SECTION A CASE QUESTIONS (Total: 50 marks)
|
|
- Dayna Ferguson
- 6 years ago
- Views:
Transcription
1 SECTION A CASE QUESTIONS (Total: 50 marks) Answer ALL of the following questions. Marks will be awarded for logical argumentation and appropriate presentation of the answers. CASE Background Angel Limited ( Angel ) is an integrated fine jewellery manufacturer and original design provider with a well-established operating history in Hong Kong. Angel is primarily engaged in designing, manufacturing and trading of jewellery products. The company has its financial year end at 31 December. Angel offers a wide range of fine jewellery products in karat gold, including rings, earrings, pendants, necklaces, bracelets, bangles, cufflinks, brooches and anklets. Angel s customers are mainly wholesalers and retailers of jewellery products. Since 2013, Angel has started operating its own retail chain stores in Hong Kong selling its own jewellery products. Angel s major suppliers include suppliers of raw materials and processing services. The principal raw materials purchased by Angel are gold, diamonds and gem stones. Angel engages sub-contractors with jewellery manufacturing facilities to handle certain steps of the production process such as casting, filing, stone setting, polishing and electroplating. Semi-finished products are sent back to Angel s production facilities located in Hong Kong for the final processing. Organisation structure of Angel Limited The organisation chart of Angel Limited is set out below: Angel Limited Subsidiary A ( Sub A ) (Wholesale) Subsidiary B ( Sub B ) (Manufacturing) Subsidiary C ( Sub C ) (Retail) Module C (December 2015 Session) Page 1 of 9
2 Angel has three wholly-owned subsidiaries namely A, B and C (represented as Sub A, Sub B and Sub C respectively) which are all incorporated in Hong Kong. Angel and its subsidiaries hereafter are collectively referred to as the Angel Group. Angel is an investment holding company but also responsible for product design. It has a team of designers who undertake research and provide their own designs for fine jewellery products. During 2015, Angel was successfully listed on the Hong Kong Stock Exchange. After listing, approximately 65% of its shares are owned by the An family. The control environment of Angel is similar to other small and medium-sized entities ( SMEs ) where a lot of Angel s activities are controlled by a few family members of the controlling shareholders. Activities engaged in by the subsidiaries Sub A Wholesale Sub A is responsible for the sales and marketing activities and sells goods to external customers and Sub C. It sources supplies from Sub B solely. Sub A will place a production order to Sub B to commence the production. When production is completed, Sub A will purchase the finished goods from Sub B and arrange sales and delivery of the finished goods to the respective customers. The gross margin that Sub A normally earns ranges from 15% to 30%. Sub A will not keep any inventory except when the goods are in transit during delivery to the customers. Sub B Manufacturing Sub B has only one customer, which is Sub A. Each sales order is assigned with a production order. When a production order is received, Sub B will commence the production plan comprising raw materials sourcing and job order scheduling. Sub B will then engage the third party sub-contractors in Shenzhen China to provide the sub-processing services. Once completed, the semi-finished goods will be sent back to Sub B in Hong Kong for the final production process. Sub B will sell the finished goods to Sub A. Sub B will charge Sub A at a mark-up of 10% based on the related costs incurred. Sub B keeps a significant amount of inventories which comprises raw materials, work-in progress, and finished goods. Sub C Retail Sub C operates a few chain stores in Hong Kong. The majority of its customers are tourists. Sub C only sells Angel s own products, accordingly it sources jewellery products from Sub A solely. The normal gross margin that Sub C can earn ranges from 50% to 60%. However, Sub C has incurred a significant amount of selling and promotional expenses which resulted in a net profit margin of 15% during recent years. Module C (December 2015 Session) Page 2 of 9
3 Extracted financial information of Angel Group for the years ended 31 December 2014 and 2015 and as at those dates: HK$ million (Unaudited) (Audited) Revenue Gross margin ( GP ) Profit before tax Net profit (note 1) GP% (GP/Revenue) 35% 28% Net profit/revenue% 15% 12% Trade receivables Inventories (note 2) Total assets Net assets Notes: 1. Net profit in 2015 was mainly contributed by Sub A (80%) from the sales of jewellery products to third party wholesalers and retailers, and Sub C (20%) from the retail sales in Hong Kong. 2. Inventories as at the end of 2015 mainly comprised raw materials including gold, diamonds, and gem stones, work-in-progress (i.e. semi-finished jewellery products) and finished goods. Approximately 70% of the inventories were kept by Sub B which were located at its warehouse and sub-contractors premises. The remaining 30% of the inventories were kept by Sub C which were located at its retail stores. Recent economic environment Towards the end of 2015, the government announced that the total number of tourists visiting Hong Kong had dropped by 8% when compared to the previous year. This affected the overall performance of the retailing business in Hong Kong. Scope of engagement You were the audit engagement partner of Angel for the financial year ended 31 December After Angel became a listed company, you continue to act as Angel s audit engagement partner. You are now required to perform the audit of Angel s consolidated financial statements for the financial year ended 31 December Module C (December 2015 Session) Page 3 of 9
