One of your audit clients is Tye Co a company providing petrol, aviation fuel and similar oil based products to the government of the country it is based in. Although the company is not listed on any stock exchange, it does follow best practice regarding corporate governance regulations. The audit work for this year is complete, apart from the matter referred to below.As part of Tye Co’s service contract with the government, it is required to hold an emergency inventory reserve of 6,000 barrels of aviation fuel. The inventory is to be used if the supply of aviation fuel is interrupted due to unforeseen events such as natural disaster or terrorist activity.This fuel has in the past been valued at its cost price of $15 a barrel. The current value of aviation fuel is $120 a barrel. Although the audit work is complete, as noted above, the directors of Tye Co have now decided to show the ‘real’ value of this closing inventory in the financial statements by valuing closing inventory of fuel at market value, which does not comply with relevant accounting standards. The draft financial statements of Tye Co currently show a profit of approximately $500,000 with net assets of $170 million.Required:(a) List the audit procedures and actions that you should now take in respect of the above matter. (6 marks)(b) For the purposes of this section assume from part (a) that the directors have agreed to value inventory at$15/barrel.Having investigated the matter in part (a) above, the directors present you with an amended set of financialstatements showing the emergency reserve stated not at 6,000 barrels, but reported as 60,000 barrels. The final financial statements now show a profit following the inclusion of another 54,000 barrels of oil in inventory. When queried about the change from 6,000 to 60,000 barrels of inventory, the finance director stated that this change was made to meet expected amendments to emergency reserve requirements to be published in about six months time. The inventory will be purchased this year, and no liability will be shown in the financial statements for this future purchase. The finance director also pointed out that part of Tye Co’s contract with the government requires Tye Co to disclose an annual profit and that a review of bank loans is due in three months. Finally the finance director stated that if your audit firm qualifies the financial statements in respect of the increase in inventory, they will not be recommended for re-appointment at the annual general meeting. The finance director refuses to amend the financial statements to remove this ‘fictitious’ inventory.Required:(i) State the external auditor’s responsibilities regarding the detection of fraud; (4 marks)(ii) Discuss to which groups the auditors of Tye Co could report the ‘fictitious’ aviation fuel inventory;(6 marks)(iii) Discuss the safeguards that the auditors of Tye Co can use in an attempt to overcome the intimidationthreat from the directors of Tye Co. (4 marks)
One of your audit clients is Tye Co a company providing petrol, aviation fuel and similar oil based products to the government of the country it is based in. Although the company is not listed on any stock exchange, it does follow best practice regarding corporate governance regulations. The audit work for this year is complete, apart from the matter referred to below.
As part of Tye Co’s service contract with the government, it is required to hold an emergency inventory reserve of 6,000 barrels of aviation fuel. The inventory is to be used if the supply of aviation fuel is interrupted due to unforeseen events such as natural disaster or terrorist activity.
This fuel has in the past been valued at its cost price of $15 a barrel. The current value of aviation fuel is $120 a barrel. Although the audit work is complete, as noted above, the directors of Tye Co have now decided to show the ‘real’ value of this closing inventory in the financial statements by valuing closing inventory of fuel at market value, which does not comply with relevant accounting standards. The draft financial statements of Tye Co currently show a profit of approximately $500,000 with net assets of $170 million.
Required:
(a) List the audit procedures and actions that you should now take in respect of the above matter. (6 marks)
(b) For the purposes of this section assume from part (a) that the directors have agreed to value inventory at
$15/barrel.
Having investigated the matter in part (a) above, the directors present you with an amended set of financial
statements showing the emergency reserve stated not at 6,000 barrels, but reported as 60,000 barrels. The final financial statements now show a profit following the inclusion of another 54,000 barrels of oil in inventory. When queried about the change from 6,000 to 60,000 barrels of inventory, the finance director stated that this change was made to meet expected amendments to emergency reserve requirements to be published in about six months time. The inventory will be purchased this year, and no liability will be shown in the financial statements for this future purchase. The finance director also pointed out that part of Tye Co’s contract with the government requires Tye Co to disclose an annual profit and that a review of bank loans is due in three months. Finally the finance director stated that if your audit firm qualifies the financial statements in respect of the increase in inventory, they will not be recommended for re-appointment at the annual general meeting. The finance director refuses to amend the financial statements to remove this ‘fictitious’ inventory.
