F8 (Int) Exam tips from BPP, Kaplan, First Intuition, Icount – Dec 2011 sitting

BPP

Q1 (30 marks)
This question will be based on a scenario and incorporate between 3 and 5 distinct requirements.
The areas most likely to be tested in this question include audit planning and the identification and explanation of audit risk, audit procedures (substantive tests and/ or tests of control) and internal control.
Q2 (10 marks)
This will be a factual or knowledge based question. It is likely to cover several areas of the syllabus with 2 or 3 separate requirements worth between 2 and 5 marks each.
Topics for Question 2 can be drawn from all areas of the F8 syllabus and questions could include the responsibilities of directors and auditors as well as other definitions such as audit risk, audit assertions, audit regulation and corporate governance.
Q3, Q4 & Q5 (20 marks each)
These questions will be scenario based but will also include some knowledge based requirements.
Areas which are likely to be covered in these questions include ethics, planning, the audit of specific transactions or account balances (including estimates), subsequent events, management representations, going concern, audit reports, internal control and corporate governance.
Note that the scenario may be set in the context of a profit making or non-profit making organisation.

Kaplan tips

•Ethics including fundamental principles/confidentiality
•Evidence: payroll, inventory, share capital, reserves, opening balances
•Specific standards/topics:
? ISA 530 (sampling)
? ISA 220 (review of working papers)

First Intuition

Q1 Substantive audit procedures and tests of control on a key area of the Statement of Financial Position eg inventories or non-current assets
Q2 Short 10-marker on ISAs eg audit reports, fraud & error
Q3 ‘Identifying and explaining’ the threats to auditor independence and ways of managing them
Q4 Management letter; identify the weaknesses, consequences and recommendations in a particular company
Q5 Subsequent events

Icount

•System deficiencies and controls
•Corporate governance
•Audit assertions and appropriate audit procedures.
•Written representations
•Ethics and safeguards.

ATC

History shows that the “well prepared candidate” stands by far the highest probability of passing examinations.

Exam Tip
BE WELL PREPARED.
Being well prepared means, at the very least:
Working through all of the sessions within your study system (on the basis that a good study system covers the whole syllabus and not just a “best guess” 70%).
Working through all past examination questions and completing all monitoring/progress tests and mock examinations under full examination conditions.
Reading all of the examiner’s and other subject articles – they do not write for fun. Note that examiners no longer write articles for the forthcoming examination – so articles that are at least six months old could be very relevant (e.g. the articles on analytical review and ratios for the December 2011 examination).
Careful study of the examiner’s reports on past examinations. These contain excellent tips of what students should NOT be doing.
Ignoring “Exam Tips” that are just a list of somebody’s favourite topics.
Regularly visiting http://www.accaglobal.com/students
At the 2011 ACCA Teachers’ Conference ALL examiners, whilst understanding the desperation of students for examination tips, clearly stated that such tips were a danger to a student’s ability to pass and MUST be ignored. Giving tips should be banned as they do more harm than good.
Having said that, it is only fair that I share with you what I thought was a “slip of body language” by the F8 examiner, Pami Bahl, in one of her presentations at the ACCA conference. As always, make sure you take a calculator into the exam with you as there may be a question coming up on materiality, dealing with errors and extrapolation of test results. It may be in December or even next June (2012) as examiners tend to write two or three exams ahead. Or, of course, I completely misread the situation.

Pami Bahl
Pami Bahl, the examiner, does not leave an audit trail for you to follow to identify what will be in her next examination. Just because a subject was examined in the previous examination does not mean that it will not be revisited in December.
Ensure you regularly visit the ACCA student website for all F8 articles, e.g. her article on her examination approach is essential reading. Reading this article and Pami’s examiner’s reports makes it clear that her examination questions will be practical and a purely theoretical study approach is unlikely to bring success. Her past exams have also shown a tendency for her to ask some “off the wall” elements within the questions – “out of the box” thinking required.
In addition to noting the guidance set out above, students should make use of ACCA past examination papers, pay close attention to articles published in Student Accountant and should read the Examiner’s review of the last examination session at https://www2.accaglobal.com/students/acca/exams/f8/reports.

EXP

• The audit of bank balances and investments
• Going concern issue and its impact on the financial statements
• Ethical issues – providing non-audit services to clients
• Management letter with weaknesses of internal controls
• Differentiation between fraud and error

source – PQ Magazine
https://www.pqaccountant.com

best of luck with exam!
ansi