更多“(c) Describe the purposes for which a person specification might be used. (4 marks)”相关问题
  • 第1题:

    (b) Describe the content of a reference. (5 marks)


    正确答案:
    Part (b)
    A simple standard form. to be completed by the referee is acceptable to provide all the required details. A standard form. should
    ask about the existing job title, the main duties and responsibilities of the current job, period of employment, present pay or salary
    and the attendance record.

  • 第2题:

    (iv) how these problems might be overcome. (4 marks)


    正确答案:
    (iv) Problems with delegation can be overcome by careful selection and training, an open communication system, the establishment of an appropriate control system and a system that rewards effective delegation.

  • 第3题:

    (c) Briefly describe three advantages to Bailey’s of counselling. (3 marks)


    正确答案:
    (c) For Bailey’s the advantages of counselling as a means of understanding and addressing the problems are that it provides a confidential service to the employee to discuss problems away from and not involving management or supervision. There is no obvious human resources policy at Bailey’s and counselling provides an opportunity to develop an appropriate policy from understanding individual problems.
    This in turn will demonstrate organisational commitment to the employees that has been lacking in the past at Bailey’s and begin the process of better performance and increase in commitment.
    At another level, counselling can provide a link to other external agencies to assist with personal problems that may be deemed too specific for resolution within Bailey’s.

  • 第4题:

    4 A properly conducted appraisal interview is fundamental in ensuring the success of an organisation’s performance

    appraisal system.

    Required:

    (a) Describe three approaches to conducting the appraisal interview. (5 marks)


    正确答案:
    4 Appraisal systems are central to human resource management and understanding the difficulties of such schemes and the correct
    approach to them is necessary if the appraisal process is to be successful and worthwhile.
    (a) The manager conducting the interview might base it on one of three approaches.
    The Tell and Sell Method. The manager explains to the employee being appraised how the appraisal assessment is to be undertaken and gains acceptance of the evaluation and improvement plan from the employee. Human resource skills are important with this approach in order for the manager to be able to provide constructive criticism and to motivate the employee.
    The Tell and Listen Method. The manager invites the employee to respond to the way that the interview is to be conducted.This approach requires counselling skills and encouragement to allow the employee to participate fully in the interview. A particular feature of this approach is the encouragment of feedback from the employee.
    The Problem Solving Method. With this method the manager takes a more helpful approach and concentrates on the work problems of the employee, who is encouraged to think through his or her problems and to provide their own intrinsic motivation.

  • 第5题:

    (ii) Describe the basis for the calculation of the provision for deferred taxation on first time adoption of IFRS

    including the provision in the opening IFRS balance sheet. (4 marks)


    正确答案:
    (ii) A company has to apply IAS12 to the temporary differences between the carrying amount of the assets and liabilities in
    its opening IFRS balance sheet (1 November 2003) and their tax bases (IFRS1 ‘First time adoption of IFRS’). The
    deferred tax provision will be calculated using tax rates that have been enacted or substantially enacted by the balance
    sheet date. The carrying values of the assets and liabilities at the opening balance sheet date will be determined by
    reference to IFRS1 and will use the applicable IFRS in the first IFRS financial statements. Any adjustments required to
    the deferred tax balance will be recognised directly in retained earnings.
    Subsequent balance sheets (at 31 October 2004 and 31 October 2005) will be drawn up using the IFRS used in the
    financial statements to 31 October 2005. The deferred tax provision will be adjusted as at 31 October 2004 and thenas at 31 October 2005 to reflect the temporary differences arising at those dates.

