(b) Comment on the need for ethical guidance for accountants on money laundering. (4 marks)
(ii) Comment briefly on the use of its own tree plantations as a source of raw materials by Our Timbers Ltd.(3 marks)
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(c) Explain how the introduction of an ERPS could impact on the role of management accountants. (5 marks)
(c) Assess the likely criteria which would need to be satisfied for software to be regarded as ‘quality software’.(4 marks)
(ii) Comment on the figures in the statement prepared in (a)(i) above. (4 marks)
5 You are an audit manager in Dedza, a firm of Chartered Certified Accountants. Recently, you have been assignedspecific responsibility for undertaking annual reviews of existing clients. The following situations have arisen inconnection with three client companies:(a) Dedza was appointed auditor and tax advisor to Kora Co, a limited liability company, last year and has recentlyissued an unmodified opinion on the financial statements for the year ended 30 June 2005. To your surprise,the tax authority has just launched an investigation into the affairs of Kora on suspicion of underdeclaring income.(7 marks)Required:Identify and comment on the ethical and other professional issues raised by each of these matters and state whataction, if any, Dedza should now take.NOTE: The mark allocation is shown against each of the three situations.
(b) The chief executive of Xalam Co, an exporter of specialist equipment, has asked for advice on the accountingtreatment and disclosure of payments made for security consultancy services. The payments, which aim toensure that consignments are not impounded in the destination country of a major customer, may be material tothe financial statements for the year ending 30 June 2006. Xalam does not treat these payments as taxdeductible. (4 marks)Required:Identify and comment on the ethical and other professional issues raised by each of these matters and state whataction, if any, Dedza should now take.NOTE: The mark allocation is shown against each of the three situations.
(c) Your firm has provided financial advice to the Pholey family for many years and this has sometimes involved yourfirm in carrying out transactions on their behalf. The eldest son, Esau, is to take up a position as a seniorgovernment official to a foreign country next month. (4 marks)Required:Identify and comment on the ethical and other professional issues raised by each of these matters and state whataction, if any, Dedza should now take.NOTE: The mark allocation is shown against each of the three situations
