(c) Explain the benefits of performance-related pay in rewarding directors and critically evaluate the implicationsof the package offered to Choo Wang. (8 marks)

(c) Explain the benefits of performance-related pay in rewarding directors and critically evaluate the implications

of the package offered to Choo Wang. (8 marks)


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Management calls a meeting to explain to all employees the new benefits package for the rank and file. This is an example of:A Upward communicationB Downward communicationC One-way communicationD Two-way communicationE None of the above.

120 Management calls a meeting to explain to all employees the new benefits package for the rank and file. This is an example of:A. Upward communicationB. Downward communicationC. One-way communicationD. Two-way communicationE. None of the above.

2 Management calls a meeting to explain to all employees the new benefits package for the rank and file. This is an example of:A. Upward communicationB. Downward communicationC. One-way communicationD. Two-way communicationE. None of the above

Explain the grounds upon which a person may be disqualified under the Company Directors Disqualification Act 1986.(10 marks)

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(b) GHG has always used local labour to build and subsequently operate hotels. The directors of GHG are againconsidering employing a local workforce not only to build the hotel but also to operate it on a daily basis.Required:Explain TWO ways in which the possibility of cultural differences might impact on the performance of a localworkforce in building and operating a hotel in Tomorrowland. (6 marks)

(b) Calculate the taxable benefit in 2005/06 if Jan were to use the accommodation offered by his employer. Youmay assume that the rules for calculating benefits are the same as in 2004/05. (3 marks)

(c) (i) Explain the inheritance tax (IHT) implications and benefits of Alvaro Pelorus varying the terms of hisfather’s will such that part of Ray Pelorus’s estate is left to Vito and Sophie. State the date by which adeed of variation would need to be made in order for it to be valid; (3 marks)

(ii) Explain why Galileo is able to pay the inheritance tax due in instalments, state when the instalments aredue and identify any further issues relevant to Galileo relating to the payments. (3 marks)

(ii) the directors agree to disclose the note. (4 marks)

(a) List and explain FOUR methods of selecting a sample of items to test from a population in accordance with ISA 530 (Redrafted) Audit Sampling and Other Means of Testing. (4 marks)(b) List and explain FOUR assertions from ISA 500 Audit Evidence that relate to the recording of classes oftransactions. (4 marks)(c) In terms of audit reports, explain the term ‘modified’. (2 marks)