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(c) Briefly describe three advantages to Bailey’s of counselling. (3 marks)
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(c) Briefly describe the principal audit work to be performed in respect of the carrying amount of the following
items in the balance sheet:
(i) development expenditure on the Fox model; (3 marks)
(c) Briefly describe five factors to be taken into account when deciding whether to use recruitment consultants.(5 marks)
(b) Briefly describe the five extreme scores identified by Blake and Mouton. (5 marks)
(b) Briefly describe the way in which a ‘person specification’ differs from a ‘job description’. (3 marks)
(d) Briefly describe the principal audit work to be performed in respect of the carrying amount of the following
items in the balance sheet:
(i) trade receivables; and (3 marks)
Directions:
In your essay, you should
1) describe the drawing briefly,
2) explain its intended meaning, and then
3) give your comments.
You should write neatly on ANSHWER SHEET 2. (20 points)
2 Directions：
Write an essay of 160-200 words based on the following pictures. In your essay , you should
1)describe the pictures briefly,
2)interpret the meaning , and
3)give your comments.
(c) You have been making preliminary inquiries regarding matters arising from the previous year’s audit of Di Rollo.
It has been revealed that no action has been taken in response to the management letter prepared by the previous
auditors. Di Rollo’s management has explained that this was because it was ‘poorly prepared’ and ‘unhelpful’.
Required:
Briefly describe various criteria against which the effectiveness of a management letter may be assessed.
(7 marks)
Section A暂缺
Section B – ALL FIVE questions are compulsory and MUST be attempted
The Chemical Free Clean Co (C Co) provides a range of environmentally-friendly cleaning services to business customers, often providing a specific service to meet a client’s needs. Its customers range from large offices and factories to specialist care wards at hospitals, where specialist cleaning equipment must be used and regulations adhered to. C Co offers both regular cleaning contracts and contracts for one-off jobs. For example, its latest client was a chain of restaurants which employed them to provide an extensive clean of all their business premises after an outbreak of food poisoning.
The cleaning market is very competitive, although there are only a small number of companies providing a chemical free service. C Co has always used cost-plus pricing to determine the prices which it charges to its customers but recently, the cost of the cleaning products C Co uses has increased. This has meant that C Co has had to increase its prices, resulting in the loss of several regular customers to competing service providers.
The finance director at C Co has heard about target costing and is considering whether it could be useful at C Co.
Required:
(a) Briefly describe the main steps involved in deriving a target cost. (3 marks)
(b) Explain any difficulties which may be encountered and any benefits which may arise when implementing target costing at C Co. (7 marks)