4 Question 1 (12 marks approximately 22 minutes) Assess the risks of material misstatements at the financial statement level. You should write down the specific circumstances of Angel that you have considered and your judgment about the overall risk at the financial statement level. (8 marks) Your audit engagement manager has consulted you as to which one of the following methods to determine the materiality of Angel s financial statements is appropriate. Advise and explain to your audit engagement manager which method should be adopted. (i) (ii) Total assets (HK$300 million) x 0.5% = HK$1.5 million; or Profit before tax (HK$90 million) x 5% = HK$4.5 million. (4 marks) Question 2 (16 marks approximately 28 minutes) Angel s accounting policy for inventories is that inventories are stated at the lower of cost and net realisable value. Cost is determined on the first-in-first-out basis and in the case of work-in-progress and finished goods, comprises direct materials, direct labour and an appropriate proportion of overheads. Net realisable value is based on estimated selling prices less any estimated costs to be incurred to completion or disposal. Angel captures the related direct and overhead costs incurred for each of the production orders. No standard costing has been applied. Evaluate and explain the risks of material misstatements relating to the valuation assertion of Angel Group s inventories. (8 marks) Suggest and discuss the audit procedures you would perform on inventories in response to the assessed risks of material misstatements relating to the valuation assertion in Question 2. (8 marks) Module C (December 2015 Session) Page 4 of 9
5 Question 3 (12 marks approximately 22 minutes) In obtaining an understanding of the process of recording the wages and salaries of the designers employed by Angel during the audit planning stage, what are the key internal controls that you would expect Angel should take place? List four key internal controls in your answer. (4 marks) During the audit, you noted that one of the designers is also a director of Angel. This director received salaries which are comparable to other designers within Angel. As a listed company in Hong Kong, what are the requirements as set out in the Code on Corporate Governance Practices for Angel to determine the remuneration payable to this director and the related disclosures in the annual report? (8 marks) Question 4 (10 marks approximately 18 minutes) As a listed company in Hong Kong, Angel is required to publish an interim report for its half yearly results for the period ending 30 June Angel would like to engage you for the review of its interim financial information and is now exploring with you the plan for such a review. Describe the procedures that you will undertake for the review of Angel s interim financial information. Your answer should cover the procedures for the different stages of "Planning", "Execution" and "Completion". (10 marks) * * * * * * * * Module C (December 2015 Session) Page 5 of 9
6 End of Section A
7 SECTION B ESSAY / SHORT QUESTIONS (Total: 50 marks) Answer ALL of the following questions. Marks will be awarded for logical argumentation and appropriate presentation of the answers. Question 5 (10 marks approximately 18 minutes) External confirmation is reliable audit evidence in the audit of trade receivables. Provide reasons to support the above statement. (2 marks) You are the audit engagement manager auditing a garment trading company (the company ) which transacts with various customers mainly in Europe and America. As at 31 December 2014, the company has significant outstanding trade receivables due from its customers. You have agreed with the audit engagement team that external confirmation procedures should be performed. The audit engagement senior reports to you the audit confirmation results and would like you to advise the follow up audit procedures in response to each of the following scenarios: Scenario (i) The audit engagement team noted that there was a new customer from India who started trading with the company in November % of the outstanding trade receivables as at year end was contributed by this new customer. However, the finance manager of the company strongly refused the audit engagement team s request to send a confirmation request to this new customer. (4 marks) Scenario (ii) One of the confirmation replies was mailed directly to the company. The finance manager passed to the audit engagement team the confirmation reply without opening the sealed envelope containing the confirmation. (2 marks) Scenario (iii) One of the confirmation replies had only a minor difference (i.e. below the materiality level) and therefore the audit engagement senior decided no follow up procedure was required. (2 marks) Suggest and explain the appropriate follow up audit procedures for each of the above scenarios. Module C (December 2015 Session) Page 7 of 9
8 Question 6 (10 marks approximately 18 minutes) Two years ago, Melon Limited acquired Lychee Limited. Melon Limited and Lychee Limited are both fruit distributors. Both companies use Enterprise Resource Planning ( ERP ) computer software for daily operations and bookkeeping. However, the system specifications and the ERP modules used are very different in the two companies. In order to enhance the operational efficiency, it was decided that Lychee Limited will switch to the ERP system of Melon Limited and scrap its own ERP system this year. You are the auditor of Lychee Limited and in the process of understanding the change of system with the management. Suggest the possible factors that may lead to material misstatements in the financial statements of Lychee Limited as a result of the change of system. (3 marks) In response to the possible factors identified in Question 6, suggest audit procedures to address the possible risks of material misstatements in the financial statements relating to the above change of system. (7 marks) Question 7 (11 marks approximately 20 minutes) Fashion Limited is a garment manufacturer based in mainland China and listed in Hong Kong. Audit Partner A and Manager C have been assigned as the audit engagement partner and audit engagement manager of Fashion Limited for 5 years and 10 years respectively. The audit engagement team maintains a very good relationship with Fashion Limited s management team. During the year, the performance of Fashion Limited deteriorated significantly as Fashion Limited lost several major customers. There may be a risk of impairment of Fashion Limited s fixed assets. However, both the management and audit engagement team believe that no impairment of fixed assets should be made in the year. Partner B has been newly assigned as the engagement quality control reviewer of the audit of Fashion Limited for the current year. HKSA 220 (Clarified) Quality Control for an Audit of Financial Statements sets out the requirements and provides guidance regarding quality control of individual audits. Explain the differences in the roles and responsibilities of Partner A and Partner B in Fashion Limited's audit. (5 marks) In response to the facts and circumstances above, what would you recommend Partner B doing to discharge his role and responsibilities as an engagement quality control reviewer? (6 marks) Module C (December 2015 Session) Page 8 of 9
