There has been significant divergence in practice over recognition of revenue mainly because International Financial Reporting Standards (IFRS) have contained limited guidance in certain areas. The International Accounting Standards Board (IASB) as a resu
题目
There has been significant divergence in practice over recognition of revenue mainly because International Financial Reporting Standards (IFRS) have contained limited guidance in certain areas. The International Accounting Standards Board (IASB) as a result of the joint project with the US Financial Accounting Standards Board (FASB) has issued IFRS 15 Revenue from Contracts with Customers. IFRS 15 sets out a five-step model, which applies to revenue earned from a contract with a customer with limited exceptions, regardless of the type of revenue transaction or the industry. Step one in the five-step model requires the identification of the contract with the customer and is critical for the purpose of applying the standard. The remaining four steps in the standard’s revenue recognition model are irrelevant if the contract does not fall within the scope of IFRS 15.
Required:
(a) (i) Discuss the criteria which must be met for a contract with a customer to fall within the scope of IFRS 15. (5 marks)
(ii) Discuss the four remaining steps which lead to revenue recognition after a contract has been identified as falling within the scope of IFRS 15. (8 marks)
(b) (i) Tang enters into a contract with a customer to sell an existing printing machine such that control of the printing machine vests with the customer in two years’ time. The contract has two payment options. The customer can pay $240,000 when the contract is signed or $300,000 in two years’ time when the customer gains control of the printing machine. The interest rate implicit in the contract is 11·8% in order to adjust for the risk involved in the delay in payment. However, Tang’s incremental borrowing rate is 5%. The customer paid $240,000 on 1 December 2014 when the contract was signed. (4 marks)
(ii) Tang enters into a contract on 1 December 2014 to construct a printing machine on a customer’s premises for a promised consideration of $1,500,000 with a bonus of $100,000 if the machine is completed within 24 months. At the inception of the contract, Tang correctly accounts for the promised bundle of goods and services as a single performance obligation in accordance with IFRS 15. At the inception of the contract, Tang expects the costs to be $800,000 and concludes that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will occur. Completion of the printing machine is highly susceptible to factors outside of Tang’s influence, mainly issues with the supply of components.
At 30 November 2015, Tang has satisfied 65% of its performance obligation on the basis of costs incurred to date and concludes that the variable consideration is still constrained in accordance with IFRS 15. However, on 4 December 2015, the contract is modified with the result that the fixed consideration and expected costs increase by $110,000 and $60,000 respectively. The time allowable for achieving the bonus is extended by six months with the result that Tang concludes that it is highly probable that the bonus will be achieved and that the contract still remains a single performance obligation. Tang has an accounting year end of 30 November. (6 marks)
Required:
Discuss how the above two contracts should be accounted for under IFRS 15. (In the case of (b)(i), the discussion should include the accounting treatment up to 30 November 2016 and in the case of (b)(ii), the accounting treatment up to 4 December 2015.)
Note: The mark allocation is shown against each of the items above.
Professional marks will be awarded in question 4 for clarity and quality of presentation. (2 marks)
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第1题：
5 Ambush, a public limited company, is assessing the impact of implementing the revised IAS39 ‘Financial Instruments:
Recognition and Measurement’. The directors realise that significant changes may occur in their accounting treatment
of financial instruments and they understand that on initial recognition any financial asset or liability can be
designated as one to be measured at fair value through profit or loss (the fair value option). However, there are certain
issues that they wish to have explained and these are set out below.
Required:
(a) Outline in a report to the directors of Ambush the following information:
(i) how financial assets and liabilities are measured and classified, briefly setting out the accounting
method used for each category. (Hedging relationships can be ignored.) (10 marks)
正确答案：5 Report to the Directors of Ambush, a public limited company
(a) The following report sets out the principal aspects of IAS 39 in the designated areas.
(i) Classification of financial instruments and their measurement
Financial assets and liabilities are initially measured at fair value which will normally be the fair value of the
consideration given or received. Transaction costs are included in the initial carrying value of the instrument unless it
is carried at ‘fair value through profit or loss’ when these costs are recognised in the income statement.
Financial assets should be classified into four categories:
(i) financial assets at fair value through profit or loss
(ii) loans and receivables
(iii) held-to-maturity investments (HTM)
(iv) available-for-sale financial assets (AFS).
The first category above has two sub categories which are ‘held for trading’ and those designated to this category at
inception/initial recognition. This latter designation is irrevocable.
Financial liabilities have two categories: those at fair value through profit or loss, and ‘other’ liabilities. As with financial
assets those liabilities designated as at fair value through profit or loss have two sub categories which are the same as
those for financial assets.
Reclassifications between categories are uncommon and restricted under IAS 39 and are prohibited into and out of the
fair value through profit or loss category. Reclassifications between AFS and HTM are possible but it is not possible from
loans and receivables to AFS. The held to maturity category is limited in its application as if the company sells or
reclassifies more than an immaterial amount of the portfolio, it is barred from using the category for at least two years.
Also all remaining HTM investments would be reclassified to AFS.
Subsequent measurement of financial assets and liabilities depends on the classification. The following tablesummarises the position:
Amortised cost is the cost of an asset or liability adjusted to achieve a constant effective interest rate over the life of the
asset or liability.
It is not possible to compute amortised cost for instruments that do not have fixed or determinable payments, such as
for equity instruments, and such instruments therefore cannot be classified into these categories.
A company must apply the effective interest rate method in the measurement of amortised cost. The effective interest
rate method determines how much interest income or interest expense should be reported in profit and loss.
For financial assets at fair value through profit or loss and financial liabilities at fair value through profit or loss, all
changes in fair value are recognised in profit or loss when they occur. This includes unrealised holding gains and losses.
For available-for-sale financial assets, unrealised holding gains and losses are deferred in reserves until they are realised
or impairment occurs. Only interest income and dividend income, impairment losses, and certain foreign currency gains
and losses are recognised in profit or loss.
