ACCA Paper AAA exam was – June 2021 Exam – Instant Poll and comments

Difficult and lengthy

Not sure what question you got but I had

Part a) business risks, – 12 marks
Part b) material misstatement – 18 marks

And part b) I could only find about 4 points

Another tricky paper and lengthy paper

Hi what did you guys put for q 2- investment property adjustment, sales adjustment and internal controls.

Also anyone remember/have q1 on the restructuring provision? Any answers here?

Thanks

Good luck every one

Weird exam!

Lengthy paper and everyone’s exam froze mid exam as well in the center. Hope the markers take this into consideration.

I could only find few material points for material miststaements

impairment on licence
Amortisation
Investment in associate
Financial asset
New client

Cant recall the rest

kamdarvivek wrote:I could only find few material points for material miststaements

Profit and loss on disposal of investment
Associate loan disclosure
Related party transaction disclosure
Operating segments

New client is an audit risk not material misstatement.

You needed to calculate operating profit. I remember the operating margin being 10.5% and then you should be able to calculate it

1.Dolphin group providing communication service… difficult to find many ROMM..and many business risk… very difficult to handle in remote based exam with 5 different exhibit..multiple screens… unlike paper based exam.
A.Business risk; b.ROMM, c,audit procedure for related party disclosure and difficulties in finding related parties
2. Going concern – evaluate events casting significant doubt and cash flow audit procedure.
3.Due Diligence – difficult question to get anything out of scenario . but easy bit is ..client asking to appoint his son in partner firm.

What was the Risks of material mistatements for the case study on Dolphin Co? I got around 4 for 18 pts. Time management very tight.

Q1 Dolphin co
-Business risks (12)
-ROMM (18)-
impairment on licence
Amortisation
Investment in associate/18% investment-may have significant influence at 18%
Financial asset
New client-opening balances (ROMM)
Revenue recognition

-Planned Procedures
-Related parties
-explain why it is difficult to identify related parties
-Procedures to be performed for related party transactions

Q2 Due diligence exercise where matters had to be assessed on the potential acquiree business
(a) -purpose of due diligence & benefits to the company of due diligence (9)
(b)-investigative procedures to be performed for the due diligence exercise.

(c ) request from finance director to employ his son in our department else this will have impact on future audit tender & provision of non-audit services-evaluation of this request for ethical & professional implications. (6)

Q3
(a) matters to be considered for the going concern (10)
(b) procedures to be performed for cash flow forecast (10)
(c ) impact on audit opinion & audit report for going concern (5)

I guess i had these- may have mixed up the order & questions.
i found Q1 very lengthy where it was difficult to move between exhibits & try to make a link beween the data & figures. (many exhibits).
Even the Figures provided were not in traditional manner with EBITDA and revenue for only 10 months versus 12 months revenue for prior year.
not a straight forward scenario.