Audit

Professional Level Options Module Advanced Audit and agency (International) Tuesday 2 December 2008 Time allowed Reading and planning: composition: 15 minutes 3 hours This report card is dual-lane into two sections: scratch A some(prenominal) questions argon lordly and MUST be attempted Section B devil questions ONLY to be attempted Do NOT unsolved this newsprint until instructed by the supervisor. During reading and planning time just the question paper may be annotated. You must(prenominal) NOT print in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall. The fellowship of charter Certified Accountants Paper P7 (INT) Section A BOTH questions argon compulsory and MUST be attempted 1 harebell Co operates a chain of 95 sumptuousness hotels. This forms results show a return to lucrativeness for the company, pursuit several years of losses. Hotel trade journals show that on average, tax in the industry has increased by well-nigh 20% this year. Despite improved profitability, Bluebell Co has paltry liquidity, and is soon trying to secure further long-term finance. You eat been the coach-and- quadruple responsible for the audit of Bluebell Co for the depart four years.

Extracts from the draft financial statements for the year ended 30 November 2008 are shown below: Extracts from the Statement of Comprehensive Income Revenue (note 1) operational expenses (note 2) early(a) operating income (note 3) Operating profit Finance charges Profit/(loss) originally tax 2008 $m 890 (835) 135 190 (45) 145 2007 $m 713 (690) 10 33 (4! 3) (10) Note 1: Revenue appellative Revenue comprises sales of hotel rooms, conference and meeting rooms. Revenue is look on when a room is occupied. A 20% deposit is taken when the room is booked. Note 2: Significant items included in operating expenses: Share-based payment expense (i) Damaged property mend expenses (ii) (i) 2008 $m 138 100 2007 $m In June 2008...If you want to confirm a full essay, order it on our website: BestEssayCheap.com

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