Investments in unquoted equity instruments that cannot be reliably measured at fair value are subsequently measureat cost. Unrealised holding gains/losses are not normally recognised in profit/loss. -
第2题：
(b) Prepare the balance sheet of York at 31 October 2006, using International Financial Reporting Standards,
discussing the nature of the accounting treatments selected, the adjustments made and the values placed
on the items in the balance sheet. (20 marks)
正确答案：
Gow’s net assets
IAS36 ‘Impairment of Assets’, sets out the events that might indicate that an asset is impaired. These circumstances include
external events such as the decline in the market value of an asset and internal events such as a reduction in the cash flows
to be generated from an asset or cash generating unit. The loss of the only customer of a cash generating unit (power station)
would be an indication of the possible impairment of the cash generating unit. Therefore, the power station will have to be
impairment tested.
The recoverable amount will have to be determined and compared to the value given to the asset on the setting up of the
joint venture. The recoverable amount is the higher of the cash generating unit’s fair value less costs to sell, and its value-inuse.
The fair value less costs to sell will be $15 million which is the offer for the purchase of the power station ($16 million)
less the costs to sell ($1 million). The value-in-use is the discounted value of the future cash flows expected to arise from the
cash generating unit. The future dismantling costs should be provided for as it has been agreed with the government that it
will be dismantled. The cost should be included in the future cash flows for the purpose of calculating value-in-use and
provided for in the financial statements and the cost added to the property, plant and equipment ($4 million ($5m/1·064)).
The value-in-use based on a discount rate of 6 per cent is $21 million (working). Therefore, the recoverable amount is
$21 million which is higher than the carrying value of the cash generating unit ($20 million) and, therefore, the value of the
cash generating unit is not impaired when compared to the present carrying value of $20 million (value before impairment
test).
Additionally IAS39, ‘Financial Instruments: recognition and measurement’, says that an entity must assess at each balance
sheet date whether a financial asset is impaired. In this case the receivable of $7 million is likely to be impaired as Race is
going into administration. The present value of the estimated future cash flows will be calculated. Normally cash receipts from
trade receivables will not be discounted but because the amounts are not likely to be received for a year then the anticipated
cash payment is 80% of ($5 million × 1/1·06), i.e. $3·8 million. Thus a provision for the impairment of the trade receivables
of $3·2 million should be made. The intangible asset of $3 million would be valueless as the contract has been terminated.
Glass’s Net Assets
The leased property continues to be accounted for as property, plant and equipment and the carrying amount will not be
adjusted. However, the remaining useful life of the property will be revised to reflect the shorter term. Thus the property will
be depreciated at $2 million per annum over the next two years. The change to the depreciation period is applied prospectively
not retrospectively. The lease liability must be assessed under IAS39 in order to determine whether it constitutes a
de-recognition of a financial liability. As the change is a modification of the lease and not an extinguishment, the lease liability
would not be derecognised. The lease liability will be adjusted for the one off payment of $1 million and re-measured to the
present value of the revised future cash flows. That is $0·6 million/1·07 + $0·6 million/(1·07 × 1·07) i.e. $1·1 million. The
adjustment to the lease liability would normally be recognised in profit or loss but in this case it will affect the net capital
contributed by Glass.
The termination cost of the contract cannot be treated as an intangible asset. It is similar to redundancy costs paid to terminate
a contract of employment. It represents compensation for the loss of future income for the agency. Therefore it must be
removed from the balance sheet of York. The recognition criteria for an intangible asset require that there should be probable
future economic benefits flowing to York and the cost can be measured reliably. The latter criterion is met but the first criterion
is not. The cost of gaining future customers is not linked to this compensation.
IAS18 ‘Revenue’ contains a concept of a ‘multiple element’ arrangement. This is a contract which contains two or more
elements which are in substance separate and are separately identifiable. In other words, the two elements can operate
independently from each other. In this case, the contract with the overseas company has two distinct elements. There is a
contract not to supply gas to any other customer in the country and there is a contract to sell gas at fair value to the overseas
company. The contract has not been fulfilled as yet and therefore the payment of $1·5 million should not be taken to profit
or loss in its entirety at the first opportunity. The non supply of gas to customers in that country occurs over the four year
period of the contract and therefore the payment should be recognised over that period. Therefore the amount should be
shown as deferred income and not as a deduction from intangible assets. The revenue on the sale of gas will be recognised
as normal according to IAS18.
There may be an issue over the value of the net assets being contributed. The net assets contributed by Glass amount to
$21·9 million whereas those contributed by Gow only total $13·8 million after taking into account any adjustments required
by IFRS. The joint venturers have equal shareholding in York but no formal written agreements, thus problems may arise ifGlass feels that the contributions to the joint venture are unequal.
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第3题：
5 Financial statements have seen an increasing move towards the use of fair values in accounting. Advocates of ‘fair
value accounting’ believe that fair value is the most relevant measure for financial reporting whilst others believe that
historical cost provides a more useful measure.
Issues have been raised over the reliability and measurement of fair values, and over the nature of the current level
of disclosure in financial statements in this area.
Required:
(a) Discuss the problems associated with the reliability and measurement of fair values and the nature of any
additional disclosures which may be required if fair value accounting is to be used exclusively in corporate
reporting. (13 marks)
正确答案：
(a) Reliability and Measurement
Fair value can be defined as the price that would be received to sell an asset or paid to transfer a liability. The fair value can
be thought of as an ‘exit price’. A fair value measurement assumes that the transaction to sell the asset or transfer the liability
occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market
for the asset or liability which is the market in which the reporting entity would sell the asset or transfer the liability with the
price that maximises the amount that would be received or minimises the amount that would be paid. IAS39 ‘Financial
Instruments: Recognition and Measurement’ requires an entity to use the most advantageous active market in measuring the
fair value of a financial asset or liability when multiple markets exist whereas IAS41 ‘Agriculture’ requires an entity to use the
most relevant market. Thus there can be different approaches for estimating exit prices. Additionally valuation techniques and
current replacement cost could be used.
A hierarchy of fair value measurements would have to be developed in order to convey information about the nature of the
information used in creating the fair values. For example quoted prices (unadjusted) in active markets would provide better
quality information than quoted prices for similar assets and liabilities in active markets which would provide better quality
information than prices which reflect the reporting entity’s own thinking about the assumptions that market participants would
use in pricing the asset or liability. Enron made extensive use of what it called ‘mark-to-market’ accounting which was based
on valuation techniques and estimates. IFRSs currently do not have a single hierarchy that applies to all fair value measures.
Instead individual standards indicate preferences for certain inputs and measures of fair value over others, but this guidance
is not consistent among all IFRSs.
