One of your audit clients is Tye Co a company providing petrol, aviation fuel and similar oil based products to the government of the country it is based in. Although the company is not listed on any stock exchange, it does follow best practice regarding corporate governance regulations. The audit work for this year is complete, apart from the matter referred to below.
As part of Tye Co’s service contract with the government, it is required to hold an emergency inventory reserve of 6,000 barrels of aviation fuel. The inventory is to be used if the supply of aviation fuel is interrupted due to unforeseen events such as natural disaster or terrorist activity.
This fuel has in the past been valued at its cost price of $15 a barrel. The current value of aviation fuel is $120 a barrel. Although the audit work is complete, as noted above, the directors of Tye Co have now decided to show the ‘real’ value of this closing inventory in the financial statements by valuing closing inventory of fuel at market value, which does not comply with relevant accounting standards. The draft financial statements of Tye Co currently show a profit of approximately $500,000 with net assets of $170 million.
Required:
(a) List the audit procedures and actions that you should now take in respect of the above matter. (6 marks)
(b) For the purposes of this section assume from part (a) that the directors have agreed to value inventory at
$15/barrel.
Having investigated the matter in part (a) above, the directors present you with an amended set of financial
statements showing the emergency reserve stated not at 6,000 barrels, but reported as 60,000 barrels. The final financial statements now show a profit following the inclusion of another 54,000 barrels of oil in inventory. When queried about the change from 6,000 to 60,000 barrels of inventory, the finance director stated that this change was made to meet expected amendments to emergency reserve requirements to be published in about six months time. The inventory will be purchased this year, and no liability will be shown in the financial statements for this future purchase. The finance director also pointed out that part of Tye Co’s contract with the government requires Tye Co to disclose an annual profit and that a review of bank loans is due in three months. Finally the finance director stated that if your audit firm qualifies the financial statements in respect of the increase in inventory, they will not be recommended for re-appointment at the annual general meeting. The finance director refuses to amend the financial statements to remove this ‘fictitious’ inventory.
Required:
(i) State the external auditor’s responsibilities regarding the detection of fraud; (4 marks)
(ii) Discuss to which groups the auditors of Tye Co could report the ‘fictitious’ aviation fuel inventory;
(6 marks)
(iii) Discuss the safeguards that the auditors of Tye Co can use in an attempt to overcome the intimidation
threat from the directors of Tye Co. (4 marks)
第1题:
Large companies need a way to reach the savings of the public.The same problem, on a smaller scale, faces practically every company trying to develop new products and create new jobs.There can be little prospect of raising the sort of sums needed from friends and people we know, and while banks may agree to provide short-term finance, they are generally unwilling to provide money on a permanent basis for long-term projects.So companies turn to the public, inviting people to lend them money, or take a share in the business in exchange for a share in future profits.This they do by issuing stocks and shares in the business through the Stock Exchange.By doing so they can put into circulation the savings of individuals and institutions, both at home and overseas.
When the saver needs his money back, he does not have to go to the company with whom he originally placed it.Instead, he sells his shares through a stockbroker to some other saver who is seeking to invest his money.
Many of the services needed both by industry and by each of us are provided by the Government or by local authorities.Without hospitals, roads, electricity, telephones, railway, this country could not function.All these require continuous spending on new equipment and new development if they are to serve us properly, requiring more money than is raised through taxes alone.The Government, local authorities, and nationalized industries therefore frequently need to borrow money to finance major capital spending, and they, too, come to the Stock Exchange.
There is hardly a man or woman in this country whose job or whose standard of living does not depend on the ability of his or her employers to raise money to finance new development.In one way or another this new money must come from the savings of the country.The Stock Exchange exists to provide a channel through which these savings can reach those who need finance.
1、The money which enables those companies to go ahead with their projects is().
A、exchanged for part ownership in the Stock Exchange
B、raised by the selling of shares in the companies
C、repaid to its original owners as soon as possible
D、invested in different companies in the Stock Exchange
2、All the essential services on which we depend are().
A、unable to provide for the needs of the population
B、financed wholly by rates and taxes
C、in constant need of financial support
D、run by the government or local organizations
3、The Stock Exchange makes it possible for the Government, local authorities and nationalized industries().
A、to make certain everybody saves money
B、to borrow as much money as they wish
C、to make certain everybody lends money to them
D、to raise money to finance new development
第2题:
As an experienced technician, you are responsible for Technical Support in your company. You ask one of the trainees to document the layers of an existing CIS network. Which three statements best characterize this process? ()(Choose three.)
