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)。 5
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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: VzNH%
(Expressed in RMB thousands) P#]jPW
FINANCLAL STATEMENTS ITEMS jKs8i$q
20×8 -A~
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20×7 F.6SX (x
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Sales :\XD.n-n
64000 q1j[eru
48000 owB)+
GQQ6 t
Cost of sales 2I5@zm
ea
54000 ^|2qD:
;
42000 :>u{BG;=79
rA7S1)Kq
Net profit R8]bi|e)
30 n1V*VQV
-20 _,QUH"
nfEk ,(:
[o "@*kf
December 31, 20×8 jA'+>`@
December 31, 20×7 `,z{7 0
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Inventory -`JY] H
16000 q^)(p'
X
12000 :/0
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c_i;'
Current assets B("kE`
60000 J=Z"sU=
50000 A}o1I1+
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Total assets r0,}f\
100000 VEk|lX;2
90000 n%}0hVu
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Current liabilities |gNOv;l
20000 #N:o)I
18000 =6hf'lP
GbhaibkO
Total liabilities idQr^{
30000 x[E`2_Ff 0
25000 {Ffr l(*
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B
RT2 =}A
During the audit, John has the following findings: sj1x>
(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: 8w4.|h5FP
Dr. Cash in Bank RMB 5820000 oz QL2
Dr. Financial Expenses RMB 180000 4R.#=]F
Cr. Notes Receivable RMB 6000000 d*(1t\
(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: B7
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Dr. Non-operating Expenses RMB 3000000 !q?}[E2
Cr. Provisions RMB 3000000 gw-l]@;1
On January 10, 20×9,Company A received a judgment on repaying RMB 2500000 QCMF_;aNI
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: 4f+Ke*^[RA
Dr. Provisions RMB 3000000 *@< jJP4
Cr. Cash in Bank RMB 2500000 ( Q
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Cr. Non-operating Income RMB 500000 H"sey +-
Required: H~&'`h1
(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. NB[b[1 Ch
(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: :'03*A_[
(a)Inventory Turnover Rate in 20×8; k&*=:y}
(b)Gross Profit Ratio in 20×8; 1
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(c)After Tax Return on Total Assets in 20×8; and UCFef,VW
(d)Current Ratio as at December 31, 20×8
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2
(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. S&y