(c) During the year Albreda paid $0·1 million (2004 – $0·3 million) in fines and penalties relating to breaches ofhealth and safety regulations. These amounts have not been separately disclosed but included in cost of sales.(5 marks)Required:For each of t

题目

health and safety regulations. These amounts have not been separately disclosed but included in cost of sales.

(5 marks)

Required:

For each of the above issues:

(i) comment on the matters that you should consider; and

(ii) state the audit evidence that you should expect to find,

in undertaking your review of the audit working papers and financial statements of Albreda Co for the year ended

30 September 2005.

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

更多“(c) During the year Albreda paid $0·1 million (2004 – $0·3 million) in fines and penalties relating to breaches ofhealth and safety regulations. These amounts have not been separately disclosed but included in cost of sales.(5 marks)Required:For each of t”相关问题

第1题

(b) The marketing director of CTC has suggested the introduction of a new toy ‘Nellie the Elephant’ for which thefollowing estimated information is available:1. Sales volumes and selling prices per unitYear ending, 31 May 2009 2010 2011Sales units (000) 80 180 100Selling price per unit ($) 50 50 502. Nellie will generate a contribution to sales ratio of 50% throughout the three year period.3. Product specific fixed overheads during the year ending 31 May 2009 are estimated to be $1·6 million. Itis anticipated that these fixed overheads would decrease by 10% per annum during each of the years ending31 May 2010 and 31 May 2011.4. Capital investment amounting to $3·9 million would be required in June 2008. The investment would haveno residual value at 31 May 2011.5. Additional working capital of $500,000 would be required in June 2008. A further $200,000 would berequired on 31 May 2009. These amounts would be recovered in full at the end of the three year period.6. The cost of capital is expected to be 12% per annum.Assume all cash flows (other than where stated) arise at the end of the year.Required:(i) Determine whether the new product is viable purely on financial grounds. (4 marks)

点击查看答案
第2题

3 You are the manager responsible for the audit of Albreda Co, a limited liability company, and its subsidiaries. Thegroup mainly operates a chain of national restaurants and provides vending and other catering services to corporateclients. All restaurants offer ‘eat-in’, ‘take-away’ and ‘home delivery’ services. The draft consolidated financialstatements for the year ended 30 September 2005 show revenue of $42·2 million (2004 – $41·8 million), profitbefore taxation of $1·8 million (2004 – $2·2 million) and total assets of $30·7 million (2004 – $23·4 million).The following issues arising during the final audit have been noted on a schedule of points for your attention:(a) In September 2005 the management board announced plans to cease offering ‘home delivery’ services from theend of the month. These sales amounted to $0·6 million for the year to 30 September 2005 (2004 – $0·8million). A provision of $0·2 million has been made as at 30 September 2005 for the compensation of redundantemployees (mainly drivers). Delivery vehicles have been classified as non-current assets held for sale as at 30September 2005 and measured at fair value less costs to sell, $0·8 million (carrying amount,$0·5 million). (8 marks)Required:For each of the above issues:(i) comment on the matters that you should consider; and(ii) state the audit evidence that you should expect to find,in undertaking your review of the audit working papers and financial statements of Albreda Co for the year ended30 September 2005.NOTE: The mark allocation is shown against each of the three issues.

点击查看答案
第3题

(b) Historically, all owned premises have been measured at cost depreciated over 10 to 50 years. The managementboard has decided to revalue these premises for the year ended 30 September 2005. At the balance sheet datetwo properties had been revalued by a total of $1·7 million. Another 15 properties have since been revalued by$5·4 million and there remain a further three properties which are expected to be revalued during 2006. Arevaluation surplus of $7·1 million has been credited to equity. (7 marks)Required:For each of the above issues:(i) comment on the matters that you should consider; and(ii) state the audit evidence that you should expect to find,in undertaking your review of the audit working papers and financial statements of Albreda Co for the year ended30 September 2005.NOTE: The mark allocation is shown against each of the three issues.

点击查看答案
第4题

3 You are the manager responsible for the audit of Volcan, a long-established limited liability company. Volcan operatesa national supermarket chain of 23 stores, five of which are in the capital city, Urvina. All the stores are managed inthe same way with purchases being made through Volcan’s central buying department and product pricing, marketing,advertising and human resources policies being decided centrally. The draft financial statements for the year ended31 March 2005 show revenue of $303 million (2004 – $282 million), profit before taxation of $9·5 million (2004– $7·3 million) and total assets of $178 million (2004 – $173 million).The following issues arising during the final audit have been noted on a schedule of points for your attention:(a) On 1 May 2005, Volcan announced its intention to downsize one of the stores in Urvina from a supermarket toa ‘City Metro’ in response to a significant decline in the demand for supermarket-style. shopping in the capital.The store will be closed throughout June, re-opening on 1 July 2005. Goodwill of $5·5 million was recognisedthree years ago when this store, together with two others, was bought from a national competitor. It is Volcan’spolicy to write off goodwill over five years. (7 marks)Required:For each of the above issues:(i) comment on the matters that you should consider; and(ii) state the audit evidence that you should expect to find,in undertaking your review of the audit working papers and financial statements of Volcan for the year ended31 March 2005.NOTE: The mark allocation is shown against each of the three issues.

点击查看答案
第5题

3 You are the manager responsible for the audit of Keffler Co, a private limited company engaged in the manufacture ofplastic products. The draft financial statements for the year ended 31 March 2006 show revenue of $47·4 million(2005 – $43·9 million), profit before taxation of $2 million (2005 – $2·4 million) and total assets of $33·8 million(2005 – $25·7 million).The following issues arising during the final audit have been noted on a schedule of points for your attention:(a) In April 2005, Keffler bought the right to use a landfill site for a period of 15 years for $1·1 million. Kefflerexpects that the amount of waste that it will need to dump will increase annually and that the site will becompletely filled after just ten years. Keffler has charged the following amounts to the income statement for theyear to 31 March 2006:– $20,000 licence amortisation calculated on a sum-of-digits basis to increase the charge over the useful lifeof the site; and– $100,000 annual provision for restoring the land in 15 years’ time. (9 marks)Required:For each of the above issues:(i) comment on the matters that you should consider; and(ii) state the audit evidence that you should expect to find,in undertaking your review of the audit working papers and financial statements of Keffler Co for the year ended31 March 2006.NOTE: The mark allocation is shown against each of the three issues.

点击查看答案
第6题

(b) A sale of industrial equipment to Deakin Co in May 2005 resulted in a loss on disposal of $0·3 million that hasbeen separately disclosed on the face of the income statement. The equipment cost $1·2 million when it waspurchased in April 1996 and was being depreciated on a straight-line basis over 20 years. (6 marks)Required:For each of the above issues:(i) comment on the matters that you should consider; and(ii) state the audit evidence that you should expect to find,in undertaking your review of the audit working papers and financial statements of Keffler Co for the year ended31 March 2006.NOTE: The mark allocation is shown against each of the three issues.

点击查看答案
第7题

(c) In April 2006, Keffler was banned by the local government from emptying waste water into a river because thewater did not meet minimum standards of cleanliness. Keffler has made a provision of $0·9 million for thetechnological upgrading of its water purifying process and included $45,000 for the penalties imposed in ‘otherprovisions’. (5 marks)Required:For each of the above issues:(i) comment on the matters that you should consider; and(ii) state the audit evidence that you should expect to find,in undertaking your review of the audit working papers and financial statements of Keffler Co for the year ended31 March 2006.NOTE: The mark allocation is shown against each of the three issues.

点击查看答案

(c) During the year Albreda paid $0·1 million (2004 – $0·3 million) in fines and penalties relating to breaches ofhealth and safety regulations. These amounts have not been separately disclosed but included in cost of sales.(5 marks)Required:For each of t

题目

更多“(c) During the year Albreda paid $0·1 million (2004 – $0·3 million) in fines and penalties relating to breaches ofhealth and safety regulations. These amounts have not been separately disclosed but included in cost of sales.(5 marks)Required:For each of t”相关问题

第1题

第2题

第3题

第4题

第5题

第6题

第7题

相关内容