9 Question 8 (19 marks approximately 34 minutes) Solar Energizer Limited ( Solar ) is a company incorporated in the Cayman Islands and listed in Hong Kong. Its principal activities are the manufacturing and trading of devices which convert solar energy directly into electricity using special cells and modules. It also participates in large scale construction projects providing solutions to companies switching to solar energy. Many share market analysts have placed very high expectations on Solar s upcoming result announcement. Solar s recent share price has increased 10 times compared to a year ago. Alan is the audit engagement partner of Solar. Two days before Solar s current year results announcement, the management told Alan that they had just identified a product defect in one of their major products and planned to announce a large scale product recall immediately after the results announcement. The audit engagement team has substantially completed the 31 December 2014 year-end audit. The only outstanding piece of work was the review of the product recall and its financial and disclosure impact on the financial statements. After learning from the management about Solar s product recall, Alan explained to the management that he needs more information to understand the financial impact of the product recall. Solar s management estimated that additional costs of HK$10 million would be incurred in response to the product recall programme but refused to recognise such a provision in the financial statements for the year ended 31 December The pre-tax profit of Solar for the year ended 31 December 2014 before the adjustment of the provision is approximately HK$100 million. On the same night, Alan attended a reunion event with his university classmates. One of his classmates, Michael, asked for Alan s view of Solar s business performance. Michael plans to invest HK$5 million in Solar as he strongly believes in Solar s business model and the management team. (c) Assume you are Alan, would you tell Michael about the plan for the product recall? Explain your answer and suggest an appropriate response to Michael. (6 marks) The product recall has been identified as a significant subsequent event after the end of the reporting period by the audit engagement team. What are the audit responsibilities of the audit engagement team in assessing the impact of the product recall on the financial statements? What would be the possible material misstatements on the financial statements in view of the product recall? (7 marks) Based on the information given in the case, advise an appropriate audit opinion in response to such a situation and draft the auditor's report. You are only required to draft two paragraphs including basis of opinion and your proposed audit opinion. (6 marks) * * * END OF EXAMINATION PAPER * * * Module C (December 2015 Session) Page 9 of 9
Using the Work. of an Expert. HKSA 620 Issued June 2005
Issued June 2005 Effective for audits of financial statements for periods beginning on or after 15 December 2004 Hong Kong Standard on Auditing 620 Using the Work of an Expert HONG KONG STANDARD ON AUDITING
More informationUNAUDITED PRO FORMA FINANCIAL INFORMATION
The information set forth in this appendix does not form part of the accountants report on the financial information of the Group for each of the two years ended 31 March 2016 and the eight months ended
More informationCHINA INDUSTRIAL GROUP INC
CHINA INDUSTRIAL GROUP INC FORM 10-Q (Quarterly Report) Filed 04/22/96 for the Period Ending 02/29/96 Address 599 LEXINGTON AVENUE 18TH FLOOR NEW YORK, NY, 10022 Telephone 2123088877 CIK 0000818726 Symbol
More informationStandards on Auditing
Standards on Auditing 1. SA 320 (Revised) Materiality in Planning and Performing an Audit 2. SA 530 (Revised) Audit Sampling 1 SA 320 (Revised) Materiality in Planning and Performing an Audit 2 Scope:
More informationIndependent Auditor s report
Independent auditor s report to the members of Opinion on the financial statements of In our opinion the consolidated and Parent Company financial statements of : give a true and fair view of the state
More informationSri Lanka Accounting Standard-LKAS 2. Inventories
Sri Lanka Accounting Standard-LKAS 2 Inventories CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD-LKAS 2 INVENTORIES OBJECTIVE 1 SCOPE 2 5 DEFINITIONS 6 8 MEASUREMENT OF INVENTORIES 9 33 Cost of inventories
More informationFFQA 1. Complied by: Mohammad Faizan Farooq Qadri Attari ACCA (Finalist) Contact:
FFQA 1 Objective of IAS 2 The objective of IAS 2 is to prescribe the accounting treatment for inventories. It provides guidance for determining the cost of inventories and for subsequently recognising
More informationFOUNDATIONS IN ACCOUNTANCY Paper FAU (UK) Foundations in Audit (United Kingdom)
Answers FOUNDATIONS IN ACCOUNTANCY Paper FAU (UK) Foundations in Audit (United Kingdom) June 2012 Answers Section A QUESTIONS 1 10 MULTIPLE CHOICE Question Answer See Note Below 1 A 1 2 D 2 3 C 3 4 B 4
More informationPaper F8 (SGP) Audit and Assurance (Singapore) Thursday 6 December Fundamentals Level Skills Module
Fundamentals Level Skills Module Audit and Assurance (Singapore) Thursday 6 December 2012 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted.
More informationS&W Seed Company Unaudited Pro Forma Combined Financial Statements
Exhibit 99.2 S&W Seed Company Unaudited Combined Financial Statements On April 1, 2013, S&W Seed Company ( the Company or S&W ), together with its wholly owned subsidiary, S&W Seed Australia Pty Ltd, an
More informationReview report of the Auditors to the Board of Directors of Aramex PJSC (formerly Arab International Logistics (ARAMEX) Co.
