After posting the entries to close all revenue accounts and all expense accounts, the Income Summary account of Waif Services has a $4,000 debit balance. This result implies that Waif Services earned

A brief history of the ICT industries reveals four main facets of development. First, in the telecom industry, China's rapid development has had a large impact on the world telecom industry. According to Ministry of Information Industry (MII) statistics for the first half of 2003, China has the world's largest telecom subscriber base, with nearly 500 million fixed-line and mobile subscribers. Overall telecom operator service revenue grew 14 percent to US$50 billion in 2002, with over 98 percent of this revenue accounted for by the four major state-owned operators.

In the cable TV industry, China has a rather unique history. Long considered part of the state propaganda apparatus, the State Administration of Radio, Film & Television (SARFT) has traditionally been responsible for both the production as well as the transmission of content. To de-politicize the business of video transmission. SARFT has been taking steps to separate the stations (i.e., content) from the net works in recent years.

In the computer/Internet industry. China has developed rapidly. Traditionally heavily focused on hardware, to the relative neglect of software, China's computer industry has been exposed to international competition for quite some time and has developed world-class domestic suppliers, in addition, China has over 50 million Internet users and Chinese is expected to become the most widely used language on the web within this decade.

Lastly, in the electronics manufacturing industry, China has in recent years emerged as a manufacturing base, as significant portions of the supply/assembly chain (most notably in computer and telecom equipment) have moved to the PRC. China's electronics sector is ranked first among all of China's industries in terms of foreign investment attracted, export volume, industrial value added, and contribution to GDP growth.

China's overall ICT industry can be viewed as growing very rapidly in many areas. Indeed, ICT constitutes a major area of China's overall growth. In the first quarter of 2003, China's overall industrial sector's industrial value-added grew by 17.2 percent year on year, compared to 10.9 percent growth a year earlier. Nearly one-third of that growth, or 5.8 points out of 17.2 percentage points of growth, came from two sectors: telecommunications and electronics.

China's rapid development in the telecom industry has played a/an ______ role on the w0orld telecom industry.

A．minor

B．important

C．secondary

Section B – TWO questions ONLY to be attempted

(a) You are a manager in Lark & Co, responsible for the audit of Heron Co, an owner-managed business which operates a chain of bars and restaurants. This is your firm’s first year auditing the client and the audit for the year ended 31 March 2012 is underway. The audit senior sends a note for your attention:

‘When I was auditing revenue I noticed something strange. Heron Co’s revenue, which is almost entirely cash-based, is recognised at $5·5 million in the draft financial statements. However, the accounting system shows that till receipts for cash paid by customers amount to only $3·5 million. This seemed odd, so I questioned Ava Gull, the financial controller about this. She said that Jack Heron, the company’s owner, deals with cash receipts and posts through journals dealing with cash and revenue. Ava asked Jack the reason for these journals but he refused to give an explanation.

‘While auditing cash, I noticed a payment of $2 million made by electronic transfer from the company’s bank account to an overseas financial institution. The bank statement showed that the transfer was authorised by Jack Heron, but no other documentation regarding the transfer was available.

‘Alarmed by the size of this transaction, and the lack of evidence to support it, I questioned Jack Heron, asking him about the source of cash receipts and the reason for electronic transfer. He would not give any answers and became quite aggressive.’

Required:

(i) Discuss the implications of the circumstances described in the audit senior’s note; and (6 marks)

(ii) Explain the nature of any reporting that should take place by the audit senior. (3 marks)

(b) You are also responsible for the audit of Coot Co, and you are currently reviewing the working papers of the audit for the year ended 28 February 2012. In the working papers dealing with payroll, the audit junior has commented as follows:

‘Several new employees have been added to the company’s payroll during the year, with combined payments of $125,000 being made to them. There does not appear to be any authorisation for these additions. When I questioned the payroll supervisor who made the amendments, she said that no authorisation was needed because the new employees are only working for the company on a temporary basis. However, when discussing staffing levels with management, it was stated that no new employees have been taken on this year. Other than the tests of controls planned, no other audit work has been performed.’

Required:

In relation to the audit of Coot Co’s payroll:

Explain the meaning of the term ‘professional skepticism’, and recommend any further actions that should be taken by the auditor. (6 marks)

听力原文： Intel based in California has gone from strength to strength since launching the world's first microprocessor, the brains inside a computer a quarter of a century ago. More than 80% of computers now use Intel chips. This success combined with the dominance of the software provided by Microsoft has helped fuel the steep rise in the sale of personal computers seen over the past ten years. Intel profits in the first three months of this year were more than 1.9 billion dollars compared with just under 900 million over the same period in 1996. Intel is putting much of this down to the success of the MMX launched in January and the enhanced version of the Pentium processor and enabling better computer graphics and sound. But at the same time, Intel warned that revenue in the next three months would be flat and competition is becoming more fierce as smaller rivals in the United States launch chips reckoned to be just as efficient but cheaper.

