In part b of this question we are asked to calculate if ZPS will benefit financially by accepting the offer of the early settlement discount.
In the suggested solution examiner compares the benefit of early settlement discount with the cost of paying sixty days earlier.
When I answer this question I used formula for ‘Annual cost of…[Read more]
In this question there is:
8% Bonds ($100 nominal) = $120m
Before tax cost of debt of 7% per year. The 8% bonds will be redeemed at nominal value in six years’ time
How to calculate the market value of the bonds in easy way
I cant understand the examiners solution to this
marta0101 replied to the topic *** F8 June 2013 Exam was.. Post your comments *** in the forum F8 Audit and Assurance Forums 10 months, 2 weeks ago
For audit evidence I said:
inspection, inquiry, confirmation, recalculation and analytical procedures
And for each procedure i gave example om PPE
And then there was a question about threats to auditors independence so i said: Self interest, self review, advocacy, familiarity and intinidation
One of the audit procedures of accounting estimates says:
‘Determine whether events occurring up to the date of the auditor’s report (after the reporting period) provide audit evidence regarding the accounting estimate’
What does it mean, could you please give an example?
In this question part c asks for audit risks and responses.
One of the solutions says:
”Management were disappointed with 2009 results and hence undertook strategies to improve the 2010 trading results. There is a risk that management might feel under pressure to manipulate the results through the judgements taken or through the use of…[Read more]