[alex145]

Passed on third time

[alex145]

Same issue 15 minute warning then couldn’t exit the 15 minute warning timer still went down and still could talk to support so knew it wasn’t on my side, issue not fixed all I wanted and needed was my last 15 minutes. Bit of a shame as all the hard work and effort and time of work that was needed to do this exam. I left task 1 to last and could have easily wrote 10 more points to get about 8 marks

[alex145]

I’d also say the exams were marked a week after they where done the extra time is for quality control purposes

[alex145]

Yea I found it similar in AAA the mark scheme in previous years have the same answer for standard 10 marks on a certain issue yet in the report it says students that recite past answers do not pass this section. Even though it is in the mark scheme seems hard to call

[alex145]

Maybe they have been furlough and there is no one there to write the report? Looked at previous reports they seem to be generic

[alex145]

Hi I am waiting for result for AAA think I passed but not sure it’s accrual world not knowing

[alex145]

If I get this I have sbl and sbr left I’ll try to do them in june

[alex145]

Not sure I have have got 48 in audit and 48 and 49 in sbl

[alex145]

I failed it in September 2019 didn’t have time left out 20 Mark question so I have been working on my time management I got 48 that time which is annoying

[alex145]

Payroll is mechanical in nature the issue was that they do the payroll which is fine however they use a estimate it should not be an estimate if they are providing the work it should be 100% correct, also I can’t remeber the exact detail but separate teams should be used as a self review threat is possible as a member that done the payroll might be in charge of reviewing their own work might be unable to detect errors

You will be fine

[alex145]

2a

Limitation of scope
Fraud agreed upon procedures so audit only gets paid for this if management want procedures down, can’t bill this into the agreeded fee for example, however audit firm may have to carry out subscribe testing as this fraud may be the tip of the ice berg and with the ceo not wanting an invesgation could suggest conclusion and possible money laundering activities, if suspected the audit most report it to the MLRO, more actions include trace all payments to a particular bank account to see if 40000 is the full amount, extra professional scepticism needed as this could have an effect on the whole financial statements as it increases engagement risk if inappropriate report issued extra planning is needed

Does any of this sound right maybe I am off track don’t really know

[alex145]

1b

Review board minutes and the relevant board minute for date of approval for sale of property

Sale agreement

External valuation of the property and a copy of the fixed asset register to help auditor reasonableness of sales price

Review bank statements post year end to vouch any payments in relation to outstanding payments

Then first part of 1b

Familiarly threat
Professional competence of audit firm
Lack of professional scepticism
Should not set a materiality for revuene so be a % of revenue 5-10%
In adequate testing think there was more but can’t remeber off the top of my head

[alex145]

Hi sorry had not been on this in a few days as not many where discussing answers.

3b I put
2 year fee dependency over 15% not listed yet so ok currently with safeguards in place if listed not allowed self interest threat

Familiarity threat long association with engagement partner ok at the minute if safeguards such as quality review takes place, when listed the firm will have to replace the engagement partner for a minimum of 2 year cooling period

Self review threat, taking on management responsibility providing accounting services should only provide payroll as mechanical in nature

Intimidation threat as the firm is going to put it out for tender may make the audit firm feel they have to make unrealistic promises in order to keep the contract a significant element of their income this also affects the professional standards of the audit firm

Advocacy threat if they carry out the share valuation etc this is not allowed as no safeguards can protect the firm they can only provide a summary of the business risks.

The firm should state its capabilities and if this does not meet the clients needs then it should be declined.

[alex145]

Question 1a
Management basis creative accounting
Operating segment for Daryl co as assets over 10% of total group assets
Amortisation on licences should be separated out 3,4,5 years
Related party disclosure failure to disclose sale of property to ceo
Risk in that statements due to Daryl operating different regulations
Risk in reconciliation of I tercompsny balances due to different year end
Goodwill should be impairment Daryl actually operating at a loss
Revenue recognition incorrect as performance obligation not yet satisfied therefore 1 months worth of revenue overstated possibility in prior year.
Ifrs 5 sale of discontinued non current assets the property that is unused may not be recognised correctly I.e depreciation charged when should be. Does that sound near enough them all?

[alex145]

I hope we all pass, acca needs to consider giving extra time or cutting a question if they want us all to provide good responses as most of people who pass these exams including myself only get 50 or slightly above how does 50% make u ready for the work place as a strategic leader due to time constraints. Beats me

[alex145]

I wrote that bb gave the higher contribution of 138,000 due to there being 2 hours per box for example therefore so instead of times the amount of boxes by the the labour hour contribution it was say 2000 boxes x 2 hours per box x contr pre labour hour does this make sense could be wrong and the explanation was that E is taking another contact on in the future the contribution made on the labour hours only make you up to the level of bb I.e. 92 and 46 labour contribution gets you to 138 so you would only be making profit on the box contr.

Also the last question I wrote the reasoning behind each part of the model then done a separate 3 lines on each part and linked this back to the exbs however I found you have to look at questions done to find the answers to this such as product combination, lack of skills mentioned in the table for risks

My 2 controls where to physically inspect regular visits to ensure child labour they are getting paid and that they are there on their own free will

And that workplace accident book reviewed every month due to dangerous equipment and invest in new equipment and review training of this

I didn’t use Tara I used coso stating that the objective setting for competive, event identication for one regarding movements in prices and the other control activists due to the product impure

Part one I used pestal

Question 2 I done a table but just end up writing stuff rather than referring to the scenerio

Can anyone advise if this sounds ok I failed last time by 2 marks due to lack of time

[Author]

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