Question 51. You are auditing a business, May Comp...

Task 3

Directions: The following is a passage about a business memo. After reading it, you should complete the information by filling in the blanks marked 1 through 5 ( in not more than 3 words ) in the table below.

The business memo (备忘录) is probably the most frequently used communication within a company. It is called an intra-company communication because it is used by people in their own company or organization. They change to letters, however, when they write messages to people who do not work for their company.

A memo creates a written record that may or may not filed, depending on the receiver and the subject. As you know, spoken messages may be misunderstood or forgotten. A memo, however, be comes a record that does much to ensure the complete communication between the sender and the receiver.

The standard form. of a memo frequently carries a pre-printed series of items: To, From, Date and Subject. The first two items include the names of the receiver and the sender. A well: written subject line tells the reader the key topic or topics the memo is about.

Business Memo

Function: for communication with a (1)__________ Purpose:

1) to keep a (2)__________

2) to (3)__________ the complete communication

Items involved:

1) Receiver

2) (4)__________

3) Date

4)(5)__________

Section B – TWO questions ONLY to be attempted

(a) You are an audit manager in Weller & Co, an audit firm which operates as part of an international network of firms. This morning you received a note from a partner regarding a potential new audit client:

‘I have been approached by the audit committee of the Plant Group, which operates in the mobile telecommunications sector. Our firm has been invited to tender for the audit of the individual and group financial statements for the year ending 31 March 2013, and I would like your help in preparing the tender document. This would be a major new client for our firm’s telecoms audit department.

The Plant Group comprises a parent company and six subsidiaries, one of which is located overseas. The audit committee is looking for a cost effective audit, and hopes that the strength of the Plant Group’s governance and internal control mean that the audit can be conducted quickly, with a proposed deadline of 31 May 2013. The Plant Group has expanded rapidly in the last few years and significant finance was raised in July 2012 through a stock exchange listing.’

Required:

Identify and explain the specific matters to be included in the tender document for the audit of the Plant Group. (8 marks)

(b) Weller & Co is facing competition from other audit firms, and the partners have been considering how the firm’s revenue could be increased. Two suggestions have been made: 1. Audit partners and managers can be encouraged to sell non-audit services to audit clients by including in their remuneration package a bonus for successful sales. 2. All audit managers should suggest to their audit clients that as well as providing the external audit service, Weller & Co can provide the internal audit service as part of an ‘extended audit’ service. Required: Comment on the ethical and professional issues raised by the suggestions to increase the firm’s revenue. (8 marks)

(a) Define audit risk and the components of audit risk. (5 marks)

You are an audit supervisor of Amethyst & Co and are currently planning the audit of your client, Aquamarine Co (Aquamarine) which manufactures elevators. Its year end is 31 July 2016 and the forecast profit before tax is $15·2 million.

The company undertakes continuous production in its factory, therefore at the year end it is anticipated that work in progress will be approximately $950,000. In order to improve the manufacturing process, Aquamarine placed an order in April for $720,000 of new plant and machinery; one third of this order was received in May with the remainder expected to be delivered by the supplier in late July or early August.

At the beginning of the year, Aquamarine purchased a patent for $1·3 million which gives them the exclusive right to manufacture specialised elevator equipment for five years. In order to finance this purchase, Aquamarine borrowed $1·2 million from the bank which is repayable over five years.

In January 2016 Aquamarine outsourced its payroll processing to an external service organisation, Coral Payrolls Co (Coral). Coral handles all elements of the payroll cycle and sends monthly reports to Aquamarine detailing the payroll costs. Aquamarine ran its own payroll until 31 December 2015, at which point the records were transferred over to Coral.

The company has a policy of revaluing land and buildings and the finance director has announced that all land and buildings will be revalued at the year end. During a review of the management accounts for the month of May 2016, you have noticed that receivables have increased significantly on the previous year end and against May 2015.

The finance director has informed you that the company is planning to make approximately 65 employees redundant after the year end. No decision has been made as to when this will be announced, but it is likely to be prior to the year end.

Required:

(b) Describe SIX audit risks, and explain the auditor’s response to each risk, in planning the audit of Aquamarine Co. (12 marks)

(c) Explain the additional factors Amethyst & Co should consider during the audit in relation to Aquamarine Co’s use of the payroll service organisation. (3 marks)

Section B

Directions: This section is to test your ability to understand short conversations. There are 2 recorded conversations in it. After each conversation, there are some recorded questions. The conversations and the questions will be spoken only once. When you hear a question, you should choose the correct answer from the 4 choices marked A, B, C, and D.

