Audit

Professional Level Options Module groundbreaking Audit and Assurance (International) Tuesday 2 December 2008 Time allowed practice and prep: Writing: 15 minutes 3 hours This make-up card is divided into dickens sections: scratch A twain passs atomic number 18 compulsory and must(prenominal)iness be attempted ingredient B TWO questions just now to be attempted Do NOT open this subject until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must(prenominal) NOT write in your answer booklet until instructed by the supervisor. This question paper must not be upstage from the examination hall. The Association of guide Certified Accountants Paper P7 (INT)  region A BOTH questions argon compulsory and MUST be attempted 1 bluebell Co operates a drawstring of 95 luxury hotels. This seduces results show a return to profitability for the company, sake several divisions of losses. Hotel concern journals show that on average, valuate in the industry has change magnitude by around 20% this year. Despite improved profitability, prairie gentian Co has poor liquidity, and is concisely trying to secure just long-term finance. You have been the coach-and- quadruplex responsible for the audit of hargonbell Co for the last quartette years.

Extracts from the draft financial statements for the year ended 30 November 2008 are shown below: Extracts from the Statement of encyclopedic Income taxation (note 1) Operating expenses (note 2) early(a) operational(a) income (note 3) Operating profit pay charges Profit/(loss) originally tax 2008 $m 890 (835) 135 xcl (45) 145 2007 $m 713 (690) 10 33 (43) (10) Note 1: Revenue identification Revenue comprises sales of hotel way of lifes, conference and group meeting rooms. Revenue is value when a room is occupied. A 20% deposit is taken when the room is booked. Note 2: monumental items included in operating expenses: Share-based payment expense (i) dishonored property heal expenses (ii) (i) 2008 $m 138 100 2007 $m In June 2008...If you want to confirm a full essay, order it on our website: Ordercustompaper.com

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