Review report of the Auditors to the Board of Directors of Aramex PJSC (formerly Arab International Logistics (ARAMEX) Co. (PJSC) ) We have reviewed the accompanying condensed consolidated interim balance
More informationSri Lanka Accounting Standard LKAS 2. Inventories
Sri Lanka Accounting Standard LKAS 2 Inventories CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD LKAS 2 INVENTORIES OBJECTIVE 1 SCOPE 2 5 DEFINITIONS 6 8 MEASUREMENT OF INVENTORIES 9 33 Cost of inventories
More informationOversight of external auditors by the audit committee
Oversight of external auditors by the audit committee MCCG Intended Outcome 8.0 There is an effective and independent Audit Committee. The board is able to objectively review the Audit Committee s findings
More informationFinancial Accounting and Auditing Paper-III Financial Accounting
Revised Syllabus of the Courses of B.Com. Programme at T.Y.B.Com. with Effect from the Academic Year 2015-2016 for IDOL Students Financial Accounting and Auditing Paper-III Financial Accounting SECTION
More informationThe Role of Analytics in Auditing The Importance of What the Numbers Indicate and Lack to Indicate
The Role of Analytics in Auditing The Importance of What the Numbers Indicate and Lack to Indicate Vienna, November 18, 2013 Atanasko Atanasovski CFRR, consultant Analytic-enabled audits Cost effective
More informationSRI LANKA AUDITING STANDARD 620 USING THE WORK OF AN EXPERT CONTENTS
SRI LANKA AUDITING STANDARD 620 USING THE WORK OF AN EXPERT (Effective for all the audits carried out on or after..) CONTENTS Paragraph Introduction 1-5 Determining the Need to Use the Work of an Expert
More information1. An income statement shows a company's profit or loss in a period of time. 2. When a company has an ERP system, it no longer needs a general ledger.
Chapter 5: Accounting in ERP Systems TRUE/FALSE 1. An income statement shows a company's profit or loss in a period of time. 2. When a company has an ERP system, it no longer needs a general ledger. 3.
More informationCorporate Governance Report
Corporate Governance Practices VTech Holdings Limited is incorporated in Bermuda and has its shares listed on the Stock Exchange. The corporate governance rules applicable to the Company are the Corporate
More informationCorporate Reporting (INT) (P2) September 2017 to June 2018
Corporate Reporting (INT) (P2) September 2017 to June 2018 This syllabus and study guide is designed to help with planning study and to provide detailed information on what could be assessed in any examination
More informationRISK AND AUDIT COMMITTEE TERMS OF REFERENCE
RISK AND AUDIT COMMITTEE TERMS OF REFERENCE Brief description Defines the Terms of Reference for the Risk and Audit Committee. BHP Billiton Limited & BHP Billiton Plc BHP Billiton Limited & BHP Billiton
More informationINTERNATIONAL STANDARD ON AUDITING (NEW ZEALAND) 520
Issued 07/11 Compiled 11/13 INTERNATIONAL STANDARD ON AUDITING (NEW ZEALAND) 520 Analytical Procedures (ISA (NZ) 520) This compilation was prepared in October 2013 and incorporates amendments up to and
More informationCEBU CPAR CENTER. M a n d a u e C I t y
Page 1 of 9 CEBU CPAR CENTER M a n d a u e C I t y AUDITING PROBLEMS AUDIT OF INVENTORIES PROBLEM NO. 1 The Pasay Company is a wholesale distributor of automobile replacement parts. Initial amounts taken
More informationCPA MOCK Evaluation Financial Reporting Module (Core 1) Page 1
CPA MOCK Evaluation Financial Reporting Module (Core 1) Page 1 Overview The Core 1 and 2 examinations are a mix of objective format and case questions. The maximum length for an individual case will be
More informationINTERNATIONAL STANDARD ON AUDITING 505 EXTERNAL CONFIRMATIONS CONTENTS
INTERNATIONAL STANDARD ON AUDITING 505 EXTERNAL CONFIRMATIONS (Effective for audits of financial statements for periods beginning on or after December 15, 2004) CONTENTS Paragraph Introduction... 1-6 Relationship
More informationINTERNATIONAL STANDARD ON AUDITING 210 TERMS OF AUDIT ENGAGEMENTS CONTENTS
INTERNATIONAL STANDARD ON AUDITING 210 TERMS OF AUDIT ENGAGEMENTS (Effective for audits of financial statements for periods beginning on or after December 15, 2006. Appendix 2 contains conforming amendments
More informationYTL POWER INTERNATIONAL BERHAD (Company No H) (Incorporated in Malaysia)
Interim financial report on consolidated results for the quarter ended 31 December 2006. The figures have not been audited. CONDENSED CONSOLIDATED INCOME STATEMENTS INDIVIDUAL QUARTER CUMULATIVE PERIOD
More informationFGB and NBAD have released pro forma financials preliminary condensed consolidated financial information
21 August 2016 FGB and NBAD have released pro forma financials preliminary condensed consolidated financial information Further to the release of 1H 2016 results and in line with transparent disclosure
More informationFundamentals Level Skills Module, Paper F8. Section B
Answers Fundamentals Level Skills Module, Paper F8 Audit and Assurance September/December 2015 Answers Section B 1 Ethical threats and managing these risks (i) Ethical threat The finance director is the
More informationAir Arabia PJSC and its subsidiaries. Condensed consolidated interim financial information 30 June 2014
Air Arabia PJSC and its subsidiaries Condensed consolidated interim financial information 30 June 2014 Condensed consolidated interim financial information 30 June 2014 Contents Page Independent auditors
More informationPaper FAU (UK) Foundations in Audit (United Kingdom) FOUNDATIONS IN ACCOUNTANCY. Monday 18 June 2012
FOUNDATIONS IN ACCOUNTANCY Foundations in Audit (United Kingdom) Monday 18 June 2012 Time allowed: 2 hours This paper is divided into two sections: Section A ALL TEN questions are compulsory and MUST be
More informationINTERNATIONAL STANDARD ON AUDITING 402 AUDIT CONSIDERATIONS RELATING TO ENTITIES USING SERVICE ORGANIZATIONS CONTENTS
INTERNATIONAL STANDARD ON 402 AUDIT CONSIDERATIONS RELATING TO ENTITIES (Effective for audits of financial statements for periods beginning on or after December 15, 2004) CONTENTS Paragraph Introduction...
