听力原文：The financial reporting is used to provide information useful for making investment and lending decision.(2)A．The objective of financial reporting is to provide information useful for making investment and lending decisions.B．The financial reporting
题目
听力原文：The financial reporting is used to provide information useful for making investment and lending decision.
(2)
A．The objective of financial reporting is to provide information useful for making investment and lending decisions.
B．The financial reporting is useless.
C．The financial reporting can't help people to decide whether they invest on something or not.
D．The financial reporting has no objectives.
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第1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2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3题：
(b) Discuss the relative costs to the preparer and benefits to the users of financial statements of increased
disclosure of information in financial statements. (14 marks)
Quality of discussion and reasoning. (2 marks)
正确答案：
(b) Increased information disclosure benefits users by reducing the likelihood that they will misallocate their capital. This is
obviously a direct benefit to individual users of corporate reports. The disclosure reduces the risk of misallocation of capital
by enabling users to improve their assessments of a company’s prospects. This creates three important results.
(i) Users use information disclosed to increase their investment returns and by definition support the most profitable
companies which are likely to be those that contribute most to economic growth. Thus, an important benefit of
information disclosure is that it improves the effectiveness of the investment process.
(ii) The second result lies in the effect on the liquidity of the capital markets. A more liquid market assists the effective
allocation of capital by allowing users to reallocate their capital quickly. The degree of information asymmetry between
the buyer and seller and the degree of uncertainty of the buyer and the seller will affect the liquidity of the market as
lower asymmetry and less uncertainty will increase the number of transactions and make the market more liquid.
Disclosure will affect uncertainty and information asymmetry.
(iii) Information disclosure helps users understand the risk of a prospective investment. Without any information, the user
has no way of assessing a company’s prospects. Information disclosure helps investors predict a company’s prospects.
Getting a better understanding of the true risk could lower the price of capital for the company. It is difficult to prove
however that the average cost of capital is lowered by information disclosure, even though it is logically and practically
impossible to assess a company’s risk without relevant information. Lower capital costs promote investment, which can
stimulate productivity and economic growth.
However although increased information can benefit users, there are problems of understandability and information overload.
Information disclosure provides a degree of protection to users. The benefit is fairness to users and is part of corporate
accountability to society as a whole.
The main costs to the preparer of financial statements are as follows:
(i) the cost of developing and disseminating information,
(ii) the cost of possible litigation attributable to information disclosure,
(iii) the cost of competitive disadvantage attributable to disclosure.
The costs of developing and disseminating the information include those of gathering, creating and auditing the information.
Additional costs to the preparers include training costs, changes to systems (for example on moving to IFRS), and the more
complex and the greater the information provided, the more it will cost the company.
Although litigation costs are known to arise from information disclosure, it does not follow that all information disclosure leads
to litigation costs. Cases can arise from insufficient disclosure and misleading disclosure. Only the latter is normally prompted
by the presentation of information disclosure. Fuller disclosure could lead to lower costs of litigation as the stock market would
have more realistic expectations of the company’s prospects and the discrepancy between the valuation implicit in the market
price and the valuation based on a company’s financial statements would be lower. However, litigation costs do not
necessarily increase with the extent of the disclosure. Increased disclosure could reduce litigation costs.
Disclosure could weaken a company’s ability to generate future cash flows by aiding its competitors. The effect of disclosure
on competitiveness involves benefits as well as costs. Competitive disadvantage could be created if disclosure is made relating
to strategies, plans, (for example, planned product development, new market targeting) or information about operations (for
example, production-cost figures). There is a significant difference between the purpose of disclosure to users and
competitors. The purpose of disclosure to users is to help them to estimate the amount, timing, and certainty of future cash
flows. Competitors are not trying to predict a company’s future cash flows, and information of use in that context is not
necessarily of use in obtaining competitive advantage. Overlap between information designed to meet users’ needs and
information designed to further the purposes of a competitor is often coincidental. Every company that could suffer competitive
disadvantage from disclosure could gain competitive advantage from comparable disclosure by competitors. Published figures
are often aggregated with little use to competitors.
Companies bargain with suppliers and with customers, and information disclosure could give those parties an advantage in
negotiations. In such cases, the advantage would be a cost for the disclosing entity. However, the cost would be offset
whenever information disclosure was presented by both parties, each would receive an advantage and a disadvantage.
There are other criteria to consider such as whether the information to be disclosed is about the company. This is both a
benefit and a cost criterion. Users of corporate reports need company-specific data, and it is typically more costly to obtain
and present information about matters external to the company. Additionally, consideration must be given as to whether the
company is the best source for the information. It could be inefficient for a company to obtain or develop data that other, more
expert parties could develop and present or do develop at present.
