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ranapardeep87 wrote:There was a misstatement which was material, as acturial gain was recognised in profit and loss and not oci, so auditors provide the correction entry to be made, if not corrected opinion and report will be modified.
You can also note that on aggregate the misstatements become material.
If you don’t attempt the business risk section of Q1 but attempt all other questions, would that count as fundamental mistake ?
barbadoshk wrote:What ROMM did you guys highlight?
By Yes, you mean if the % is between the brackets you can still say the underlying figure is material?
Jennie_fierz wrote:Materiality threshold
Profits 5-10%<br>Revenue 1/2 – 1 %<br>Assets 1-2%<br>(P.R.A)well, thanks for the reply but it does not address my question 🙂
If an account balance is 1.6% of total assets and you say that it is material, would that be correct given the general materiality threshold is between 1-2%?
Thanks. Also when we have a Group related quesitons, can we always assume that related party is a significant risk ?
I mean for Q1, so on the P/L there might be a note next to revenue containing additional information, so do we have to take into account the additional information in the note before calculating materiality.
Also, would we maximise the marks if we evaluate 15 audit risks rather than 5-6 in detail ? Is there a cap on the number of audit risks that can be evaluated ?
Thanks. sometimes there are notes next to some account balances. E.g Revenue, note 1 which provides additional information, so when we calculate materiality do we need to include the additional information per the note ? i.e do we need to make any adjustment to the balance and then calculate materiality
In Q1 if I am not wrong we can always note down Revenue as a Significant Risk and earn easy marks as it is a presumed risk ?
My comment was in response to the above ” Read the mind of an AAA marker”Revenue is always Significant risk. Not sure if we can explain in the answer that it is also a presumed risk.
barbadoshk wrote:Did you sit UK paper? @chris777
International
sarahsalman26 wrote:I got the same questions !
How many audit risks did you manage to find?<br>And what did you write in Reporting Part?I wrote 12 risks as I assume it’s 2 marks per well explained risk. I also note down two control risks, one in respect of the error that changed an amount from 2m profit to a 800k loss and another one in respect of the the lease to external individuals as they have access to the warehouse where the machines are manufactured.
CorneliaLu wrote:Hi,
I also took AAA UK version today. Here are the questions and my answers. Which audit risks have you picked?Regarding Q2:
(a) Arjan Ltd – final review and subsequent events
(i) Comment on the inconsistency between management’s response and the audit evidences.
1. Understatement of inventory
2. Overstatement of receivables
—-
For additional procedures I wrote things like using an expert to value the inventory and for receivables additional procedures such as review of the post year end bank statements to assess the recoverability. Would that be correct ?Lola wrote:What did you write for that 6mrk 1a?
I wrote about the three strands within audit strategy – scope, timing and direction. Then i went to provide more detail in relation to each strand. I also mentioned that given it’s a new client this may impact the nature and extend of testing for gathering audit evidence. I also had a point around internal control and understanding the client and its environment (e.g oil industry). Not sure how many points i will earn as most of my explanations are too generic and I did not really use any of the exhibits.
Emszylou wrote:For the share scheme. The difference between new and original scheme should be apportioned over the the time already vested by the higher of (total vesting period or time vested + remaining vesting period) the answer to this is part of the consideration. The answer is taken away from new scheme value and balance is expensed in p&l.
Could you please direct me to a similar question re the share-based issue?
kamdarvivek wrote:I put
These look alright to me
TazSK54 wrote:Also anyone remember procedures on due diligence for the employee redundancy provision and reduction in production costs – Q3?
I have also asked the same question here.
Lola wrote:Exactly, I thought there had to be missing information- certainly was not worth 24marks!
yes i got the Dolphin question. Sorry, I should have mentioned it.
Lola wrote:Exactly, I thought there had to be missing information- certainly was not worth 24marks!
emwitton wrote:thirthy wrote:I think that the approach in this paper was different than the past exam papers, for example in audit risk question there was a disposal and not much else, what does the examiner expect, a different phrase on every possible aspect of a disposal? This seems to be milking 1 issue for 20 marks which felt to me the unethical thing to do as i felt that in previous attempts such an approach would have been frowned upon (at least based on my understanding). I am looking forward to examiner report.
From the start 3 possible risks were crossed out by the examiner (all companies in the group have the same year end, same currency and report according to IFRS) so you would have to go ahead and make up something else for some marks I guess.<br>Although I am pretty good with the computer, I found myself struggling in question 2 going back and forth trough 3-4 exibits to calculate materiality and at some point i knew i saw more info somewhere but no time to go trough 3 exibits again (which would again make me struggle to return to the more relevant ones while time is running out) so nevermind…<br>I would also like to add that many of us do not work on small screens or only with 1 screen anymore in the REAL WORLD (i have not worked on a screen this size since 2010) so if ACCA knows we will be sitting exams on 1 small screen to cut cost, then reduce exibit number. If you do not want to reduce the number of exibits, then less questions would be fine as well.The scenario and the exhibit hints you what the risks are. Generally every single line of the exhibit could reveal a ROMM however the question asked for significant risks. So the first thing is to calculate materiality. However the period covered was for 10 months so this needed to be extrapolated. Control risk would be Sig as it is a 1st year audit. And so on
I got 9 but I could have added related party risk and potentially fraud risk even the integrity of the client.
I noted down the following risks:
– Revenue recognition
– Associate/Investment
– Impairment
– Loan
– intragroup trading
– control risk
– foreign exchange
– Intangible asset (broadcasting licensing)
– and one more , forgot which oneB due diligence 10 marks
Re this part – what procedures did you note ? Any examples ? I used mostly enquiries of management and analytical proceduresKR2021 wrote:Where to apply mitigating circumstances ? Can you please advise
log into myACCA and click on my qualification (right below dashboard). You should see your exam progress and on the right side of the screen is the mitigating circumstances option.
Ashleigh wrote:Mine froze at the 15 min mark as well, took nearly 6 minutes to fix which I lost and then got really flustered as I could just see the minutes counting down and couldn’t get my mind back on track.
I just applied for mitigating circumstances. I would advise you to do so. There is even an option to select ” < 15 min lost time due to etc..” so ACCA expect this type of issue.
5-10 min at the very end of the exam could easily mean 5-10 lost marks.
barbadoshk wrote:I noted the finance director had no experience or that none was given, but then never used it anywhere in the answers?
Yes that’s a good approach. I think this exam is all about exam technique and knowing the basics in terms of knowledge then its 99% application and using the scenario. I wish my tuition provider told me that.
