會計估計，是指在缺乏精確計量的情況下，采用。作出會計估計的難易程度取決于估計對象的。例如，估計預提費用可能只需要簡單的計算，而對therequirementsof??（二）了解管理層（三）Inordertotherequirementsof??（二）了解管理層（三）applicablefinancialreportingframework,themeansusedbymanagement uchtransactions,eventsandconditionsthatrequireaccountingestimatesandhowmanagementsuchestimates.2013/06Q4 in theauditofBulldog.(41.Obtainunderstandingofaccountinganddisclosurerequirements2.Understandmanagement’smethodforvaluingfinancialinstruments3.ConsiderinternalcontrolsincludinginternalDeterminematerialityoffinancialDetermineresources,i.e.skillsneededandneedforanauditor’sObtainunderstanding ’sfinancialTheauditorshouldevaluatethedegreeofestimationuncertaintyassociatedwiththeaccountingestimateand 2016 Determinewhetheroccurringuptothedateof theauditreportprovideevidenceregardingtheaccountingestimateTesthowmanagementmadetheaccountingestimate2015/06Q3Auditprocedures–impairmentofgoodwillThemethodologyappliedtotheimpairmentreviewshouldbecheckedbytheauditor,withinputstocalculations,e.g.discountrates,agreedtoauditor-obtainedinformation.Theassumptionsusedintheimpairmenttestshouldbeconfirmedasagreeingwiththeauditor’sunderstandingofthebusinessbasedonthecurrentyear’sriskassessmentprocedures,e.g.assessthereasonablenessofassumptionsoncashflowprojections.Obtainanunderstandingofthecontrolsoverthemanagement’sprocessofperformingtheimpairmenttestincludingtestsoftheoperatingeffectivenessofanycontrolsin ce,forexample,overthereviewandapprovalofassumptionsorinputsbyappropriatelevelsofmanagementDevelopanindependentestimateoftheimpairmentlossandcompareittothatpreparedbymanagement.

GoodwillPerform

toconsiderwhether,andifsohow,managementhasandtheimpactofanyalternativeassumptionsontheimpairmentcalculations.2016 （2）不恰當。針對導致特別風險的會計估計，Ex-MJ2019Q3 BhaspublishedtheExposureDraft,ProposedISA540(Revised)AuditingAccountingEstimatesandRelatedDisclosures(ED-540)stating‘TheobjectiveofED-540isfortheauditortoobtainsufficientappropriateauditevidencetoevaluatewhetheraccountingestimatesandrelateddisclosuresarereasonableinthecontextoftheapplicablefinancialreportingframework,oraremisstated.ED-540includesenhancedrequirementsforriskassessmentproceduresandtheauditor’sworkeffortinrespondingtotheassessedrisksofmaterialmisstatementtosupportthis inwhyaccountingestimatesareconsideredtobeanddiscussthereasonsforthedevelopmentofED-540commentingonitsproposalsforanenhancedriskassessmentinrelationtotheauditofaccountingestimates.(8marks)MarkMarkschemeGenerally1markperAccountingestimatesaresourceofhighaudit––Deliberate–Non-routineAuditteammaylackknowledge/experience;Mayoverrelyonauditor’sorMarkscheme-ReasonsforED-LackofconsistencyinextenttowhichauditorsobtainedunderstandingofaccountingInsufficientandinappropriateworkeffortbyLackofprofessionalscepticismexercisedbyNeedformorespecificriskassessmentrequirementsandmoregranularrequirementsregardingobtainingauditevidenceNeedtomoderniseISA540forevolvingfinancialreportingIncreasinglycomplexbusinessenvironmentandincreasedcomplexityinIFRSIncreasedemphasisonuseoffairvalueinIFRSStandards(relatedneedforIFRSIFRS9’sexpectedlossesimpairmentmodelandrelatedNeedtoenhancecommunicationbetweenauditorsandTCWGaboutaccountingProfessionalscepticismiskeyintheauditofaccountingestimates;ED-540containsprovisionsdesignedtoenhanceauditor’sapplicationofprofessionalscepticismandconsiderationofpotentialformanagementbiasGivenincreaseduseofexternalsourcesinmakingaccountingestimates,ED-540aimstoimproveandclarifyrequirementsonuseofsuchinformationasitisinpublicinteresttodosoummarksAnswerED-540AuditingAccountingEstimatesandRelatedInApril2017,the