六、英文附加题（本题型共1题，共10分。有小数点的，保留两位小数。小数点两位后四舍五入。用英文在答题卷上解答，答在试题卷上无效）。 u%opY<h
John, CPA, is auditing the financial statements of Company A for the year ended December 31, 20×8. The un-audited information of selected financial statements items is as follows: OV|Z=EwJ
（Expressed in RMB thousands） F0;1zw
FINANCLAL STATEMENTS ITEMS E~He~wHWe
20×8 && C~@WY,r
20×7 )73DT3-0$
q<XcOc5
Sales Nmf#`+7gCI
64000 v*D FiCQD
48000 NgxO&Zp
M[,^KJ!
Cost of sales V_]-`?S
54000 {HuLuP 0t
42000 >B~?dT m
&7F&}7*c
Net profit =eYO;l
y3
30 ^
wQcB
-20 r}@< K
m|dF 3 0~A
Wf1-" Q
December 31, 20×8 4~WlP,,M
December 31, 20×7 ):E'`ZP!F
JS2!)aqc
Inventory J~2 CD*v
16000 AzX(~Q c
12000 g.&\6^)8p
m t .,4
Current assets w{ m#Yt
60000 f[M"EMy
50000 ST4(|K
},3R%?8 9%
Total assets JOHp?3 "4
100000 j)@ oRWL<
90000 <Am^z~[
\]GGVI ;u
Current liabilities ;S = e%:zb
20000 (QhAGk&lu
18000 `R ]&F$i(E
cFxSDTR
Total liabilities %>]#vQ|
30000 m-#d8sD2C
25000 s @3 zx
{ r X5
>,w P! ;dh
During the audit, John has the following findings: qZc)Sa. S
(1)On December 31, 20×8,Company A discounted an undue commercial acceptance bill (with recourse) amounted to RMB 6000000, and was charged discounting interest of RMB 180000 by the bank. Company A made an accounting entry on December 31, 20×8 as follows: a!{hC)d*
Dr. Cash in Bank N>T=L0`
RMB 5820000 #|D:f~"d3
Dr. Financial Expenses {&b-}f"m
RMB 180000 *Ag, kW"
Cr. Notes Receivable 9 &[\*{
L/%xbm~
RMB 6000000 k dUc&
(2)In June 20×8, Company A provided guarantee for Company B’s borrowings from Bank C. In December 20×8, since Company B failed to repay the borrowings in time, Company A was sued by Bank C to make relevant repayment amounted to RMB 3000000. As at December 31, 20×8, the lawsuit was still pending, and, based on the reasonable estimate of the guarantee losses made by the management, Company A made an accounting entry as follows: Ut=0~x.=<
Dr. Non-operating Expenses n7'<3t
RMB 3000000 0MhxFoFO
Cr. Provisions w7 [0
RMB 3000000
.;}pU!S~R
On January 10, 20×9,Company A received a judgment on repaying RMB 2500000 n/ :Z{
to Bank C to settle the guarantee obligation. Company A made the payment and an accounting entry at the end of January 2009 as follows: }8X:?S
%
Dr. Provisions uof0Oc.
RMB 3000000 s
UvKA0
Cr. Cash in Bank K
oL%}u&
RMB 2500000 O/'f$ Zj36
Cr. Non-operating Income P}b Dn;
RMB 500000 K T"h74@
Required: J\9jsx!WQ
(1)For Revenue and Net Profit, explain which one is more appropriate to be used to calculate planning materiality for Company A’s 20×8 financial statements as a whole. Explain the reasons of that conclusion. F\l!A'Q+t
(2)Based on the un-audited in formation of selected financial statements items, for the purpose of using analytical procedures as risk assessment procedures, calculate the following ratios: + >Fv*lux
(a)Inventory Turnover Rate in 20×8; 8cequAD
(b)Gross Profit Ratio in 20×8; ; %lJD"yF
(c)After Tax Return on Total Assets in 20×8; and FxM MxY,*%
(d)Current Ratio as at December 31, 20×8 Z7ZWf'o
(3)For each audit finding identified during the audit, list the suggested adjusting entries that John should made for Company A’s 20×8 financial statements. Tax effects, if any, are ignored.
