit evidence of period-end account balances (e.g. inventory cut-off and receipts from trade receivables). Such
procedures should ordinarily include:
– reviewing minutes of board/audit committee meetings;
– scrutinising latest interim financial statements/budgets/cash flows, etc;
– making/extending inquiries to legal advisors on litigation matters;
– inquiring of management whether any subsequent events have occurred that might affect the financial statements
(e.g. commitments entered into).
■ When the auditor becomes aware of events that materially affect the financial statements, the auditor must consider
whether they have been properly accounted for and adequately disclosed in the financial statements.
Facts discovered after the date of the auditor’s report but before financial statements are issued
Tutorial note: After the date of the auditor’s report it is management’s responsibility to inform. the auditor of facts which
may affect the financial statements.
■ If the auditor becomes aware of such facts which may materially affect the financial statements, the auditor:
– considers whether the financial statements need amendment;
– discusses the matter with management; and
– takes appropriate action (e.g. audit any amendments to the financial statements and issue a new auditor’s report).
■ If management does not amend the financial statements (where the auditor believes they need to be amended) and the
auditor’s report has not been released to the entity, the auditor should express a qualified opinion or an adverse opinion
(as appropriate).
■ If the auditor’s report has been released to the entity, the auditor must notify those charged with governance not to issue
the financial statements (and the auditor’s report thereon) to third parties.
Tutorial note: The auditor would seek legal advice if the financial statements and auditor’s report were subsequently issued.
Facts discovered after the financial statements have been issued
■ The auditor has no obligation to make any inquiry regarding financial statements that have been issued.
■ However, if the auditor becomes aware of a fact which existed at the date of the auditor’s report and which, if known
at that date, may have caused the auditor’s report to be modified, the auditor should:
– consider whether the financial statements need revision;
– discuss the matter with management; and
– take appropriate action (e.g. issuing a new report on revised financial statements).

3 Susan Paullaos was recently appointed as a non-executive member of the internal audit committee of Gluck and

Goodman, a public listed company producing complex engineering products. Barney Chester, the executive finance

director who chairs the committee, has always viewed the purpose of internal audit as primarily financial in nature

and as long as financial controls are seen to be fully in place, he is less concerned with other aspects of internal

control. When Susan asked about operational controls in the production facility Barney said that these were not the

concern of the internal audit committee. This, he said, was because as long as the accounting systems and financial

controls were fully functional, all other systems may be assumed to be working correctly.

Susan, however, was concerned with the operational and quality controls in the production facility. She spoke to

production director Aaron Hardanger, and asked if he would be prepared to produce regular reports for the internal

audit committee on levels of specification compliance and other control issues. Mr Hardanger said that the internal

audit committee had always trusted him because his reputation as a manager was very good. He said that he had

never been asked to provide compliance evidence to the internal audit committee and saw no reason as to why he

should start doing so now.

At board level, the non-executive chairman, George Allejandra, said that he only instituted the internal audit committee

in the first place in order to be seen to be in compliance with the stock market’s requirement that Gluck and Goodman

should have one. He believed that internal audit committees didn’t add materially to the company. They were, he

believed, one of those ‘outrageous demands’ that regulatory authorities made without considering the consequences

in smaller companies nor the individual needs of different companies. He also complained about the need to have an

internal auditor. He said that Gluck and Goodman used to have a full time internal auditor but when he left a year

ago, he wasn’t replaced. The audit committee didn’t feel it needed an internal auditor because Barney Chester believed

that only financial control information was important and he could get that information from his management


Susan asked Mr Allejandra if he recognised that the company was exposing itself to increased market risks by failing

to have an effective audit committee. Mr Allejandra said he didn’t know what a market risk was.


(a) Internal control and audit are considered to be important parts of sound corporate governance.