BissuedProposedInternationalStandardonAuditing540(Revised)AuditingAccountingEstimatesandRelatedDisclosures(ED-540). BhassoughttomakeED-540scalable,recognisingthatthestandardappliestoallaccountingestimatesfromthesimplestdepreciationcalculationthroughtothemostcomplexofderivativefinancialinstrumentsandexpectedcreditWhilethesimpleraccountingestimateswillnotgenerallygiverisetohighauditrisk,manymeasurementsbasedonestimates,includingfairvaluemeasurementsandimpairmentsinrelationtofinancialinstruments,areimpreciseandsubjectiveinnatureandwillgiverisetohighinherentrisk.Suchfairvalueandimpairmentassessmentsarelikelytoinvolvesignificant,complexjudgements,forexample,regardingmarketconditions,thetimingofcashflowsandthefutureintentionsoftheThevaluationswillofteninvolvecomplexmodelsbuiltonsignificantassumptionssuchasthepredictedtimingofcashflows,themostappropriatediscountfactortouseandjudgementsaboutprobabilityweightedaverages.Managementmaynotalwayshavesufficientknowledgeandexperienceinmakingthesejudgements.Moreover,theremayevenbeadeliberateattemptbymanagementtomanipulatethevalueofanestimateinordertowindowdressthefinancialstatements.ProfessionalscepticismiskeytotheauditofaccountingestimatesandED-540containsprovisionswhicharedesignedtoenhancetheauditor’sapplicationofprofessionalscepticismandaconsiderationofthepotentialformanagementbias.Outreachactivitieswithregulatorsandotherkeystakeholderspointedtotheneedforthe BtofocusattentiononrevisionstoISA540AuditingAccountingEstimates,IncludingFairValueAccountingEstimates,andRelatedDisclosures.Feedbackfromthe outreachprojectsrevealedaperceivedlackofconsistencyintheextenttowhichauditorsobtainedanunderstandingofaccountingestimatestogetherwithevidenceofinsufficientandinappropriateworkeffortbyauditorsinthisarea.Theconsultationprocessalsoidentifiedalackofprofessionalscepticismbeingexercisedbyauditorsandaneedformorespecificriskassessmentrequirementsandmoregranularrequirementsregardingobtainingauditevidence.Italsoidentifiedaneedtoenhancecommunicationbetweenauditorsandthosechargedwith aboutaccountingestimatesandinparticulartheauditor’sviewsaboutsignificantqualitativeaspectsoftheentity’saccountingpractices.TheobjectiveofISA540isfortheauditortoobtainsufficientappropriateevidencetoevaluatewhetheraccountingestimatesandrelateddisclosuresarereasonableinthecontextoftherelevantfinancialreportingframeworkoraremisstated.Consequently,ED-540aimstoincludeenhancedriskassessmentrequirementsandthedraftstandardemphasisesthattheriskofmaterialmisstatementinrelationtotheauditofaccountingestimatesisimpactedbythreekeyfactors:complexity,theapplicationofmanagementjudgementandestimationuncertainty.TheincreasedemphasisontheuseoffairvaluemeasurementinIFRSStandardsandtheassociateddevelopmentofIFRS13FairValueMeasurementreflecttheincreasingcomplexityofthebusinessenvironment.Furthermore,giventheincreasedemphasisontheuseofexternalsourcesinIFRS13andinmakingaccountingestimatessuchasfairvalues,ED-540aimstoimproveandclarifytherequirementsontheuseofsuchinformationasitisinthepublicinteresttodoso.Thesefactors,togetherwiththeimplementationofIFRS9FinancialInstrumentsandinparticularitscomplexandhighlysubjectiveexpectedlossapproachtothemeasurementofimpairmentsandextensivedisclosurerequirements,highlightedaneedtomoderniseISA540forevolvingfinancialreportingframeworks.Theriskthatanentity’sinternalsystemsandcontrolsfailtopreventanddetectvaluationerrorsneedstobeassessedaspartoftheoverallassessmentofauditrisk.Inrelationtocomplexfairvalueandimpairmentestimates,aparticularproblemisthatthemeasurementislikelytobeperformedinfrequentlyforexternalreportingpurposesandoutsidethenormalaccountingandmanagementsystems.Thisisespeciallytruewherethevaluationisperformedbyanexternalspecialist.Asanon-routineevent,therefore,theassessmentoffairvalueislikelynottohavethesamelevelofmonitoringorcontrolsasaday-to-daybusinesstransactionandmaygiverisetohighcontrolrisk.Theauditorshouldalwaysseektomanagedetectionriskatanacceptablelevelthrougheffectivenningandexecutionofauditprocedures.However,theauditteammaylackknowledgeandexperienceindealingwiththeestimationtechniqueinquestionandthereforemaybeunlikelytodetecterrorsinthevaluationandmodellingtechniquesappliedby.Anyresultingover-relianceonanexternalspecialistcouldalsoleadtoerrorsnotbeingidentified.Ex-201506Q3YouareanauditmanagerinSoprano&Co,workingontheauditoftheTonyGroup(theGroup),whosefinancialyearendedon31March2015.ThisisthefirsttimeyouhaveworkedontheGroupaudit.Thedraftconsolidatedfinancialstatementsrecogniseandtotalassetsof$90million(2014–$82million).TheGroupmanufacturesequipmentusedintheoilextractionindustry.Goodwillof$10millionisrecognisedintheGroupstatementoffinancialposition,havingarisenonseveralbusinesscombinationsoverthelastfewyears.AnimpairmentreviewwasconductedinMarch2015bySilvioDante,theGroupfinancedirector,andthisyearanistoberecognisedinrespectofSilviohaspreparedafileof ationtosupporttheresultsoftheimpairmentreview,includingnotesontheassumptionsused,hiscalculations,andconclusions.Whenhegaveyouthisfile,Silviomadethefollowingcomment:‘Idon’tthinkyoushouldneedanyevidenceotherthanthatcontainedinmyfile.Theassumptionsusedarestraightforward,soyoushouldn’tneedtolookintothemindetail.Theassumptionsareconsistentwithhowweconductedimpairmentreviewsinpreviousyearsandyourfirmhasalwaysagreedwiththeassumptionsused,soyoucancheckthatbacktolastyear’sauditfile.AllofthecalculationshavebeencheckedbytheheadoftheGroup’sinternalauditdepartment.’(i)DiscussthestatementmadebySilvio;and(6

shouldbeapplied(ii)Ex intheprincipalauditprocedurestobeperformedontheimpairmentofgoodwill.(5marks)AnswerThefinancedirectorseemstobedictatingtheauditworktobeperformed.Theauditmanagershoulddecidetheextentofauditproceduresinresponsetotheriskofmaterialmisstatementidentified.Themanagershouldconsiderwhythefinancedirectorseemssoinsistentthathisfileisusedasthemainsourceofauditevidence;hemaybehidingsomethingrelevanttotheimpairmentwhichwouldberevealediftheauditorlookedatothersourcesofevidence.TheGroup’sprofitbeforetaxhasfallenby33·3%,indicatingthatasignificantimpairmentlossamountingtomorethanthe$50,000calculatedbythefinancedirectormayneedtobeoThereis fmaterialmisstatementinthatoimpairmentlossisunderstated,andthereisamanagementbiashasresultedinaninappropriatedeterminationoftheloss.