More informationEAST & NORTH HERTFORDSHIRE NHS TRUST ANNUAL AUDIT LETTER. Audit for the year ended 31 March July 2017
EAST & NORTH HERTFORDSHIRE NHS TRUST ANNUAL AUDIT LETTER Audit for the year ended 31 March 2017 11 July 2017 1 EAST & NORTH HERTFORDSHIRE NHS TRUST ANNUAL AUDIT LETTER ` EXECUTIVE SUMMARY PURPOSE OF THE
More informationCorporate Governance Statement. APN Property Group August 2017
Corporate Governance Statement APN Property Group August 2017 CORPORATE GOVERNANCE STATEMENT This is the corporate governance statement for APN Property Group Limited (APN PG or Company) for the financial
More informationOBJECTIVES After studying this lesson, you will be able to: state the meaning of cost; explain the elements of cost; state the meaning of overheads;
28 BASIC COST CONCEPTS In the previous lesson you have learnt about cost accounting. If you decide to manufacture say electronic digital meter, you will need raw material, labour and incur other incidental
More informationFundamentals Level Skills Module, Paper F8 (IRL)
Answers Fundamentals Level Skills Module, Paper F8 (IRL) Audit and Assurance (Irish) June 2014 Answers 1 (a) Trombone Ltd s payroll system deficiencies, controls and test of controls Deficiencies Controls
More informationAlfa Financial Software Holdings PLC Terms of Reference of The Audit and Risk Committee of The Board of Directors of The Company
Alfa Financial Software Holdings PLC Terms of Reference of The Audit and Risk Committee of The Board of Directors of The Company adopted by the board on 15 May 2017 1. Background 1.1 The board has resolved
More informationHorngren's Financial & Managerial Accounting, 4e (Nobles) Chapter 16 Introduction to Managerial Accounting. Learning Objective 16-1
Horngren's Financial & Managerial Accounting, 4e (Nobles) Chapter 16 Introduction to Managerial Accounting Learning Objective 16-1 1) Managerial accounting focuses on providing information for internal
More informationUNITED ARROWS LTD. First Quarter Fiscal 2014 Earnings Announcement Q&A
UNITED ARROWS LTD. First Quarter Fiscal 2014 Earnings Announcement Q&A UNITED ARROWS LTD. held an earnings announcement presentation attended by the mass media, analysts, and institutional investors on
More informationRULES OF PROCEDURE FOR THE AUDIT & CONFLICTS OF INTEREST COMMITTEE VALOREM S.A.
1. DEFINITIONS RULES OF PROCEDURE FOR THE AUDIT & CONFLICTS OF INTEREST COMMITTEE VALOREM S.A. 1.1 Shareholders. Those registered as the owners of the Company's shares in the Company's Shareholder Register
More informationIndependent Auditor s Report
Independent Auditor s Report 284 Independent Auditor s Report Independent auditor s report To: the shareholders and the audit committee of Fiat Chrysler Automobiles N.V. Report on the audit of the financial
More informationScope of this SA Effective Date Objective Definitions Sufficient Appropriate Audit Evidence... 6
SA 500* AUDIT EVIDENCE (Effective for audits of financial statements for periods beginning on or after April 1, 2009) Contents Introduction Paragraph(s) Scope of this SA...1-2 Effective Date... 3 Objective...
More informationRecommended acquisition of The BSS Group plc. 5 July 2010
Recommended acquisition of The BSS Group plc 5 July 2010 Important information This document is being made available only to persons who fall within the exemptions contained in Article 19 and Article 49
More informationStandards for Investment Reporting
January 2006 Standards for Investment Reporting 4000 INVESTMENT REPORTING STANDARDS APPLICABLE TO PUBLIC REPORTING ENGAGEMENTS ON PRO FORMA FINANCIAL INFORMATION LIMITED The Auditing Practices Board Limited,
More information1. Definition & Mission
1. Definition & Mission 1.1 Internal Auditing is an independent, objective assurance and consulting activity that is guided by a philosophy of adding value to improve the operations of. 1.2 Group Internal
More informationGerman Corporate Governance Code
[Please note: Amendments to the Code compared with the version dated November 07, 2002 are highlighted in bold print and underlined] Government Commission German Corporate Governance Code Foreword This
More informationCenter for Plain English Accounting AICPA s National A&A Resource Center available exclusively to PCPS members
REPORT February 22, 2017 Center for Plain English Accounting AICPA s National A&A Resource Center available exclusively to PCPS members ASU 2017-01 Clarifying the Definition of a Business On January 5,
More informationAASB 15 Revenue from contracts with customers. Consumer and industrial markets 15 November 2016
AASB 15 Revenue from contracts with customers Consumer and industrial markets 15 November 2016 Your facilitators for today are Kim Heng Kristen Haines Etienne Gouws Brandon Dalton 2 Agenda Introduction
More informationIAASB Agenda Item (September 2008) Page Agenda Item (MARKED FROM EXPOSURE DRAFT)
IAASB Agenda Item (September 2008) Page 2008 1777 Agenda Item 4-B (MARKED FROM EXPOSURE DRAFT) PROPOSED INTERNATIONAL STANDARD ON AUDITING 501 (REDRAFTED) AUDIT EVIDENCE SPECIFIC CONSIDERATIONS FOR SELECTED
More informationAnalytical Procedures
