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）。 B,g
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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: {0QA+[Yd&!
（Expressed in RMB thousands） Y ,}p
FINANCLAL STATEMENTS ITEMS s:fnOMv
"
20×8 ? X:RrZ:/
20×7 eueXklpg+
3K#e]zoI
Sales i[YYR,X|
64000 c 9ghR0WM
48000
2QBtwlQ?[
]=_ BK!O
Cost of sales b F flA
54000 ,2?C^gxt
42000 -<<!eH
B3yn:=80
Net profit _ l/6Qpf
30 {'vvE3iZ
-20 "#m
*`n
50'6l
X(v,
c=|
a \\
December 31, 20×8 TZHqn 6
December 31, 20×7 5 -&P4
@-MrmF)<U
Inventory HX
<;=m
16000 S"_vD
<q
12000 L9AfLw5&X
K:9.fTCs*
Current assets i vGxtx
60000 w]%r]PwU+
50000 Ads^y` b
(m,O!935f
Total assets $jc>?.6
100000 :Mt/6}
90000 ''WX
I5D\Z
Current liabilities rhUZ9Fdv
20000 |Z "h q
18000 .t}nznh
RhDa`kV%t
Total liabilities ?px x,o6l
30000 as\V,
{<
25000 @yek6E&9
S@*@*>s^
,f1+jC
During the audit, John has the following findings: iu :e> r
(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: +~[19'GH
Dr. Cash in Bank +nqOP3
RMB 5820000 y \%4Dir
Dr. Financial Expenses nDPfr\\
RMB 180000 fmSA.z
Cr. Notes Receivable %_3{Db`R>
N .2rF
RMB 6000000 0
Q1}u @G
(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: +)F8YMg
e
Dr. Non-operating Expenses () SG
RMB 3000000 * dNMnZ@Y
Cr. Provisions , n
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RMB 3000000 *J $=UG,u
On January 10, 20×9,Company A received a judgment on repaying RMB 2500000 Dbtw
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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: lca.(3u
Dr. Provisions #:{u1sq;
RMB 3000000 ksK
lw_%o
Cr. Cash in Bank "%Rx;xw|
RMB 2500000 w!xSYh')
Cr. Non-operating Income $MR{3-
RMB 500000 ?}Mv5SO
Required: <Z0Tz6/j,
(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. 2xj S;lpw
(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: RZz] .
Nx
(a)Inventory Turnover Rate in 20×8; 9w AP%xh
(b)Gross Profit Ratio in 20×8; S5uV\Y/A
(c)After Tax Return on Total Assets in 20×8; and N
.Ssz
Zh
(d)Current Ratio as at December 31, 20×8 CBF>157B
(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.
