《职业病防治法》实施后，国务院对国务院卫生行政部门和国务院负责安全生产监督管理的部门在职业病防治工作的职责作出了调整，其中安全监督管理部门的职责有()。

(b) Explain the principal audit procedures to be performed during the final audit in respect of the estimated

warranty provision in the balance sheet of Island Co as at 30 November 2007. (5 marks)

(ii) State the principal audit procedures to be performed on the consolidation schedule of the Rosie Group.

(4 marks)

(ii) Explain the organisational factors that determine the need for internal audit in public listed companies.

(5 marks)

(ii) Briefly explain the implications of Parr & Co’s audit opinion for your audit opinion on the consolidated

financial statements of Cleeves Co for the year ended 30 September 2006. (3 marks)

(ii) Identify and explain the potential financial statement risks caused by the breach of planning regulations

discussed in the press cutting. (6 marks)

(a) ISA 300 Planning an Audit of Financial Statements provides guidance to assist auditors in planning an audit.

Required:

Explain the benefits of audit planning. (4 marks)

(b) ISA 530 Audit Sampling provides guidance on methods for selecting a sample of items for testing.

Required:

Identify and explain THREE methods of selecting a sample. (3 marks)

(c) Describe the three types of modified audit opinions. (3 marks)

(ii) If a partner, who is an actuary, provides valuation services to an audit client, can we continue with the audit？

(3 marks)

Required:

For each of the three questions, explain the threats to objectivity that may arise and the safeguards that

should be available to manage them to an acceptable level.

NOTE: The mark allocation is shown against each of the three questions above.

(ii) Explain why Galileo is able to pay the inheritance tax due in instalments, state when the instalments are

due and identify any further issues relevant to Galileo relating to the payments. (3 marks)

(ii) From the information provided above, recommend the matters which should be included as ‘findings

from the audit’ in your report to those charged with governance, and explain the reason for their

inclusion. (7 marks)

(a) (i) Identify and explain FOUR financial statement assertions relevant to account balances at the year end; and

(ii) For each identified assertion, describe a substantive procedure relevant to the audit of year-end inventory. (8 marks)

(b) Pineapple Beach Hotel Co (Pineapple) operates a hotel providing accommodation, leisure facilities and restaurants. Its year end was 30 April 2012. You are the audit senior of Berry & Co and are currently preparing the audit programmes for the year end audit of Pineapple. You are reviewing the notes of last week’s meeting between the audit manager and finance director where two material issues were discussed.

Depreciation

Pineapple incurred significant capital expenditure during the year on updating the leisure facilities for the hotel. The finance director has proposed that the new leisure equipment should be depreciated over 10 years using the straight-line method.

Food poisoning

Pineapple’s directors received correspondence in March from a group of customers who attended a wedding at the hotel. They have alleged that they suffered severe food poisoning from food eaten at the hotel and are claiming substantial damages. Pineapple’s lawyers have received the claim and believe that the lawsuit against the company is unlikely to be successful.

Required:

Describe substantive procedures to obtain sufficient and appropriate audit evidence in relation to the above two issues.

Note: The total marks will be split equally between each issue. (8 marks)

(c) List and explain the purpose of FOUR items that should be included on every working paper prepared by the audit team. (4 marks)