Some companies, in order to effectively manage their businesses, have already developed models for determining fair values.
Businesses manage their operations by managing risks. A risk management process often requires measurement of fair values
of contracts, financial instruments, and risk positions.
If markets were liquid and transparent for all assets and liabilities, fair value accounting clearly would give reliable information
which is useful in the decision making process. However, because many assets and liabilities do not have an active market,
the inputs and methods for estimating their fair value are more subjective and, therefore, the valuations are less reliable. Fair
value estimates can vary greatly, depending on the valuation inputs and methodology used. Where management uses
significant judgment in selecting market inputs when market prices are not available, reliability will continue to be an issue.
Management can use significant judgment in the valuation process. Management bias, whether intentional or unintentional,
may result in inappropriate fair value measurements and consequently misstatements of earnings and equity capital. Without
reliable fair value estimates, the potential for misstatements in financial statements prepared using fair value measurements
will be even greater.
Consideration must be given to revenue recognition issues in a fair value system. It must be ensured that unearned revenue
is not recognised early as it recently was by certain high-tech companies.
As the variety and complexity of financial instruments increases, so does the need for independent verification of fair value
estimates. However, verification of valuations that are not based on observable market prices is very challenging. Users of
financial statements will need to place greater emphasis on understanding how assets and liabilities are measured and how
reliable these valuations are when making decisions based on them.
Disclosure
Fair values reflect point estimates and do not result in transparent financial statements. Additional disclosures are necessary
to bring meaning to these fair value estimates. These disclosures might include key drivers affecting valuations, fair-valuerange
estimates, and confidence levels. Another important disclosure consideration relates to changes in fair value amounts.
For example, changes in fair values on securities can arise from movements in interest rates, foreign-currency rates, and credit
quality, as well as purchases and sales from the portfolio. For users to understand fair value estimates, they must be given
adequate disclosures about what factors caused the changes in fair value. It could be argued that the costs involved in
determining fair values may exceed the benefits derived therefrom. When considering how fair value information should be
presented in the financial statements, it is important to consider what type of financial information investors want. There are
indications that some investors desire both fair value information and historical cost information. One of the issues affecting
the credibility of fair value disclosures currently is that a number of companies include ‘health warnings’ with their disclosures
indicating that the information is not used by management. This language may contribute to users believing that the fair value
disclosures lack credibility.
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第4题：
(b) Prepare a consolidated statement of financial position of the Ribby Group at 31 May 2008 in accordance
with International Financial Reporting Standards. (35 marks)
正确答案：
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第5题：
4 The transition to International Financial Reporting Standards (IFRSs) involves major change for companies as IFRSs
introduce significant changes in accounting practices that were often not required by national generally accepted
accounting practice. It is important that the interpretation and application of IFRSs is consistent from country to
country. IFRSs are partly based on rules, and partly on principles and management’s judgement. Judgement is more
likely to be better used when it is based on experience of IFRSs within a sound financial reporting infrastructure. It is
hoped that national differences in accounting will be eliminated and financial statements will be consistent and
comparable worldwide.
Required:
(a) Discuss how the changes in accounting practices on transition to IFRSs and choice in the application of
individual IFRSs could lead to inconsistency between the financial statements of companies. (17 marks)
正确答案：
(a) The transition to International Financial Reporting Standards (IFRS) involves major change for companies as IFRS introduces
significant changes in accounting practices that often were not required by national GAAPs. For example financial instruments
and share-based payment plans in many instances have appeared on the statements of financial position of companies for
the first time. As a result IFRS financial statements are often significantly more complex than financial statements based on
national GAAP. This complexity is caused by the more extensive recognition and measurement rules in IFRS and a greater
number of disclosure requirements. Because of this complexity, it can be difficult for users of financial statements which have
been produced using IFRS to understand and interpret them, and thus can lead to inconsistency of interpretation of those
financial statements.
The form. and presentation of financial statements is dealt with by IAS1 ‘Presentation of Financial Statements’. This standard
sets out alternative forms or presentations of financial statements. Additionally local legislation often requires supplementary
information to be disclosed in financial statements, and best practice as to the form. or presentation of financial statements
has yet to emerge internationally. As a result companies moving to IFRS have tended to adopt IFRS in a way which minimises
the change in the form. of financial reporting that was applied under national GAAP. For example UK companies have tended
to present a statement of recognised income and expense, and a separate statement of changes in equity whilst French
companies tend to present a single statement of changes in equity.
It is possible to interpret standards in different ways and in some standards there is insufficient guidance. For example there
are different acceptable methods of classifying financial assets under IAS39 ‘Financial Instruments: Recognition and
Measurement’ in the statement of financial position as at fair value through profit or loss (subject to certain conditions) or
available for sale.
IFRSs are not based on a consistent set of principles, and there are conceptual inconsistencies within and between standards.
Certain standards allow alternative accounting treatments, and this is a further source of inconsistency amongst financial
statements. IAS31 ‘Interests in Joint Ventures’ allows interests in jointly controlled entities to be accounted for using the equity
method or proportionate consolidation. Companies may tend to use the method which was used under national GAAP.
Another example of choice in accounting methods under IFRS is IAS16 ‘Property, Plant and equipment’ where the cost or
revaluation model can be used for a class of property, plant and equipment. Also there is very little industry related accounting
guidance in IFRS. As a result judgement plays an important role in the selection of accounting policies. In certain specific
areas this can lead to a degree of inconsistency and lack of comparability.
IFRS1, ‘First time Adoption of International Financial Reporting Standards’, allows companies to use a number of exemptions
from the requirements of IFRS. These exemptions can affect financial statements for several years. For example, companies
can elect to recognise all cumulative actuarial gains and losses relating to post-employment benefits at the date of transition
to IFRS but use the ‘corridor’ approach thereafter. Thus the effect of being able to use a ‘one off write off’ of any actuarial
losses could benefit future financial statements significantly, and affect comparability. Additionally after utilising the above
exemption, companies can elect to recognise subsequent gains and losses outside profit or loss in ‘other comprehensive
income’ in the period in which they occur and not use the ‘corridor’ approach thus affecting comparability further.
