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)。 7y=O!?*
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: {N}az"T4f
(Expressed in RMB thousands) C$[iduS
FINANCLAL STATEMENTS ITEMS !+eU
20×8 -|FHv+
20×7 DP)
,~8
%e]G]
B%
Sales 9 jje
Zc'
64000 i(|ug_^
48000 Hl}lxK,]
S'!&,Dxq^
Cost of sales F\r"Y)|b=
54000 C4(xtSJSd!
42000 @ ;!IPiU
p? L%'
Net profit [e` |<
30 t}k:wzZ@
-20 f,yl'2{
, ~
1+MZ=
f!kZyD7
December 31, 20×8 ]_(hUj._
December 31, 20×7 =Q<VU/
x\Q}fk?{t
Inventory JlnmG<WLT
16000 e#/&A5#Ya
12000 sY!JB7!j
Ibz9juY
Current assets d'W2I*Zc<
60000 _5rKuL
50000 hM]Z T5;<
^<!R%"o-
Total assets :O413#8
100000 T
*/I4"
90000 ^mq(j_E.
4wSZ'RTSR
Current liabilities gfK_g)'2U
20000 26/<\{q~
18000 <<LLEdB
nx%A s
Total liabilities >s5}pkAv|e
30000 w=XIpWl
25000 he~8V.$
T^;b98*
4vbGXb}!
During the audit, John has the following findings: Q&W>h/
(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: In1{&sS
Dr. Cash in Bank RMB 5820000 `F/R:!v
Dr. Financial Expenses RMB 180000 ;-`NT`
#2
Cr. Notes Receivable RMB 6000000 *{VC<<`
(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: A@>/PB6n
Dr. Non-operating Expenses RMB 3000000 = vqJ0 !
Cr. Provisions RMB 3000000 ke2dQ^kc4
On January 10, 20×9,Company A received a judgment on repaying RMB 2500000 Z$J-4KN
to Bank C to settle the guarantee obligation. Company A made the payment and an accounting entry at the end of January 2009 as follows: [
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Dr. Provisions RMB 3000000 E@C.}37R
Cr. Cash in Bank RMB 2500000 s/hgWW$
Cr. Non-operating Income RMB 500000 R{c~jjd
Required: 'l(s)Oa{M:
(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. BeFyx"NBg
(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: [K
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(a)Inventory Turnover Rate in 20×8; BR|0uJ.M
(b)Gross Profit Ratio in 20×8; f#&z