  • 第6题:

    (ii) Describe the claim of each of the four identified stakeholders. (4 marks)


    正确答案:
    (ii) Stakeholder claims
    Four external stakeholders in the case and their claims are as follows.
    The client, i.e. the government of the East Asian country. This stakeholder wants the project completed to budget and
    on time. It may also be concerned to minimise negative publicity in respect of the construction of the dam and the
    possible negative environmental consequences.
    Stop-the-dam, the vocal and well organised pressure group. This stakeholder wants the project stopped completely,
    seemingly and slightly paradoxically, for environmental and social footprint reasons.
    First Nation, the indigenous people group currently resident on the land behind the dam that would be flooded after its
    construction. This stakeholder also wants the project stopped so they can continue to live on and farm the land.
    The banks (identified as a single group). These seem happy to lend to the project and will want it to proceed so they
    make a return on their loans commensurate with the risk of the loan. They do not want to be publicly identified as being
    associated with the Giant Dam Project.
    Shareholders. The shareholders have the right to have their investment in the company managed in such a way as to
    maximise the value of their shareholding. The shareholders seek projects providing positive NPVs within the normal
    constraints of sound risk management.
    Tutorial note: only four stakeholders need to be identified. Marks will be given for up to four relevant stakeholders
    only.

  • 第7题:

    (e) Briefly discuss FOUR initiatives that management might consider in order to further enhance profitability.

    (4 marks)


    正确答案:
    (e) In order to enhance profitability management might take the following actions:
    (i) Increase the maximum capacity of the circus.
    (ii) Undertake a detailed review of operating costs which are budgeted at £239,200,000. Such a review might identify nonvalue
    added costs which may be eliminated thereby increasing profitability.
    (iii) Enter into a strategic arrangement with large hotels and travel agencies to offer travel and accommodation inclusive
    arrangements for visitors to Cinola Island. This might help to increase the number of visitors to the zoo thereby increasing
    profits.
    (iv) Change the price structure and entitlement of tickets so that purchasers might visit Cinola Island on two separate days
    in order to attend the zoo and circus. Additional revenues would arise as a consequence of the increased number of
    visitors to the zoo, thereby increasing profitability.
    (v) Hold prize draws for free tickets to the zoo for families on an ‘all-inclusive basis’, including restaurants, photographs,
    souvenirs etc.
    N.B. Only four initiatives were required to be discussed.

  • 第8题:

    (ii) Suggest THREE other performance measures (not applied in (i)) which might be used to assess the

    customer perspective of the balanced scorecard of GER. (3 marks)


    正确答案:
    (ii) Performance measures that may be used to assess the customer perspective of the balanced scorecard of GER include
    the following:
    Lost or damaged luggage per 1,000 passengers
    Train cancellation rate
    Denied boarding rate
    Number of passenger complaints.
    Note: Only three measures were required.

  • 第9题:

    (b) Advise Maureen on deregistration for the purposes of value added tax (VAT) and any possible alternative

    strategy. (8 marks)

    An additional mark will be awarded for the effectiveness with which the information is communicated.

    (1 mark)


    正确答案:
    (b) Advice on Maureen’s VAT position
    Deregistration
    In order to voluntarily deregister for VAT you must satisfy HMRC that the value of your taxable supplies in the next twelve
    months will not exceed £62,000. You will then be deregistered with effect from the date of your request or a later date as
    agreed with HMRC.
    On deregistering you are regarded as making a supply of all stocks and equipment in respect of which input tax has been
    claimed. However, the VAT on this deemed supply need only be paid to HMRC if it exceeds £1,000.
    Once you have deregistered, you must no longer charge VAT on your sales. You will also be unable to recover the input tax
    on the costs incurred by your business. Instead, the VAT you pay on your costs will be allowable when computing your taxable
    profits.
    You should monitor your sales on a monthly basis; if your sales in a twelve-month period exceed £64,000 you must notify
    HMRC within the 30 days following the end of the twelve-month period. You will be registered from the end of the month
    following the end of the twelve-month period.
    Flat rate scheme
    Rather than deregistering you may wish to consider operating the flat rate scheme. This would reduce the amount of
    administration as you would no longer need to record and claim input tax in respect of the costs incurred by your business.
    Under the flat rate scheme you would continue to charge your customers VAT in the way that you do at the moment. You
    would then pay HMRC a fixed percentage of your VAT inclusive turnover each quarter rather than calculating output tax less
    input tax. This may be financially advantageous as compared with deregistering; I would be happy to prepare calculations for
    you if you wish.