Additionally IAS18 ‘Revenue’ allows variations in the way revenue is recognised. There is no specific guidance in IFRS on
revenue arrangements with multiple deliverables. Transactions have to be analysed in accordance with their economic
substance but there is often no more guidance than this in IFRS. The identification of the functional currency under IAS21,
‘The effects of changes in foreign exchange rates’, can be subjective. For example the functional currency can be determined
by the currency in which the commodities that a company produces are commonly traded, or the currency which influences
its operating costs, and both can be different.
Another source of inconsistency is the adoption of new standards and interpretations earlier than the due date of application
of the standard. With the IASB currently preparing to issue standards with an adoption date of 1 January 2009, early adoption
or lack of it could affect comparability although IAS8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’
requires a company to disclose the possible impact of a new standard on its initial application. Many companies make very
little reference to the future impact of new standards. -
第6题：
19 Which of the following statements about intangible assets in company financial statements are correct according
to international accounting standards?
1 Internally generated goodwill should not be capitalised.
2 Purchased goodwill should normally be amortised through the income statement.
3 Development expenditure must be capitalised if certain conditions are met.
A 1 and 3 only
B 1 and 2 only
C 2 and 3 only
D All three statements are correct
正确答案：A
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第7题：
2 Plaza, a limited liability company, is a major food retailer. Further to the success of its national supermarkets in the
late 1990s it has extended its operations throughout Europe and most recently to Asia, where it is expanding rapidly.
You are a manager in Andando, a firm of Chartered Certified Accountants. You have been approached by Duncan
Seymour, the chief finance officer of Plaza, to advise on a bid that Plaza is proposing to make for the purchase of
MCM. You have ascertained the following from a briefing note received from Duncan.
MCM provides training in management, communications and marketing to a wide range of corporate clients, including
multi-nationals. The ‘MCM’ name is well regarded in its areas of expertise. MCM is currently wholly-owned by
Frontiers, an international publisher of textbooks, whose shares are quoted on a recognised stock exchange. MCM
has a National and an International business.
The National business comprises 11 training centres. The audited financial statements show revenue of
$12·5 million and profit before taxation of $1·3 million for this geographic segment for the year to 31 December
2004. Most of the National business’s premises are owned or held on long leases. Trainers in the National business
are mainly full-time employees.
The International business has five training centres in Europe and Asia. For these segments, revenue amounted to
$6·3 million and profit before tax $2·4 million for the year to 31 December 2004. Most of the International business’s
premises are held on operating leases. International trade receivables at 31 December 2004 amounted to
$3·7 million. Although the International centres employ some full-time trainers, the majority of trainers provide their
services as freelance consultants.
Required:
(a) Define ‘due diligence’ and describe the nature and purpose of a due diligence review. (4 marks)
正确答案：
2 MCM
(a) Nature and purpose of a ‘due diligence’ review
■ ‘Due diligence’ may be defined as the process of systematically obtaining and assessing information in order to identify
and contain the risks associated with a transaction (e.g. buying a business) to an acceptable level.
■ The nature of such a review is therefore that it involves:
? an investigation (e.g. into a company whose equity may be sold); and
? disclosure (e.g. to a potential investor) of findings.
■ A due diligence assignment consists primarily of inquiry and analytical procedures.
Tutorial note: It will not, for example, routinely involve tests of control or substantive procedures.
* As the timescale for a due diligence review is often relatively short, but wider in scope than the financial statements
(e.g. business prospects, market valuation), there may be no expression of assurance.
■ Its purpose is to find all the facts that would be of material interest to an investor or acquirer of a business. It may not
uncover all such factors but should be designed with a reasonable expectation of so doing.
■ Professional accountants will not be held liable for non-disclosure of information that failed to be uncovered if their
review was conducted with ‘due diligence’. -
第8题：
(b) International Standards on Auditing (ISAs); and (5 marks)
正确答案：
(b) International Standards on Auditing (ISAs)
The groundwork for an international set of auditing standards began in 1969 with a number of reports published by the
Accountants International Study Group that compared the situation in Canada, the UK, and US. The establishment of the
International Accounting Standards Committee (IASC), in 1973, generated calls for a similar body to be set up for auditing.
In the late 1970s the Council of International Federation of Accountants (IFAC) created the International Auditing Practices
Committee (IAPC) as a standing committee of the IFAC Council. (Subsequently the IFAC Board.)
Tutorial note: The IFAC Council was renamed the IFAC Board in May 2000.
The first ISA was issued in 1991. The codified core set released in 1994, which has remained the series to the present day,
has been increasingly accepted by national standard setters and auditors involved in global reporting and cross-border
financing transactions.
In July 2001, IFAC sought comment on the role of IASC3 and the future of ISAs. As a result of the review, in 2002, the IAPC
was renamed the International Auditing and Assurance Standards Board (IAASB). IAASB has made available, on its website,
the full text of ISAs since 2003.
Further, the growth of non-audit assurance services has led to the development of a new framework (‘The International
Framework for Assurance Engagements’) effective for assurance reports issued on or after 1 January 2005.
The hope that the take up of ISAs should follow the lead set by International Accounting Standards (IASs), following their
endorsement by IOSCO (the International Organization of Securities Commissions), has been expressed by many professional
bodies including ACCA and FEE (the Fédération des Experts Comptables Européens). FEE has been leading the debate on
the future of ISAs in Europe since 2001.
ISAs provide for the international harmonisation of national standards and the adoption of a global framework approach. As
a member of CCAB (the Consultative Committee of Accountancy Bodies) ACCA is committed to consulting its members on
the adoption of ISAs in the UK, and working with FEE, the European Commission (EC) and others.
In response to the move in the profession, away from the ‘traditional audit risk’ model, to a business risk model, IAASB issued
ISA 315 ‘Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement,’ ISA 330 ‘The
Auditor’s Procedures in Response to Assessed Risks’ and ISA 500 (Revised) ‘Audit Evidence’. These standards (and
conforming amendments) are effective for audits of financial statements for periods beginning on or after 15 December 2004.
That is, they will be applicable to financial statements for periods beginning on or after 1 January 2005 that in the European
Economic Area (EEA) and elsewhere will be adopting International Financial Reporting Standards (IFRSs) for the first time.
The adoption of ISAs has been welcomed by professional bodies as providing a robust approach to risk, fraud and quality
control that is particularly important in the light of recent events (Enron/Worldcom/Parmalat). For example, ISA 315 provides
additional guidance on the assessment of risks of material misstatement at the financial statement level and at the assertion
level.