There are many benefits to information disclosure and users have unmet information needs. It cannot be known with any
certainty what the optimal disclosure level is for companies. Some companies through voluntary disclosure may have
achieved their optimal level. There are no quantitative measures of how levels of disclosure stand with respect to optimal
levels. Standard setters have to make such estimates as best they can, guided by prudence, and by what evidence of benefits
and costs they can obtain. -
第4题：
3 Moffat Ltd, which commenced trading on 1 December 2002, supplies and fits tyres and exhaust pipes and services
motor vehicles at thirty locations. The directors and middle management are based at the Head Office of Moffat Ltd.
Each location has a manager who is responsible for day-to-day operations and is supported by an administrative
assistant. All other staff at each location are involved in fitting and servicing operations.
The directors of Moffat Ltd are currently preparing a financial evaluation of an investment of ￡2 million in a new IT
system for submission to its bank. They are concerned that sub-optimal decisions are being made because the current
system does not provide appropriate information throughout the organisation. They are also aware that not all of the
benefits from the proposed investment will be quantitative in nature.
Required:
(a) Explain the characteristics of THREE types of information required to assist in decision-making at different
levels of management and on differing timescales within Moffat Ltd, providing TWO examples of information
that would be appropriate to each level. (10 marks)
正确答案：
(a) The management of an organisation need to exercise control at different levels within an organisation. These levels are often
categorised as being strategic, tactical and operational. The information required by management at these levels varies in
nature and content.
Strategic information
Strategic information is required by the management of an organisation in order to enable management to take a longer term
view of the business and assess how the business may perform. during that period. The length of this longer term view will
vary from one organisation to another, being very much dependent upon the nature of the business and the ability of those
responsible for strategic direction to be able to scan the planning horizon. Strategic information tends to be holistic and
summary in nature and would be used by management when, for example, undertaking SWOT analysis. In Moffat Ltd
strategic information might relate to the development of new services such as the provision of a home-based vehicle recovery
service or the provision of twenty-four hour servicing. Other examples would relate to the threats posed by Moffat Ltd’s
competitors or assessing the potential acquisition of a tyre manufacturer in order to enhance customer value via improved
efficiency and lower costs.
Tactical information
Tactical information is required in order to facilitate management planning and control for shorter time periods than strategic
information. Such information relates to the tactics that management adopt in order to achieve a specific course of action. In
Moffat Ltd this might involve the consideration of whether to open an additional outlet in another part of the country or
whether to employ additional supervisors at each outlet in order to improve the quality of service provision to its customers.
Operational information
Operational information relates to a very short time scale and is often used to determine immediate actions by those
responsible for day-to-day management. In Moffat Ltd, the manager at each location within Moffat Ltd would require
information relating to the level of customer sales, the number of vehicles serviced and the number of complaints received
during a week. Operational information might be used within Moffat Ltd in order to determine whether staff are required to
work overtime due to an unanticipated increase in demand, or whether operatives require further training due to excessive
time being spent on servicing certain types of vehicle. -
第5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6题：
The underlying purpose of accounting is to provide ______ for decision making about an economic entity.
A．commercial information
B．financial information
C．cash position
D．income distribution
正确答案：B
解析：会计提供财务信息。underlying purpose基本宗旨。economic entity经济实体。financial information财务信息。cash position现金头寸。income distribution收入分配。 -
第7题：
听力原文：The primary objective of financial reporting is to provide information useful for making investment and lending decisions.
(6)
A．The financial reporting is to provide information for the investors and lenders only.
B．The main aim of financial reporting is to offer information useful for decision-making.
C．Investment and lending decisions can be made from the financial reporting.
D．Investment and lending decisions can not be made from the financial reporting.
正确答案：B
解析：录音单句意思为“财务报告的主要目标是为投资者和贷款者做决定提供有用信息”。 -
第8题：
听力原文：M: The primary objective of financial reporting is to provide information useful for making investment and lending decisions.
W: The information must be relevant, reliable, and comparable.
Q: What is the primary objective of financial reporting?
(15)
A．To make investment.
B．To record data.
C．To provide useful information.
D．To understand some basic accounting principles.
