(ii) the factors that should be considered in the design of a reward scheme for BGL; (7 marks)
第1题:
(ii) Explain the organisational factors that determine the need for internal audit in public listed companies.
(5 marks)
第2题:
(ii) Briefly discuss FOUR non-financial factors which might influence the above decision. (4 marks)
第3题:
(b) Advise the management of SCC Ltd of THREE strategies that should be considered in order to improve the
future performance of SCC Ltd. (6 marks)
第4题:
(b) Using the information contained in Appendix 1.1, discuss the financial performance of HLP and MAS,
incorporating details of the following in your discussion:
(i) Overall client fees (total and per consultation)
(ii) Advisory protection scheme consultation ‘utilisation levels’ for both property and commercial clients
(iii) Cost/expense levels. (10 marks)
(ii) As far as annual agreements relating to property work are concerned, HLP had a take up rate of 82·5% whereas MAS
had a take up rate of only 50%. Therefore, HLP has ‘lost out’ to competitor MAS in relative financial terms as regards
the ‘take-up’ of consultations relating to property work. This is because both HLP and MAS received an annual fee from
each property client irrespective of the number of consultations given. MAS should therefore have had a better profit
margin from this area of business than HLP. However, the extent to which HLP has ‘lost out’ cannot be quantified since
we would need to know the variable costs per consultation and this detail is not available. What we do know is that
HLP earned actual revenue per effective consultation amounting to £90·90 whereas the budgeted revenue per
consultation amounted to £100. MAS earned £120 per effective consultation.
The same picture emerges from annual agreements relating to commercial work. HLP had a budgeted take up rate of
50%, however the actual take up rate during the period was 90%. MAS had an actual take up rate of 50%. The actual
revenue per effective consultation earned by HLP amounted to £167 whereas the budgeted revenue per consultation
amounted to £300. MAS earned £250 per effective consultation.
There could possibly be an upside to this situation for HLP in that it might be the case that the uptake of 90% of
consultations without further charge by clients holding annual agreements in respect of commercial work might be
indicative of a high level of customer satisfaction. It could on the other hand be indicative of a mindset which says ‘I
have already paid for these consultations therefore I am going to request them’.
(iii) Budgeted and actual salaries in HLP were £50,000 per annum, per advisor. Two additional advisors were employed
during the year in order to provide consultations in respect of commercial work. MAS paid a salary of £60,000 to each
advisor which is 20% higher than the salary of £50,000 paid to each advisor by HLP. Perhaps this is indicative that
the advisors employed by MAS are more experienced and/or better qualified than those employed by HLP.
HLP paid indemnity insurance of £250,000 which is £150,000 (150%) more than the amount of £100,000 paid by
MAS. This excess cost may well have arisen as a consequence of successful claims against HLP for negligence in
undertaking commercial work. It would be interesting to know whether HLP had been the subject of any successful
claims for negligent work during recent years as premiums invariably reflect the claims history of a business. Rather
worrying is the fact that HLP was subject to three such claims during the year ended 31 May 2007.
Significant subcontract costs were incurred by HLP during the year probably in an attempt to satisfy demand and retain
the goodwill of its clients. HLP incurred subcontract costs in respect of commercial properties which totalled £144,000.
These consultations earned revenue amounting to (320 x £150) = £48,000, hence a loss of £96,000 was incurred
in this area of the business.
HLP also paid £300,000 for 600 subcontract consultations in respect of litigation work. These consultations earned
revenue amounting to (600 x £250) = £150,000, hence a loss of £150,000 was incurred in this area of the business.
In contrast, MAS paid £7,000 for 20 subcontract consultations in respect of commercial work and an identical amount
for 20 subcontract consultations in respect of litigation work. These consultations earned revenue amounting to
20 x (£150 + £200) =£7,000. Therefore, a loss of only £7,000 was incurred in respect of subcontract consultations
by MAS.
Other operating expenses were budgeted at 53·0% of sales revenue. The actual level incurred was 40·7% of sales
revenue. The fixed/variable split of such costs is not given but it may well be the case that the fall in this percentage is
due to good cost control by HLP. However, it might simply be the case that the original budget was flawed. Competitor
MAS would appear to have a slightly superior cost structure to that of HLP since its other operating expenses amounted
to 38·4% of sales revenue. Further information is required in order to draw firmer conclusions regarding cost control
within both businesses.