Tutorial note: Recent developments could validly be illustrated with reference to other standards. For example, ISA 240
(Revised) ‘The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements’ that became effective from
1 January 2005 has raised auditor awareness of earnings management and the greater need for professional skepticism.
ISA 700 (Revised) ‘The Independent Auditor’s Report on a Complete Set of General Purpose Financial Statements’ is effective
for audits of financial statements for periods beginning on or after 15 December 2005. This proposed significant changes to
the auditor’s report to help promote consistency in reporting practices worldwide.
The International Organization of Securities Commissions (IOSCO) is in discussion with IAASB about the possible
endorsement of ISAs (similar to its endorsement of IASs).
Practicing professionals must keep themselves up to date on auditing standards if they are to provide quality audits. Failure
to do so could result in negligence claims and/or disciplinary action (e.g. by ACCA’s disciplinary committee). A survey by FEE
has demonstrated that the European accountancy bodies broadly comply with ISAs. However, an earlier survey4 of IFAC
member bodies showed that 14% had some significant differences (usually relating to reporting). IFAC needs to require its
member bodies to act rather than merely encourage implementation. A set of global ethical requirements will help improve
the implementation of ISAs as well as reduce the expectation gap in performing audits of financial statements. -
第9题：
According to the passage, companies can have different classes of stock mainly because the company wants ______.
A．to keep the financial costs at a certain level
B．to still have the control over the company
C．to keep the stock price from dropping
D．to attract more capital from the public
正确答案：B
解析：文章倒数第二段提到common and preferred…in any way they want．除了普通股和优先股之外，公司可以另外设计新的类别，主要目的是为了保证通过股票对公司加以控制。 -
第10题：
Questions 76-79 refer to the following advertisement.
BONDHAM INTERNATIONAL
Bondham International, one of the leading real estate firm in the world, has been in business for over 50 years. We began our business by specializing in residential sales, primarily in Australia. Over time, our business has grown to include property rental and management services in locations throughout the world. We now sell, and manage over 15000 commercial and residential properties, and our global network includes employees in Australia, Canada, England, Kenya, and Mexico. We have won numerous industry awards, and our firm has been named one of the top ten international real estate firms by the World Association of Property Management.
In our effort to provide the highest quality service available, we have made significant investments in staff training. As a result, our sales agents offer a wealth of real estate expertise that our clients can always rely on. In addition, through market research and customer satisfaction surveys, we have been able to fulfill client expectations by consistently delivering the highest quality of service.
Whether you have interested in selling a home,
purchasing a commercial property, or simply obtaining expert real estate advice, Bondham International can respond effectively to your needs. Learn more about our firm by visiting our Website, www.bondhaminternational.co.au.
What is stated about Bondham International?A. Most of its work is done online.
B. The staff works only in Australia.
C. Its prices are the lowest in the industry.
D. It has expanded over the years.答案：D解析： -
第11题：
单选题We cannot comment on whether _____ international standards should be developed under this convention.Abinding
Bwinding
Cdecaying
Dcunning
正确答案： D解析：
句意：我们无法评论能否根据此公约制定有约束力的国际标准。binding有约束力的。winding弯曲的，蜿蜒的。decaying衰败的；腐烂的。cunning狡猾的。 -
第12题：
单选题SOLAS stands for（）Athe International Convention for the Safety of the Life at Sea
Bthe International Convention for the Prevention from ships
Cthe International Convention on Standards of Training, Certification and Watch keeping for Seafarers
Dthe International Convention for the Control and Management of Ship’s Ballast Water and Sediments
正确答案： A解析： 暂无解析 -
第13题：
5 The International Accounting Standards Board (IASB) is currently in a joint project with the Accounting Standards
Board (ASB) in the UK and the Financial Accounting Standards Board (FASB) in the USA in the area of reporting
financial performance/comprehensive income. The main focus of the project is the development of a single statement
of comprehensive income to replace the income statement and statement of changes in equity. The objective is to
analyse all income and expenses and categorise them in a way that increases users’ understanding of the results of
an entity and assists in forming expectations of future income and expenditure. There seems to be some consensus
that the performance statement should be divided into three components being the results of operating activities,
financing and treasury activities, and other gains and losses.
Required:
(a) Describe the reasons why the three accounting standards boards have decided to cooperate and produce a
single statement of financial performance. (8 marks)
正确答案：
(a) The main reasons why the three accounting standards boards have decided to come together in a joint project regarding a
single performance statement are as follows:
(i) there are many different formats and classifications used for financial statements and different time periods used for
comparative data in different countries.
(ii) there are no common definitions as regards the key elements of financial performance and no agreement on the standard
definitions of the key ratios which would then determine the nature of the information that financial statements should
provide. There has been an increase in the reporting of alternative and often inconsistent financial performance
measures that has led to confusion and often has misled users.
(iii) there has been an increase in the use of pro-forma reporting which would tend to suggest that the existing totals and
sub totals in financial statements are not being used or relied upon as much as in the past.
(iv) there are benefits in separating transactions and events that are recorded at historical cost from those recorded at fair
value. Also, the differentiation between trading and holding gains gives useful information. This ‘mixed attribute’ model
is causing concern over the effects on reported performance.
(v) there is often insufficient disaggregation of data which prevents effective financial analysis of performance.
(vi) there has been an inconsistency in the use of ‘recycling ‘in financial statements of different jurisdictions which has led
to issues of reporting gains and losses twice.
(vii) the reporting of gains and losses on financial instruments required consideration. The gains and losses may currently be
reported under several headings dependent upon the nature of the instrument.
(viii) there are many relevant items excluded from the performance statements and inappropriate items included. For example
the reporting of foreign currency gains/losses on the retranslation of the net investment in foreign operations is normally
recognised in equity in many countries and dividends proposed shown on the face of the income statement when it does
not meet the definition of a liability and is a transaction with the owners of the business and not third parties.
(ix) Information is inconsistently classified within and outside totals and subtotals. -
第14题：
5 International Financial Reporting Standards (IFRSs) are primarily designed for use by publicly listed companies and
in many countries the majority of companies using IFRSs are listed companies. In other countries IFRSs are used as
national Generally Accepted Accounting Practices (GAAP) for all companies including unlisted entities. It has been
argued that the same IFRSs should be used by all entities or alternatively a different body of standards should apply
to small and medium entities (SMEs).
