Forum Replies Created
- AuthorPosts
- December 6, 2017 at 9:13 am #420905
And i believe that they mentioned the NCI is the same as FV of consideration 20% equity?
December 6, 2017 at 2:16 am #420834@zaeemarif said:
Hi all,This is what I can recall.
Q1 – Hawk & Co audit firm/Component auditor Bill & Co/Flamingo Group
a) Audit risk (Goodwill, inventories consignment, Paradise brand, consolidate profit/loss pro-portion basis 6 months, RPT, opening balance adjustment, interco balance/transaction elimination, etc.) (16 marks)
b) Inventories audit procedures (5 marks)
c) Extract component auditor audit strategy (analytical procedures based on management work, audit partner 15 years in charge without rotation) (10 marks?)
Format/professional writing – 4 marksQ2 – Quality control (where most of us screw up)
a) QC importance (audit partner subject to litigation, important to maintain good name of the profession, management & public reliance on audited result for decision making)
b) Materiality (firm-wide change from 10% PBT to 15% PBT) – seriously not sure what the question want, it’s an open ended type of question.
I just talk about materiality usually based on Total Assets/Revenue/PBT and what’s the range, if low risk can use higher range scope, higher range will increase detection risk due to lesser substantive work
c) Could not recall on this questionQ3 – College & WCC
a) Audit procedures for PFI (graduate within average 3 years, retain first year student, employment/further study within 12 months for graduated student)
b) Matters to consider & audit evidence
i – Built property to be rent out. Issue identified is wrongly record as IAS16 PPE, should be IAS40 Investment Properties since no intention to use. Depreciation not yet charge since not yet rent out as at year end. By right, should depreciate upon available for use.
ii – Fund receive for 3 activities. Must be IAS20 Government Grant. Allow to recognise revenue provided meet all conditions. Must ensure revenue match with cost.
c) I skip this question and only return to it for the last 5 minute. The only answer that I have is, the opinion should be negative worded “Nothing has come to our attention…”Q4 – Ethical
a) Asp Co – Small company receiving significance financing for growth. Currently provide non-assurance service (bookkeeping, payroll, tax) but client request to also perform audit. Self interest threat due to fee. Self review threat due to non-assurance work to be audited by same firm. Should use different team and also assign 2nd reviewer. I also include money laundering element due to “significance financing” from unknown party. Need to inquire on the source of funding to avoid being associated with money laundering. Possibility of over depending on client audit fee due to client potential growth. (7 marks)b) Viper Co – Previous auditor did not response to our query. Client file litigation towards ex-auditor due to modified report (obvious intimidation threat). Client may have integrity issue. We may report to professional body on the previous auditor due to non-cooperation. Should consider weight of risk vs fee to be earn if to accept this client. (7 marks)
c) Could not recall on this question (6 marks)
I’m a finalist and really hope all of us will pass. We are in the same boat for Q2. Sigh.
What is Q3(c) about? I think I completely ignored it. I thought the examination procedures were 6 marks and IAS 40 and Gov. grant questions were 7 marks each giving it a total of 20 marks.
November 13, 2017 at 2:04 pm #415561Hi, Sir. May I know why does it values the repairs and maintenance business as 30%? Is it because it states “the book value of non-current assets will be reduced by 30%?
September 4, 2017 at 8:40 pm #405522@sulemanhaider said:
Hi. I have confusion with one requirement in exam.
Will threats to auditors independence arise, if we provide non assurance service to SUBSIDIARY of audit client. Where subsidiary is not audited by our firmI think there should be as I remembered that the subsi is a material component of the Group.
September 4, 2017 at 6:10 pm #405488@kylerlu said:
I think three hours and 15 minutes is not enough to critically examine the case and provide a well thought of answer. Not to mention provide a legible hand writing.Time just flies… Hope the examiner considers these and the fact that under examination condition, the examiner’s request (from examiner’s report) is really hard to do.
Hope we get a pass and hope passing rates this time around is not as low as the previous ones…
Good luck guys!
I end up writing in point form for question 2 because of time constraint. Did Q2 as my final question and might have messed up a lot. Hopefully i can gain some points in the audit evidence even though the i did real bad for matters to consider.
September 4, 2017 at 6:07 pm #405485@avinashbhatia said:
BR :-
LUXURY HOTELS =BR IS ECONOMIC RECESSION
FOOD AND DRINKS=BR IS IF QUALITY IS NOT MAINTAINED THEN CUSTOMER GETS …..
HOTEL COMPLEX purchased from competitor but local legislation not allowed to use beaches and stuff this is what actual business model is for sunshine group , if these services are not being provided to the customer for which sunshine group is well know they might end up loosing salesMAJOR COMPETITOR AND HIGH Standards: if not maintained properly as a result looses their customers and will see dramatic decline in sales revenue
what other business risks you guys wrote ?
I also wrote about the danger of water sports – If not maintained properly, might be dangerous for the guest.
2 hotels affected by hurricane. – If insurance cannot be used to cover, they risk GC because of lack of cash.September 4, 2017 at 5:04 pm #405412I’m sure it was business risk? Or did I read it wrongly?
- AuthorPosts