正确答案：C
解析：根据男士的说法，财务报告的作用在于为投资决策和筹资决策提供有用的信息。 -
第9题：
Overall objective of financial reporting is to provide financial information useful to internal users in making economic decisions.()
正确答案：错
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第10题：
According to the last paragraph，the government will__________．A.provide most students with scholarships
B.dismiss some financial aid administrators
C.stop the companies from making student loans
D.go on providing financial support for college students答案：D解析：根据第七段最后一句话中“…the government says that money will flow uninterrupted”司推断，应选D项。 -
第11题：
The IBM N series management product that will provide centralized monitoring， reporting， datamanagement with detailed asset management reports that are customizable to capture specific，relevant information and address business needs is called （）？
- A、Monitoring Manager
- B、Protection Manager
- C、Operations Manager
- D、Support Manager
正确答案:D -
第12题：
多选题What are two ways in which the Cisco Security Monitoring， Analysis， and Response System provides superior network protection？ （）Areports financial losses from attacks
Bprovidessecutiy command and control
Cprovides VPN connectivity to clients
Dexpedites reporting of incidents
Emanage rogue wireless signals
正确答案： D,A解析： 暂无解析 -
第13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：
-
第14题：
(b) Discuss how management’s judgement and the financial reporting infrastructure of a country can have a
significant impact on financial statements prepared under IFRS. (6 marks)
Appropriateness and quality of discussion. (2 marks)
正确答案：
(b) Management judgement may have a greater impact under IFRS than generally was the case under national GAAP. IFRS
utilises fair values extensively. Management have to use their judgement in selecting valuation methods and formulating
assumptions when dealing with such areas as onerous contracts, share-based payments, pensions, intangible assets acquired
in business combinations and impairment of assets. Differences in methods or assumptions can have a major impact on
amounts recognised in financial statements. IAS1 expects companies to disclose the sensitivity of carrying amounts to the
methods, assumptions and estimates underpinning their calculation where there is a significant risk of material adjustment
to their carrying amounts within the next financial year. Often management’s judgement is that there is no ‘significant risk’
and they often fail to disclose the degree of estimation or uncertainty and thus comparability is affected.
In addition to the IFRSs themselves, a sound financial reporting infrastructure is required. This implies effective corporate
governance practices, high quality auditing standards and practices, and an effective enforcement or oversight mechanism.
Therefore, consistency and comparability of IFRS financial statements will also depend on the robust nature of the other
elements of the financial reporting infrastructure.
Many preparers of financial statements will have been trained in national GAAP and may not have been trained in the
principles underlying IFRS and this can lead to unintended inconsistencies when implementing IFRS especially where the
accounting profession does not have a CPD requirement. Additionally where the regulatory system of a country is not well
developed, there may not be sufficient market information to utilise fair value measurements and thus this could lead to
hypothetical markets being created or the use of mathematical modelling which again can lead to inconsistencies because of
lack of experience in those countries of utilising these techniques. This problem applies to other assessments or estimates
relating to such things as actuarial valuations, investment property valuations, impairment testing, etc.
The transition to IFRS can bring significant improvement to the quality of financial performance and improve comparability
worldwide. However, there are issues still remaining which can lead to inconsistency and lack of comparability with those
financial statements. -
第15题：
(b) The Sarbanes-Oxley Act contains provisions for the attestation (verification) and reporting to shareholders of
internal controls over financial reporting.
Required:
Describe the typical contents of an external report on internal controls. (8 marks)
正确答案：
(b) Internal control statement
The United States Securities and Exchange Commission (SEC) guidelines are to disclose in the annual report as follows:
A statement of management’s responsibility for establishing and maintaining adequate internal control over financial reporting
for the company. This will always include the nature and extent of involvement by the chairman and chief executive, but may
also specify the other members of the board involved in the internal controls over financial reporting. The purpose is for
shareholders to be clear about who is accountable for the controls.
A statement identifying the framework used by management to evaluate the effectiveness of this internal control. This will
usually involve a description of the key metrics, measurement methods (e.g. rates of compliance, fair value measures, etc)
and tolerances allowed within these. Within a rules-based environment, these are likely to be underpinned by law.
Management’s assessment of the effectiveness of this internal control as at the end of the company’s most recent fiscal year.
This may involve reporting on rates of compliance, failures, costs, resources committed and outputs (if measurable) achieved.
A statement that its auditor has issued an attestation report on management’s assessment. Any qualification to the attestation
should be reported in this statement.
Tutorial note: guidance from other corporate governance codes is also acceptable. -
第16题：
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)
正确答案：
4 JOHNSTON CO
(a) Reporting responsibilities specific to initial engagements
For initial audit engagements, the auditor should obtain sufficient appropriate audit evidence that:
■ the opening balances do not contain misstatements that materially affect the current period’s financial statements;
■ the prior period’s closing balances have been correctly brought forward to the current period (or, where appropriate, have
been restated); and
■ appropriate accounting policies are consistently applied or changes in accounting policies have been properly accounted
for (and adequately presented and disclosed).
If the auditor is unable to obtain sufficient appropriate audit evidence concerning opening balances there will be a limitation
on the scope of the audit. The auditor’s report should include:
■ a qualified (‘except for’) opinion;
■ a disclaimer of opinion; or
■ in those jurisdictions where it is permitted, an opinion which is:
– qualified (or disclaimed) regarding the results of operations (i.e. on the income statement); and
– unqualified regarding financial position (i.e. on the balance sheet).
If the effect of a misstatement in the opening balances is not properly accounted for and adequately presented and disclosed,
the auditor should express a qualified (‘except for’ disagreement) opinion or an adverse opinion, as appropriate.
