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Stupidly spent more time on the 10 mark questions than the 20 ones. Had 13 minutes to do question 6.Ridiuclous. Still probably passed but I didn’t make it easy for myself .
Mcqs maybe 14 marks on lowside
10 mark Qs maybe 25 marks on low side
20 mark Qs maybe 16 marks on low side
Overall maybe 55 at leastThere was understanding entity, the technology company, it was a new client so permanent audit file not an option… I said I would contact the old auditor.
Going concern was asses reasonableness of cash flow estimates, examine board minutes etc etc
Aww I mentioned permanent audit file, previous year financial statement, Internet, previous year audit team and engagement partner
except for permanent file all are relevant… u will definitely check previous year statments.. internet website and also publication etc.. thats really how you will understand entity..
What did ye do to the opinion in question 6 at the end? I modified it qualified.. Except for.. I didnt think it was pervasive?
couldn’t answer that out of time.. what about 6th part b? before counting and after.?
Pretty fair exam I thought:
MCQ’s can’t remember! Thought they were okay.
Q1: Threats to Independence.
Went for Familarity (7 years)
Self Interest (Profit Shares)
Self Review (Completing reviewing/WIPFew points about other things Internal Audit can do.
Q2:
State reasons to change an Engagement letter.
Went for change of fees and a takeover.Six parts of an engagement letter for 3 marks.
5 ways of understanding a new client.
Review Previous FS, Audit report, Controls of client, Website and something else:Q3: Going Concern.
5 reasons they were not a GC, pretty straightforward lots to go at.
5 audit procedures again thought that was Okay. Check bank terms, check how possible the obsolete sales is with lawyers.Q4: Audit risks
Said how they were mistating the insurance possibly, check to see how the scrap value is accounted correctly, how directors get a bonus on profits and others,
Q5:
Six deficinces with test of control and responses. Said about Cash not banked enough, Reports not sent to head office, Too many people can open safe, No receipts for petty cash purchaes, Inventory didn’t match and one moreQ6:
Reliability of evidence – How external is better, depends on various factors.
Inventory Audit procedures, research and development AP too.Then effect on Audit report:
Would be a modified report, modified opinion.
Qualified opinion except for… Intangible mistatement. Material however not pervasive.
Use a paragraph in report to state this etc.For question one… Self-interest threat- low fees…. (lowballing) again Self interest threat (contingency fees as it will be linked to Profit before tax) and self review threat valuation and there was also familiarty threat but didn’t include that.
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I also stupidly spent much time on 10 mark questions.
If I luckily pass with 50,then F8 would be my most fortune examBefore counting involved organisation of inventories, marking and labelling, separating any damaged, obsolete from the rest, obtaining a list of counting procedures and instructions from management, obtaining pre numbered inventory sheets etc
@tinaboy said:
Before counting involved organisation of inventories, marking and labelling, separating any damaged, obsolete from the rest, obtaining a list of counting procedures and instructions from management, obtaining pre numbered inventory sheets etcisn’t management suppose to do that??? except for obtaining instructions
The time pressure for this paper was unexpected and surprising. Before I knew what was happening, I had run out of time without even reading two of the Section B questions. If I had managed my time better, I would have been happier with my performance. My advice to future candidates – for section B, you probably will be better off if you start with the two 20 marks questions.
Chris, I suggested a qualified opinion. I don’t agree with the director ‘s opinion that $980, 000 was immaterial. Whether it is material or not, I depended on the fact that there was no evidence of pervasiveness. Therefore I thought it was a modified report with a qualified opinion
@ehsanshah said:
isn’t management suppose to do that??? except for obtaining instructionsYes the auditor observes and checks, enquires and does test counts,the client does the actual counting, organising and labelling
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