Required:
(i) State the external auditor’s responsibilities regarding the detection of fraud; (4 marks)
(ii) Discuss to which groups the auditors of Tye Co could report the ‘fictitious’ aviation fuel inventory;
(6 marks)
(iii) Discuss the safeguards that the auditors of Tye Co can use in an attempt to overcome the intimidation
threat from the directors of Tye Co. (4 marks)
相关考题：
4 You are a senior manager in Becker Co, a firm of Chartered Certified Accountants offering audit and assuranceservices mainly to large, privately owned companies. The firm has suffered from increased competition, due to twonew firms of accountants setting up in the same town. Several audit clients have moved to the new firms, leading toloss of revenue, and an over staffed audit department. Bob McEnroe, one of the partners of Becker Co, has askedyou to consider how the firm could react to this situation. Several possibilities have been raised for your consideration:1. Murray Co, a manufacturer of electronic equipment, is one of Becker Co’s audit clients. You are aware that thecompany has recently designed a new product, which market research indicates is likely to be very successful.The development of the product has been a huge drain on cash resources. The managing director of Murray Cohas written to the audit engagement partner to see if Becker Co would be interested in making an investmentin the new product. It has been suggested that Becker Co could provide finance for the completion of thedevelopment and the marketing of the product. The finance would be in the form. of convertible debentures.Alternatively, a joint venture company in which control is shared between Murray Co and Becker Co could beestablished to manufacture, market and distribute the new product.2. Becker Co is considering expanding the provision of non-audit services. Ingrid Sharapova, a senior manager inBecker Co, has suggested that the firm could offer a recruitment advisory service to clients, specialising in therecruitment of finance professionals. Becker Co would charge a fee for this service based on the salary of theemployee recruited. Ingrid Sharapova worked as a recruitment consultant for a year before deciding to train asan accountant.3. Several audit clients are experiencing staff shortages, and it has been suggested that temporary staff assignmentscould be offered. It is envisaged that a number of audit managers or seniors could be seconded to clients forperiods not exceeding six months, after which time they would return to Becker Co.Required:Identify and explain the ethical and practice management implications in respect of:(a) A business arrangement with Murray Co. (7 marks)
4 You are an audit manager in Smith Co, a firm of Chartered Certified Accountants. You have recently been maderesponsible for reviewing invoices raised to clients and for monitoring your firm’s credit control procedures. Severalmatters came to light during your most recent review of client invoice files:Norman Co, a large private company, has not paid an invoice from Smith Co dated 5 June 2007 for work in respectof the financial statement audit for the year ended 28 February 2007. A file note dated 30 November 2007 statesthat Norman Co is suffering poor cash flows and is unable to pay the balance. This is the only piece of informationin the file you are reviewing relating to the invoice. You are aware that the final audit work for the year ended28 February 2008, which has not yet been invoiced, is nearly complete and the audit report is due to be issuedimminently.Wallace Co, a private company whose business is the manufacture of industrial machinery, has paid all invoicesrelating to the recently completed audit planning for the year ended 31 May 2008. However, in the invoice file younotice an invoice received by your firm from Wallace Co. The invoice is addressed to Valerie Hobson, the managerresponsible for the audit of Wallace Co. The invoice relates to the rental of an area in Wallace Co’s empty warehouse,with the following comment handwritten on the invoice: ‘rental space being used for storage of Ms Hobson’sspeedboat for six months – she is our auditor, so only charge a nominal sum of $100’. When asked about the invoice,Valerie Hobson said that the invoice should have been sent to her private address. You are aware that Wallace Cosometimes uses the empty warehouse for rental income, though this is not the main trading income of the company.In the ‘miscellaneous invoices raised’ file, an invoice dated last week has been raised to Software Supply Co, not aclient of your firm. The comment box on the invoice contains the note ‘referral fee for recommending Software SupplyCo to several audit clients regarding the supply of bespoke accounting software’.Required:Identify and discuss the ethical and other professional issues raised by the invoice file review, and recommendwhat action, if any, Smith Co should now take in respect of:(a) Norman Co; (8 marks)
ALIBABA SEEKS TO RAISE BILLIONS IN IPO Investors in the United States are preparing for the first public sale of stock in the Chinese company Alibaba. The company sells goods________ linking buyers and sellers in the huge Chinese online market. Alibaba is expected to ________ its initial public offering, called an IPO, in September on the New York Stock Exchange. The total value of the company, based in Hangzhou, has been estimated at about $200 billion. Reports from Bloomberg News say Alibaba is offering investors a 12 percent ________ of the company. That would mean the company could raise ________ $20 billion dollars in the public stock sale. After the IPO, Alibaba could become one of the most ________ technology companies in the world. Apple, for example, has a market value of about $600 billion. Google is valued at about $390 billion and Microsoft is worth about $370 billion.
