Prior to the late 1880s, most of us were so busy _____ to make a living that we didn’t care what the other people were doing.
A.struggle
B.playing
C.trying
D.to try
A.struggle
B.playing
C.trying
D.to try
In certain circumstances an individual is automatically not resident in the UK.
Which of the following two individuals, if either, is automatically not resident in the UK for the tax year 2015–16?
Eric, who has never previously been resident in the UK. In the tax year 2015–16, he was in the UK for 40 days.
Fran, who was resident in the UK for the two tax years prior to the tax year 2015–16. In the tax year 2015–16, she was in the UK for 18 days.
A.Eric only
B.Fran only
C.Both Eric and Fran
D.Neither Eric nor Fran
Sunflower Stores Co (Sunflower) operates 25 food supermarkets. The company’s year end is 31 December 2012. The audit manager and partner recently attended a planning meeting with the finance director and have provided you with the planning notes below.
You are the audit senior, and this is your first year on this audit. In order to familiarise yourself with Sunflower, the audit manager has asked you to undertake some research in order to gain an understanding of Sunflower, so that you are able to assist in the planning process. He has then asked that you identify relevant audit risks from the notes below and also consider how the team should respond to these risks.
Sunflower has spent $1·6 million in refurbishing all of its supermarkets; as part of this refurbishment programme their central warehouse has been extended and a smaller warehouse, which was only occasionally used, has been disposed of at a profit. In order to finance this refurbishment, a sum of $1·5 million was borrowed from the bank. This is due to be repaid over five years.
The company will be performing a year-end inventory count at the central warehouse as well as at all 25 supermarkets on 31 December. Inventory is valued at selling price less an average profit margin as the finance director believes that this is a close approximation to cost.
Prior to 2012, each of the supermarkets maintained their own financial records and submitted returns monthly to head office. During 2012 all accounting records have been centralised within head office. Therefore at the beginning of the year, each supermarket’s opening balances were transferred into head office’s accounting records. The increased workload at head office has led to some changes in the finance department and in November 2012 the financial controller left. His replacement will start in late December.
Required:
(a) List FIVE sources of information that would be of use in gaining an understanding of Sunflower Stores Co, and for each source describe what you would expect to obtain. (5 marks)
(b) Using the information provided, describe FIVE audit risks and explain the auditor’s response to each risk in planning the audit of Sunflower Stores Co. (10 marks)
(c) The finance director of Sunflower Stores Co is considering establishing an internal audit department. Required: Describe the factors the finance director should consider before establishing an internal audit department. (5 marks)
A.They may look to all other parties prior to the qualified endorser.
B.They may look to all other parties prior to the qualified endorser.
C.They may look to all other parties prior to the immediate endorsee.
D.They may look to all other parties prior to the immediate endorsee.
A.prior to
B. proportional to
C. parallel to
D. similar to
A.basis
B.basic
C.base
D.based
The use of sinking and dispersing chemical agents for removal of surface oil is ______.
A.the most common method used in the United States
B.too expensive for common use
C.generally safe to sea life
D.authorized only with prior approval of the Federal On-Scene Coordinator
4 (a) The purpose of ISA 510 ‘Initial Engagements – Opening Balances’ is to establish standards and provide guidance
regarding opening balances when the financial statements are audited for the first time or when the financial
statements for the prior period were audited by another auditor.
Required:
Explain the auditor’s reporting responsibilities that are specific to initial engagements. (5 marks)
A.Providing a guarantee to its subsidiaries
B.Giving up the creditor’s rights
C.Trading with its connected enterprises
It’s never .
A.late enough to learn
B.not late enough to learn
C.too late to learn
D.so late as not learn
You will be late ______ you leave immediately.
A.unless
B.until
C.if
D.or
It ______now pretty late, we took our candles and retired.
A.being
B.facing
C.turned
D.got