Required:
(a) Discuss whether there is a need to develop a set of IFRSs specifically for SMEs. (7 marks)
正确答案：
5 (a) IFRSs were not designed specifically for listed companies. However, in many countries the main users of IFRS are listed
companies. Currently SMEs who adopt IFRS have to follow all the requirements and not all SMEs take exception to applying
IFRS because it gives their financial statements enhanced reliability, relevance and credibility, and results in fair presentation.
However, other SMEs will wish to comply with IFRS for consistency and comparability purposes within their own country and
internationally but wish to apply simplified or different standards relevant to SMEs on the grounds that some IFRS are
unnecessarily demanding and some of the information produced is not used by users of SME financial statements.
The objectives of general purpose financial statements are basically appropriate for SMEs and publicly listed companies alike.
Therefore there is an argument that there is a need for only one set of IFRS which could be used nationally and internationally.
However, some SMEs require different financial information than listed companies. For example expanded related party
disclosures may be useful as SMEs often raise capital from shareholders, directors and suppliers. Additionally directors often
offer personal assets as security for bank finance.
The cost burden of applying the full set of IFRS may not be justified on the basis of user needs. The purpose and usage of
the financial statements, and the nature of the accounting expertise available to the SME, will not be the same as for listed
companies. These circumstances themselves may provide justification for a separate set of IFRSs for SMEs. A problem which
might arise is that users become familiar with IFRS as opposed to local GAAP thus creating a two tier system which could
lead to local GAAP being seen as an inferior or even a superior set of accounting rules.
One course of action would be for GAAP for SMEs to be developed on a national basis with IFRS being focused on accounting
for listed company activities. The main issue here would be that the practices developed for SMEs may not be consistent and
may lack comparability across national boundaries. This may mean that where SMEs wish to list their shares on a capital
market, the transition to IFRSs may be difficult. It seems that national standards setters are strongly supportive of thedevelopment of IFRSs for SMEs. -
第15题：
4 The International Accounting Standards Board (IASB) has begun a joint project to revisit its conceptual framework for
financial accounting and reporting. The goals of the project are to build on the existing frameworks and converge them
into a common framework.
Required:
(a) Discuss why there is a need to develop an agreed international conceptual framework and the extent to which
an agreed international conceptual framework can be used to resolve practical accounting issues.
(13 marks)
正确答案：
(a) The IASB wish their standards to be ‘principles-based’ and in order for this to be the case, the standards must be based on
fundamental concepts. These concepts need to constitute a framework which is sound, comprehensive and internally
consistent. Without agreement on a framework, standard setting is based upon the personal conceptual frameworks of the
individual standard setters which may change as the membership of the body changes and results in standards that are not
consistent with each other. Such a framework is designed not only to assist standard setters, but also preparers of financial
statements, auditors and users.
A common goal of the IASB is to converge their standards with national standard setters. The IASB will encounter difficulties
converging their standards if decisions are based on different frameworks. The IASB has been pursuing a number of projects
that are aimed at achieving short term convergence on certain issues with national standard setters as well as major projects
with them. Convergence will be difficult if there is no consistency in the underlying framework being used.
Frameworks differ in their authoritative status. The IASB’s Framework requires management to expressly consider the
Framework if no standard or interpretation specifically applies or deals with a similar and related issue. However, certain
frameworks have a lower standing. For example, entities are not required to consider the concepts embodied in certain
national frameworks in preparing financial statements. Thus the development of an agreed framework would eliminate
differences in the authoritative standing of conceptual frameworks and lead to greater consistency in financial statements
internationally.
The existing concepts within most frameworks are quite similar. However, these concepts need revising to reflect changes in
markets, business practices and the economic environment since the concepts were developed. The existing frameworks need
developing to reflect these changes and to fill gaps in the frameworks. For example, the IASB’s Framework does not contain
a definition of the reporting entity. An agreed international framework could deal with this problem, especially if priority was
given to the issues likely to give short-term standard setting benefits.
Many standard setting bodies attempted initially to resolve accounting and reporting problems by developing accounting
standards without an accepted theoretical frame. of reference. The result has been inconsistency in the development of
standards both nationally and internationally. The frameworks were developed when several of their current standards were
in existence. In the absence of an agreed conceptual framework the same theoretical issues are revisited on several occasions
by standard setters. The result is inconsistencies and incompatible concepts. Examples of this are substance over form. and
matching versus prudence. Some standard setters such as the IASB permit two methods of accounting for the same set of
circumstances. An example is the accounting for joint ventures where the equity method and proportionate consolidation are
allowed.
Additionally there have been differences in the way that standard setters have practically used the principles in the framework.
Some national standard setters have produced a large number of highly detailed accounting rules with less emphasis on
general principles. A robust framework might reduce the need for detailed rules although some companies operate in a
different legal and statutory context than other entities. It is important that a framework must result in standards that account
appropriately for actual business practice.
An agreed framework will not solve all accounting issues, nor will it obviate the need for judgement to be exercised in resolving
accounting issues. It can provide a framework within which those judgements can be made.
A framework provides standard setters with both a foundation for setting standards, and concepts to use as tools for resolving
accounting and reporting issues. A framework provides a basic reasoning on which to consider the merits of alternatives. It
does not provide all the answers, but narrows the range of alternatives to be considered by eliminating some that are
inconsistent with it. It, thereby, contributes to greater efficiency in the standard setting process by avoiding the necessity of
having to redebate fundamental issues and facilitates any debate about specific technical issues. A framework should also
reduce political pressures in making accounting judgements. The use of a framework reduces the influence of personal biases
in accounting decisions.
However, concepts statements are by their nature very general and theoretical in their wording, which leads to alternative
conclusions being drawn. Whilst individual standards should be consistent with the Framework, in the absence of a specific
standard, it does not follow that concepts will provide practical solutions. IAS8 ‘Accounting Policies, Changes in Accounting
Estimates and Errors’ sets out a hierarchy of authoritative guidance that should be considered in the absence of a standard.
In this case, management can use its judgement in developing and applying an accounting policy, albeit by considering the
IASB framework, but can also use accounting standards issued by other bodies. Thus an international framework may nottotally provide solutions to practical accounting problems. -
第16题：
(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)
Required:
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.