Theauditorthereforeneedstobeskepticalandalertforfactorsindicatingthatthelossisgreaterthanthatcalculatedbythefinancedirector.Impairmenttestingisacomplexandsubjectivearea,andcouldbeeasilymanipulatedbymanagementwishingtoreducethesizeofthelossrecognised..Theauditmanagershouldobtaincorroboratoryevidenceregardingtheassumptionsusedandnotjustconfirmthattheassumptionsareinlinewithmanagement’sriskassessmentortheprioryearauditfile.Thereliabilityofthissourceofevidenceisnotstrongasitis importantpartofprofessionalskepticismis.,especiallyinanareaofhighjudgementsuchas,.Theinternalauditorcheckingthefiguresisalsonotareliablesourceofevidence,asitis Theinternalauditormayhavebeenpressuredtoconfirmthefinancedirector’scalculations..Professionalskepticismshouldalsobeappliedtothecommentthattheassumptionsarethesameasinpreviousyears.Newfactorsimpactingonimpairmentmayhavearisenduringthisyear,affectingthedeterminationoftheimpairmentlossandup-to-dateevidenceontheassumptionsusedinthisyear’scalculationshouldbesought.Theauditteamshouldalso henauditingbalancesandtransactionsotherthangoodwillincasethereareotherareaswhereSilviodoesnotappeartobeprovidingallevidencerequiredorwhereheissuggestingtheauditapproachtobetaken.Whilehiscomment innature,theauditteamshouldrecognisethatifSilviodoeshavesomethingtohideinrelationtothegoodwillimpairment,hemayemoreaggressive,inwhichcasethemattershouldbebroughttotheattentionofthefirm’sethicspartneranddiscussedwiththosechargedwith ernanceoftheGroup.【MJAuditprocedures–impairmentofgoodwillThemethodologyappliedtotheimpairmentreviewshouldbecheckedbytheauditor,withinputstocalculations,e.g.discountrates,agreedtoauditor-obtainedinformation.Theassumptionsusedintheimpairmenttestshouldbeconfirmedasagreeingwiththeauditor’sunderstandingofthebusinessbasedonthecurrentyear’sriskassessmentprocedures,e.g.assessthereasonablenessofassumptionsoncashflowprojections.Obtainanunderstandingofthecontrolsoverthemanagement’sprocessofperformingtheimpairmenttestincludingtestsoftheoperatingeffectivenessofanycontrolsin ce,forexample,overthereviewandapprovalofassumptionsorinputsbyappropriatelevelsofmanagementDevelopanindependentestimateoftheimpairmentlossandcompareittothatpreparedbymanagement.Performsensitivity ysistoconsiderwhether,andifsohow,managementhasconsideredalternativeassumptionsandtheimpactofanyalternativeassumptionsontheimpairmentcalculations.Confirmwhethermanagementhasperformedtheimpairmenttestorhasusedanexpert.Checkthearithmeticaccuracyofthecalculationsusedintheimpairmentcalculations.Ex-201306Q4BulldogBulldogCoisaclothingmanufacturer,whichhasrecentlyexpandeditsoperationsoverseas.Tomanageexposuretocashflowsdenominatedinforeigncurrencies,the hassetupatreasurymanagementfunction,whichisresponsibleforenteringintohedgetransactionssuchasforwardexchangecontracts.Thesetransactionsarelikelytobematerialtothefinancialstatements.Theauditpartnerisabouttocommence nningtheauditfortheyearending31JulyDiscusswhytheauditoffinancialinstrumentsisandex inthematterstobeconsideredin nningtheauditofBulldogCo'sforwardexchangecontracts.