Analytical Procedures 493 AU-C Section 520 Analytical Procedures Source: SAS No. 122. Effective for audits of financial statements for periods ending on or after December 15, 2012. Introduction Scope of
More informationGHANA COMMERCIAL BANK LIMITED
FINANCIAL STATEMENTS 31 DECEMBER 2011 1 ANNUAL REPORTS AND FINANCIAL STATEMENTS CONTENTS P a g e Notice of Meeting 2 Financial Highlights 3 Report of the Directors 4 Independent Auditors Report 7 Statements
More informationBOARD CHARTER TOURISM HOLDINGS LIMITED
BOARD CHARTER TOURISM HOLDINGS LIMITED INDEX Tourism Holdings Limited ( thl ) - Board Charter 2 1. Governance at thl 2 2. Role of the Board 3 3. Structure of the Board 4 4. Matters Relating to Directors
More informationAudit Documentation. HKSA 230 Issued February Effective for audits of financial information for periods beginning on or after 15 June 2006
HKSA 230 Issued February 2006 Effective for audits of financial information for periods beginning on or after 15 June 2006 Hong Kong Standard on Auditing 230 Audit Documentation 1 HKSA 230 HONG KONG STANDARD
More informationWelcome to: FNSACC507A Provide Management Accounting Information
Welcome to: FNSACC507A Provide Management Accounting Information Week 1 Chapter 1 COST CONCEPTS FNSACC507A Provide Management Accounting Information By the end of this lesson, you will be able to 1. Explain
More informationInternational Standard on Auditing (Ireland) 402 Audit Considerations Relating to an Entity using a Service Organisation
International Standard on Auditing (Ireland) 402 Audit Considerations Relating to an Entity using a Service Organisation MISSION To contribute to Ireland having a strong regulatory environment in which
More informationChina Southern Airlines Company Limited Terms of Reference of Audit and Risk Management Committee
China Southern Airlines Company Limited Terms of Reference of Audit and Risk Management Committee Chapter 1 General Provisions Article 1 In order to ensure the sustainable, regular and healthy development
More informationBasic Costing Guidance
Basic Costing Guidance The Association of Accounting Technicians April 2010 Basic costing (BCCG) Introduction Please read this document in conjunction with the standards for all relevant units. Basic Principles
More informationPRO FORMA PRELIMINARY CONDENSED CONSOLIDATED FINANCIAL INFORMATION
PRO FORMA PRELIMINARY CONDENSED CONSOLIDATED FINANCIAL INFORMATION The following pro forma preliminary condensed consolidated financial information and related notes ( Pro forma financial information )
More informationAudits of Group Financial Statements
Audits of Group Financial Statements Got these? Subsidiaries Divisions Different business activities/locations JVs Equity and cost method investments VIEs Investment in REITs Can the auditor act as a principal?
More informationAMF Recommendation Pro forma financial information
AMF Recommendation 2013-08 Pro forma financial information Background regulations: Annex II of the Commission Regulation n 809/2004 on information contained in prospectuses, Articles 212-7 and 222-2 of
More informationInternational Standard on Auditing (Ireland) 500 Audit Evidence
International Standard on Auditing (Ireland) 500 Audit Evidence MISSION To contribute to Ireland having a strong regulatory environment in which to do business by supervising and promoting high quality
More informationPRUDENTIAL FINANCIAL, INC. CORPORATE GOVERNANCE PRINCIPLES AND PRACTICES
PRUDENTIAL FINANCIAL, INC. CORPORATE GOVERNANCE PRINCIPLES AND PRACTICES A. THE ROLE OF THE BOARD OF DIRECTORS 1. Direct the Affairs of the Corporation for the Benefit of Shareholders The Prudential board
More informationSage Pastel Partner Add-On Modules Training
Sage Pastel Partner Add-On Modules Training Receipting Module This course has been designed for learners who work on the Sage Pastel Partner Receipting module and would like to enhance their knowledge
More informationChapter 16. Auditing Operations and Completing the Audit. McGraw-Hill/Irwin. Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 16 Auditing Operations and Completing the Audit McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Auditing Operations Corporate earnings are considered as
More informationClient: Model File Limited Prepared by: MK Date: 30/03/17
5.02 A. Audit Strategy: Refer to Section 6.2.3 of the Manual for further guidance on completion of the Audit Strategy. See Appendix I - Section 6 on the matters that may be considered in developing an
More informationCorporate Governance Report
CORPORATE GOVERNANCE STRUCTURE SHAREHOLDERS Other Stakeholders Investing Public BOARD OF DIRECTORS Customers Creditors COMPANY SECRETARY Lenders and Bondholders Employees AUDIT COMMITTEE NOMINATION COMMITTEE*
More informationAUDIT COMMITTEE REPORT
AUDIT COMMITTEE REPORT DEAR SHAREHOLDER The Audit Committee has been established by the Board and consists entirely of independent non-executive Directors. The primary role of the Audit Committee is to
More informationIndian Accounting Standard (Ind AS) 2 Inventories
Indian Accounting Standard (Ind AS) 2 Inventories Indian Accounting Standard (Ind AS) 2, Inventories, prescribes the accounting treatment for inventories, such as, determination of cost and its subsequent