正确答案：
(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. -
第17题：
4 Whilst acknowledging the importance of high quality corporate reporting, the recommendations to improve it are
sometimes questioned on the basis that the marketplace for capital can determine the nature and quality of corporate
reporting. It could be argued that additional accounting and disclosure standards would only distort a market
mechanism that already works well and would add costs to the reporting mechanism, with no apparent benefit. It
could be said that accounting standards create costly, inefficient, and unnecessary regulation. It could be argued that
increased disclosure reduces risks and offers a degree of protection to users. However, increased disclosure has several
costs to the preparer of financial statements.
Required:
(a) Explain why accounting standards are needed to help the market mechanism work effectively for the benefit
of preparers and users of corporate reports. (9 marks)
正确答案：
(a) It could be argued that the marketplace already offers powerful incentives for high-quality reporting as it rewards such by
easing or restricting access to capital or raising or lowering the cost of borrowing capital depending on the quality of the entity’s
reports. However, accounting standards play an important role in helping the market mechanism work effectively. Accounting
standards are needed because they:
– Promote a common understanding of the nature of corporate performance and this facilitates any negotiations between
users and companies about the content of financial statements. For example, many loan agreements specify that a
company provide the lender with financial statements prepared in accordance with generally accepted accounting
principles or International Financial Reporting Standards. Both the company and the lender understand the terms and
are comfortable that statements prepared according to those standards will meet certain information needs. Without
standards, the statements would be less useful to the lender, and the company and the lender would have to agree to
create some form. of acceptable standards which would be inefficient and less effective.
– Assist neutral and unbiased reporting. Companies may wish to portray their past performance and future prospects in
the most favourable light. Users are aware of this potential bias and are sceptical about the information they receive.
Standards build credibility and confidence in the capital marketplace to the benefit of both users and companies.
– Improve the comparability of information across companies and national boundaries. Without standards, there would be
little basis to compare one company with others across national boundaries which is a key feature of relevant
information.
– Create credibility in financial statements. Auditors verify that information is reported in accordance with standards and
this creates public confidence in financial statements
– Facilitate consistency of information by producing data in accordance with an agreed conceptual framework. A consistent
approach to the development and presentation of information assists users in accessing information in an efficient
manner and facilitates decision-making. -
第18题：
3 Mary Hobbes joined the board of Rosh and Company, a large retailer, as finance director earlier this year. Whilst she
was glad to have finally been given the chance to become finance director after several years as a financial
accountant, she also quickly realised that the new appointment would offer her a lot of challenges. In the first board
meeting, she realised that not only was she the only woman but she was also the youngest by many years.
Rosh was established almost 100 years ago. Members of the Rosh family have occupied senior board positions since
the outset and even after the company’s flotation 20 years ago a member of the Rosh family has either been executive
chairman or chief executive. The current longstanding chairman, Timothy Rosh, has already prepared his slightly
younger brother, Geoffrey (also a longstanding member of the board) to succeed him in two years’ time when he plans
to retire. The Rosh family, who still own 40% of the shares, consider it their right to occupy the most senior positions
in the company so have never been very active in external recruitment. They only appointed Mary because they felt
they needed a qualified accountant on the board to deal with changes in international financial reporting standards.
Several former executive members have been recruited as non-executives immediately after they retired from full-time
service. A recent death, however, has reduced the number of non-executive directors to two. These sit alongside an
executive board of seven that, apart from Mary, have all been in post for over ten years.
Mary noted that board meetings very rarely contain any significant discussion of strategy and never involve any debate
or disagreement. When she asked why this was, she was told that the directors had all known each other for so long
that they knew how each other thought. All of the other directors came from similar backgrounds, she was told, and
had worked for the company for so long that they all knew what was ‘best’ for the company in any given situation.
Mary observed that notes on strategy were not presented at board meetings and she asked Timothy Rosh whether the
existing board was fully equipped to formulate strategy in the changing world of retailing. She did not receive a reply.
Required:
(a) Explain ‘agency’ in the context of corporate governance and criticise the governance arrangements of Rosh
and Company. (12 marks)
正确答案：
(a) Defining and explaining agency
Agency is defined in relation to a principal. A principal appoints an agent to act on his or her behalf. In the case of corporate
governance, the principal is a shareholder in a joint stock company and the agents (that have an agency relationship with
principals) are the directors. The directors remain accountable to the principals for the stewardship of their investment in the
company. In the case of Rosh, 60% of the shares are owned by shareholders external to the Rosh family and the board has
agency responsibility to those shareholders.
Criticisms of Rosh’s CG arrangements
The corporate governance arrangements at Rosh and Company are far from ideal. Five points can be made based on the
evidence in the case.
There are several issues associated with the non-executive directors (NEDs) at Rosh. It is doubtful whether two NEDs are
enough to bring sufficient scrutiny to the executive board. Some corporate governance codes require half of the board of larger
companies to be non-executive and Rosh would clearly be in breach of such a requirement. Perhaps of equal concern, there
is significant doubt over the independence of the current NEDs as they were recruited from retired executive members of the
board and presumably have relationships with existing executives going back many years. Some corporate governance codes
(such as the UK Combined Code) specify that NEDs should not have worked for the company within the last five years. Again,
Rosh would be in breach of this provision.
Succession planning for senior positions in the company seems to be based on Rosh family membership rather than any
meritocratic approach to appointments (there doesn’t appear to be a nominations committee). Whilst this may have been
acceptable before the flotation when the Rosh family owned all of the shares, the flotation introduced an important need for
external scrutiny of this arrangement. The lack of NED independence makes this difficult.
There is a poor (very narrow) diversity of backgrounds among board members. Whilst diversity can bring increased conflict,
it is generally assumed that it can also stimulate discussion and debate that is often helpful.
There is a somewhat entrenched executive board and Mary is the first new appointment to the board in many years (and is
the first woman). Whilst experience is very important on a board, the appointment of new members, in addition to seeding
the board with talent for the future, can also bring fresh ideas and helpful scrutiny of existing policies.
There is no discussion of strategy and there is evidence of a lack of preparation of strategic notes to the board. The assumption
seems to be that the ‘best’ option is obvious and so there is no need for discussion and debate. Procedures for preparing
briefing notes on strategy for board meetings appear to be absent. Most corporate governance codes place the discussion and
setting of strategy as a high priority for boards and Rosh would be in breach of such a provision.
