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(ii) Assuming the new structure is implemented with effect from 1 August 2006, calculate t

(ii) Assuming the new structure is implemented with effect from 1 August 2006, calculate the level of

management charge that should be made by Bold plc to Linden Limited for the year ended 31 July

2007, so as to minimise the group’s overall corporation tax (CT) liability for that year. (2 marks)

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第1题
(ii) Assuming the relief in (i) is available, advise Sharon on the maximum amount of cash

(ii) Assuming the relief in (i) is available, advise Sharon on the maximum amount of cash she could receive

on incorporation, without triggering a capital gains tax (CGT) liability. (3 marks)

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第2题
In relation to the law of contract: (a) defi ne an offer; (5 marks) (b) explain the specif

In relation to the law of contract:

(a) defi ne an offer; (5 marks)

(b) explain the specifi c meaning and effect of

(i) a counter-offer; (3 marks)

(ii) a unilateral offer. (2 marks)

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第3题
(a) (i) Defi ne a ‘test of control’ and a ‘substantive procedure’; (2 marks) (ii) State ON

(a) (i) Defi ne a ‘test of control’ and a ‘substantive procedure’; (2 marks)

(ii) State ONE test of control and ONE substantive procedure in relation to sales invoicing. (2 marks)

(b) Shiny Happy Windows Co (SHW) is a window cleaning company. Customers’ windows are cleaned monthly, the window cleaner then posts a stamped addressed envelope for payment through the customer’s front door.

SHW has a large number of receivable balances and these customers pay by cheque or cash, which is received in the stamped addressed envelopes in the post. The following procedures are applied to the cash received cycle:

1. A junior clerk from the accounts department opens the post and if any cheques or cash have been sent, she records the receipts in the cash received log and then places all the monies into the locked small cash box.

2. The contents of the cash box are counted each day and every few days these sums are banked by which ever member of the fi nance team is available.

3. The cashier records the details of the cash received log into the cash receipts day book and also updates the sales ledger.

4. Usually on a monthly basis the cashier performs a bank reconciliation, which he then fi les, if he misses a month then he catches this up in the following month’s reconciliation.

Required:

For the cash cycle of SHW:

(i) Identify and explain THREE defi ciencies in the system; (3 marks)

(ii) Suggest controls to address each of these defi ciencies; and (3 marks)

(iii) List tests of controls the auditor of SHW would perform. to assess if the controls are operating effectively. (3 marks)

(c) Describe substantive procedures an auditor would perform. in verifying a company’s bank balance. (7 marks)

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第4题
________that the demand for power continues to rise at the current rate, it will not

A.Concerning

B.Assuming

C.Regarding

D.predicting

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第5题
(b) Assuming that the acquisition proceeds, what steps will Datum Paper Products need to t

(b) Assuming that the acquisition proceeds, what steps will Datum Paper Products need to take to build a shared

culture in the two companies? (10 marks)

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第6题
(c) Assuming that she will survive until July 2009, advise on the lifetime inheritance tax

(c) Assuming that she will survive until July 2009, advise on the lifetime inheritance tax (IHT) planning

measures that could be undertaken by Debbie, quantifying the savings that can be made. (7 marks)

For this question you should assume that the rates and allowances for 2004/05 apply throughout.

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第7题
166Guidelines for estimating time durations include: A.Assuming a normal level of labor an

166 Guidelines for estimating time durations include:

A. Assuming a normal level of labor and equipment.

B. Assuming a normal work week.

C. Using consistent time units

D. Using past actual durations as guides.

E. All or part of each of the above

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第8题
Which of the following payment terms eliminates the exchange risk, assuming the exporter i
nvoices in foreign currency? ______.

A.Confirmed irrevocable documentary credit

B.Open account

C.Documentary collection D/A

D.None of the above

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第9题
All of the following may hinder a person's ability to transmit/receive a message except:AU

All of the following may hinder a person's ability to transmit/receive a message except:

A Unfamiliarity with topic

B Withholding information

C Assuming

D Noise

E Preoccupation

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第10题
(d) Advise Trent Limited of the consequences arising from the submission of the incorrect

(d) Advise Trent Limited of the consequences arising from the submission of the incorrect value added tax (VAT)

return, assuming that the company has previously had a good compliance record with regard to accounting

for VAT. (6 marks)

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