  • 第10题:

    (c) The OECD’s Financial Action Task Force on Money Laundering (FATF) recommends preventative measures to be

    taken by independent legal professionals and accountants (including sole practitioners, partners and employed

    professionals within professional firms).

    Required:

    Describe FOUR measures that assist in preventing professional accountants from being used for money

    laundering purposes. (8 marks)


    正确答案:
    (c) Measures
    The following measures are designed to assist in preventing professional accountants from being used for money laundering
    purposes:
    ■ developing programmes against money laundering and terrorist financing;
    ■ compliance officer;
    ■ employee training programme;
    ■ customer due diligence (CDD);
    ■ establishing/enhancing record keeping systems for:
    – all transactions; and
    – the verification of clients’ identities;
    ■ reporting of suspicious transactions;
    ■ refusing to have relationships with ‘shell banks’.
    Tutorial note: Only FOUR are required.
    Developing programmes
    ■ Internal policies, procedures and controls should be established and recorded including:
    – compliance management arrangements (including appointment of a compliance officer);
    – an ongoing employee training programme;
    – an audit function to test the system.
    Compliance officer
    ■ Appointing a compliance officer having a suitable level of seniority and experience (e.g. one of the principals of an
    accountancy firm).
    ■ Making alternative arrangements (e.g. appointing a deputy) when the compliance officer is going to be unavailable for
    a period of time (as reports have to be made as soon as is reasonably practicable).
    ■ The compliance officer being made responsible for:
    – receiving and assessing money laundering reports from colleagues;
    – making reports to the FIU; and
    – ensuring that individuals are adequately trained.
    Employee training programme
    ■ Providing an employee training programme on:
    – relevant legislation (e.g. the main money laundering offences);
    – ethical guidance (e.g. ACCA’s ‘Guidance for Accountants’); and
    – the firm’s procedures to forestall and prevent money laundering.
    ■ Establishing a culture of complying with money laundering requirements.
    ■ Documenting the provision of training (to demonstrate compliance).
    ■ Training methods may effectively include:
    – attending conferences, seminars and training courses run by external organizations; and
    – participating in computer based training courses.
    Customer due diligence (CDD)
    ■ Firms should not keep anonymous accounts or accounts in obviously fictitious names.
    ■ Firms should verify the identity of their customers, when:
    – establishing business relations;
    – carrying out occasional transactions (e.g. above a designated threshold);
    – there is a suspicion of money laundering or terrorist financing; or
    – there is doubt about the reliability or adequacy of previously obtained customer identification data.
    CDD measures should include:
    ■ Identifying the customer and verifying that customer’s identity using reliable, independent source documents, data or
    information.
    Tutorial note: Similarly identify and verify the beneficial owner.
    ■ Obtaining information on the purpose and intended nature of the business relationship.
    ■ Conducting ongoing due diligence on business relationships by scrutinising transactions to ensure that they are
    consistent with the firm’s knowledge of:
    – the customer;
    – their business and risk profile;
    – the source of funds.
    Tutorial note: These requirements should apply to all new customers and existing customers on the basis of materiality and
    risk.
    Record keeping
    ■ Maintaining all client identification records together with a record of all transactions, in a full audit trail form.
    ■ Maintaining records of transactions (both domestic or international) in a readily retrievable form. for a period of at least
    five years (to facilitate swift compliance with information requests from the competent authorities).
    Tutorial note: Such records must be sufficient to permit reconstruction of individual transactions (including the
    amounts and types of currency involved, if any) so as to provide, if necessary, evidence for prosecution of criminal
    activity.
    ■ Retaining client verification records throughout the period of the relationship and for five years after termination of the
    relationship.
    ■ Making available identification data and transaction records to domestic competent authorities upon appropriate
    authority.
    ■ Applying ACCA’s Rules of Professional Conduct ‘Retention of books, files, working papers and other documents’.
    ■ Paying special attention to all complex, unusual large transactions, and all unusual patterns of transactions, which have
    no apparent economic or visible lawful purpose (in accordance with ISA 240 ‘The Auditor’s Responsibility to Consider
    Fraud in an Audit of Financial Statements ’).
    Client identification
    ■ For an individual – inspecting official documents, with a photograph, establishing the client’s full name and permanent
    address, e.g:
    – a driving licence or passport, supported by;
    – a recent utility bill.
    ■ For the entity – obtaining from the Registrar of Companies:
    – certificate of incorporation;
    – company’s registered address; and
    – a list of shareholders and directors.
    ■ Checking the names of new clients against lists of known terrorists and other sanctions information.
    ■ For trusts – ascertaining:
    – the nature and purpose of the trust;
    – the original source of funding; and
    – the identities of the trustees/controllers, principal settlers and beneficiaries.
    Suspicion reporting
    ■ Prompt reporting of suspicions to the (FIU) in a suspicious transaction report (STR).
    ■ There should be no ‘de minimis’ concessions. Reporting should be irrespective of:
    – the amount involved; or
    – whether tax matters are involved.
    Tutorial note: Attempted transactions should also be reported.
    ■ Enhancing confidentiality of the source of reports by:
    – disclosing the compliance officer only once; and
    – not naming the personnel making reports to the compliance officer.
    ■ Disclosing further information only if:
    – legally required to do so; or
    – otherwise justified, in the public interest.
    Shell banks
    Tutorial note: A ‘shell bank’ is a bank incorporated in a jurisdiction in which it has no physical presence and which is
    unaffiliated with a regulated financial group.
    ■ Firms should guard against relationships with parties that permit their accounts to be used by shell banks.