(i) Describe FIVE general objectives of internal control. (5 marks)

3 (a) (i) FIVE general objectives of internal control
An internal control system comprises the whole network of systems established in an organisation to provide reasonable
assurance that organisational objectives will be achieved.
Specifically, the general objectives of internal control are as follows:
To ensure the orderly and efficient conduct of business in respect of systems being in place and fully implemented.
Controls mean that business processes and transactions take place without disruption with less risk or disturbance and
this, in turn, adds value and creates shareholder value.
To safeguard the assets of the business. Assets include tangibles and intangibles, and controls are necessary to ensure
they are optimally utilised and protected from misuse, fraud, misappropriation or theft.
To prevent and detect fraud. Controls are necessary to show up any operational or financial disagreements that might
be the result of theft or fraud. This might include off-balance sheet financing or the use of unauthorised accounting
policies, inventory controls, use of company property and similar.
To ensure the completeness and accuracy of accounting records. Ensuring that all accounting transactions are fully and
accurately recorded, that assets and liabilities are correctly identified and valued, and that all costs and revenues can be
fully accounted for.
To ensure the timely preparation of financial information which applies to statutory reporting (of year end accounts, for
example) and also management accounts, if appropriate, for the facilitation of effective management decision-making.
[Tutorial note: candidates may address these general objectives using different wordings based on analyses of different
study manuals. Allow latitude]

(c) (i) Compute Gloria’s capital gains tax liability for 2006/07 ignoring any claims or elections available to

reduce the liability. (3 marks)



2022ACCA/CAT考试试题题库6篇 第5篇

Which of the following statements relating to internal and external auditors is correct?

A.Internal auditors are required to be members of a professional body

B.Internal auditors’ scope of work should be determined by those charged with governance

C.External auditors report to those charged with governance

D.Internal auditors can never be independent of the company


A is incorrect as internal auditors are not required to be members of any professional body. C is incorrect as external auditors report to shareholders rather than those charged with governance. D is incorrect as internal auditors can be independent of the company, if, for example, the internal audit function has been outsourced.

(b) Draft a report as at today’s date advising Cutlass Inc on its proposed activities. The report should cover the

following issues:

(i) The rate at which the profits of Cutlass Inc will be taxed. This section of the report should explain:

– the company’s residency position and what Ben and Amy would have to do in order for the company

to be regarded as resident in the UK under the double tax treaty;

– the meaning of the term ‘permanent establishment’ and the implications of Cutlass Inc having a

permanent establishment in Sharpenia;

– the rate at which the profits of Cutlass Inc will be taxed on the assumption that it is resident in the

UK under the double tax treaty and either does or does not have a permanent establishment in

Sharpenia. (9 marks)

(b) Report to the management of Razor Ltd
To           The management of Razor Ltd
From       Tax advisers
Date         6 June 2007
Subject    The proposed activities of Cutlass Inc
(i) Rate of tax on profits of Cutlass Inc
When considering the manner in which the profits of Cutlass Inc will be taxed it must be recognised that the system of
corporation tax in Sharpenia is the same as that in the UK.
The profits of Cutlass Inc will be subject to corporation tax in the country in which it is resident or where it has a
permanent establishment. It is desirable for the profits of Cutlass Inc to be taxed in the UK rather than in Sharpenia as
the rate of corporation tax in the UK on annual profits of £120,000 will be 19% whereas in Sharpenia the rate of tax
would be 38%.
Residency of Cutlass Inc
Cutlass Inc will be resident in Sharpenia, because it is incorporated there. However, it will also be resident in the UK if
it is centrally managed and controlled from the UK. For this to be the case, Amy and Ben should hold the company’s
board meetings in the UK.
Under the double tax treaty between the UK and Sharpenia, a company resident in both countries is treated as being
resident in the country where it is effectively managed and controlled. For Cutlass Inc to be treated as UK resident under
the treaty, Amy and Ben would need to ensure that all key management and commercial decisions are made in the UK
and not in Sharpenia.
Permanent establishment
A permanent establishment is a fixed place of business, including an office, factory or workshop, through which the
business of an enterprise is carried on. A permanent establishment will also exist in a country if contracts in the
company’s name are habitually concluded there.
The trading profits of Cutlass Inc will be taxable in Sharpenia if they are derived from a permanent establishment in
Sharpenia even if it can be established that Cutlass Inc is UK resident under the double tax treaty.
Double taxation
If Cutlass Inc is UK resident but has a permanent establishment in Sharpenia, its trading profits will be subject to
corporation tax in both the UK and Sharpenia with double tax relief available in the UK. The double tax relief will be the
lower of the UK tax and the Sharpenian tax on the trading profits. Accordingly, as the rate of tax is higher in Sharpenia
than it is in the UK, there will be no UK tax to pay on the company’s trading profits and the rate of tax on the profits
would be the rate in Sharpenia, i.e. 38%.
If Cutlass Inc is UK resident and does not have a permanent establishment in Sharpenia, its profits will be taxable in
the UK at the rate of 19% and not in Sharpenia.