Directions:The following isan introduction of a company.After reading it, you should give brief answers to the five questions ( No.56 to No. 60) that follow. The answers（in not more than 3 words）should be written after the corresponding numbers on the Answer Sheet.Ditis Hong Kong Ltd is a manufacturer of security products and peripheral equipment, knowledge-based company. All of our managers has high technical education and fluently spoken English, Chinese, Japanese and Russian. We major in professional digital security products. Our products with advanced technology, stable performance, cost-effective, stylish design, excellent quality, has won the trust of customers and a wide range of popular.Being a professional manufacturer of security products, we value Innovation, Dedication and Superiority, and satisfy our customers by adding new designs and features to our products according to customers needs.Our service knowledge is second to none. We really appreciate your business and hope to deal with you again.We sincerely welcome customers to visit and give us your advice.41．What kind of company is Ditis Hong Kong Ltd?Ditis Hong Kong Ltd is a manufacturer of ________ and peripheral equipment, knowledge-based company.42. What’s the educational background of the managers in Ditis Hong Kong Ltd?All of our managers has ________________.43. What’s the major products of the company?They major in ______________ products.44. How can the company satisfy its customers?It satisfies its customers by adding ____________to our products according to customers needs45. How about the service and knowledge of the company?Our service knowledge is ___________.
Large companies need a way to reach the savings of the public.The same problem, on a smaller scale, faces practically every company trying to develop new products and create new jobs.There can be little prospect of raising the sort of sums needed from friends and people we know, and while banks may agree to provide short-term finance, they are generally unwilling to provide money on a permanent basis for long-term projects.So companies turn to the public, inviting people to lend them money, or take a share in the business in exchange for a share in future profits.This they do by issuing stocks and shares in the business through the Stock Exchange.By doing so they can put into circulation the savings of individuals and institutions, both at home and overseas.When the saver needs his money back, he does not have to go to the company with whom he originally placed it.Instead, he sells his shares through a stockbroker to some other saver who is seeking to invest his money.Many of the services needed both by industry and by each of us are provided by the Government or by local authorities.Without hospitals, roads, electricity, telephones, railway, this country could not function.All these require continuous spending on new equipment and new development if they are to serve us properly, requiring more money than is raised through taxes alone.The Government, local authorities, and nationalized industries therefore frequently need to borrow money to finance major capital spending, and they, too, come to the Stock Exchange.There is hardly a man or woman in this country whose job or whose standard of living does not depend on the ability of his or her employers to raise money to finance new development.In one way or another this new money must come from the savings of the country.The Stock Exchange exists to provide a channel through which these savings can reach those who need finance.1、The money which enables those companies to go ahead with their projects is().A、exchanged for part ownership in the Stock ExchangeB、raised by the selling of shares in the companiesC、repaid to its original owners as soon as possibleD、invested in different companies in the Stock Exchange2、All the essential services on which we depend are().A、unable to provide for the needs of the populationB、financed wholly by rates and taxesC、in constant need of financial supportD、run by the government or local organizations3、The Stock Exchange makes it possible for the Government, local authorities and nationalized industries().A、to make certain everybody saves moneyB、to borrow as much money as they wishC、to make certain everybody lends money to themD、to raise money to finance new development
(a) Contrast the role of internal and external auditors. (8 marks)(b) Conoy Co designs and manufactures luxury motor vehicles. The company employs 2,500 staff and consistently makes a net profit of between 10% and 15% of sales. Conoy Co is not listed; its shares are held by 15 individuals, most of them from the same family. The maximum shareholding is 15% of the share capital.The executive directors are drawn mainly from the shareholders. There are no non-executive directors because the company legislation in Conoy Co’s jurisdiction does not require any. The executive directors are very successful in running Conoy Co, partly from their training in production and management techniques, and partly from their ‘hands-on’ approach providing motivation to employees.The board are