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ACCA—AAA真金題

來源: 正保會計網校 編輯:00LilGhost 2021/03/31 10:01:19  字體:

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Section A – This ONE question is compulsory and MUST be attempted

1 You are a manager in the audit department of Huntsman & Co, a firm of Chartered Certified Accountants, responsible for the audit of several companies and for evaluating the acceptance decisions in respect of potential new audit clients.

One of your audit clients is Redback Sports Co, which operates a chain of sport and leisure centres across the country. 

The company has a financial year ending 28 February 20X9, and you are about to start planning the audit. Stella Cross, the audit engagement partner, met with the company’s finance director last week to discuss business developments in the year and recent financial performance.

In addition, Stella has been approached by Mick Emu, the managing director of Emu Gyms Co. Mick has enquired regarding whether Huntsman & Co can provide the company with an audit or limited assurance review, and Stella would like you to evaluate this request. Huntsman & Co already provides a payroll service to Emu Gyms Co and has 

assisted Mick with his personal tax planning in the past. Mick also has a suspicion that several employees are carrying out a fraud at the company, and he has asked whether an audit or limited assurance review would have alerted him earlier to the situation.

You are provided with the following exhibits:

1. An email you have received from Stella Cross, in respect of both Redback Sports Co and Emu Gyms Co.

2. Notes of a meeting which Stella held recently with the finance director of Redback Sports Co.

3. Extracts from the latest management accounts of Redback Sports Co.

4. Notes of a telephone conversation which Stella had yesterday with Mick Emu, managing director of Emu Gyms Co.

Required:

Respond to the instructions in the email from the audit engagement partner. 

(46 marks)

Note: The split of the mark allocation is shown in the partner’s email (Exhibit 1).

Professional marks will be awarded for the presentation and logical flow of the briefing notes and the clarity of the explanations provided. 

(4 marks)

 (50 marks)

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