(b) Chatam, a limited liability company, is a long-standing client. One of its subsidiaries, Ayora, has made losses

for several years. At your firm’s request, Chatam’s management has made a written representation that goodwill

arising on the acquisition of Ayora is not impaired. Your firm’s auditor’s report on the consolidated financial

statements of Chatam for the year ended 31 March 2005 is unmodified. Your firm’s auditor’s report on the

financial statements of Ayora is similarly unmodified. Chatam’s Chief Executive, Charles Barrington, is due to

retire in 2006 when his share options mature. (6 marks)


Comment on the ethical and other professional issues raised by each of the above matters and their implications,

if any, for the continuation of each assignment.

NOTE: The mark allocation is shown against each of the three issues.

(b) Unmodified auditor’s reports
Ethical and professional issues
■ An unmodified opinion means, inter alia, that:
– there are no material matters giving rise to disagreement with the auditor; and
– the auditor’s report does not include an emphasis of matter paragraph (e.g. regarding going concern).
■ By implication the auditor must have obtained sufficient appropriate evidence that notwithstanding the losses:
– the going concern basis is appropriate to Ayora’s financial statements and any related matters (e.g. parental
support) are adequately disclosed therein;
– goodwill in Chatam’s consolidated financial statements is not materially impaired.
■ Management’s written representation (that the goodwill is not impaired) must have been necessary (otherwise it should
not have been asked for). This means that Bartolome does not have sufficient other audit evidence. This seems dubious
as management should have carried out an impairment test to satisfy themselves that goodwill is not impaired. This
test should similarly have satisfied Bartolome.
■ If there is evidence that goodwill is impaired management’s refusal to write it down might be considered a fraud.
■ The matter may cast doubt on the quality of audit evidence obtained in other areas. All other matters on which
management representations have been obtained should be reviewed by another audit partner/manager.
■ Charles Barrington is retiring next year and his share options would presumably be worth less if goodwill were written
down. His position in this long-standing client suggests a familiarity threat.
■ Bartolome may be threatened by self-interest to accept the representation as sufficient in order to retain the client.
■ Bartolome may be unduly influenced by a combination of factors (familiarity and previous experience) and failing to
exercise the necessary degree of professional scepticism.
Implications for continuation with assignment
There is no reason why the audit should not be continued. However, a change in senior audit staff and audit manager may
be overdue. The unmodified auditor’s reports should be subject to a cold review and any quality control issues raised with
the staff who conducted the audit.

1 Stuart is a self-employed business consultant aged 58. He is married to Rebecca, aged 55. They have one child,

Sam, who is aged 24 and single.

In November 2005 Stuart sold a house in Plymouth for £422,100. Stuart had inherited the house on the death of

his mother on 1 May 1994 when it had a probate value of £185,000. The subsequent pattern of occupation was as


1 May 1994 to 28 February 1995 occupied by Stuart and Rebecca as main residence

1 March 1995 to 31 December 1998 unoccupied

1 January 1999 to 31 March 2001 let out (unfurnished)

1 April 2001 to 30 November 2001 occupied by Stuart and Rebecca

1 December 2001 to 30 November 2005 used occasionally as second home

Both Stuart and Rebecca had lived in London from March 1995 onwards. On 1 March 2001 Stuart and Rebecca

bought a house in London in their joint names. On 1 January 2002 they elected for their London house to be their

principal private residence with effect from that date, up until that point the Plymouth property had been their principal

private residence.

No other capital disposals were made by Stuart in the tax year 2005/06. He has £29,500 of capital losses brought

forward from previous years.

Stuart intends to invest the gross sale proceeds from the sale of the Plymouth house, and is considering two

investment options, both of which he believes will provide equal risk and returns. These are as follows:

(1) acquiring shares in Omikron plc; or

(2) acquiring further shares in Omega plc.


