[Ashley]

@tayyabom said:
I think the most difficult bit in this exam was identifying THREE STRENGTHS in that dirty till control system 🙂

haha tell me about it! 🙂

[Ashley]

@tayyabom said:
Question was, directors don’t want to disclose anything related to payables although amount was material 490K. They were of the view that both Overdraft and Payables fall under current liabilities there is no issue.

It was a material misstatement but was not pervasive as it was only one figure related to payables.

I mentioned that it is a presentation issue as IFRS 1 states figures should be presented as per defined rules.

I then mentioned that it is not about broader terms but about treatment of various figures e.g. payables make part of working capital but overdraft doesn’t.

I also one mentioned that there might be additional reason that some of the suppliers threatened the company of legal action and now to hide it they did this window dressing by taking overdraft from bank and by extending payables period etc etc 🙂

yes material and not prevasive was the choice. i felt they were looking for an explanation around how other opinions would form, hence my discussion around other potential scenarios related.

should have got a few marks regardless 🙂

[Ashley]

@kanchandhankar said:
Thanks 🙂

What was ur answer for q18 last q
About implication on audit report

I did find this hard in approaching the answer. I cant remember the specifics, something around not disclosing the payment after year end?

I discussed various scenarios that would lead to various opinions, qualified, adverse, disclaimer. you?

[Ashley]

@kanchandhankar said:
Yes six ratios
Still got one ratio wrong payable days I did payable /revenue :@

not to worry 🙂

[Ashley]

@tayyabom said:
Oh is this about Ratio Analysis Section (B) question? One simple guess can be that Gross Profit is increasing but net profit is not because COS is booked under Operating Expenses as they were clearly up.

This was just state and calculate 6 ratios – not too hard i thought!

[Ashley]

@kanchandhankar said:
Yes I guess I chose

Slow down Inventory was better than last year

Sales price increased with same maintaining of cost

Both were inconsistent with the data given in q

As gross profit margin was falling

Inventory days were increased

yep had these two aswell as they were both inconsistent 🙂

[Ashley]

@kanchandhankar said:
I remember choosing d as well it was about cutoff relating wages

All wages were allocated in year xxxx something …l..?

thats the one 🙂

[Ashley]

@kicek7 said:
I also remembered, one tricky question asking for two sentences which are INCONSISTENT with the data provided. But i totally forgot what was the answers.

For cut off – i went d? It said something like wages and salaries have been correctly allocated in the right year.

[Ashley]

@kanchandhankar said:
Options were something like sample of invoice to match with GDNs
Sample of GDNs to match with invoice
???

This was for completeness of revenue wasnt it? could be confused…

[Ashley]

@tayyabom said:
there was one MCQ about going concern assumption

I had chosen 12 months from the date of last reporting hence chose

31-May-20X7

anyone remember?

yea i put that, pretty sure its right 🙂

[Ashley]

Also went value for money, wasn’t too sure at the time as it could have been financial audit.
Payroll was 16740 approx
IA manager lady
Unmodified opinion with material
There was one about occurence assertion i think, can’t quite remember.
The one about audit staff, i went find more qualified staff and report to audit committee.

I am slowly forgetting the questions….

[Ashley]

I generally found the exam much easier than I thought it would be. The MCQ’s were quite easy. I dont think the exam covered the whole syllabus very well but thats my opinion.

we’ll see what happens – good luck to all 🙂

I’d be interested to know what people put as MCQ answers, i can remember all of them.

[Author]

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