(ii) Briefly explain the implications of Parr & Co’s audit opinion for your audit opinion on the consolidated

financial statements of Cleeves Co for the year ended 30 September 2006. (3 marks)

[试题](ii) Briefly explain the extent to which the application of sensitivity analysis might be useful in decidingwhich refrigeration system to purchase and discuss the limitations inherent in its use. (3 marks)

[试题](b) Briefly explain THREE limitations of negotiated transfer prices. (3 marks)

[试题](b) Briefly explain the two types of informal communication known as the grapevine and rumour. (6 marks)

[试题](ii) State the taxation implications of both equity and loan finance from the point of view of a company.(3 marks)

[试题](ii) Briefly outline the tax consequences for Henry if the types of protection identified in (i) were to beprovided for him by Happy Home Ltd compared to providing them for himself. You are not required todiscuss the corporation tax (CT) consequences

[试题](ii) Briefly discuss THREE disadvantages of using EVA? in the measurement of financial performance.(3 marks)

[试题](ii) Briefly discuss FOUR non-financial factors which might influence the above decision. (4 marks)

[试题](ii) Comment briefly on how divisional managers might respond to the results achieved and ONE potentialproblem that might be experienced by Our Timbers Ltd. (2 marks)

[试题](ii) Comment briefly on the use of its own tree plantations as a source of raw materials by Our Timbers Ltd.(3 marks)

[试题](ii) Explain the organisational factors that determine the need for internal audit in public listed companies.(5 marks)