1. Omikron plc is a listed UK trading company, with 50,250,000 shares in issue. Its shares currently trade at 42p

per share.

2. Stuart and Rebecca helped start up the company, which was then Omega Ltd. The company was formed on

1 June 1990, when they each bought 24,000 shares for £1 per share. The company became listed on 1 May

1997. On this date their holding was subdivided, with each of them receiving 100 shares in Omega plc for each

share held in Omega Ltd. The issued share capital of Omega plc is currently 10,000,000 shares. The share price

is quoted at 208p – 216p with marked bargains at 207p, 211p, and 215p.

Stuart and Rebecca’s assets (following the sale of the Plymouth house but before any investment of the proceeds) are

as follows:

Assets Stuart Rebecca

£ £

Family house in London 450,000 450,000

Cash from property sale 422,100 –

Cash deposits 165,000 165,000

Portfolio of quoted investments – 250,000

Shares in Omega plc see above see above

Life insurance policy note 1 note 1


1. The life insurance policy will pay out a sum of £200,000 on the death of the first spouse to die.

Stuart has recently been diagnosed with a serious illness. He is expected to live for another two or three years only.

He is concerned about the possible inheritance tax that will arise on his death. Both he and Rebecca have wills whose

terms transfer all assets to the surviving spouse. Rebecca is in good health.

Neither Stuart nor Rebecca has made any previous chargeable lifetime transfers for the purposes of inheritance tax.


(a) Calculate the taxable capital gain on the sale of the Plymouth house in November 2005 (9 marks)



Note that the last 36 months count as deemed occupation, as the house was Stuart’s principal private residence (PPR)
at some point during his period of ownership.
The first 36 months of the period from 1 March 1995 to 31 March 2001 qualifies as a deemed occupation period as
Stuart and Rebecca returned to occupy the property on 1 April 2001. The remainder of the period will be treated as a
period of absence, although letting relief is available for part of the period (see below).
The exempt element of the gain is the proportion during which the property was occupied, real or deemed. This is
£138,665 (90/139 x £214,160).
(2) The chargeable gain is restricted for the period that the property was let out. This is restricted to the lowest of the
(i) the gain attributable to the letting period (27/139 x 214,160) = £41,599
(ii) £40,000
(iii) the total exempt PPR gain = £138,665
i.e. £40,000.
(3) The taper relief is effectively wasted, having restricted losses b/f to preserve the annual exemption.

3 You are an audit manager in Webb & Co, a firm of Chartered Certified Accountants. Your audit client, Mulligan Co,

designs and manufactures wooden tables and chairs. The business has expanded rapidly in the last two years, since

the arrival of Patrick Tiler, an experienced sales and marketing manager.

The directors want to secure a loan of $3 million in order to expand operations, following the design of a completely

new range of wooden garden furniture. The directors have approached LCT Bank for the loan. The bank’s lending

criteria stipulate the following:

‘Loan applications must be accompanied by a detailed business plan, including an analysis of how the finance will

be used. LCT Bank need to see that the finance requested is adequate for the proposed business purpose. The

business plan must be supported by an assurance opinion on the adequacy of the requested finance.’

The $3 million finance raised will be used as follows:


Construction of new factory 1,250

Purchase of new machinery 1,000

Initial supply of timber raw material 250

Advertising and marketing of new product 500

Your firm has agreed to review the business plan and to provide an assurance opinion on the completeness of the

finance request. A meeting will be held tomorrow to discuss this assignment.


(a) Identify and explain the matters relating to the assurance assignment that should be discussed at the meeting

with Mulligan Co. (8 marks)

