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string(101) ‘ dismisses the falling sales and lower revenue as simply consequences of the tough economic climate\. ‘
This kind of paper is definitely not to become removed from the Examination Halls UNIVERSITY OF LONDON AC3093 ZB (279 0093) BSc Degrees and Diplomas to get Graduates in Economics, Administration, Finance plus the Social Sciences, the Degrees in Economics and Social Sciences and Access Path Auditing and Assurance Comes to an end, 18 May well 2012: 15. 00am to at least one. 00pm Applicants should solution FOUR in the following 8 questions: TWO from Section A, 1 from Section B and ONE further more question from either section.
All questions take equal signifies. College or university of Greater london 2012 UL12/0010 D01 MAKE SURE YOU TURN OVER Webpage 1 of 6
SECTION A Answer TWO inquiries from this section and not several further problem. (You will be reminded that four inquiries in total should be attempted with at least one from Section M. ) 1 ) You have only been got into contact with by the newly-appointed Senior Limiter for the financial services (including accounting and auditing) market in a nation which has previously had little or no regulation on the provision of financial information. The Regulator has said that his first goal is to enhance the quality of annual economic statements that the major firms in the country distribute.
The Limiter has established operating parties to examine improvements inside the quality of accounting and financial credit reporting practices. An additional working get together has been founded to examine the quality of audit discipline work. The Regulator informs you that he wants the working part of put forward plans which will enhance the quality of audit revealing. He is worried that present practices enable individual auditors to statement in their own way. It has led to distress, since there are so many different styles of review report. The Regulator feels that a standardised approach is going to reduce this kind of confusion.
He could be aware that you will discover international auditing standards about auditing and asks one to examine associated with adopting a way consistent with the intercontinental standards. This individual asks you to look at the following specific areas of audit confirming: ¢ To whom the review report is addressed ¢ A mention of the the platform of accounting ¢ A reference to the framework of auditing ¢ Some exploration of what can be and what cannot be predicted from an audit ¢ The style of thoughts and opinions on the monetary statements, and ¢ Some other issues you believe might be relevant.
Required (a) (b) Draft a report through your working get together on the particular issues stated previously. (15 marks) Draft a great appendix to this report setting out the advantages and drawbacks of a standardised approach to examine reporting. (10 marks) UL12/0010 D01 Web page 2 of 6 installment payments on your You are the audit spouse of Lottolife, a leisure establishment with a bar and a cafe open to the public. The supervision consists of a elderly manager and three helper managers, all are paid a salary which has a profit-related bonus.
Both the pub and the restaurant are dependent upon casual personnel who are paid an hourly level in money at the end in the week. To record the hours worked well, each employee has to ‘clock in and clock out’ using a clock card placed into a equipment which documents the time out-and-in. There is no additional check on the accuracy from the recorded hours. Workers are hired after a short interview by one of the assistant managers who wraps up a form to record the facts of the good applicant. The business has a poor reputation while an employer and wants its personnel to function long hours.
Subsequently employees usually do not stay lengthy. On resigning, an employee needs to sign a form which is backed by the manager and is then handed to the Payroll Section so that the employee’s last pay out packet may be made up plus the employee taken off the salaries. There are under no circumstances enough people to fill up the opportunities and almost zero applicant is rejected. Both equally pay and staff well-being are low. In an attempt to boost the pay and attract more and better personnel, one of the helper managers provides suggested spending a every week bonus through the cash tips left simply by customers.
The following tips would be divided among the workers rather than becoming banked within the takings. There would be no record kept in the tips which usually would mean which the workers probably would not be taxed on their ‘bonus’. It also contains a members-only team which is a certified casino where various forms of gambling take place. Under the guard licensing and training rules only trained personnel can be employed and these are moderately well paid jobs. Occasionally if there is a staff shortage on the catering area in the casino, members from the bar and restaurant staff are introduced, given fresh uniforms and are also instructed to assist out.
Formally this is against the gaming rules, but the on line casino management consider that in case the breach is ever learned by the specialists, the most detrimental thing that might happen could be the casino having to pay a fine. They are really aware however that it is possible that the licence could be withdrawn and the on line casino could be forced to close. Needed (a) (b) Identify conceivable weaknesses in the control environment in Lottolife. (15 marks) Suggest various audit techniques which might be suitable in the particular circumstances of Lottolife. (10 marks) UL12/0010 D01 Page 3 of 6 three or more.
You have only been appointed auditor of Bruton’s Limited, a small family-owned gentlemen’s tailors and outfits shop. It can be based in the South-West of England in which it has six shops in various towns. The clothes that stocks and sells are at the upper end of the budget range, appealing to the wealthier consumer. The company, just like its customers is classical. In fact , the decor from the shops has not changed since the 1960s. The head in the family and key shareholder, John Bruton, is aged 86 and perceives no reason to change what has for fifty years been complete formula ” a top quality assistance and reduced price.
This individual dismisses the falling product sales and reduce profits since simply outcomes of the difficult economic climate.