If the current period’s accounting policies have not been consistently applied in relation to opening balances and if the change
has not been properly accounted for and adequately presented and disclosed, the auditor should similarly express
disagreement (‘except for’ or adverse opinion as appropriate).
However, if a modification regarding the prior period’s financial statements remains relevant and material to the current
period’s financial statements, the auditor should modify the current auditor’s report accordingly. -
第17题：
(d) Discuss the professional accountant’s liability for reporting on prospective financial information and the
measures that the professional accountant might take to reduce that liability. (6 marks)
正确答案：
(d) Professional accountant’s liability
Liability for reporting on PFI
Independent accountants may be required to report on PFI for many reasons (e.g. to help secure a bank loan). Such forecasts
and projections are inherently unreliable. If the forecast or projection does not materialise, and the client or lenders (or
investors) consequently sustain financial loss, the accountant may face lawsuits claiming financial loss.
Courts in different jurisdictions use various criteria to define the group of persons to whom independent accountants may be
held liable for providing a report on an inaccurate forecast or projection. The most common of these are that an accountant
is liable to persons with whom there is proximity:
(i) only (i.e. the client who engaged the independent accountant);
(ii) or whose relationship with the accountant sufficiently approaches privity;
(iii) and to persons or members of a limited group of persons for whose benefit and guidance the accountant supplied the
information or knew that the recipient of the information intended to supply it;
(iv) and to persons who reasonably can be foreseen to rely on the information.
Measures to reduce liability
As significant assumptions will be essential to a reader’s understanding of a financial forecast, the independent accountant
should ensure that they are adequately disclosed and clearly stated to be the management’s responsibility. Hypothetical
assumptions should be clearly distinguished from best estimates.
The introduction to any forecast (and/or report thereon) should include a caveat that the prospective results may not be
attained. Specific and extensive warnings (‘the actual results … will vary’) and disclaimers (‘we do not express an opinion’)
may be effective in protecting an independent accountant sued for inaccuracies in forecasts or projections that they have
reported on.
Any report to a third party should state:
■ for whom it is prepared, who is entitled to rely on it (if anyone) and for what purpose;
■ that the engagement was undertaken in accordance with the engagement terms;
■ the work performed and the findings.
An independent accountant’s report should avoid inappropriate and open-ended wording, for example, ‘we certify …’ and ‘we
obtained all the explanations we considered necessary’.
Engagement terms to report on PFI should include an appropriate liability cap that is reasonable given the specific
circumstances of the engagement.
The independent accountant may be able to obtain indemnity from a client in respect of claims from third parties. Such ‘hold
harmless’ clauses obligate the client to indemnify the independent accountant from third party claims. -
第18题：
We should provide useful information for the police no matter whether there is a()or not.
A. present
B. money
C. reward
参考答案：C
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第19题：
听力原文：M: There are several reasons why careful analysis of financial statements is necessary. What are they?
W: First, financial statements are general-purpose statements. Secondly, the relationships between amounts on successive financial statements are not obvious without analysis. And thirdly, users of financial statements may be interested in seeing how well a company is performing.
Q: What are they talking about?
(17)
A．The methods of financial statements.
B．The necessity of careful analysis of financial statements
C．The relationship among financial statements.
D．The purpose of financial statements.
正确答案：B
解析：男士问的是仔细分析财务报表的必要性的理由，故B选项符合。D项说的是财务报表的目的，并非分析财务报表的目的。 -
第20题：
Before making a loan, potential lenders determine the borrower's ability to meet ______.
A．scheduled payment
B．his creditor
C．the government's requirements
D．financial information
正确答案：A
解析：creditor债权人，贷款者。 -
第21题：
Faithful representation is a fundamental characteristic of useful information within the IASB’s Conceptual framework for financial reporting.
Which of the following accounting treatments correctly applies the principle of faithful representation?
A.Reporting a transaction based on its legal status rather than its economic substance
B.Excluding a subsidiary from consolidation because its activities are not compatible with those of the rest of the group
C.Recording the whole of the net proceeds from the issue of a loan note which is potentially convertible to equity shares as debt (liability)
D.Allocating part of the sales proceeds of a motor vehicle to interest received even though it was sold with 0% (interest free) finance
正确答案：DThe substance is that there is no ‘free’ finance; its cost, as such, is built into the selling price.
-
第22题：
Which of these provide centralized reporting for the S-Series？（）
- A、 M-Series appliance
- B、 sawmill for CiscoIronPort
- C、 the built-in WSA reporting infrastructure
- D、 Cisco application control engine
正确答案:B -
第23题：
单选题Which of these provide centralized reporting for the S-Series？（）AM-Series appliance
Bsawmill for CiscoIronPort
Cthe built-in WSA reporting infrastructure
DCisco application control engine
正确答案： D解析： 暂无解析