(a) Matters to be discussed would include the following:
The exact content of the business plan which could include:
– Description of past business performance and key products
– Discussion of the new product
– Evidence of the marketability of the new product
– Cash flow projections
– Capital expenditure forecasts
– Key business assumptions.
The form. of the assurance report that is required – in an assurance engagement the nature and wording of the expected
opinion should be discussed. Webb & Co should clarify that an opinion of ‘negative assurance’ will be required, and whether
this will meet the bank’s lending criteria.
The intended recipient of the report – Webb & Co need to clarify the name and address of the recipient at LCT Bank. For the
limitation of professional liability, it should be clarified that LCT Bank will be the only recipient, and that the assurance opinion
is being used only as part of the bank’s overall lending decision.
Limiting liability – Webb & Co may want to receive in writing a statement that the report is for information purposes only, and
does not give rise to any responsibility, liability, duty or obligation from the firm to the lender.
Deadlines – it should be discussed when the bank need the report. This in turn will be influenced by when Mulligan Co needs
the requested $3 million finance. The bank may need a considerable period of time to assess the request, review the report,
and ensure that their lending criteria have been fully met prior to advancing the finance.
Availability of evidence – Mulligan Co should be made aware that in order to express an opinion on the finance request, they
must be prepared to provide all the necessary paperwork to assist the assurance provider. Evidence is likely to include
discussions with key management, and written representations of discussions may be required.
Professional regulation – Webb & Co should discuss the kind of procedures that will be undertaken, and confirm that they
will be complying with relevant professional guidance, for example:
– ISAE 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information
– ISAE 3400 The Examination of Prospective Financial Information
Engagement administration – any points not yet discussed in detail when deciding to take the assurance engagement should
be finalised at the meeting. These points could include the following:
– Fees – the total fee and billing arrangements must be agreed before any work is carried out
– Personnel – Webb & Co should identify the key personnel who will be involved in the assignment
– Complaints procedures – should be briefly outlined (the complaints procedures in an assurance engagement may differ
from an audit assignment)
– Engagement letter – if not already signed by both Webb & Co and Mulligan Co, the engagement letter should be
discussed and signed at the meeting before any assignment work is conducted.
Tutorial note: the scenario states that Webb & Co have already decided to take the assurance assignment for their existing
client, therefore the answer to this requirement should not focus on client or engagement acceptance procedures.

2022ACCA/CAT考试试题题库6篇 第6篇

(c) Using sensitivity analysis, estimate by what percentage the life cycle of the Snowballer would need to change

before the recommendation in (a) above is varied. (4 marks)




Susan is aware of benchmarking as a useful input into performance measurement and strategic change.

(b) Assess the contribution benchmarking could make to improving the position of the Marlow Fashion Group

and any limitations to its usefulness. (8 marks)


(b) Benchmarking at Marlow Fashion will not be an easy exercise. Marlow Fashion has developed a distinctive way of reaching
its markets that means direct comparisons will be hard to make. Certainly, it can carry out historical benchmarking in
comparing how its own processes and activities have improved, or otherwise, over a relevant period of time. Unfortunately,
this is likely to simply confirm worsening performance. It can compare its own key operations against the ‘best in class’;
regardless of which industry the excellent performer comes from. It could and should have been carrying out competitive
benchmarking on the retail side of the business where information should be more easily available. There may be an
opportunity to benchmark itself against firms that have gone through a similar crisis and achieved a successful turnaround.

In terms of the advantages and disadvantages, the willingness of managers responsible for a key area of performance to
compare themselves against relevant external performance measures should make them take responsibility for any changes
necessary. In Marlow Fashion, the acceptance that things have to be done differently will be the first stage in the turnaround.
Getting managers face-to-face with the problems, accepting responsibility for change and recognising that the necessary
changes are ‘doable’ is an important stage in creating a willingness to change. The disadvantages are that every organisation
and situation is different and there is no one best way. Marlow Fashion thought it had discovered the best way and this created
an unwillingness to change. There is also the danger that you are solving today’s problems with yesterday’s solutions. A good
competitor will be trying to maintain its competitive advantage through constantly improving its processes. It also has a vested
interest in trying to prevent its improvements from being revealed to its competitors. Also, many of the ‘softer’ processes –
typically involving people – are difficult if not impossible to replicate in another organisation. These advantages are to do with
culture and leadership and not easily transferable to another organisation and the context in which it is operating.