More informationAuditing Standards and Practices Council
Auditing Standards and Practices Council PHILIPPINE STANDARD ON AUDITING 330 THE AUDITOR S PROCEDURES IN RESPONSE TO ASSESSED RISKS PHILIPPINE STANDARD ON AUDITING 330 THE AUDITOR S PROCEDURES IN RESPONSE
More informationVALUATION observations
June 2011 Vol. 2011-03 230 West Street Suite 700 Columbus, OH 43215 614.221.1120 www.gbqconsulting.com 111 Monument Circle Suite 500 Indianapolis, IN 46204 317.423.0150 www.gbqgoelzer.com VALUATION observations
More informationAudit & Assurance (AAA) Module outline. Last updated: 29 January 2018 AAA118 module outline. charteredaccountantsanz.com
Audit & Assurance (AAA) Module outline charteredaccountantsanz.com Last updated: 29 January 2018 AAA118 module outline [This page has deliberately been left blank] Copyright Chartered Accountants Australia
More informationADVANCED AUDIT AND ASSURANCE
Copyright Reserved No. of Pages No. of Questions = 07 = 05 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA FINAL II EXAMINATION - DECEMBER 2009 ADVANCED AUDIT AND ASSURANCE Time allowed : 3 hours Marks
More informationHong Kong Institute of CPAs/FTC CPD Programme CASE STUDY
Hong Kong Institute of CPAs/FTC CPD Programme MAY-SEP 2006 Are you aware of the effect of IFRS? Are you interested in enhancing your prospects through the HKICPA / ICAEW IFRS Award Programme? CASE STUDY
More informationUnderstanding a financial statement audit
www.pwc.com Understanding a financial statement audit May 2017 Understanding a financial statement audit 1 Preface Role of audit The need for companies financial statements 1 to be audited by an independent
More informationSILVERCORP REPORTS Q3 RESULTS: NET INCOME OF $12.7 MILLION, $0.08 PER SHARE AND PROVIDES FISCAL 2019 PRODUCTION AND CASH COSTS GUIDANCE
NEWS RELEASE Trading Symbol: TSX: SVM NYSE AMERICAN: SVM SILVERCORP REPORTS Q3 RESULTS: NET INCOME OF $12.7 MILLION, $0.08 PER SHARE AND PROVIDES FISCAL 2019 PRODUCTION AND CASH COSTS GUIDANCE VANCOUVER,
More informationCLP HOLDINGS LIMITED
Audit & Risk Committee (PAGE 1 OF 8) SUBJECT A. Responsibilities The Audit & Risk Committee (the Committee ) is appointed by the CLP Holdings Board of Directors to carry out the following responsibilities
More informationPROFESSIONAL LEVEL PART-A: OVERVIEW OF AUDITING AND ASSURANCE
SYLLABS 2016 Part-D Weightage Part-E Part-C Part-A PROFESSIONAL LEVEL P2 - Audit & Assurance Part-B Part-A Overview of Auditing and Assurance 15% Part-B Audit Planning 20% Part-C Internal Controls 20%
More informationSpecial Considerations Audits of Group Financial Statements (Including the Work of Component Auditors)
Special Considerations---Audits of Group Financial Statements 665 AU-C Section 600 Special Considerations Audits of Group Financial Statements (Including the Work of Component Auditors) Source: SAS No.
More informationTest Bank Horngren's Financial & Managerial Accounting The Managerial Chapters 5th Edition Miller-Nobles
Test Bank Horngren's Financial & Managerial Accounting The Managerial Chapters 5th Edition Miller-Nobles TEST BANK for Horngren's Financial & Managerial Accounting The Managerial Chapters 5th Edition by
More informationDIAMOND OFFSHORE DRILLING, INC. Corporate Governance Guidelines
Revised 19 October 2009 DIAMOND OFFSHORE DRILLING, INC. Corporate Governance Guidelines Introduction The following Corporate Governance Guidelines ( Guidelines ) have been adopted by the Board of Directors
More informationEXTERNAL AUDITOR INDEPENDENCE CHARTER
EXTERNAL AUDITOR INDEPENDENCE CHARTER 1.0 ESTABLISHMENT OF COMMITTEE This Charter sets out the circumstances in which the Company s Auditor may perform Services and the procedures to be followed to obtain
More informationASTRO MALAYSIA HOLDINGS BERHAD (Incorporated in Malaysia Company No V) BOARD CHARTER ( Charter ) (Adopted by the Board on 30 May 2016)
ASTRO MALAYSIA HOLDINGS BERHAD (Incorporated in Malaysia Company No. 932533-V) BOARD CHARTER ( Charter ) (Adopted by the Board on 30 May 2016) 1. Introduction The Board of Directors (the Board ) of Astro
More informationFor personal use only INVESTOR UPDATE JUNE 2016
INVESTOR UPDATE JUNE 2016 IMPORTANT NOTICE & DISCLAIMER Forward looking statements This presentation has been prepared by Lovisa Holdings Limited (Lovisa). The information contained in this presentation
More informationLesson 14 International Accounting Lelio Bigogno, Stefano Santucci
Università degli studi di Pavia Facoltà di Economia a.a. 2014-2015 2015 Lesson 14 International Accounting Lelio Bigogno, Stefano Santucci 1 IAS 2 Inventories International Accounting Lesson 11 2 History
More informationTypes of Ownership. Creating a Pro Forma. Sole Proprietorship (or Partnership) Corporation. Limited Liability Corporation (LLC)
Regional Micro- Enterprise Credential Key Financial Concepts Student Handout (Updated: June 12, 2017) Types of Ownership Sole Proprietorship (or Partnership) An individual (or group of individuals) owns
More informationOverview. This Accounting Standard is aimed to streamline the accounting methods for inventories.