considering a significant expansion of the company. However, the company’s bankers areconcerned with the standard of financial reporting as the financial director (FD) has recently left Conoy Co. The board are delaying provision of additional financial information until a new FD is appointed.Conoy Co does have an internal audit department, although the chief internal auditor frequently comments that the board of Conoy Co do not understand his reports or provide sufficient support for his department or the internal control systems within Conoy Co. The board of Conoy Co concur with this view. Anders Co, the external auditors have also expressed concern in this area and the fact that the internal audit department focuses work on control systems, not financial reporting. Anders Co are appointed by and report to the board of Conoy Co.The board of Conoy Co are considering a proposal from the chief internal auditor to establish an audit committee.The committee would consist of one executive director, the chief internal auditor as well as three new appointees.One appointee would have a non-executive seat on the board of directors.Required:Discuss the benefits to Conoy Co of forming an audit committee. (12 marks)
As an experienced technician, you are responsible for Technical Support in your company. You ask one of the trainees to document the layers of an existing CIS network. Which three statements best characterize this process? （）(Choose three.)A. It provides reliable input for verifying network consistency.B. It requires a network audit to support some upgrade decisions.C. It requires a network audit to support any network restructuring.D. It begins with gathering organizational input that may be inaccurate.
Investment TipsBy Scott RussellInvesting in stocks that are less than $5 per share is a good way to boost your stock portfolio. Many big investors ignore these stocks because of the potential risks involved, however, these stocks often grow significantly over the course of time. Investing in inexpensive stocks is a wise move, provided that you hold on to them for at least one year to allow enough time for them to develop.Four stocks that I suggest for less than $5 per share are High Standard Pharmaceuticals Company, Nova Oil, Inc., Direct Access Publishing Group, and Peak Media Holdings. If you are new to the market, you might want to try investing in them through an online brokerage firm that does not charge a high commission for their services, and remember: only invest up to five percent of your entire stock portfolio in any stock, including these.------------------------------------------------------------------------------------------------------------------------------Quick Stock Quotes -- Thursday April 22 -- 2:40 P.M.(Quotes delayed by 20 minutes)Nova Oil, Inc. (NOI)3.93 +0.08 +2.08%Previous Close 3.85Open 3.87High 3.94Low 3.79Volume 864,300Bid 3.91Bid Size 600Ask 3.97Ask Size 3,30052 Week range 1.64-8.90What company's stock is profiled?A. Nova Oil, Inc.B. Peak Media HoldingsC. Direct Access Publishing GroupD. High Standard Pharmaceuticals Company
Which of the following statements explains why it is normally best to have more than onecontroller-based access point participate in the containment of one rogue access point？（）A、Clients connected to the rogue access point must be able to connect to the containmentcontroller-based access point.B、Multiple controller-based access points will load-balance the containment task using fewerresourcesthan a single access point.C、Clients connected to the rogue access point may be out of the range of the controller-basedaccess point providing containment.D、Each controller-based access point can handle only a limited amount of clients connected tothe rogue access points.
Which of the following statements explains why it is normally best to have more than one controller-based access point participate in the containment of one rogue access point？（）A、clients connected to the rogue access point must be able to connect to the containment controller-based access point.B、multiple controller-based access points will load-balance the containment task using fewer resources than a single access point.C、clients connected to the rogue access point may be out of the range of the controller-based access point providing containment.D、each controller-based access point can handle only a limited amount of clients connected to the rogue access points.
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.the Company.com contains an exchange server 2010 client access server named -ex12.Company.com has an employee named andy booth.he uses exchange activesync to down load attachment.You have received instructions from the cio to limit andy booth’s attachments size；however your action should not in any way affect the other employees at Company.com.What should you do？（）A、The best option is to set up a new managed content setting.B、The best option is to change Andy Booth’s message size restrictions.C、The best option is to set up a new Exchange ActiveSync mailbox policy.D、The best option is to change the default Exchange ActiveSync mailbox policy.