  • 第11题:

    (b) Describe the potential benefits for Hugh Co in choosing to have a financial statement audit. (4 marks)


    正确答案:
    (b) There are several benefits for Hugh Co in choosing a voluntary financial statement audit.
    An annual audit will ensure that any material mistakes made by the part-qualified accountant in preparing the year end
    financial statements will be detected. This is important as the directors will be using the year end accounts to review their
    progress in the first year of trading and will need reliable figures to assess performance. An audit will give the directors comfort
    that the financial statements are a sound basis for making business decisions.
    Accurate first year figures will also enable more effective budgeting and forecasting, which will be crucial if rapid growth is to
    be achieved.
    The auditors are likely to use the quarterly management accounts as part of normal audit procedures. The auditors will be
    able to advise Monty Parkes of any improvements that could be made to the management accounts, for example, increased
    level of detail, more frequent reporting. Better quality management accounts will help the day-to-day running of the business
    and enable a speedier response to any problems arising during the year.
    As a by-product of the audit, a management letter (report to those charged with governance) will be produced, identifying
    weaknesses and making recommendations on areas such as systems and controls which will improve the smooth running of
    the business.
    It is likely that Hugh Co will require more bank funding in order to expand, and it is likely that the bank would like to see
    audited figures for review, before deciding on further finance. It will be easier and potentially cheaper to raise finance from
    other providers with an audited set of financial statements.
    As the business deals in cash sales, and retails small, luxury items there is a high risk of theft of assets. The external audit
    can act as both a deterrent and a detective control, thus reducing the risk of fraud and resultant detrimental impact on the
    financial statements.
    Accurate financial statements will be the best basis for tax assessment and tax planning. An audit opinion will enhance the
    credibility of the figures.
    If the business grows rapidly, then it is likely that at some point in the future, the audit exemption limit will be exceeded and
    thus an audit will become mandatory.
    Choosing to have an audit from the first year of incorporation will reduce potential errors carried down to subsequent periods
    and thus avoid qualifications of opening balances.

