![](https://static.youtibao.com/asksite/comm/h5/images/m_q_title.png)
(c) (i) Identify and describe FOUR quality control procedures that are applicable to the i
(c) (i) Identify and describe FOUR quality control procedures that are applicable to the individual audit
engagement; and (8 marks)
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(c) (i) Identify and describe FOUR quality control procedures that are applicable to the individual audit
engagement; and (8 marks)
(c) Identify and discuss the implications for the audit report if:
(i) the directors refuse to disclose the note; (4 marks)
A.than
B.thought of
C.considering
D.appearance
A.got to
B.had already started
C.ought to get
D.earlier
(iii) State any disadvantages to the relief in (i) that Sharon should be aware of, and identify and describe
another relief that she might use. (4 marks)
(b) Identify and discuss the appropriateness of the cost drivers of any TWO expense values in EACH of levels (i)
to (iii) above and ONE value that relates to level (iv).
In addition, suggest a likely cause of the cost driver for any ONE value in EACH of levels (i) to (iii), and
comment on possible benefits from the identification of the cause of each cost driver. (10 marks)
A.As soon as
B.showed her
C.bursted out
D.laughing
(b) (i) Advise Andrew of the income tax (IT) and capital gains tax (CGT) reliefs available on his investment in
the ordinary share capital of Scalar Limited, together with any conditions which need to be satisfied.
Your answer should clearly identify any steps that should be taken by Andrew and the other investors
to obtain the maximum relief. (13 marks)
budgeting approaches.
However, academic studies (e.g. Beyond Budgeting – Hope & Fraser) argue that the annual budget model may be
seen as (i) having a number of inherent weaknesses and (ii) acting as a barrier to the effective implementation of
alternative models for use in the accomplishment of strategic change.
Required:
(a) Identify and comment on FIVE inherent weaknesses of the annual budget model irrespective of the budgeting
approach that is applied. (8 marks)
(a) (i) Identify and explain FOUR financial statement assertions relevant to account balances at the year end; and
(ii) For each identified assertion, describe a substantive procedure relevant to the audit of year-end inventory. (8 marks)
(b) Pineapple Beach Hotel Co (Pineapple) operates a hotel providing accommodation, leisure facilities and restaurants. Its year end was 30 April 2012. You are the audit senior of Berry & Co and are currently preparing the audit programmes for the year end audit of Pineapple. You are reviewing the notes of last week’s meeting between the audit manager and finance director where two material issues were discussed.
Depreciation
Pineapple incurred significant capital expenditure during the year on updating the leisure facilities for the hotel. The finance director has proposed that the new leisure equipment should be depreciated over 10 years using the straight-line method.
Food poisoning
Pineapple’s directors received correspondence in March from a group of customers who attended a wedding at the hotel. They have alleged that they suffered severe food poisoning from food eaten at the hotel and are claiming substantial damages. Pineapple’s lawyers have received the claim and believe that the lawsuit against the company is unlikely to be successful.
Required:
Describe substantive procedures to obtain sufficient and appropriate audit evidence in relation to the above two issues.
Note: The total marks will be split equally between each issue. (8 marks)
(c) List and explain the purpose of FOUR items that should be included on every working paper prepared by the audit team. (4 marks)