Which of the following statements explains why it is normally best to have more than one controller-basedaccess point participate in the containment of one rogue access point？（）A、Multiple controller-based access points will load-balance the containment task using fewer resources than a single access point.B、Clients connected to the rogue access point may be out of the range of the controller-based access point providing containment.C、Each controller-based access point can handle only a limited amount of clients connected to the rogue access points.D、Clients connected to the rogue access point must be able to connect to the containment controller-based access point.
You work as a network Exchange administrator at Company.com.The Company.com network currently consists of a single Active Directory forest containing a single domain named Company.com.The Company.com organization makes use of Microsoft Exchange Server 2010 as their messaging solution.Company.com has recently attempted the creation of a new address list based on the network user’s country attribute but discovered that the attribute is not available in the New Address List Wizard.During the course of the business week you receive instruction from Company.com to create a new address list based on the network user’s country. What should you do？（）A、You should consider having a new dynamic distribution group created and run the New Address List wizard from the Exchange Management Console （EMC）.B、You should consider having the properties of the All Users Address list modified and run the New Address List wizard from the Exchange Management Console （EMC）.C、You should consider having the Set-AddressList cmdlet run from the Exchange Management Shell.D、You should consider having the New-AddressList cmdlet run from the Exchange Management Shell.
You have an Exchange Server 2010 organization. Your company has a relationship with another company. The partner company has an Exchange Server 2010 organization. You need to recommend a security solution to meet the following requirements： .Ensure that all e-mail delivery between your servers and the partner companys servers is encrypted .Ensure that all communication between your servers and the partner companys servers is authenticated What should you include in the solution？（）A、Active Directory Rights Management Services （AD RMS）B、Domain SecurityC、Forms-based AuthenticationD、Secure/Multipurpose Internet Mail Extensions （S/MIME）
Company.com has employed you as their Exchange administrator.The Company.com network contains Mailbox servers that are configured to run either Exchange Server 2007 or Exchange Server 2010.During the course of the week you receive an instruction from the CIO to ensure that all e-mail messages stored for more than 90 days in the Inbox folder of clients be deleted. What should you do？（）A、Your best option would be to create a new retention policy.B、Your best option would be to create a new message classification.C、Your best option would be to create new managed content settings.D、Your best option would be to create a new managed custom folder.
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.Company.com contains an edge transport server named - sr10 that is configured as an open smtp relay.one of the Company.com managers complained that he cannot get any e-mail from a customer the stanford.com domain name.you have received instructions from the cio to make sure that -sr10 can receive the e-mails from stanford.com. What should you do？（）A、The best option to set up an address rewrite entry.B、The best option to set up an IP Allow List entry.C、The best option to set up the properties of the sender filtering feature.D、The best option to set up the properties of the Sender ID feature.
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.the Company.com contains an exchange server 2010 mailbox server named -ex20 that contains a mailbox database.a Company.com manager wants the see the last logon time of the employees at Company.com. What should you do？（）A、The best option is to run the Get-MailboxDatabase from the Exchange Management Shell.B、The best option is to run the Get-MailboxStatistics from the Exchange Management Shell.C、The best option is to create and export a filter from the Exchange Management Console.D、The best option is to run the Remote Connectivity Analyzer from the Exchange Management Console.
.You work as a network Exchange administrator at Company.com.The Company.com network currently consists of a single Active Directory forest containing a single domain named Company.com.The Company.com organization makes use of Microsoft Exchange Server 2010 as their messaging solution.the Company.com network contains a client access server named - ex05.during routine monitoring you discover that -ex05 has failed.you receive an instruction from the cio to install a new member server named -ex05 on the network as well as to recovering the client access server role on -ex05.What should you do？（）A、Your best option would be to run Setup /RecoverCMS from the Exchange Server installation source files.B、your best option would be to have the inetpub folder as well as the system state restored from -ex05.C、Your best option would be to run Setup /M：RecoverServer from the Exchange Server installation source files.D、your best option would be to have the inetsrv folder as well as the system state restored from - ex05.