  • 第12题:

    多选题
    Consider each of the choices separately and select all that apply.  According to the passage, which word or words might describe Rohmer’s style?
    A

    Dynamic

    B

    Dialogue-driven

    C

    Philosophical


    正确答案: A,C
    解析:
    根据“all featured his typical style and theme—long takes focused on facial features, long conversations about moral issues, temptation and its denial”可知本题选B、C两项。

  • 第13题:

    (b) Describe five major barriers to good communication. (10 marks)


    正确答案:
    Part (b):
    Barriers to communication include the personal background of the people communicating, including language differences between
    staff, management and customers. The use of jargon, especially by professional and technical staff, differences in education levels
    can be a substantial barrier throughout the organisation. Communication ‘noise’ is a barrier not always recognised. This is where
    the message is confused by extraneous matters not relevant to that particular communication. Different levels of education and
    experience can lead to different perception of individuals, leading to conflict within the organisation, between individuals and
    between departments. Similarly, another barrier often not recognised is communication overload; too much information being
    communicated at one time leading to confusion. Distances involved and the subsequent use of different communication facilities
    is a barrier, leading to misunderstandings based on problems noted above. Finally, and perhaps most importantly, distortion of the
    information transmitted.

  • 第14题:

    (b) Describe the skills that a counsellor should possess. (14 marks)


    正确答案:
    (b) It is clear that many of the problems at Bailey’s that have led to the unhappy atmosphere lend themselves to resolution through the neutral and non-judgemental approach offered by the appointment of external counsellors. The counsellor must be in a position to help the individual employee to identify problems, issues and possible solutions to the kind of problems that have manifested themselves at Bailey’s: poor production, unrest, low morale and significantly, the long tradition of poor pay that is leading to employee family problems outside the factory. There is always the danger of leading the employee, so the counsellor must adopt a passive role, show interest and encourage reflection whilst allowing the employee to lead and talk around the issues. Open questions must be used to help the employee explore ideas and feelings. The counsellor must be an active listener, speaking only to clarify issues and elicit answers when appropriate. Above all, the counsellor must be impartial and this is why Bailey’s has appointed outside counsellors.
    Counselling skills require the ability to establish rapport with the employee, to clarify and summarise as appropriate, to ask non-specific questions, use a non-directive approach, to listen and be able to discern what is meant by what the employee says. In addition, the counsellor must allow the employee to be silent if he or she wishes to be, to allow any meeting to take place at the speed of the employee and anticipate the employee’s views on the causes, which at Bailey’s are many, and to allow solutions to the problems.

  • 第15题:

    (b) Describe the advantages of external recruitment. (5 marks)


    正确答案:
    (b) External recruitment describes the situation where the organisation decides to fill a staff vacancy and recruit from outside the organisation.
    It may be essential if particular skills or expertise are not already available within the organisation and is necessary to restore depleted staffing levels or when for some reason the organisation urgently needs new employees. New staff members bring new ideas and novel approaches to the organisation and to the specific task, often providing experience and work methods from other employers.

  • 第16题:

    Explain the grounds upon which a person may be disqualified under the Company Directors Disqualification Act 1986.(10 marks)


    正确答案:

    The Company Directors Disqualification Act (CDDA) 1986 was introduced to control individuals who persistently abused the various privileges that accompany incorporation, most particularly the privilege of limited liability. The Act applies to more than just directors and the court may make an order preventing any person (without leave of the court) from being:
    (i) a director of a company;
    (ii) a liquidator or administrator of a company;
    (iii) a receiver or manager of a company’s property; or
    (iv) in any way, whether directly or indirectly, concerned with or taking part in the promotion, formation or management of a company.
    The CDDA 1986 identifies three distinct categories of conduct, which may, and in some circumstances must, lead the court to disqualify certain persons from being involved in the management of companies.
    (a) General misconduct in connection with companies
    This first category involves the following:
    (i) A conviction for an indictable offence in connection with the promotion, formation, management or liquidation of a company or with the receivership or management of a company’s property (s.2 of the CDDA 1986). The maximum period for disqualification under s.2 is five years where the order is made by a court of summary jurisdiction, and 15 years in any other case.