(8marks)AnswerTherearemanyreasonswhyfinancialinstrumentsarechallengingtoaudit.Theinstrumentsthemselves,thetransactionstowhichtheyrelate,andtheassociatedriskexposurescanbedifficultforbothmanagementandauditorstotIftheauditordoesnot hefinancialinstrumenttanditsimpactonthefinancialstatements,itwillbedifficultandintheaccountingtreatmentandassociatedEvenrelativelysimplefinancialinstrumentscanbecomplextoaccountfor.Thespecialistnatureofmanyfinancialinstrumentsmeansthattheauditormayneedtorelyonanauditor's asasourceofInusinganexpert,theauditormustensuretheobjectivityandcompetenceofthatexpert,andthenmustevaluatetheadequacyoftheexpert'swork,whichcanbeverydifficulttodowherethefocusoftheworkissospecialistanddifficulttounderstand.Theauditormayalsofindthatthereisa relationtofinancialinstruments,orthatevidencetendstocomefrommanagement.Forexample,manyofthefinancialreportingrequirementsinrelationtothevaluationoffinancialinstrumentsarebasedonfairvalues.Fairvaluesareoftenbasedonmodelswhichdependonmanagementjudgement.Valuationsarethereforeoftensubjectiveandderivedfrommanagementassumptionswhichincreasetheriskofmaterialmisstatement.Itisimperativethattheauditorintheauditoffinancialinstruments,butthismaybedifficulttodowhenfacedwithacomplexandsubjectivetransactionorbalanceforwhichthereislittleevidenceotherthanmanagement'sjudgement.Theremayalsoberelatingtofinancialinstruments.Oftenfinancialinstrumentsaredealtwithbyaspecialistdepartmentanditmaybeafewindividualswhoexertsignificantinfluenceoverthefinancialinstrumentsthatareenteredinto..Thisspecialistdepartmentmaynotbefullyintegratedintothefinancefunction,leadingtotheaccountingtreatmentbeingdealtwithoutsidethenormalaccountingsystem.Internalcontrolsmaybedeficientandtheremaynotbetheopportunityformuch However,somecompanieswillhaveestablishedstronginternalcontrolsaroundfinancialinstruments,leadingtoalowerriskofmaterialmisstatement..auditormustIntheauditofBulldogCo'sfinancialauditormustForexample,theapplicablefinancialreportingstandardsshouldbeclarified,whicharelikelytobeIFRS9FinancialInstrumentsandIFRS7FinancialInstruments:Disclosures.Thesestandardscanbecomplextoapply,andtheauditorshoulddevelopathoroughunderstandingofhowtheyrelatetoBulldogCo'sfinancialinstruments.TheauditormustalsoobtainanunderstandingoftheinstrumentsinwhichBulldogCohasinvestedortowhichitisexposed,includingthecharacteristicsoftheinstruments,andgainanunderstandingofBulldogCo'sreasonsforenteringintothefinancialinstrumentsandits towardsthem.Itisimportantthattheresourcesneededtoauditthefinancialinstrumentsarecarefullyconsidered.Thecompetenceofmembersoftheauditfirmtoauditthesetransactionsshouldbeassessed,anditmaybethatanauditor'sexpertneedstobeengaged.Ifso,thisshouldbeex inedto Instructionswillhavetobedrawnupandgiventotheexperttoensurethattheworkperformedisinlinewithauditobjectivesandfollowstherelevantfinancialreportingrequirements,forexample,inrelationtovaluingthefinancialinstruments.Theaudit nningshouldincludeobtaininganunderstandingoftheinternalcontrolrelevanttoBulldogCo'sfinancialinstruments,includingtheinvolvement,ifany,ofinternalaudit.Anunderstandingofhowfinancialinstrumentsaremonitoredandcontrolledassiststheauditorindeterminingthenature,timingandextentofauditprocedures,forexample,whethertoperformtestsoncontrols.forvaluingfinancialinstrumentsforrecognitionintheyear-endfinancialstatements.Thevaluationislikelytoinvolvesomeformofestimate,andISA540AuditingAccountingEstimates,IncludingFairValueAccountingEstimatesandRelatedDisclosuresrequirestheauditortoobtainanunderstandingofhowmanagementmakesaccountingestimatesandthedataonwhichaccountingestimatesarebased.Finally,thematerialityofthefinancialinstrumentsshouldbedeterminedandthesignificanceoftheriskexposureassociatedwiththemshouldbeassessed.ISA550:RelatedpartiesIAS24RelatedPartyDisclosuresstatesthatamemberofkey