A. It provides reliable input for verifying network consistency.
B. It requires a network audit to support some upgrade decisions.
C. It requires a network audit to support any network restructuring.
D. It begins with gathering organizational input that may be inaccurate.
第3题:
Which of the following statements explains why it is normally best to have more than onecontroller-based access point participate in the containment of one rogue access point?()
第4题:
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.the Company.com contains an exchange server 2010 client access server named -ex12.Company.com has an employee named andy booth.he uses exchange activesync to down load attachment.You have received instructions from the cio to limit andy booth’s attachments size;however your action should not in any way affect the other employees at Company.com.What should you do?()
第5题:
You work as a network Exchange administrator at Company.com.The Company.com network currently consists of a single Active Directory forest containing a single domain named Company.com.The Company.com organization makes use of Microsoft Exchange Server 2010 as their messaging solution.Company.com has recently attempted the creation of a new address list based on the network user’s country attribute but discovered that the attribute is not available in the New Address List Wizard.During the course of the business week you receive instruction from Company.com to create a new address list based on the network user’s country. What should you do?()
第6题:
Company.com has employed you as their Exchange administrator.The Company.com network contains Mailbox servers that are configured to run either Exchange Server 2007 or Exchange Server 2010.During the course of the week you receive an instruction from the CIO to ensure that all e-mail messages stored for more than 90 days in the Inbox folder of clients be deleted. What should you do?()
第7题:
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.the Company.com contains an exchange server 2010 mailbox server named -ex20 that contains a mailbox database.a Company.com manager wants the see the last logon time of the employees at Company.com. What should you do?()
第8题:
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.Due to company growth Company.com, has acquired an accepted domain named courseware.com.You have received instructions from the CIO to automatically forward the e-mail messages sent to courseware.com to another server that does not resides in Company.com.What should you do?()
第9题:
You work as a network Exchange administrator at Company.com.The Company.com network currently consists of a single Active Directory forest containing a single domain named Company.com.The Company.com organization makes use of Microsoft Exchange Server 2010 as their messaging solution.Company.com users make use of Microsoft Office Outlook 2007 to access their mailboxes.A new Company.com directive states that all received e-mail messages located in the entire mailbox be archived after one year.It is important that e-mail messages of the finance department be kept for three years. What should you do?()
第10题:
第11题:
It provides reliable input for verifying network consistency.
It requires a network audit to support some upgrade decisions.
It requires a network audit to support any network restructuring.
It begins with gathering organizational input that may be inaccurate.
第12题:
第13题:
(a) Contrast the role of internal and external auditors. (8 marks)
(b) Conoy Co designs and manufactures luxury motor vehicles. The company employs 2,500 staff and consistently makes a net profit of between 10% and 15% of sales. Conoy Co is not listed; its shares are held by 15 individuals, most of them from the same family. The maximum shareholding is 15% of the share capital.
The executive directors are drawn mainly from the shareholders. There are no non-executive directors because the company legislation in Conoy Co’s jurisdiction does not require any. The executive directors are very successful in running Conoy Co, partly from their training in production and management techniques, and partly from their ‘hands-on’ approach providing motivation to employees.
The board are considering a significant expansion of the company. However, the company’s bankers are
concerned with the standard of financial reporting as the financial director (FD) has recently left Conoy Co. The board are delaying provision of additional financial information until a new FD is appointed.
Conoy Co does have an internal audit department, although the chief internal auditor frequently comments that the board of Conoy Co do not understand his reports or provide sufficient support for his department or the internal control systems within Conoy Co. The board of Conoy Co concur with this view. Anders & Co, the external auditors have also expressed concern in this area and the fact that the internal audit department focuses work on control systems, not financial reporting. Anders & Co are appointed by and report to the board of Conoy Co.
The board of Conoy Co are considering a proposal from the chief internal auditor to establish an audit committee.
The committee would consist of one executive director, the chief internal auditor as well as three new appointees.
One appointee would have a non-executive seat on the board of directors.
Required:
Discuss the benefits to Conoy Co of forming an audit committee. (12 marks)
第14题:
第15题:
Which of the following statements explains why it is normally best to have more than one controller-based access point participate in the containment of one rogue access point?()
第16题:
Which of the following statements explains why it is normally best to have more than one controller-basedaccess point participate in the containment of one rogue access point?()
第17题:
You have an Exchange Server 2010 organization. Your company has a relationship with another company. The partner company has an Exchange Server 2010 organization. You need to recommend a security solution to meet the following requirements: .Ensure that all e-mail delivery between your servers and the partner companys servers is encrypted .Ensure that all communication between your servers and the partner companys servers is authenticated What should you include in the solution?()
第18题:
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.Company.com contains an edge transport server named - sr10 that is configured as an open smtp relay.one of the Company.com managers complained that he cannot get any e-mail from a customer the stanford.com domain name.you have received instructions from the cio to make sure that -sr10 can receive the e-mails from stanford.com. What should you do?()
第19题:
.You work as a network Exchange administrator at Company.com.The Company.com network currently consists of a single Active Directory forest containing a single domain named Company.com.The Company.com organization makes use of Microsoft Exchange Server 2010 as their messaging solution.the Company.com network contains a client access server named - ex05.during routine monitoring you discover that -ex05 has failed.you receive an instruction from the cio to install a new member server named -ex05 on the network as well as to recovering the client access server role on -ex05.What should you do?()
第20题:
You work as the Exchange administrator at Company.com.The Company.com network contains an Exchange Server 2010 Organization.You are responsible for managing the Exchange network for Company.com.The network contains numerous Mailbox servers.During the course of the week you receive an instruction from the CIO to determine the message latency between the Mailbox servers in the organization.What should you do?()
第21题:
You work as the enterprise exchange administrator at Company.com.The Company.com network consists of a single Active Directory domain named Company.com.Company.com has an Exchange Server 2010 organization.During a routine monitoring, you notice that e-mail messages going to the Internet encompasses internal Exchange routing information in the message header.The Company.com CIO does not want that information to be sent to their clients. What should you do?()
第22题:
clients connected to the rogue access point must be able to connect to the containment controller-based access point.
multiple controller-based access points will load-balance the containment task using fewer resources than a single access point.
clients connected to the rogue access point may be out of the range of the controller-based access point providing containment.
each controller-based access point can handle only a limited amount of clients connected to the rogue access points.
第23题:
Multiple controller-based access points will load-balance the containment task using fewer resources than a single access point.
Clients connected to the rogue access point may be out of the range of the controller-based access point providing containment.
Each controller-based access point can handle only a limited amount of clients connected to the rogue access points.
Clients connected to the rogue access point must be able to connect to the containment controller-based access point.