听力原文：W: Hello, Sales Department Office, BBD Company, What can I do for you?

M: Hello. May I speak to Mr. Zhou Ming?

W: Sorry, [6] he is away on a business trip.

M: Do you know when he will be back?

W: He will be back in about 2 weeks．

M: Oh, I see.

W: May I take a message, sir?

M: Please tell him to [7] call me as soon as he's back, My name is George Wilson.

W: No problem.

M: Thank you very much.

W: Yon are welcome.

6．Where is Mr, Zhou Ming now?

7.What did George Wilson ask Zhou Ming to do in his message?

(6)

A．He's in his office.

B．He's on holiday.

C．He's in the meeting room.

D．He's away on business.

Section B

Directions: In this section, you will hear 3 short passages. At the end of each passage, you will hear some questions. Both the passage and the questions will be spoken only once. After you hear a question, you must choose the best answer from the four choices marked A, B, C and D.

听力原文： Requesting someone's business card is a straightforward process. You need only say, "Do you have a business card?" or "May I have your business card?" When you want to present your own card, you can say, "Here's my card. Please feel free to call me if you have any suggestions." If you wish to offer your card to a long-time associate, you can say, "Did I ever give you my card?" or "I mean to give you my card." [26]It's not polite to directly refuse a request from someone for your business card. Instead, you can say, "Sorry, but I'm afraid I'm all out at the moment." or "I neglected to bring them with me." Giving someone your card, of course, does not obligate you to continue contact, nor does accepting someone else's card. [27]When you do receive a card, say "Thank you." and examine it briefly before putting it away. [28]You can use a business card that you received to refresh your memory about someone's name and title before your next meeting. You can also record notes about the meeting on the back of the card, or place it in your card file.

(27)

A．Requesting one's business card directly.

B．Accepting one's card but not continuing contact with him.

C．Putting one's business card in the card file.

D．Refusing a request for your business card directly.

Section B

Directions: In this section, you will hear 3 short passages. At the end of each passage, you will hear some questions. Both the passage and the questions will be spoken only once. After you hear a question, you must choose the best answer from the four choices marked A, B, C and D.

听力原文： Requesting someone's business card is a straightforward process. You need only say, "Do you have a business card?" or "May I have your business card?" When you want to present your own card, you can say, "Here's my card. Please feel free to call me if you have any suggestions." If you wish to offer your card to a long-time associate, you can say, "Did I ever give you my card?" or "I mean to give you my card." [26] It's not polite to directly refuse a request from someone for your business card. Instead, you can say, "Sorry, but I'm afraid I'm all out at the moment." or "I neglected to bring them with me." Giving someone your card, of course, does not obligate you to continue contact, nor does accepting someone else's card. [27] When you do receive a card, say "Thank you." and examine it briefly before putting it away. [28] You can use a business card that you received to refresh your memory about someone's name and title before your next meeting. You can also record notes about the meeting on the back of the card, or place it in your card file.

(27)

A．Requesting one's business card directly.

B．Accepting one's card but not continuing contact with him.

C．Putting one's business card in the card file.

D．Refusing a request for your business card directly.

听力原文： Presenter: Have you ever wondered where your recyclables end up after they get picked up from the curb, after you've left them at a recycling drop-off centre or when your hauler has come to empty your recycling dumpster? Well, this presentation will tell you.

The story begins when a resident places their materials out for recycling in a special bin, brings their recyclables to one of the recycling drop-off centres or when a business puts their used materials in their recycling dumpster. It is very important that residents and employees properly prepare their recyclables for collection. Improper preparation of materials, for example not removing container lids or including the wrong type of material causes contamination. Although some contamination is to be expected--and is removed during the sorting process at the processing facility--processors may not accept materials that are heavily contaminated and these will be disposed of.

After materials are put out for recycling, the recycling truck comes to pick them up. Recyclables brought to the drop-off centres should be placed in the appropriate bins. The large containers are emptied periodically or whenever they are full. Businesses and multi-family residences collect on the days decided by the property manager.