nelisarelatedpartyofthereportingentity.IAS24statesthatarelatedpartytransactionshouldbedisclosedifitismaterial.Inrelationtoamaterialrelatedpartytransaction,IAS24requiresdisclosureofthenatureoftherelatedpartyrelationshipalongwithinformationaboutthetransactionitself,suchastheamountofthetransaction,anyrelevanttermsandconditions,andanybalancesoutstanding.ISA550RelatedPartiesrequiresthattheauditorevaluateswhetheridentifiedrelatedpartyrelationshipsandtransactionshavebeenappropria yaccountedforanddisclosedinaccordancewiththeapplicablefinancialreporting由于審計的固有限制，即使會計師按照審計準則聯(lián)方而言，由于下列原因，審計的固有限制對會計師發(fā)現(xiàn)重大錯報能力的潛在影響會加大：(1)管理層可能未能識別出所有關(guān)聯(lián)方關(guān)系及其，特別是在適用的財務報告編制基礎(chǔ)沒有對關(guān)聯(lián)方作出規(guī)定時；(2)關(guān)聯(lián)方關(guān)系可能為管理層的串通舞弊、隱瞞或行為提供Duringtheaudit, oftheauditteamshouldbeequallyalertfortransactionswhichmayindicatethe..includetheTransactionswhichhaveabnormaltermsoftradesuchasunusualprices,interestrates,guaranteesandrepaymentterms.Transactionswhichlackalogicalbusinessreasonfortheiroccurrence.Highvolumeorsignificanttransactionswithcertaincustomersor rsascomparedwithothers.（一）與關(guān)聯(lián)方關(guān)系及 相關(guān)的控制（二） 會計師實施審計程序時獲取的銀行 的詢證函回函 Answer-AdditionalinformationDetailsofthereasonforthepurchase,,e.g.isthelandheldfor,Whetherthelandwaspurchasedforcashoriffinancewastakenouttoraisethe$12·5millionpaid.Whoisrentingtheland?Thiscouldestablishwhetherthearrangementiswitharelatedparty.Whatismanagement’srationalefortheaccountingchoicetomeasurethelandatfairvalue?ItwillresultinprofitfortheyearincludingthemillionfairvalueEstablishwhoholdsthetitledeedstothelandasthismayneedtobeinspected. 如果超出正常經(jīng)營過程的重大關(guān)聯(lián)方經(jīng)管理層、治理層或股東（如適用）和批準，可以為會計師提供審計，表明該項已在被審計單位內(nèi)了的條款和條件。當然，和批準本身不足以就是否不存在由于舞弊 ，被審計單位與和批準相關(guān)的控Inaddition,ISA550requiresthatwhereasignificantrelatedpartytransactionoutsideoftheentity’snormalcourseofbusinessisidentified,theauditorshall:Inspecttheunderlyingcontractsoragreements,ifany,andevaluatewhether:Thebusinessrationaleofthetransactionssuggeststhattheymayhavebeenenteredintotoengageinfraudulentfinancialreportingortoconcealmisappropriationof Thetermsofthetransactionsareconsistentwithmanagement’sex nations;andTheauditorshallalsoobtainauditevidencethatthetransactionshavebeenappropria yauthorisedand 出規(guī)定，會計師應當向管理層和治理

Awrittenrepresentationfrommanagementstatingthatmanagementhasdisclosedtotheauditortheidentityoftheentity’srelatedpartiesandalltherelatedpartyrelationshipsandtransactionsofwhichtheyareaware,andthatmanagementhas yaccountedforanddisclosedsuchrelationshipsandtransactionsinaccordancewiththerequirementsofIAS24. 。Ex-March2020Q1financialyearending30September20X5.Exhibit2–BackgroundinformationTheGroupstartedtoofferaninternetstreamingserviceforfi andTVprogrammestenyearsago.TheGroup’sbusinessmodelistoacquirelicencesforfi andTVprogrammesandcustomerspayamonthlysubscriptionfeetoaccessthemandwatchonline.TheGrouphasasubsidiaryineachcountryinwhichitoffersitssubscriptionservice.Atlanta&Coauditsallofthesubsidiarieswiththeexceptionof oneoftheGroup’sforeignsubsidiaries,whichisauditedbyalocalfirmcalledNeeganAssociates.AllcompanieswithintheGrouphavethe financialyearend,andwiththeexceptionofDarylCo,whichreportsunderlocalaccountingstandards,theGroupcompaniesalluseIFRSStandardsastheirfinancialreportingframework.Exhibit4–ExtractfromcomponentauditorThethreepointsbelowareanextractfromtheauditstrategypreparedbyNeeganAssociatesinrelationtotheirauditofDarylCo.Othersectionsoftheauditstrategy,includingtheauditriskassessment,havebeenreviewedbytheGroupauditteamandareconsideredsatisfactorysoyoudonotneedtoconsiderthem.ttIssueidentifiedbyNeeganAuditstrategyresponsebyNeeganInternetservicesinthecountryhavebeensubjecttoconsiderabledisruption.Asaresultofthis,asignificantnumberofcustomershavecancelledtheirsubscriptionsandtheisprojectedtomakea