Over the past ten years, the sharp increase in the sale of personal computers was due to

A．better computer graphics and sound.

B．the enhanced version of the Pentium processor.

C．the success of the world's first microprocessor.

D．successful sales of Intel chips and Microsoft software.

The Inland Revenue on Thursday accused the British film industry of abusing government aid, with every production of recent years deliberately over-claiming tax relief.

Revenue officials called in about 20 members of the film industry and warned them of severe consequences if the "exploitation" of tax-relief schemes did not immediately stop.

The move, which affects the including low to high-budget film-makers and financiers, is the latest in a series of attempts by the Revenue to clamp down on tax loopholes in an attempt to raise more money for the Exchequer,

But the film industry responded on Thursday night, saying the Revenue could drive productions overseas and would confuse investors.

A series of tax relief schemes, introduced in 1997, enables those involved in the financing of qualifying British-made films to claim the costs of production against future income. The schemes have Become popular with investors seeking a tax shelter, with an estimated ￡400m invested in the schemes in 1997 rising to about ￡2bn last year.

But the Revenue said the industry was exploiting rules on tax relief by "double dipping", that is, by claiming relief more than once against a single piece of expenditure. While not illegal, the Revenue said, the industry was "not playing fair". It said double-dipping was "against the spirit" of legislation designed to encourage investment in the British film industry.

The Revenue said the practice of double dipping was "virtually universal", with "every qualifying film it had seen financed on the basis of double dipping". It warned it would "take all steps to counter such abuse including, where necessary, advising ministers on introducing legislation to put matters beyond doubt".

"Both the Revenue and the government are becoming increasingly exasperated at the extent to which some parts of the industry are exploiting the film reliefs", the Revenue said. "The government remains committed to encouraging film production in the UK through use of the reliefs in the way in which the legislation allows—but this does not extend to deliberate exploitation of those reliefs".

Large film financiers said on Thursday night that the Revenue's action could undermine growth prospects for the British film industry.

Peter James, managing director of Movision Entertainment, which has produced 16 British-made films in recent years, including the soon-to-be released "Merchant of Venice", said while the effect of the Revenue's clamp down would not Be "devastating", it could drive many independent film-makers overseas.

Industry observers said on Thursday the Revenue's move was likely to confuse investors, who have been accustomed to the benefits of double-dipping.

We can learn from the first three paragraphs that ______.

A．film-makers turn to the government for financial help

B．several actions have been taken to stop tax evasion

C．officials have phoned up many film makers to protest

D．more tax relief is needed to keep the industry going

The Inland Revenue on Thursday accused the British film industry of abusing government aid, with every production of recent years deliberately over-claiming tax relief.

Revenue officials called in about 20 members of the film industry and warned them of severe consequences if the "exploitation" of tax-relief schemes did not immediately stop.

The move, which affects the including low- to high-budget film-makers and financiers, is the latest in a series of attempts by the Revenue to clamp down on tax loopholes in an attempt to raise more money for the Exchequer.

But the film industry responded on Thursday night, saying the Revenue could drive productions overseas and would confuse investors.

A series of tax relief schemes, introduced in 1997, enables those involved in the financing of qualifying British-made films to claim the costs of production against future income. The schemes have become popular with investors seeking a tax shelter, with an estimated ￡400m invested in the schemes in 1997 rising to about ￡2bn last year.

But the Revenue said the industry was exploiting rules on tax relief by "double-dipping", that is, by claiming relief more than once against a single piece of expenditure. While not illegal, the Revenue said, the industry was "not playing fair". It said double-dipping was "against the spirit" of legislation designed to encourage investment in the British film industry.

The Revenue said the practice of double-dipping was "virtually universal", with "every qualifying film it had seen financed on the basis of double-dipping". It warned it would "take all steps to counter such abuse including, where necessary, advising ministers on introducing legislation to put matters beyond doubt".

"Both the Revenue and the government are becoming increasingly exasperated at the extent to which some parts of the industry are exploiting the film reliefs," the Revenue said. "The government remains committed to encouraging film production in the UK through use of the reliefs in the way in which the legislation allows—but this does not extend to deliberate exploitation of those reliefs."

Large film financiers said on Thursday night that the Revenue's action could undermine growth prospects for the British film industry.

Peter James, managing director of Movision Entertainment, which has produced 16 British-made films in recent years, including the soon-to-be released "Merchant of Venice", said while the effect of the Revenue's clamp down would not be "devastating", it could drive many independent film-makers overseas.

Industry observers said on Thursday the Revenue's move was likely to confuse investors, who have been accustomed to the benefits of double-dipping.

We can learn from the first three paragraphs that______.

A．film-makers turn to the government for financial help

B．several actions have been taken to stop tax evasion

C．officials have phoned up many film-makers to protest

D．more tax relief is needed to keep the industry going

5 You are the audit manager for three clients of Bertie & Co, a firm of Chartered Certified Accountants. The financial

year end for each client is 30 September 2007.

You are reviewing the audit senior’s proposed audit reports for two clients, Alpha Co and Deema Co.

