The following scenario relates to questions 6–10

You are an audit manager at Blenkin & Co and are approaching the end of the audit of Sampson Co, which is a large listed retailer. The draft financial statements currently show a profit before tax of $6·5m and revenue of $66m for the financial year ended 30 June 20X6. You have been informed that the finance director left Sampson Co on 31 May 20X6.

As part of the subsequent events audit procedures, you reviewed post year-end board meeting minutes and discovered that a legal case for unfair dismissal has been brought against Sampson Co by the finance director. During a discussion with the Human Resources (HR) director of Sampson Co, you established that the company received notice of the proposed legal claim on 10 July 20X6.

The HR director told you that Sampson Co’s lawyers believe that the finance director’s claim is likely to be successful, but estimate that $150,000 is the maximum amount of compensation which would be paid. However, management does not intend to make any adjustments or disclosures in the financial statements.

Blenkin & Co has a responsibility to perform. procedures to obtain sufficient, appropriate evidence that subsequent events are appropriately reflected in the financial statements of Sampson Co.

Subsequent events procedures should be performed between the date of the financial statements and WHICH DATE？

A.The date the subsequent events review is performed

B.The date of approval of the financial statements

C.The date of the auditor’s report

D.The date the financial statements are issued

If, after the financial statements have been issued, Blenkin & Co becomes aware of a fact which may have caused its report to be amended, the firm should consider several possible actions.

Which of the following are appropriate actions for Blenkin & Co to take？

(1) Discuss the matter with management and, where appropriate, those charged with governance

(2) Obtain a written representation from management

(3) Consider whether the firm should resign from the engagement

(4) Enquire how management intends to address the matter in the financial statements where appropriate

A.1 and 2

B.1 and 4

C.2 and 3

D.3 and 4

Which of the following audit procedures should be performed to form. a conclusion as to whether the financial statements require amendment in relation to the unfair dismissal claim？

(1) Inspect relevant correspondence with Sampson Co’s lawyers

(2) Write to the finance director to confirm the claim and level of damages

(3) Review the post year-end cash book for evidence of payments to the finance director

(4) Request that management confirm their views in a written representation

A.1, 2 and 3

B.1, 2 and 4

C.1, 3 and 4

D.2, 3 and 4

You are drafting the auditor’s report for Sampson Co and the audit engagement partner has reminded you that the report will need to reflect the requirements of ISA 701 Communicating Key Audit Matters in the Independent Auditor’s Report.

According to ISA 701, which of the following should be included in the ‘Key Audit Matters’ paragraph in the auditor’s report？

A.Matters which required significant auditor attention

B.Matters which result in a modification to the audit opinion

C.All matters which were communicated to those charged with governance

D.All matters which are considered to be material to the financial statements

Which of the following audit opinions will be issued if the unfair dismissal case is NOT adjusted for or disclosed within the financial statements？

A.A qualified audit opinion as the financial statements are materially misstated

B.A qualified audit opinion as the auditor is unable to obtain sufficient appropriate evidence

C.An unmodified opinion with an emphasis of matter paragraph

D.An unmodified audit opinion

請幫忙給出每個問題的正確答案和分析，謝謝！

egal claim outstanding: A legal action against Benfield Co claiming compensation of $650,000, filed in January 20X4 Benfield Co has been advised that it is probable that the claim will be successful. How should Benfield Co report these legal cases in its financial statements for the year ended 30 April 20X4？

ntory $455,000 Trade receivables $408,350 Trade payables $186,700 Penhali Co has a gross profit margin of 40%. Assume that each year has 360 days. Calculate the cash operating cycle of Pangli Co at the start of January 20X7.()days

Brigham Co has owned 70% of Dorset Co for many years. It also holds a $5 million 8% loan note from Dorset Co. One of Dorset Co's non-current assets has suffered an impairment of $50,000 during the year.There is a balance in the revaluation surplus of Dorset Co of $30,000 in respect of this asset. The impairment loss has not yet been recorded.The entity financial statements of Dorset Co show a profit for the year of $1.3 million.What is the amount attributable to the non-controlling interests in the consolidated statement of profit or loss？

A、$264,000

B、$880,000

C、$900,000

D、$270,000

(c) Maxwell Co is audited by Lead & Co, a firm of Chartered Certified Accountants. Leo Sabat has enquired as to

whether your firm would be prepared to conduct a joint audit in cooperation with Lead & Co, on the future

financial statements of Maxwell Co if the acquisition goes ahead. Leo Sabat thinks that this would enable your

firm to improve group audit efficiency, without losing the cumulative experience that Lead & Co has built up while

acting as auditor to Maxwell Co.

Required:

Define ‘joint audit’, and assess the advantages and disadvantages of the audit of Maxwell Co being conducted

on a ‘joint basis’. (7 marks)

A.had been completed

B.had completed

C.has been completed

D.has completed

Part of the lake has been polluted. You can see the water is covered with______ oil.

A．a coat of

B．a story of

C．a film of

D．a pad of

A.an extended

B.a nuclear

C.a small

D.a modern