[corvine99]

Passed 81. Now a member! Thank you opentuition.

[corvine99]

big pass 63% first attempt. Delighted. One more to go before membership. come on!

[corvine99]

Okay, should this be answered this way?

ISA710 requires in this situation, auditors shall discuss with TCWG and ask them to communicate with previous auditor about the material misstatement identified and request management to amend FS retrospectively as if the accounting error has never occurred.

If predecessor auditor agrees and issues a new auditor’s report, no impact on current year audit opinion but a possible EOM may be included. Otherwise, the current year audit opinon will be qualified on the basis of unresolved comparability matter.

It is unlikely to be a KAM as it may not be a matter that in the professional judgement of auditor that is most significant to the current year audit. If auditors conclude that it is not a KAM but it is a matter that is correctly presented in the FS and is considered to be fundamental to the understanding of the users, an EOM is included either before or after the KAM depending on the professional judgement.

Right?

[corvine99]

I have a different opinion.
As per IFRS 15, we need to first review contract to determine if there are two separate POs given different product / services provided. One is delivery of machinery, the other is installation service.
Revenue is recognized when control is passed either as a point-in-time or over time. So the payment in advance will be recognized as deferred income. Revenue related to the first two stage will be recognized when the machinery is delivered based on the standalone selling price of the machinery. The installation service is recognized based on percentage of completion method when it is certain that the results of PO can be reliably estimated.

The risk is that revenue is recognized too early, overstating profit and understating liabilities. Another risk is that the percentage of completion is wrongly determined as it involves judgement and inherently risky to audit.

[corvine99]

Hi robert, thanks for sharing. congratulations for your big win. if don’t mind, please send me a copy to carry on your success.

[corvine99]

So what you are saying is that you thought you did not deserve a passing and should be given a fail instead?

[corvine99]

Passed 73 1st attempt delighted

[corvine99]

i passed 68% though i had thought it would be around 7x. been studying hard for 5-6 mths. did 5 times past papers. but anyway, i will take that. it doesn’t make any difference, 50% or 68%. Go for P3 in Mar.

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