The trucks that collect recyclables from the curb and drop-off centres then drive the materials to a material recovery facility--or MRF. When the trucks arrive at the MRF, they are first weighed at the station to determine the weight of materials delivered to the facility. Next, the trucks proceed to the tipping floor where they dump their materials. Items are dumped in specific areas to facilitate the sorting process.

After the different materials are dumped on the tipping floor at the MRF, they are fed onto different conveyor belts according to the type of material. The materials then proceed up the different conveyor belts and are subject to both manual and automatic sorting. Individuals manually remove any large objects such as a lawn chair or garbage can, along with any contaminants. After the initial manual sort, the materials pass by a magnet that captures the metal cans, and then through an air sorter to separate the remaining materials. Once the materials are sorted, they are compressed into bales that are shipped to processors, who will then use these materials to create new products. Plastics can be recycled into items such as clothing, lumber, park benches, and playground equipment. Metal and glass containers are often recycled into new containers, and paper is recycled into new paper products, such as copy paper, toilet paper, napkins, and newspaper.

Remember to close the recycling loop: buy recycled both at home and at work, as this is the only way that recycling truly succeeds. Find out more about buying recycled products. Remember: if you're not buying recycled, you're not really recycling!

So, how are we doing? Let's take a brief look at our recycling rate information. All municipalities are required to maintain a minimum recycling rate of 25% of the total municipal solid waste generated annually. We are required to annually report on recycling activities and file a report with the Department of Environmental Quality--or DEQ. These reports are due to the DEQ on April 30th of each year for the preceding calendar year. Based on information received to date, last year we reported a recycling rate of 33.9%, 2.8% higher than the previous year. Paper recycling was up 36% as was the recycling of bottles and cans. Our target is a recycling rate of over 50% by 2014.

SECTION 4 Questions 31-40

Questions 31-34

Complete the notes using NO MORE THAN THREE WORDS for each gap.

Lack of preparation can lead to contamination, e.g. forgetting to remove 【31】 ______ or including the 【32】 ______ of material. The 【33】 ______ at the processing facility

Manners in every country are different. What is polite in China may not be () in the United States. These basic rules will help you enjoy western food () your American friends. Always put the napkin on your lap first. Before you leave the table, refold your napkin and put it () your

plate.As the meal is served, use the silverware farthest from the plate first. When () something in a bowl, dot not leave the spoon in the bowl. Put it on the plate beneath the bowl. When you have finished your meal, () your knife and fork side by side on the plate. Wait () everyone has been () to begin eating. Everyone begins to eat at the same time.While eating, remember not to talk with your mouth () food During the meal, the hostess will () you a second () of foo Sometimes she will ask you to help yourself. When she offers you food, give her a direct answer. If you refuse the first time, she might not ask you again. At the table, ask others to pass you dishes that are () your reach. Good phrases now are: “Please pass the …..,” or “Could you hand me the ……, please?”Sit up () ()the table. Bring the food up to your mouth. Do not lean down to your plate.Cut large pieces of meat, potatoes and vegetables into bite-size pieces. Eat the pieces one () .When eating spaghetti, wind the noodles up on your fork. The spaghetti on your fork should be eaten in one bite. It is very () to eat half your noodles and allow the other half to fall back on your () .Do not lean on your arm or elbow while eating. You may () your hand and wrist on the edge of the table.In America, people do not use toothpicks at the table.The () way to learn good manners is () others. Observe the way your western friends eat. This is the best way to avoid making mistakes when you are unsure of () to do.

1、A.polite B.pleasure C.please D.progress

2、A.which B.that C.with D.together

3、A.near B.at C.on D.beside

4、A.eat B.eating C.eaten D.having

5、A.funny B.eager C.plate D.place

6、A.until B.due to C.has D.as

7、A.story B.served C.serve D.service

8、A.fill with B.of C.full of D.lot of

9、A.offer B.help C.give D.serve

10、A.feed Bo.ffer C.help D.helping

11、A.out of B.without C.with D.at

12、A.down B.straight C.rest D.relaxed

13、A.on B.by C.at D.in

14、A.at a time B.all time C.at all times D.at times

15、A.impolite B.polite C.nice D.rude

16、A.please B.place C.plate D.pleasure

17、A.put down B.rest C.get on D.let

18、A.worse B.better C.worst D.best

19、A.to watch B.watches C.watching D.watched

20、A.what B.which C.that D.there

You ______ talk so loud in the library.

A．needn't

B．may not

C．mustn't