    (ii) Persistent breaches of companies legislation in relation to provisions which require any return, account or other document to be filed with, or notice of any matter to be given to, the registrar (s.3 of the CDDA 1986). Section 3 provides that a person is conclusively proved to be persistently in default where it is shown that, in the five years ending with the date of the application, he has been adjudged guilty of three or more defaults (s.3(2) of the CDDA 1986). This is without prejudice to proof of persistent default in any other manner. The maximum period of disqualification under this section is five years.
    (iii) Fraud in connection with winding up (s.4 of the CDDA 1986). A court may make a disqualification order if, in the course of the winding up of a company, it appears that a person:
    (1) has been guilty of an offence for which he is liable under s.993 of the CA 2006, that is, that he has knowingly been a party to the carrying on of the business of the company either with the intention of defrauding the company’s creditors or any other person or for any other fraudulent purpose; or
    (2) has otherwise been guilty, while an officer or liquidator of the company or receiver or manager of the property of the company, of any fraud in relation to the company or of any breach of his duty as such officer, liquidator, receiver or manager (s.4(1)(b) of the CDDA 1986).
    The maximum period of disqualification under this category is 15 years.(b) Disqualification for unfitness
    The second category covers:
    (i) disqualification of directors of companies which have become insolvent, who are found by the court to be unfit to be directors (s.6 of the CDDA 1986). Under s. 6, the minimum period of disqualification is two years, up to a maximum of 15 years;
    (ii) disqualification after investigation of a company under Pt XIV of the CA 1985 (it should be noted that this part of the previous Act still sets out the procedures for company investigations) (s.8 of the CDDA 1986). Once again, the maximum period of disqualification is 15 years.
    Schedule 1 to the CDDA 1986 sets out certain particulars to which the court is to have regard in deciding whether a person’s conduct as a director makes them unfit to be concerned in the management of a company. In addition, the courts have given indications as to what sort of behaviour will render a person liable to be considered unfit to act as a company director. Thus, in Re Lo-Line Electric Motors Ltd (1988), it was stated that:
    ‘Ordinary commercial misjudgment is in itself not sufficient to justify disqualification. In the normal case, the conduct complained of must display a lack of commercial probity, although . . . in an extreme case of gross negligence or total incompetence, disqualification could be appropriate.’

    (c) Other cases for disqualification
    This third category relates to:
    (i) participation in fraudulent or wrongful trading under s.213 of the Insolvency Act (IA)1986 (s.10 of the CDDA 1986);
    (ii) undischarged bankrupts acting as directors (s.11 of the CDDA 1986); and
    (iii) failure to pay under a county court administration order (s.12 of the CDDA 1986).
    For the purposes of most of the CDDA 1986, the court has discretion to make a disqualification order. Where, however, a person has been found to be an unfit director of an insolvent company, the court has a duty to make a disqualification order (s.6 of the CDDA 1986). Anyone who acts in contravention of a disqualification order is liable:
    (i) to imprisonment for up to two years and/or a fine, on conviction on indictment; or
    (ii) to imprisonment for up to six months and/or a fine not exceeding the statutory maximum, on conviction summarily (s.13 of the CDDA 1986).

  • 第17题:

    (b) Using the TARA framework, construct four possible strategies for managing the risk presented by Product 2.

    Your answer should describe each strategy and explain how each might be applied in the case.

    (10 marks)