hisyear.Materialitywillbebasedontotalassetsforfirsttimethisyearduetothesignificantreductioninrevenueandprofit.Basedon1%ofassets,materialityisdeterminedat$1·4million.Inthepreviousyear,materialitybasedonrevenuewasdeterminedtobe$1·2million.IssueidentifiedbyNeeganAuditstrategyresponsebyNeeganFrom1October20X4,areprovidedtoDarylCoNeeganAssociatesasannnedauditAgreethetotalpayrollfigure,estimatedtobe$6million,fromthestatementofprofitorlosstothepayrollreportsgeneratedbyNeeganAssociates.Nofurtherauditproceduresareconsiderednecessary.IssueidentifiedbyNeeganAuditstrategyresponsebyNeeganSaleofDarylCosoldasmall,unusedbuildinglocatedonthecoasttothechiefexecutiveofficer(CEO)inFebruary20X5,for$50,000.Theamountisstilloutstandingforpayment.TheGroupCEOisnningtousethepropertyasaholidayhome.nnedauditConfirm$50,000isincludedinreceivableswithincurrentassets.Nofurtherauditproceduresareconsiderednecessarybecausethetransactionisnotmaterialtothefinancialstatements,andlocalaccountingrulesdonotrequiredisclosureofthetransaction.Required:Required:UsingtheinformationprovidedinExhibit(i)Evaluatetheextractfromcommentingontheauditstrategyresponsesandethicalmattersrelatingtotheissuesidentified;and(10marks)toperformonthesaleofpropertytotheGroupchiefexecutiveofficer.(6marks)tUsingExhibit5,discusswhetheritisappropriateforajointaudittobeperformedonMichonneCo,commentingontheadvantagesanddisadvantagesofa arrangement.(6marks)Answeriihasthe

toseeifthepropertysalehasbeendeliberated,forthetransactionbeendiscussed,andformallyby ’sAgreethe$50,000salepricetotheofthepropertytotheGroupCEO.

relatingtothe toconfirmwhetherornot$50,000hasbeenreceivedfromtheGroupConfirm underlyingaccountingrecordsConfirmthattheassethasbeenremovedfromthe accountsatthedateofdisposal.Obtainmanagement’sdeterminationofprofitorlossondisposal,re-performthecalculationbasedonsupportingevidence,andagreetheprofitorlossisrecognisedappropria yinthe statementofprofitorloss.Obtainanestimateofthefairvalueoftheproperty,forexample,bycomparisontothecurrentmarketpriceofsimilarpropertiesandconsiderthereasonablenessofthetransactionandsaleprice. managementthatrelatedtothisrelatedpartytransactionhavebeentotheGroupmanagementandtotheGroupaudit fromtheGroupCEOregardingthetransaction,toconfirmtheamountwhichisoutstanding,andthelikelytimescaleforpayment.Answer(i)-Evaluationofcomponentauditor'sauditISA320Materialityin nningandPerforminganAuditacknowledgesthatthedeterminationofmaterialityinvolvestheexerciseofprofessionaljudgement.Therearenosetrulesabouthowalevelofmaterialityshouldbearrivedat.Apercentageisoftenappliedtoachosenben arkasastartingpointindeterminingmaterialityforthefinancialstatementsasawhole,anditisacceptabletouseaben arkof1%oftotalassetsasabasisformateriality.However,thiswouldnormallybeusedforacapital-intensivebusiness,notfora likeDarylCo,whichisservicebased. 因情況變化出現(xiàn)意外增加或減少，會計師可能認為按照近幾年經(jīng)常性業(yè) 保持穩(wěn)定，但是須保持一貫不變【2016】。 Apercentageofprofitisdeemedanappropriatemethodofcalculatingmaterialityinaprofit-makingbusiness.However,aswehaveseenwithDarylCo,thiscanbedistortinginayearofsignificantlosses.Itisnotcommontoignorematerialitybasedonprofitorrevenuecomple factthatthe hasmadealossthisyeardoesnotmeanthatmaterialityshouldbebasedonassetsalone.NeeganAssociatesshouldrevisithowmaterialityhasbeendeterm