IAS 2 INVENTORIES Overview This Accounting Standard is aimed to streamline the accounting methods for inventories. The foremost concern in Inventory accounting is that the cost would be considered as asset
More informationAXT, INC. CORPORATE GOVERNANCE GUIDELINES
AXT, INC. CORPORATE GOVERNANCE GUIDELINES Role of Board and Management The Board of Directors, which is elected by the stockholders, is the ultimate decision-making body of the Company except with respect
More informationFREQUENTLY ASKED QUESTIONS ABOUT INTERNAL CONTROL OVER FINANCIAL REPORTING
FREQUENTLY ASKED QUESTIONS ABOUT INTERNAL CONTROL OVER FINANCIAL REPORTING Nature and Timing of the Reporting Requirement When must registrants begin to report on internal control over financial reporting?
More informationAudit Committee and other Board Committees Roles and responsibilities under the Companies Act, 2013
Audit Committee and other Board Committees Roles and responsibilities under the Companies Act, 2013 A quick reference guide For private circulation only November 2013 www.deloitte.com/in Audit Committee
More informationRECORD KEEPING RULES ON INITIAL REPORTS RELATING TO ACCOUNTING SEPARATION
RECORD KEEPING RULES ON INITIAL REPORTS RELATING TO ACCOUNTING SEPARATION OVERVIEW Accounting Separation of Telstra Record Keeping Rules On 24 September 2002 the Minister for Communications, Information
More informationRevenue for chemical manufacturers
Revenue for chemical manufacturers The new standard s effective date is coming. US GAAP August 2017 kpmg.com/us/frv b Revenue for chemical manufacturers Revenue viewed through a new lens Again and again,
More informationSTATEMENT OF AUDITING STANDARDS 500 AUDIT EVIDENCE
STATEMENT OF AUDITING STANDARDS 500 AUDIT EVIDENCE (Issued January 2004) Contents Paragraphs Introduction 1-2 Concept of Audit Evidence 3-6 Sufficient Appropriate Audit Evidence 7-14 The Use of Assertions
More informationAIA Group Limited. Terms of Reference for the Audit Committee. AIA Restricted and Proprietary Information
AIA Group Limited Terms of Reference for the Audit Committee AIA Restricted and Proprietary Information Issued by : Board of AIA Group Limited Date : 27 July 2016 Version : 4.0 Definitions 1. For the purposes
More informationINTERNATIONAL STANDARD ON AUDITING (IRELAND) 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS
INTERNATIONAL STANDARD ON AUDITING (IRELAND) 210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS MISSION To contribute to Ireland having a strong regulatory environment in which to do business by supervising and
More informationRetail. IFRS 15 Revenue Are you good to go? May kpmg.com/ifrs KPMG IFRG Limited, a UK company limited by guarantee. All rights reserved.
Retail IFRS 15 Revenue Are you good to go? May 2017 kpmg.com/ifrs Are you good to go? IFRS 15 will change the way many retailers and wholesalers account for their contracts. To help you drive your implementation
More informationSILVERCORP REPORTS SILVER PRODUCTION OF 5.0 MILLION OUNCES, CASH FLOWS FROM OPERATIONS OF $31.9 MILLION, OR $0
NEWS RELEASE Trading Symbol: TSX: SVM SILVERCORP REPORTS SILVER PRODUCTION OF 5.0 MILLION OUNCES, CASH FLOWS FROM OPERATIONS OF $31.9 MILLION, OR $0.19 PER SHARE, FOR FISCAL YEAR ENDED MARCH 31, 2016 VANCOUVER,
More informationSRI LANKA AUDITING STANDARD 600 SPECIAL CONSIDERATIONS AUDITS OF GROUP FINANCIAL STATEMENTS (INCLUDING THE WORK OF COMPONENT AUDITORS) CONTENTS
SRI LANKA AUDITING STANDARD 600 SPECIAL CONSIDERATIONS AUDITS OF GROUP FINANCIAL STATEMENTS (INCLUDING THE WORK OF COMPONENT AUDITORS) (Effective for audits of group financial statements for periods beginning
More informationQuality Control Review Checklist
Institute of Cost and Management Accountants of Pakistan Quality Control Review Checklist For Cost Audit Engagements Issued By Quality Assurance Board Table of Contents 1. PRE ENGAGEMENT ACTIVITIES...
More informationISAE 3420, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus
International Auditing and Assurance Standards Board Exposure Draft ISAE 3420 April 2010 Proposed International Standard on Assurance Engagements ISAE 3420, Assurance Reports on the Process to Compile
More information(Adopted by the Board of Directors on 13 May 2009 and amended on 24 September 2009, 13 September 2012 and 27 November 2013)
Thomas Cook Group plc THE AUDIT COMMITTEE TERMS OF REFERENCE (Adopted by the Board of Directors on 13 May 2009 and amended on 24 September 2009, 13 September 2012 and 27 November 2013) Chairman and members
More informationCorporate Governance Report
Corporate Governance Practices VTech Holdings Limited is incorporated in Bermuda and has its shares listed on the Stock Exchange. The corporate governance rules applicable to the Company are the Corporate
More information