ABAS Workbooks - Capital - Case Study

PWC audit 审计

Share Capital, Reserves and

Statutory Records (Case Study)

PWC audit 审计

Contents

SECTION TOPIC

1 Case study

PAGE

3

PWC audit 审计

APPENDIX TOPIC A

Case study suggested solution

PAGE

27

PWC audit 审计

Before you can proceed with this case study, you must have completed the self-study workbook, ABAS Workbooks: Share Capital, Reserves and Statutory Records. Also, you must have created a local copy of Thinkready, Inc. TeamAsset database on your PC. The Thinkready, Inc. TeamAsset database will be available on the CN Knowledge Curve database.

This case study should take you approximately 60 minutes to complete. If you find yourself taking more time, don't worry . . . at this stage it's more important that you practice the techniques thoroughly, rather than watching the clock.

You are a new team member on the audit of Thinkready, Inc. for the year ended December 31, 1998. One of the tasks allocated to you is the audit of share capital and reserves.

Your team manager has briefed you on the relevant steps of the tailored step document. You can see the steps that you should perform if you follow the following:

(i) Go into your local copy of Thinkready, Inc.;

(ii) Select the view 01 Client Work, then 1 Main. Select

Equity, then section 5000 - Capital and other equity accounts. Work through the steps in the order that they appear in this view. To go into a step from this view either double click on it or put the highlighter bar over a step and press return. You also need to complete the work in section 8025 - Statutory records. When you go into the steps you will see that the team manager has tailored them to be relevant to Thinkready, Inc.

PWC audit 审计

(iii) Expanding this area shows you the steps you must

perform to audit share capital and reserves.

To go into a step from this view either double click on it or put the highlighter bar over a step and press return. When you go into a step you will see that the team manager has tailored it to be relevant to Thinkready, Inc.

Your team manager has obtained the following information from the company secretary which is relevant to your audit work. These are attached on the next few pages:

extracts from the December 31, 1997 audited financial

statements;

various board minutes;

register of charges;

register of directors and secretaries;

register of members;

Annual Return; and

client prepared schedule on share capital

You may assume that any amounts that need to be traced to bank statements and cash book have already been performed without any error arising.

PWC audit 审计

Once you have completed the audit of share capital and reserves, your final task is to think about the presentations and disclosure implications of your audit work on share capital and reserves.

You must update the extracts from the 1997 financial statements to reflect the results of your audit work above for the 1998 financial year.

When you have finished, turn to the suggested solution in Appendix A, and compare that to your own. If you have any questions about the suggested solution, ask your team manager or an experienced team member to talk through any problems you had.

PWC audit 审计

THINKREADY, INC.

DIRECTORS' REPORT AND ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 1997

These financial statements have been prepared for training purposes only. Whist every effort has been made to ensure compliance with PRC accounting standards, no reliance should be placed on the disclosures herein.

PWC audit 审计

THINKREADY, INC. (FOR TRAINING PURPOSES ONLY)

REPORT OF THE DIRECTORS

The directors submit their report together with the audited accounts for the year ended December 31, 1997.

Principal activities

The principal activities of the company are the development, manufacture and marketing of dermal pharmaceutical compounds used in human health care applications.

Results and appropriations

The results of the company for the year ended December 31, 1997 are set out in the profit and loss account on page 5 of the accounts.

The directors do not recommend the payment of a dividend.

Reserves

Movements in the reserves of the company during the year are set out in Note 13 to the accounts.

Donations

During the year, the company made charitable and other donations of Rmb 50,000 and Rmb 1,000 respectively.

Fixed assets

Details of the movements in fixed assets are set out on Note 7 to the accounts.

Share capital

Details of the share capital of the company are set out in Note 12 to the accounts.

PWC audit 审计

THINKREADY, INC. (FOR TRAINING PURPOSES ONLY)

REPORT OF THE DIRECTORS

Directors

The directors during the year were:

Philip Tan Wan Kong Charles Heindahl Yeung Siu Mo Wong Bun

There being no provision in the company's Articles of Association for retirement by rotation, all current directors continue in office.

Directors' interests in contracts

No contracts of significance in relation to the company's business to which the company, its fellow subsidiaries or its holding companies was a party and in which a director of the company had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year.

Directors' interest in equity or debt securities

At no time during the period was the company, its fellow subsidiaries or its holding companies a party to any arrangement to enable th …… 此处隐藏：5436字，全部文档内容请下载后查看。喜欢就下载吧 ……