正确答案： (iii) Warranty provision ■ Agree the principal assumptions in management’s estimate of liabilities under warranties to the terms of warranty as set out in contracts for sale of vehicle. For example: – the period for which warranties are given; – whether for parts replacement only or parts and labour; – exclusion clauses, perhaps for vehicles sold into a particular market, or used in a specified industry (e.g. filmmaking). ■ Agree the reasonableness of management’s assumptions in the calculation of the provision. For example, the proportion of vehicles for which claims are made within three months, three to six months, six to nine months, etc. ■ Substantiate the economic reality of the basis of management’s calculations. For example: – agree the number of vehicles sold each month to a summary sales report; – agree the calculation of average cost of a repair under warranty to job records; – test costs of repair on a sample basis (e.g. parts replaced to price lists and labour charges to hours worked (per job records) and charge-out rates). ■ Consider the reasonableness of management’s estimate by comparing: – the actual cost of after-date repairs (say for three months) against the appropriate proportion of the provision made; – current year provision per vehicle sold against prior provision per vehicle sold. ■ Assess management’s ability to make reliable estimates in this area by comparing last year’s provision with the actual repairs under warranty costs incurred during the year in respect of sales made in previous years. Tutorial note: The basis of management’s estimate may tend to overstate or understate the provision required and should be revised accordingly. ■ Agree the extent to which the provision takes account of (has been reduced by) any recourse to suppliers (e.g. in respect of faulty parts). For example: – by reviewing terms of purchases from major suppliers; – by examining records of replacement parts received free of charge.