Alpha Co, a listed company, permanently closed several factories in May 2007, with all costs of closure finalised and

paid in August 2007. The factories all produced the same item, which contributed 10% of Alpha Co’s total revenue

for the year ended 30 September 2007 (2006 – 23%). The closure has been discussed accurately and fully in the

chairman’s statement and Directors’ Report. However, the closure is not mentioned in the notes to the financial

statements, nor separately disclosed on the financial statements.

The audit senior has proposed an unmodified audit opinion for Alpha Co as the matter has been fully addressed in

the chairman’s statement and Directors’ Report.

In October 2007 a legal claim was filed against Deema Co, a retailer of toys. The claim is from a customer who slipped

on a greasy step outside one of the retail outlets. The matter has been fully disclosed as a material contingent liability

in the notes to the financial statements, and audit working papers provide sufficient evidence that no provision is

necessary as Deema Co’s lawyers have stated in writing that the likelihood of the claim succeeding is only possible.

The amount of the claim is fixed and is adequately covered by cash resources.

The audit senior proposes that the audit opinion for Deema Co should not be qualified, but that an emphasis of matter

paragraph should be included after the audit opinion to highlight the situation.

Hugh Co was incorporated in October 2006, using a bank loan for finance. Revenue for the first year of trading is

$750,000, and there are hopes of rapid growth in the next few years. The business retails luxury hand made wooden

toys, currently in a single retail outlet. The two directors (who also own all of the shares in Hugh Co) are aware that

due to the small size of the company, the financial statements do not have to be subject to annual external audit, but

they are unsure whether there would be any benefit in a voluntary audit of the first year financial statements. The

directors are also aware that a review of the financial statements could be performed as an alternative to a full audit.

Hugh Co currently employs a part-time, part-qualified accountant, Monty Parkes, who has prepared a year end

balance sheet and income statement, and who produces summary management accounts every three months.

Required:

(a) Evaluate whether the audit senior’s proposed audit report is appropriate, and where you disagree with the

proposed report, recommend the amendment necessary to the audit report of:

(i) Alpha Co; (6 marks)

Questions 下列各 are based on the following passage. The number of postgraduate students travelling from non-EU countries to study at UK universities has fallen for the first time in 16 years, fuelling fears that the governments immigration crackdown is discouraging thousands of the brightest students from continuing their studies in Brid. Jo Beall, British Council director of education and society, said the fall would cause alarm among UK vice-chancellors (大学行政主管). "The sector was expecting a decline in growth, but the actual reduction in postgraduate numbers is of real concern as international-students make up the m~ority of numbers in many postgraduate courses and research teams in science, technology, engineering and mathematics. ""Attracting the brightest and most ambitious postgraduate and research students is critical if the UK is to maintain its quality reputation for research," Beall said. Universities get a third of their tuition (学费) fee revenue from non-EU students. There is growing fear among vice-chancellors that this revenue-as well as the cultural, academic and economic benefit international students bring--is being put at risk. Tim Westlake, director for the student experience at Manchester University, said students whose families relied on them working in the UK after their studies to gain experience and repay the fees were starting to look elsewhere. Last month the home secretary, Theresa May, announced that embassy staff would interview more than 100,000 applicants in an attempt to prevent bogus (假冒的) ones entering the country. She also said immigrants were responsible for pushing up UK house prices. The comments followed the introduction of new limitations on students right to work during and after their studies. Beall said:" Government statistics for the first time provide real evidence that the changes to UK visa regulations may have discouraged many students from applying to the UK, and in particular postgraduate students Who are so important to the UKs research output. The UK enjoys an eXcellent reputation around the world for the high quality of our education system, so the government needs to ensure that institutions have all the support they need to attract international students who make a tremendous academic, cultural and economic contribution to the UK. " What has caused the decline of the number of non-EU postgraduates in the UK?

A.The increase in tuition and fees.

B.The ever-rising living expenses.

C.Changed immigration policies.

D.Universities tightened budgets

In 1973 and again in 1979, the Organization of Petroleum Exporting Countries （） raised the world price of crude oil and increased their revenue as well. Which of the following is a true statement regarding these OPEC price hikes?

A．Their revenue increased because the demand for oil was income inelastiC

B．Their revenue increased because the demand for oil was price inelasti

C．Their revenue would have increased regardless of income elasticity or price elasticity because oil is an imported product for most nations．

D．Their revenue only increased because oil was already very expensiv

E．

听力原文： America Online and Google have announced an agreement to further strengthen their cooperation.

Under the plan, Google would buy a 5% stake of AOL for one billion dollars. Google had been providing AOL with search technology already, revenues from that partnership account for some 10% of Google's business. With this deal, Google scores a victory against its rival Microsoft. Microsoft has also been trying to obtain a piece of America Online in the Internet search business. Right now, for online business, Microsoft is well lagging behind Google and Yahoo!, and analysts believe that competition in this field is bound to be more heated in the next five to ten years.

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