ACCA P7英国高级审计与鉴证案例分析与审计风险探讨.pdfVIP

ProfessionalLevel–OptionsModule,PaperP7(UK)

AdvancedAuditandAssurance(UnitedKingdom)December2011Answers

1(a)Notesforinclusioninnningsectionofauditworkingpapers

Subject:Oakplc–auditnning

Introduction

Thesenotesprovidetheresultsofapreliminaryanalyticalreviewperformedonthe11-monthfinancialinformationofOak

plcasat30November2011,andtheprincipalauditrisksarealsoidentifiedandexined.Therelevantcalculationsareshown

inappendix1.Ialsodetailtheprincipalauditproceduresrecommendedinrelationtoanewlease,andthecompany’sshare-

basedpaymentn.

(i)Auditrisks

Profitability

TheresultsofthepreliminaryanalyticalreviewindicatethatOakplcissufferingfromdecliningprofitability.Revenuehas

fallenby12·3%andthegrossmarginhasfallenfrom45·7%to40%.Operatingprofithasfallenby27·8%,andthe

operatingmarginhasfallenfrom19·3%to15·9%.Thedecliningsaandgrossprofitsmaybelinkedtothecompany

losingseveralcustomercontracts.

Returnoncapitalemployed(ROCE)ascalculatedbasedontheinformationprovidedshowsareductionfrom7%to4·4%.

However,thecapitalemployedfigureisnotcomparableduetotherevaluationthatoccurredduringthisyear.When

recalculatedbasedonanadjustedcapitalemployedfigure,thisyear’sROCEis4·9%.Whichevermeasureisusedfor

capital