There is no evidence of training for Mary to facilitate her introduction into the organisation and its systems. Thorough training
of new members and ongoing professional development of existing members is an important component of good governance. -
第19题：
6 The explosive growth of investing and raising capital in the global markets has put new emphasis on the development
of international accounting, auditing and ethical standards. The International Federation of Accountants (IFAC) has
been at the forefront of the development of the worldwide accountancy profession through its activities in ethics,
auditing and education.
Required:
Explain the developments in each of the following areas and indicate how they affect Chartered Certified
Accountants:
(a) IFAC’s ‘Code of Ethics for Professional Accountants’; (5 marks)
正确答案：
6 DEVELOPMENTS AND CERTIFIED CHARTERED ACCOUNTANTS
Tutorial note: The answer which follows is indicative of the range of points which might be made. Other relevant material will
be given suitable credit.
(a) IFAC’s ‘Code of Ethics for Professional Accountants’
Since its issue in 1996, IFAC’s ‘Code of Ethics for Professional Accountants’ (‘The Code’) has undergone several revisions
(1996, 1998, 2001, 2004 and 2005). IFAC holds the view that due to national differences (of culture, language, legal and
social systems) the task of preparing detailed ethical requirements is primarily that of the member bodies in each country
concerned (and that they also have the responsibility to implement and enforce such requirements).
In recognizing the responsibilities of the accountancy profession, IFAC considers its own role to be in providing guidance and
promoting harmonization. IFAC has established ‘The Code’ to provide a basis on which the ethical requirements for
professional accountants in each country should be founded.
IFAC’s conceptual approach is principles-based. It provides a route to convergence that emphasises the profession’s integrity.
This approach may be summarised as:
■ identifying and evaluating circumstances and relationships that create threats (e.g. to independence); and
■ taking appropriate action to:
– eliminate these threats; or
– reduce them to an acceptable level by the application of safeguards.
If no safeguards are available to reduce a threat to an acceptable level an assurance engagement must be refused or
discontinued.
This approach was first introduced to Section 8 of The Code, on independence, and is applicable to assurance engagements
when the assurance report is dated on or after 31 December 2004.
Further to the cases of Enron, Worldcom and Parmalat, IFAC issued a revised Code in July 2005 that applies to all professional
accountants, whether in public practice, business, industry or government2.
A member body of IFAC may not apply less stringent standards than those stated in the Code. The Code is effective from
30 June 2006.
Practicing accountants and members in business must maintain the high standards of professional ethics that are expected
by their professional bodies (such as ACCA). These developments codify current best practice in the wake of the
aforementioned recent corporate scandals.
The developments in The Code have wider application in that it:
■ applies to all assurance services (not just audit);
■ considers the standpoints of the firm and of the assurance team.
Since ACCA is a member-body of IFAC the elevation of The Code to a standard will affect all Chartered Certified Accountants.
. -
第20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)
正确答案：
4 CLEEVES CO
(a) Reporting non-compliance
Non-compliance refers to acts of omission or commission by the entity being audited, either intentional or unintentional, that
are contrary to the prevailing laws or regulations.
To management
Regarding non-compliance that comes to the auditor’s attention the auditor should, as soon as practicable, either:
■ communicate with those charged with governance; or
■ obtain audit evidence that they are appropriately informed.
However, the auditor need not do so for matters that are clearly inconsequential or trivial and may reach agreement1 in
advance on the nature of such matters to be communicated.
If in the auditor’s judgment the non-compliance is believed to be intentional and material, the auditor should communicate
the finding without delay.
If the auditor suspects that members of senior management are involved in non-compliance, the auditor should report the
matter to the next higher level of authority at the entity, if it exists (e.g. an audit committee or a supervisory board). Where
no higher authority exists, or if the auditor believes that the report may not be acted upon or is unsure as to the person to
whom to report, the auditor would consider seeking legal advice.
To the users of the auditor’s report on the financial statements
If the auditor concludes that the non-compliance has a material effect on the financial statements, and has not been properly
reflected in the financial statements, the auditor expresses a qualified (i.e. ‘except for disagreement’) or an adverse opinion.
If the auditor is precluded by the entity from obtaining sufficient appropriate audit evidence to evaluate whether or not noncompliance
that may be material to the financial statements has (or is likely to have) occurred, the auditor should express a
qualified opinion or a disclaimer of opinion on the financial statements on the basis of a limitation on the scope of the audit.
Tutorial note: For example, if management denies the auditor access to information from which he would be able to assess
whether or not illegal dumping had taken place (and, if so, the extent of it).
If the auditor is unable to determine whether non-compliance has occurred because of limitations imposed by circumstances
rather than by the entity, the auditor should consider the effect on the auditor’s report.
Tutorial note: For example, if new legal requirements have been announced as effective but the detailed regulations are not
yet published.
To regulatory and enforcement authorities
The auditor’s duty of confidentiality ordinarily precludes reporting non-compliance to a third party. However, in certain
circumstances, that duty of confidentiality is overridden by statute, law or by courts of law (e.g. in some countries the auditor
is required to report non-compliance by financial institutions to the supervisory authorities). The auditor may need to seek
legal advice in such circumstances, giving due consideration to the auditor’s responsibility to the public interest. -
第21题：
The OSI(66)model, sometimes also called ISO or 7 layers reference model for communication, has been developed by the International Standards Organization in early 1980's.
A．referent
B．reference
C．referance
D．refering
正确答案：B
解析：OSI参考模型，有时也称做ISO或者7层通信参考模型，是在20世纪80年代初由国际标准化组织所认定的。 -
第22题：
单选题Failure to control the growth of international debt will also constrain living standards.Aenhance
Breinforce
Crestrain
Dstabilize
正确答案： D解析：
句意：不能控制国外债务的增加也将影响生活水平的提高。constrain的意思是“限制”。enhance提高；加强。reinforce增强，加固；stabilize稳定。 -
第23题：
单选题A ship crane which has been idle for a period of over six months shall be inspected to the same standards as a（）.Ayearly inspection
Bquarterly inspection
Cmonthly inspection
Dweekly inspection
正确答案： A解析： 暂无解析