[amawesome2]

You didnt quite answer my question
I was not looking for an answer for part A and B rather i was asking whether the amount of irrelevant information in the answer key add any mark ?

Consider the answer for part A FL.when asked about the rationale for acquisition of FL the ans key talks about the economies of scope which developed because of an accidental synergy later

Also as an ans for the assessment of the performance of the companies the answer key talks about the portfolio management model(ashridge)which was adopted by MMI in case of FL.

Doesnt these information in the ans key not directly answer the question ?

[amawesome2]

Yes ofcourse this is an exam question 12/08 MMI

[amawesome2]

Thanks a lot now am quite satisfied?

By the way i didnt include ‘summary of discussion’ because the answer key didnt include it as well (
Discussion of the progress made on GreenFire’s development with a technical expert or engineer”)

Thanks again.

[amawesome2]

Ok i agree with you ,the mark allocation hasnt been right .

I have read the printed
solution

Can you tell me whats wrong with my answer if i restated my answer like below

Discussions made with auditors expert regarding the fair value of the proposed sale.This was to ensure whether the plant and machinery indeed had a fair value of 50k

Discussion made with the auditors expert regarding the demand for quickfire and compared it with management result to ensure revenue from the product forecasted is appropriate

Are these evidences correct?

[amawesome2]

Ok please refer to the question and suggest the answer for the question

[amawesome2]

Ok i understood what you meant.suppose if my answer was in the noun form , will it then be correct?

Are you serious that my mistake of interpreting the question as asking to describe procedures scores no mark at all if asked in the real exam? Although the ‘real’ difference was the change in form of speech?

[amawesome2]

This is taken from the ans to the question 30 Bill 6/11 where an audit manager ignores assesing business risk and we are asked to critically evaluate what the manager has done in relation to audit planning

[amawesome2]

While i was reading the bpp study i had a doubt!!!

In owner managed businesses, if owners are paid a salary and are indifferent to dividends, the key profit figure stands higher in the statement of profit or loss, say at gross profit level. Alternatively in this situation, the auditor should consider a figure that does not appear in the statement of profit or loss: profit before directors’ salaries and benefits. ”

why the auditor should consider figure that does not appear in the statement of profit or loss such as profit before directors salaries and benefits and not a figure after director salaries in basics for materiality reasons?

PS the above paragraph is taken from bpp study text page 164 in relation to problems of materiality?

[amawesome2]

Ya it is much better now…thanks a lot!!

[amawesome2]

Thanks but could u give me a rough estimate as to how much on average would i lose fr not preparing the proforma and putting the adjustment values? . do u think wil it be wise fr me to input the values in the financl stmnts when i am out of time and thers a high probability tht those values wud be wrong?

[amawesome2]

But wudnt tht be a contradiction to ifrs 5 fr nt charging the depreciation just because the mgt had the intention to sell?the standard clearly states dep could b charged until classification as held for sale.Although i appreciate tht this is not relevant is there any chance f losing marks on this one?

[amawesome2]

Hmm…ya thts what i also think.need to make sure with the tutor. R u taking p2 exam this time

[amawesome2]

I know dep is nt provided fr after classification bt here the property was classified as such only at the year end.therefore isnt it correct to charge the dep for the year on the property?

[amawesome2]

thanks for tht simple logic

[amawesome2]

Ok i understand thanku..

[amawesome2]

Ofcourse i know thts not enough!! But from an exam perspctive will tht b enough to get me 1 mark for the response

[amawesome2]

And will my first risk and response fetch me 1 mark if asked in an exm qs?

[amawesome2]

So as per wht u said can we sy ther r chances for refunds made to customers not being recorded in the correct period thereby understating/overstating cash(current asset) and sales as an audit risk?

[amawesome2]

This is an extract of another qs

Sunflower has spent $1.6 million in refurbishing all of its supermarkets; as part of this refurbishment programme their central warehouse has been extended and a smaller warehouse, which was only occasionally used, has been disposed of at a profit. In order to finance this refurbishment, a sum of $1.5 million was borrowed from the bank. This is due to be repaid over five years.

Risk-The 5 year loan of $1.5m from the bank may have been incorrectly analysed between current and noncurrent liabilities.

Response-review the general ledger for non current liabilities to ensure proper allocation is made for the loan and trace it to the financial statements

Is this an appropriate response?

i feel the response is not perfrct and will it be correct if the risk is changed as”there r chances for the loan to be recorded as a current liability resulting in an overestimatn of current liability n understatment of non current liabiltiy

[amawesome2]

Is the above risk and response appropriate

[amawesome2]

Thanks

[amawesome2]

I dont think what u said is correct .attending inv count is a substantive procedure carried out to establish the existence assertion of inventory, this is listed in bpp text.r u the one who is supposed to be answering my qs or r u answering on kens behalf

[amawesome2]

Then please explain to me what went wrong my calculations were:-

Plasma. LCD
Bdgtd qty. 590. 590
Act qty. 750. 650
Difference. 160. 60
Wghtd std cont pu. 185. 185
Variance. 29600. 11100

[amawesome2]

Different in the sense, the individual variances and not the total

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