(c) (i) Calculate Benny’s capital gains tax liability for 2006/07. (6 marks)



(b) Discuss the limitations of the above estimates. (6 marks)


(b) The estimates are based upon unrealistic assumptions and are subject to a considerable margin of error. Possible limitations
(i) Sales, operating costs, replacement investments, and dividends are unlikely to increase by the same amount.
(ii) Forecasts of future growth rates may not be accurate. Paxis is unlikely to have access to enough internal information
about the activities of Wragger to make accurate projections.
(iii) The expected reduction in operating costs might not be achieved.
(iv) The estimates are based upon present values to infinity of expected free cash flows. A shorter time horizon might be
more realistic.
(v) The cost of capital for the combined company could differ from that estimated, depending how the market evaluates the
risk of the combined entity.
(vi) The analysis is based upon the assumption that the initial offer price is accepted.
(vii) There is no information about the fees and other costs associated with the proposed acquisition. In many cases these
are substantial, and must be included in the analysis.
(viii) The post acquisition integration of organisations often involves unforeseen costs which would reduce the benefit of any
potential synergy.

(c) Describe the examination procedures you should use to verify Cusiter Co’s prospective financial information.

(9 marks)

(c) Examination procedures
■ The arithmetic accuracy of the PFI should be confirmed, i.e. subtotals and totals should be recast and agreed.
■ The actual information for the year to 31 December 2006 that is shown as comparative information should be agreed
to the audited financial statements for that year to ensure consistency.
■ Balances and transaction totals for the quarter to 31 March 2007 should be agreed to general ledger account balances
at that date. The net book value of property, plant and equipment should be agreed to the non-current asset register;
accounts receivable/payable to control accounts and cash at bank to a bank reconciliation statement.
■ Tenders for the new equipment should be inspected to confirm the additional cost included in property, plant and
equipment included in the forecast for the year to 31 December 2008 and that it can be purchased with the funds being
lent by the bank.
■ The reasonableness of all new assumptions should be considered. For example, the expected useful life of the new
equipment, the capacity at which it will be operating, the volume of new product that can be sold, and at what price.
■ The forecast income statement should be reviewed for completeness of costs associated with the expansion. For
example, operating expenses should include salaries of additional equipment operatives or supervisors.
■ The consistency of accounting practices reflected in the forecast with International Financial Reporting Standards (IFRS)
should be considered. For example, the intangible asset might be expected to be less than $10,000 at 31 December
2008 as it should be carried at amortised cost.
■ The cost of property, plant and equipment at 31 December 2008 is $280,000 more than as at 31 December 2007.
Consideration should be given to the adequacy of borrowing $250,000 if the actual investment is $30,000 more.
■ The terms of existing borrowings (both non-current and short-term) should be reviewed to ensure that the forecast takes
full account of existing repayment schedules. For example, to confirm that only $23,000 of term borrowings will become
current by the end of 2007.
Trends should be reviewed and fluctuations explained, for example:
■ Revenue for the first quarter of 2007 is only 22% of revenue for 2006 and so may appear to be understated. However,
revenue may not be understated if sales are seasonal and the first quarter is traditionally ‘quieter’.
■ Forecast revenue for 2007 is 18% up on 2006. However, forecast revenue for 2008 is only 19% up on 2007. As the
growth in 2007 is before the investment in new plant and equipment it does not look as though the new investment
will be contributing significantly to increased growth in the first year.
■ The gross profit % is maintained at around 29% for the three years. However, the earnings before interest and tax (EBIT)
% is forecast to fall by 2% for 2008. Earnings after interest might be worrying to the potential lender as this is forecast
to rise from 12·2% in 2006 to 13·7% in 2007 but then fall to 7·6% in 2008.
The reasonableness of relationships between income statement and balance sheet items should be considered. For example:
■ The average collection period at each of the balance sheet dates presented is 66, 69, 66 and 66 days respectively (e.g.
71/394 × 365 = 66 days). Although it may be realistic to assume that the current average collection period may be
maintained in future it is possible that it could deteriorate if, for example, new customers taken on to launch the new
product are not as credit worthy as the existing customer base.
■ The number of days sales in inventory at each balance sheet date is 66, 88, 66 and 65 days respectively (e.g. 50/278
× 365 = 66 days). The reason for the increase to 88 at the end of the first quarter must be established and
management’s assertion that 66 days will be re-established as the ‘norm’ corroborated.
■ As the $42,000 movement on retained earnings from 2007 to 2008 is the earnings before income tax for 2008 it may
be that there is no tax in 2008 or that tax effects have not been forecast. (However, some deferred tax effect might be
expected if the investment in new plant and equipment is likely to attract accelerated capital allowances.)