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)。 @|9V]bk
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: vrXNa8,L
(Expressed in RMB thousands) >\ PNKpn{
FINANCLAL STATEMENTS ITEMS YGkk"gFIA
20×8 tR-rW)0K3Q
20×7 efm#:>H
E XQ3(:&
Sales 5i&+.?(Z=
64000 2@pEuB3$?!
48000 q6V\n:hKV
OyTp^W`&
Cost of sales
Ndqhc
54000 1.q
a//'RW
42000 QCvst*
zvh&o*\2<d
Net profit |?<r
30 'M3V#5l)@|
-20 H,U qU3b3
,F
0bkNBG
Ec|5'Kz]
December 31, 20×8 WJw
%[_W
December 31, 20×7 98t|G5
m-}6DN
Inventory r!O4]j_3
16000 YX6[m6LU
12000 2ee((vO&
w_^g-P[o-
Current assets F5/,H:K\
60000 iC Z1ARi
50000 1
$rrfg
6R%NjEW:
Total assets |%7OI#t^
100000 .5?Md
90000 ewzZb*\
\d"M&-O
Current liabilities Ke,$3Yx
20000 ;PG,0R`Z;
18000 e=EM07z
St~a/Lq6
Total liabilities a gxR
V
30000 $61*X f+*
25000 zrCQEQq
+#0,2wR#
FQ6{NMz,h
During the audit, John has the following findings: }e0)=*;l
(1)On December 31, 20×8,Company A discounted an undue commercial acceptance bill (with recourse) amounted to RMB 6000000, and was charged discounting interest of RMB 180000 by the bank. Company A made an accounting entry on December 31, 20×8 as follows: ,daZK
xT
Dr. Cash in Bank RMB 5820000 9mfP9
Dr. Financial Expenses RMB 180000 'Gds?o8
Cr. Notes Receivable RMB 6000000 \l9S5%L9
(2)In June 20×8, Company A provided guarantee for Company B’s borrowings from Bank C. In December 20×8, since Company B failed to repay the borrowings in time, Company A was sued by Bank C to make relevant repayment amounted to RMB 3000000. As at December 31, 20×8, the lawsuit was still pending, and, based on the reasonable estimate of the guarantee losses made by the management, Company A made an accounting entry as follows: 00(#_($
Dr. Non-operating Expenses RMB 3000000
fW.)!EPO
Cr. Provisions RMB 3000000 $4*k=+wS
On January 10, 20×9,Company A received a judgment on repaying RMB 2500000 t(?tPt4zp
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: G[!Y6c3
Dr. Provisions RMB 3000000 ]NgEN
Cr. Cash in Bank RMB 2500000 (.54`[2+L
Cr. Non-operating Income RMB 500000
h"5!puN+
Required: {pW(@4U
(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. &nEQ