[anshul1233]

Actually I think requirements were quite clear (it doesn’t mean i will surely pass ..lol), but ofcourse exam was very much time pressured as one would have expected already…..

Following are the quest from Jun P7 exam …best to my memory ….

• Question 1- 37 Marks – Email reply – Financial Statement Risk, Audit procedure on two specific cases, Construction company, Case 1 – company considering sale of low profit making operation (I think IFRS 5) and Case 2 – Email reply –Onerous contract (I guess IAS 11 and IAS 37– Provisions) 16 marks, Part 2 – was Ethical issue, offer of free rent building too auditors, related party – transaction with sister’s company (rest I don’t remember clearly)

• Question 2 – 27 marks- Lots of numbers – Balance sheet with last year comparatives (negative share capital) + future Cash Flow – of a subsidiary company who is facing serious going concern issues (new audit client), part 1 – require reply to Audit Partner from Audit manager to matter that need to be consider on if we should take on this engagement, Part 2 – Audit procedure to confirm authenticity of PFI – Cash Flow statement for future three months only.

• Question 3 – 18 Marks – Part 1 – Ethics, We need to consider the ethical issues in accepting the audit engagement – Client –Book retailer – first time audit, just crossed their thresh hold, family business, PQ accountant preparing their accounts, Client is interested to buy a company by next year who are already our audit client, Client also want us to prepare their annual accounts and well as audit them. Part 2 – Audit procedure to check the opening balance of this client (Profit before tax , Asset, Inventories)

• Question 4 – 18 marks – due diligence (not attempted)

• Question 5 – 18 marks – Group Audit, Part 1 – We are engage in a group audit, Client have six subsidiary with just one subsidiary audited by component auditor. Addition to this Component Auditor have qualified that report on basis of directors of Component not accounting for provision of £2miillion (component profit £4million) (legal advice says there is only 20% chance that component will lose the case). Moreover matter is material to group accounts as well (group assets (or profit) £84 million). Part 2 – Audit junior would like to know more about group audits etc

Thanks
Ash

[anshul1233]

Brilliant everyone … keep up the good work !!

[anshul1233]

Before auditor can rely on someone’s (other professionals) work, audit firm should perform – REQI

R – Reputation
E – Experience
Q – Qualification
I – Independence

e.g. – While auditing goldsmith Audit firm may hire ABC Ltd valuation company to value Jewellery as at year end stock. But before they rely on ABC valuations they must perform “REQI” on ABC Ltd.

[anshul1233]

Good stuff

Financial Statements Assertions

Trick to remember – ACCA COVER

A – Accuracy
C – Completeness
C – Cut Off
A – Authorisation
C – Classification
O – Occurrence
V – Valuation & allocation
E – Existence
R – Rights and Obligation

Thanks
Ash

[anshul1233]

guys please do participate … this is for everyone … keep the motivation high.

[anshul1233]

Hi,

I am interested please count me in for this group -Also I was thinking if everyone could leave their e-mail address with their post will help the moderator to send e-mail around once all is set?

Please put forward your suggestions for above …

My e-mail – ash.acca@gmail.com

Cheers
AJ

[anshul1233]

@Ujala, I have done P5 a year ago and I must tell you I found opentuition notes and tips to be very helpful. I guess 3 – 4 hrs a week should be more then enough for this exam.

Cant comment on P7 as I will do it first time in 2011

Anshul

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