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.Due to company growth Company.com， has acquired an accepted domain named courseware.com.You have received instructions from the CIO to automatically forward the e-mail messages sent to courseware.com to another server that does not resides in Company.com.What should you do？（）A、The best option is to change the default e-mail address policy properties.B、The best option is to change the default Receive connector properties.C、The best option is to change the accepted domain properties.D、The best option is to change the default remote domain properties.
You work as the Exchange administrator at Company.com.The Company.com network contains an Exchange Server 2010 Organization.You are responsible for managing the Exchange network for Company.com.The network contains numerous Mailbox servers.During the course of the week you receive an instruction from the CIO to determine the message latency between the Mailbox servers in the organization.What should you do？（）A、Your best option would be to increase the MSExchangeMailSubmission diagnostic logging level to Expert.B、Your best option would be to run the Test-Mailflow cmdlet.C、Your best option would be to increase the MSExchangeTransport diagnostic logging level to Expert.D、Your best option would be to run the Test-OutlookConnectivity cmdlet.
You work as a network Exchange administrator at Company.com.The Company.com network currently consists of a single Active Directory forest containing a single domain named Company.com.The Company.com organization makes use of Microsoft Exchange Server 2010 as their messaging solution.Company.com users make use of Microsoft Office Outlook 2007 to access their mailboxes.A new Company.com directive states that all received e-mail messages located in the entire mailbox be archived after one year.It is important that e-mail messages of the finance department be kept for three years. What should you do？（）A、Your best option would be to create a message classification.B、Your best option would be to create a linked mailbox.C、Your best option would be to create an Outlook Protection Rule.D、Your best option would be to create a managed custom folder.
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.During a routine monitoring， you notice that e-mail messages going to the Internet encompasses internal Exchange routing information in the message header.The Company.com CIO does not want that information to be sent to their clients. What should you do？（）A、The best option is to set up a new remote domain.B、The best option is to change the permissions of the Send connector.C、The best option is to change the properties of the sender reputation feature.D、The best option is to enable domain security on the default Receive connector.
问答题Practice 5 The sales service includes installation(安装) and training within one week of receiving the order. On the day of installation, our training engineer will spend one hour with your secretary, providing instructions on the operation of this easy-to-use photocopier(复印机). You may call us for help at any time in the future. If necessary, our trainer will go to your company to help you with the operation of the machine.
单选题Which of the following statements explains why it is normally best to have more than one controller-based access point participate in the containment of one rogue access point？（）Aclients connected to the rogue access point must be able to connect to the containment controller-based access point.Bmultiple controller-based access points will load-balance the containment task using fewer resources than a single access point.Cclients connected to the rogue access point may be out of the range of the controller-based access point providing containment.Deach controller-based access point can handle only a limited amount of clients connected to the rogue access points.
多选题As an experienced technician, you are responsible for Technical Support in your company. You ask one of the trainees to document the layers of an existing CIS network. Which three statements best characterize this process? （）(Choose three.)AIt provides reliable input for verifying network consistency.BIt requires a network audit to support some upgrade decisions.CIt requires a network audit to support any network restructuring.DIt begins with gathering organizational input that may be inaccurate.
单选题Which of the following statements explains why it is normally best to have more than one controller-basedaccess point participate in the containment of one rogue access point？（）AMultiple controller-based access points will load-balance the containment task using fewer resources than a single access point.BClients connected to the rogue access point may be out of the range of the controller-based access point providing containment.CEach controller-based access point can handle only a limited amount of clients connected to the rogue access points.DClients connected to the rogue access point must be able to connect to the containment controller-based access point.
问答题Directions: In this part of the test, you will write ONE sentence that is based on a picture. With each picture, you will be given TWO words or phrases that you must use in your sentence. You can change the forms of the words and you can use the words in any order. Your sentences will be scored on:•the appropriate use of grammar and•the relevance of the sentence to the pictureYou will have 8 minutes to complete this part of the test.Practice 1Directions: Write ONE sentence based on the picture, using the TWO words or phrases beneath it. You may change the forms of the words and you may use them, in any order.