第5题:
(d) Comment on THREE factors other than NPV that the directors of ITL should consider when deciding whether
to manufacture the Snowballer. (3 marks)
第6题:
(b) Identify the most appropriate approved share option scheme for Happy Home Ltd. Outline the scheme
requirements and the tax benefits of using it compared to the current unapproved scheme. (6 marks)
第7题:
(ii) The shares held in Date Inc and the dividend income received from that company. (7 marks)
第8题:
(b) On 1 April 2004 Volcan introduced a ‘reward scheme’ for its customers. The main elements of the reward
scheme include the awarding of a ‘store point’ to customers’ loyalty cards for every $1 spent, with extra points
being given for the purchase of each week’s special offers. Customers who hold a loyalty card can convert their
points into cash discounts against future purchases on the basis of $1 per 100 points. (6 marks)
Required:
For each of the above issues:
(i) comment on the matters that you should consider; and
(ii) state the audit evidence that you should expect to find,
in undertaking your review of the audit working papers and financial statements of Volcan for the year ended
31 March 2005.
NOTE: The mark allocation is shown against each of the three issues.
第9题:
(ii) Recommend further audit procedures that should be carried out. (4 marks)
第10题:
Refer to the exhibit. A network technician is asked to design a small network with redundancy. The exhibit represents this design, with all hosts configured in the same VLAN. What conclusions can be made about this design?()
A.The design will function as intended
B.Spanning-tree will need to be used.
C.The router will not accept the addressing scheme.
D.The connection between switches should be a trunk.
E.The router interfaces must be encapsulated with the 802.1Q protocol.
第11题:
The design will function as intended
Spanning-tree will need to be used.
The router will not accept the addressing scheme.
The connection between switches should be a trunk.
The router interfaces must be encapsulated with the 802.1Q protocol.
第12题:
Routing should occur at the access layer ifvoice VLANs are utilized. Otherwise, routing should occur at the distribution layer.
Routing should always be performed at the distribution layer.
VLANs should be localized to a switch.
VLANs should be localized to a single switch unlessvoice VLANs are being utilized.
Routing should not be performed between VLANs located on separate switches.
第13题:
(ii) Determine whether your decision in (b)(i) would change if you were to use the Maximin and Minimax
regret decision criteria. Your answer should be supported by relevant workings. (6 marks)
第14题:
(ii) Briefly discuss TWO factors which could reduce the rate of return earned by the investment as per the
results in part (a). (4 marks)
第15题:
(ii) Recommend which of the refrigeration systems should be purchased. You should state your reasons
which must be supported by relevant calculations. (3 marks)
第16题:
(ii) Service quality; and (7 marks)
第17题:
3 The Global Hotel Group (GHG) operates hotels in most of the developed countries throughout the world. The directors
of GHG are committed to a policy of achieving ‘growth’ in terms of geographical coverage and are now considering
building and operating another hotel in Tomorrowland. Tomorrowland is a developing country which is situated 3,000
kilometres from the country in which GHG’s nearest hotel is located.
The managing director of GHG recently attended a seminar on ‘the use of strategic and economic information in
planning organisational performance’.
He has called a board meeting to discuss the strategic and economic factors which should be considered before a
decision is made to build the hotel in Tomorrowland.
Required:
(a) Discuss the strategic and economic factors which should be considered before a decision is made to build
the hotel. (14 marks)
第18题:
(ii) The sales director has suggested to Damian, that to encourage the salesmen to accept the new arrangement,
the company should increase the value of the accessories of their own choice that can be fitted to the low
emission cars.
State, giving reasons, whether or not Damian should implement the sales director’s suggestion.
(2 marks)
第19题:
(ii) The answers to any questions that the potential investors may raise in connection with the maximum
possible investment, borrowing to finance the subscription and the implications of selling the shares.
(7 marks)
Note: you should assume that Vostok Ltd and its trade qualify for the purposes of the enterprise investment
scheme and you are not required to list the conditions that need to be satisfied by the company, its
shares or its business activities.
第20题:
(b) Explain the matters that should be considered when planning the nature and scope of the examination of
Cusiter Co’s forecast balance sheet and income statement as prepared for the bank. (7 marks)
第21题:
(ii) From the information provided above, recommend the matters which should be included as ‘findings
from the audit’ in your report to those charged with governance, and explain the reason for their
inclusion. (7 marks)
第22题:
You need to design the VLAN scheme for the Company network. Which two statements are true about best practices in VLAN design?()
第23题: