(c) Identify and evaluate other strategic options ONA could consider to address the airline’s current financial and
operational weaknesses.
Note: requirement (c) includes 2 professional marks (10 marks)
第1题:
(b) Both divisions have recognised the need for a strategic alliance to help them achieve a successful entry into
European markets.
Critically evaluate the advantages and disadvantages of the divisions using strategic alliances to develop their
respective businesses in Europe. (15 marks)
第2题:
(b) Assess the likely strategic impact of the new customer delivery system on Supaserve’s activities and its ability
to differentiate itself from its competitors. (10 marks)
第3题:
(c) Discuss how the manipulation of financial statements by company accountants is inconsistent with their
responsibilities as members of the accounting profession setting out the distinguishing features of a
profession and the privileges that society gives to a profession. (Your answer should include reference to the
above scenario.) (7 marks)
Note: requirement (c) includes 2 marks for the quality of the discussion.
第4题:
(b) Discuss the relative costs to the preparer and benefits to the users of financial statements of increased
disclosure of information in financial statements. (14 marks)
Quality of discussion and reasoning. (2 marks)
第5题:
(c) Critically evaluate Vincent Viola’s view that corporate governance provisions should vary by country.
(8 marks)
第6题:
(c) Comment on four reasons why the Managing Director of Quicklink Ltd might consider the acquisition of the
Celer Transport business to be a ‘good strategic move’ insofar as may be determined from the information
provided. (5 marks)
第7题:
Note: requirement (a) includes 4 professional marks.
A central feature of the performance measurement system at TSC is the widespread use of league tables that display
each depot’s performance relative to one another.
Required:
(b) Evaluate the potential benefits and problems associated with the use of ‘league tables’ as a means of
measuring performance. (6 marks)
第8题:
(c) Your firm has provided financial advice to the Pholey family for many years and this has sometimes involved your
firm in carrying out transactions on their behalf. The eldest son, Esau, is to take up a position as a senior
government 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 what
action, if any, Dedza should now take.
NOTE: The mark allocation is shown against each of the three situations
第9题:
4 (a) The purpose of ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements is to
establish standards and provide guidance on the auditor’s responsibility to consider laws and regulations in an
audit of financial statements.
Explain the auditor’s responsibilities for reporting non-compliance that comes to the auditor’s attention
during the conduct of an audit. (5 marks)
第10题:
(b) With reference to CF Co, explain the ethical and other professional issues raised. (9 marks)
第11题:
A new internal auditor, Daisy Rosepetal, has recently joined Bluebell Co. She has been asked by management to
establish and to monitor a variety of social and environmental Key Performance Indicators (KPIs). Daisy has no
experience in this area, and has asked you for some advice. It has been agreed with Bluebell Co’s audit committee
that you are to provide guidance to Daisy to help her in this part of her role, and that this does not impair the
objectivity of the audit.
(c) Recommend EIGHT KPIs which could be used to monitor Bluebell Co’s social and environmental
performance, and outline the nature of evidence that should be available to provide assurance on the
accuracy of the KPIs recommended. Your answer should be in the form. of briefing notes to be used at a
meeting with Daisy Rosepetal. (10 marks)
Note: requirement (c) includes 2 professional marks.
第12题:
(c) Prepare briefing notes, to be used by an audit partner in your firm, assessing the professional, ethical and
other issues to be considered in deciding whether to proceed with the appointment as auditor of Medix Co.
Note: requirement (c) includes 2 professional marks. (12 marks)
第13题:
(c) What changes to Churchill’s existing marketing mix will be needed to achieve the three strategic goals?
(15 marks)
第14题:
(c) Discuss the ethical and social responsibilities of the Beth Group and whether a change in the ethical and
social attitudes of the management could improve business performance. (7 marks)
Note: requirement (c) includes 2 professional marks for development of the discussion of the ethical and social
responsibilities of the Beth Group.
第15题:
(b) Discuss how management’s judgement and the financial reporting infrastructure of a country can have a
significant impact on financial statements prepared under IFRS. (6 marks)
Appropriateness and quality of discussion. (2 marks)
第16题:
(d) Draft a letter for Tim Blake to send to WM’s investors to include the following:
(i) why you believe robust internal controls to be important; and
(ii) proposals on how internal systems might be improved in the light of the overestimation of mallerite at
WM.
Note: four professional marks are available within the marks allocated to requirement (d) for the structure,
content, style. and layout of the letter.
(16 marks)
You will be aware of the importance of accurate resource valuation to Worldwide Minerals (WM). Unfortunately, I have to
inform. you that the reserve of mallerite, one of our key minerals in a new area of exploration, was found to have been
overestimated after the purchase of a mine. It has been suggested that this information may have an effect on shareholder
value and so I thought it appropriate to write to inform. you of how the board intends to respond to the situation.
In particular, I would like to address two issues. It has been suggested that the overestimation arose because of issues with
the internal control systems at WM. I would firstly like to reassure you of the importance that your board places on sound
internal control systems and then I would like to highlight improvements to internal controls that we shall be implementing
to ensure that the problem should not recur.
(i) Importance of internal control
Internal control systems are essential in all public companies and Worldwide Minerals (WM) is no exception. If anything,
WM’s strategic position makes internal control even more important, operating as it does in many international situations
and dealing with minerals that must be guaranteed in terms of volume, grade and quality. Accordingly, your board
recognises that internal control underpins investor confidence. Investors have traditionally trusted WM’s management
because they have assumed it capable of managing its internal operations. This has, specifically, meant becoming aware
of and controlling known risks. Risks would not be known about and managed without adequate internal control
systems. Internal control, furthermore, helps to manage quality throughout the organisation and it provides
management with information on internal operations and compliance. These features are important in ensuring quality
at all stages in the WM value chain from the extraction of minerals to the delivery of product to our customers. Linked
to this is the importance of internal control in helping to expose and improve underperforming internal operations.
Finally, internal control systems are essential in providing information for internal and external reporting upon which, in
turn, investor confidence rests.
(ii) Proposals to improve internal systems at WM
As you may be aware, mineral estimation and measurement can be problematic, particularly in some regions. Indeed,
there are several factors that can lead to under or overestimation of reserves valuations as a result of geological survey
techniques and regional cultural/social factors. In the case of mallerite, however, the issues that have been brought to
the board’s attention are matters of internal control and it is to these that I would now like to turn.
In first instance, it is clear from the fact that the overestimate was made that we will need to audit geological reports at
an appropriate (and probably lower) level in the organisation in future.
Once a claim has been made about a given mineral resource level, especially one upon which investor returns might
depend, appropriate systems will be instituted to ask for and obtain evidence that such reserves have been correctly and
accurately quantified.
We will recognise that single and verbal source reports of reserve quantities may not necessarily be accurate. This was
one of the apparent causes of the overestimation of mallerite. A system of auditing actual reserves rather than relying
on verbal evidence will rectify this.
The purchase of any going concern business, such as the mallerite mine, is subject to due diligence. WM will be
examining its procedures in this area to ensure that they are fit for purpose in the way that they may not have been in
respect of the purchase of the mallerite mine. I will be taking all appropriate steps to ensure that all of these internal
control issues can be addressed in future.
Thank you for your continued support of Worldwide Minerals and I hope the foregoing goes some way to reassure you
that the company places the highest value on its investors and their loyalty.
Yours faithfully,
Tim Blake
Chairman
第17题:
(b) Distinguish between strategic and operational risks, and explain why the secrecy option would be a source
of strategic risk. (10 marks)
第18题:
(c) Excluding the number of complaints by patients, identify and briefly explain THREE quantitative
non-financial performance measures that could be used to assess the ‘quality of service’ provided by the
Dental Health Partnership. (3 marks)
第19题:
(ii) Compute the annual income tax saving from your recommendation in (i) above as compared with the
situation where Cindy retains both the property and the shares. Identify any other tax implications
arising from your recommendation. Your answer should consider all relevant taxes. (3 marks)
第20题:
(b) Identify and explain the financial statement risks to be taken into account in planning the final audit.
(12 marks)
第21题:
(d) Discuss the professional accountant’s liability for reporting on prospective financial information and the
measures that the professional accountant might take to reduce that liability. (6 marks)
第22题:
(c) Identify and discuss the ethical and professional matters raised at the inventory count of LA Shots Co.
(6 marks)
第23题:
(ii) Identify and explain the potential financial statement risks caused by the breach of planning regulations
discussed in the press cutting. (6 marks)