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Help me out plz. Is Performance Pyramid different from Performance Prism ?
E 1.b of syllabus guide mentions Performance Pyramid.
Congrats !
You dont lose all papers. You only lose Professional papers and those even subject to when you passed them. For instance any exam passed in Sep 2016 will expire in Sep 2023.
Kindly let me know where I was right and where wrong…
Did Q1,2,3,4 but found Q2 ,18 mark part quite difficult as I was unable to figure out what examiner is trying to ask.
Time pressured definitely.
Q1. There were lots of Business and Material misstatement risks, but was unable to put all of them into answer sheet.
ethical issues regarding Bob joining Grohl was a fair question.
I wrote advising Bob of any adverse consequences of joining Grohl to both the client and the firm. Self interest threat ,self review threat , familiarity and intimidation threats would rise if Bob joined Grohl.-Recommended to advise Grohl not to hire Bob,
– Changing entire engagement team to eliminate threats
-or resign considering the level of seniority involved ( though wrote that resigning should be the last resort if safeguards could not be implemented to lower the threats)Q2 faced real difficulties in 18 marks question though a tricky question was expected as usual.
Reassessing materiality:
– auditor may come accross further findings during audit
– acquisition can require reassessing materilty at component level as well as group level
-Severe litigation can result in provision exposing amount to Material misstatement therefore materiality may be reassessed
–
Q3 -revenue recognition discussed its importance to investors shareholders and therefore is subject to manipulation– Matter of risk and rewards
-consignment matters
and couple of other matterspart (:) I pointed out that revenue should not be recognised until 9 months have passed or the stuff was sold at the external retailers
where as for internal retailers revenue should not be recognized until sold
there was joint audit question as well and wrote some points such as cost timing dispute between auditors , high fee engaging 2 auditors etc.
Q4 dont remember now 🙁 can any body write the break down of question 4
As far as I wrote in ethical issue regarding fee…Contingent fee is is not allowed as it will threat auditor’s objectivity by creating self interest threat as auditor may compromise any key audit findings in order to collect fee from Grohl. I recommended Lowering the fee if possible considering no effect and no compromise on quality of audit.
@derrickagyiri said:
youyou must first change it to beta asset before you factor the MV of the company investing in the new company
Note un-gear the beta equity of the similar company first before you find the equity beta with the current market value of the company investing in the new company
well i did not touch the target companty’s % of gearing but used the MV its equity and debt for calculating its Beta asset.
then used it in own company using M.v of our equity and debtplease tell me should i have used the 80% 20% for gearing or the MV of target company… :((
i took MV for beta fearing and regearing 🙁