    正确答案:
    (b) Risk management strategies and Chen Products
    Risk transference strategy
    This would involve the company accepting a portion of the risk and seeking to transfer a part to a third party. Although an
    unlikely possibility given the state of existing claims, insurance against future claims would serve to limit Chen’s potential
    losses and place a limit on its losses. Outsourcing manufacture may be a way of transferring risk if the ourtsourcee can be
    persuaded to accept some of the product liability.
    Risk avoidance strategy
    An avoidance strategy involves discontinuing the activity that is exposing the company to risk. In the case of Chen this would
    involve ceasing production of Product 2. This would be pursued if the impact (hazard) and probability of incurring an
    acceptable level of liability were both considered to be unacceptably high and there were no options for transference or
    reduction.
    Risk reduction strategy
    A risk reduction strategy involves seeking to retain a component of the risk (in order to enjoy the return assumed to be
    associated with that risk) but to reduce it and thereby limit its ability to create liability. Chen produces four products and it
    could reconfigure its production capacity to produce proportionately more of Products 1, 3 and 4 and proportionately less of
    Product 2. This would reduce Product 2 in the overall portfolio and therefore Chen’s exposure to its risks. This would need
    to be associated with instructions to other departments (e.g. sales and marketing) to similarly reconfigure activities to sell
    more of the other products and less of Product 2.
    Risk acceptance strategy
    A risk acceptance strategy involves taking limited or no action to reduce the exposure to risk and would be taken if the returns
    expected from bearing the risk were expected to be greater than the potential liabilities. The case mentions that Product 2 is
    highly profitable and it may be that the returns attainable by maintaining and even increasing Product 2’s sales are worth the
    liabilities incurred by compensation claims. This is a risk acceptance strategy.

  • 第18题:

    (ii) Briefly discuss FOUR non-financial factors which might influence the above decision. (4 marks)


    正确答案:
    (ii) Four factors that could be considered are as follows:
    (i) The quality of the service provided by NSC as evidenced by, for example, the comfort of the ferries, on-board
    facilities, friendliness and responsiveness of staff.
    (ii) The health and safety track record of NSC – passenger safety is a ‘must’ in such operations.
    (iii) The reliability, timeliness and dependability of NSC as a service provider.
    (iv) The potential loss of image due to redundancies within Wonderland plc.

  • 第19题:

    (ii) Briefly explain the extent to which the application of sensitivity analysis might be useful in deciding

    which refrigeration system to purchase and discuss the limitations inherent in its use. (3 marks)


    正确答案:
    (ii) Sensitivity analysis could be used to assess how responsive the NPV calculated in part (a) in respect of each decision
    option change is to changes in the variables used to calculate it. The application of sensitivity analysis requires that the
    net present values are calculated under alternative assumptions in order to determine how sensitive they are to changing
    conditions. In this particular example then a relatively small change in the forecast cash flows might lead to a change
    in the investment decision. The application of sensitivity analysis can indicate those variables to which the NPV is most
    sensitive and the extent to which these variables may change before an investment results in a negative NPV. Thus the
    application of sensitivity analysis may provide management with an indication of why a particular project might fail. The
    directors of Stay Cool Ltd should give consideration to the potential variations in the independent variables which feature
    in the decision-making process such as:
    – estimated revenues
    – estimated operating costs
    – estimated working lives
    – estimated repair costs
    – the estimated discount rate i.e. cost of capital of each alternative investment.
    Sensitivity analysis has some serious limitations. The use of the method requires changes in each variable under
    consideration are isolated. However management may be focused on what happens if changes occur in two or more
    critical variables. Another problem relating to the use of sensitivity analysis to forecast outcomes lies in the fact that it
    provides no indication of the likelihood of the occurrence of changes in critical variables.

  • 第20题:

    (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)


    正确答案:
    (iii) There are several disadvantages to incorporation relief as follows:
    1. The requirement to transfer all business assets to the company means that it will not be possible to leave behind
    certain assets, such as the property. This might lead to a double tax charge (sale of the property, then extraction
    of sale proceeds) at a future date.
    2. Taper relief is lost on the transfer of the business. This means that any disposal of chargeable business assets (the
    shares) within two years of the incorporation will lead to a higher chargeable gain, as the full rate of business asset
    taper relief will not be available.
    3. The relief does not eliminate the tax charge, it merely defers the payment of tax until some future event. The
    deferred gain will become taxable when Sharon sells her shares in the company.
    Gift relief could be used instead of incorporation relief. The assets would be gifted to the company for no consideration,
    with the base cost of the assets to the company being reduced by the deferred gain arising. Unlike incorporation relief,
    gift relief applies to individual assets used in a trade and not to an entire business. This is particularly useful if the
    transferor wishes to retain some assets, such as property outside the company, as not all assets have to be transferred.
    Note: If the business was non-trading, incorporation relief would still be available, but gift relief would not. However,
    this restriction should not apply to Sharon and gift relief remains an option in this case.

  • 第21题:

    (b) Describe the audit work to be performed in respect of the carrying amount of the following items in the

    balance sheet of GVF as at 30 September 2005:

    (i) goat herd; (4 marks)


    正确答案:
    (b) Audit work on carrying amounts
    Tutorial note: This part concerns audit work to be undertaken in respect of non-current tangible assets (the production
    animals in the goat herd and certain equipment) and inventories (the for-sale animals and cheese). One of the ‘tests’ for
    assessing whether or not a point is worthy of a mark will be whether or not the asset to which it relates is apparent. Points
    which are so vague that they could apply to ANY non-current asset for ANY entity, rather than those of GVF are unlikely to
    attract many marks, if any, at this level.
    (i) Goat herd
    ■ Physical inspection of the number and condition of animals in the herd and confirming, on a test basis, that they
    are tagged (or otherwise ‘branded’ as being owned by GVF).
    ■ Tests of controls on management’s system of identifying and distinguishing held-for-sale animals (inventory) from
    the production herd (depreciable non-current assets).
    ■ Comparison of GVF’s depreciation policies (including useful lives, depreciation methods and residual values) with
    those used by other farming entities.
    ■ ‘Proof in total’, or other reasonableness check, of the depreciation charge for the herd for the year.
    ■ Observing test counts or total counts of animals held for sale.
    ■ Comparing carrying amounts of the kids, according to their weight and age, as at 30 September 2005 with their
    market values. (These may approximate to actual invoiced selling prices obtained by GVF.)
    Tutorial note: Market value of the production herd could also be compared with its carrying amount to assess possible
    impairment. However, if value in use appears to be less than market value the herd should be sold rather than used
    for production.

  • 第22题:

    (ii) Describe the procedures to verify the number of serious accidents in the year ended 30 November 2007.

    (4 marks)


    正确答案:
    (ii) Procedures to verify the number of serious accidents during 2007 could include the following:
    Tutorial note: procedures should focus on the completeness of the disclosure as it is in the interest of Sci-Tech Co to
    understate the number of serious accidents.
    – Review the accident log book and count the total number of accidents during the year
    – Discuss the definition of ‘serious accident’ with the directors and clarify exactly what criteria need to be met to
    satisfy the definition
    – For serious accidents identified:
    ? review HR records to determine the amount of time taken off work
    ? review payroll records to determine the financial amount of sick pay awarded to the employee
    ? review correspondence with the employee regarding the accident.
    Tutorial note: the above will help to clarify that the accident was indeed serious.
    – Review board minutes where the increase in the number of serious accidents has been discussed
    – Review correspondence with Sci-Tech Co’s legal advisors to ascertain any legal claims made against the company
    due to accidents at work
    – Enquire as to whether any health and safety visits have been conducted during the year by regulatory bodies, and
    review any documentation or correspondence issued to Sci-Tech Co after such visits.
    Tutorial note: it is highly likely that in a regulated industry such as pharmaceutical research, any serious accident
    would trigger a health and safety inspection from the appropriate regulatory body.
    – Discuss the level of accidents with representatives of Sci-Tech Co’s employees to reach an understanding as to
    whether accidents sometimes go unreported in the accident log book.

  • 第23题:

    Electronic mail and filing permit a user to compose and transmit a message on an office(71)system. In the early 1970s, the ARPANET community developed a number of such systems which have been heavily used. Through standard message format(72), several hundred different computers and electronic mail interfaces are specification of how(73)and return addresses should appear on envelopes and which sizes are allowable for envelopes. In the electronic message world, they describe what(74)of characters are required at the(75)of a message to identify the sending and receiving mailboxes.

    A.robotization

    B.automation

    C.dynamic

    D.action


    正确答案:B