[Satria]

I am selling dec 2018 version (LSBF ATX Singapore yvonne). Email fearah@gmail.com 🙂

Still available!

[Satria]

Not recommended. I used a textbook that was 2 years ago and I checked the syllabus changes and ensure that I thoroughly remain updated using opentuition materials and technic articles. It worked and passed first try. (Unlike tax paper which changes a lot more, best to use a newest one!)

[Satria]

I committed to self studying for 2 months. 1 textbook (LBSF) +all the technical articles + read some past year papers and passed on first attempt!

[Satria]

55% self study for 2 months!!! Technical articles + LSBF second hand books 🙂

Managed to pass all exams in first attempt and now an affliate yay

[Satria]

Also the auditor could check with the regulator if there is any other possible consequences, such as impairment of the existing license, and account for these adjustments appropriately.

[Satria]

For the penalty,
I explained FRS37. The risk is that the company’s estimation may be too positive in the companys favour. Thus, provision could be understated and provision expense is lower than it should be. A reliable estimate should be obtained through a direct confirmation with the regulator or lawyer, to have a best estimate figure. Auditor can also check the reasonableness of management’s estimate for this provision, and if it is reasonable, obtain a confirmation letter to claim their assumptions.

How many marks do you think my answer can score? Out of 5 or 6 marks.

[Satria]

What i wrote in my script with regards to:

1. Being a listed company (business risk)
I still think management pressure will always be there, especially it is a market leader for the past many years. So i would say its still a valid point

2. License (RMM)
I noted that the company is currently being checked by the regulator for modifying customer contracts illegally and overcharging customers. Therefore, i raised 2 key concerns:
– possible impairment of license (intangible asset)? If their license are revoked, wouldnt there be a significant impact on their revenue and their ability to be going concern?
– indefinite life. Is there a chance that the 5 years life would be reduced, and therefore the need to recognise higher amortisation cost?

Do you guys think my answer would be considered a reasonable and valid argument?

Thanks:)

[Satria]

“that was relating to recoverable amount right? i calculated 4.4m-1.2m-0.174=3.026”

Yes agreed with 900k odd! The difference is in fact material. There are a lot of judgements and estimates in a couple of the figures given.

Furthermore, i also commented that since the company has been using cost model under IFRS 16, and suddenly wants to change to revaluation model -> is that allowed? is there a genuine reason in doing so? auditors must be more sceptical about the change in accounting policy and management’s intentions.

[Satria]

I thought the paper was relatively easy. I self-studied for AAA. I spent about 2 months studying this paper and I bought second-hand notes from Carousell. I rewrote the entire textbook in bullet points (my technique to understand the concepts), used it to review nearer to my exams. I also printed ALL technical articles and read all of them briefly (wrote small notes). I also reviewed some of the exam papers and I paid more attention to the latest papers with the new syllabus (Sep 2018/Dec 2018 Q1 especially) (which is of significant help).

[Below are my thoughts on the different questions. They may not be correct!!]

Q1.
Business Risk and RMM (30marks). This was very similar to Dec 2018. If you take a brief look at the answer key, you could actually use some of the points and structure there. There was a trick to the financial figures given I believe. The 20X9 figures are 10 months prior to the YE, thus when looking at SOPL items, you may need to be more careful.

Ethical issues (6 marks). The audit committee wanted the old auditor to develop the new payroll system AND also help out with the audit for payroll -> obvious self-review threat. I stated that they can help with the development but the current auditor (given that they have the resources) should still complete the audit for payroll. Then, the low-fee could also pose another ethical threat.

Related-party transaction (10ish marks). Why is it hard to identify such transactions?
– Complex group structures
– Poor disclosure
– Poor internal system at identifying new related party transactions
– Poor authorisation process for significant items
There is a CPD article on this: https://www.accaglobal.com/an/en/member/discover/cpd-articles/audit-assurance/related-parties15.html

Q2.
(a) Critique the report. Some points i came out with:

-Missing title, addressee, signature, date of auditors report
-Order of opinion and basis for opinion
-Opinion paragraph: did not state what opinion was given?
-Material uncertainty for GC: shouldnt this be a KAM instead? Does failure to get loan financing cause a company to have GC problem? No alternatives of financing? What did auditors do to confirm this? These details are not explicit in the paragraph.
-Missing KAM which is compulsory for listed company
-Basis for opinion paragraph referred to responsibility of auditors paragraph, which is missing

(b) Communicating with those charged with governance
There is a technical article that explains about this. But for all 3 matters that are shown in the exam, I reasoned to communicate those matters to those charged with governmance.
https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/auditors-reports-governance.html

Q3.
(a)
If you read the technical article, this 8 marks could be easily gained.
Link:
https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/iaasb-ed.html

(b)
The remaining 17 marks.
This is a useful technical article to guide you.
https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/audit-of-estimates.html

To answer RMM questions, there was also a technical article to guide you how marks are given.
https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/exam-tech2.html

Please let me know on your thoughts and whether you agree/disagree with my answers.

Cheers!!

[Satria]

@rachaelcrossan said:
Hi everyone,

In Q1 part c , I didn’t see the separate table of figures therefore I didn’t do any numerical work for this part. I wonder if I will lose many marks for this? Also , everyone is saying they used SAF for this part whereas I used the BCG and Ashridge portfolio matrix to evaluate. Does anyone have any idea if this is appropriate?

Thanks,

Yeah i do believe BCG and Ashridge can answer 1c. Did you also explain any similar points like the ones for SAF ie. Using financial datas? If yes, youre on the safe side.

[Satria]

I may be wrong, but i think the question seems to require us to justify why off the shelf > bespoke? Or could it be the other way too?

[Satria]

no options to choose i guess! must do all 3 questions

[Satria]

@ikamarakay said:
Hello all, i forgot to write “REPORT” at the top of the report in Q1a but wrote all the other components relation to the format such as :

To:
From:
Date;
Subject :
Introduction

Headings & short paragraphs and Conclusion.
Would i lose any professional mark relating to the format ?

i believe professional mark is given based on the overall structure as well. Appropriate headings (REPORT) is also one of the requirements. There is actually an article written by the p3 examining team on how they assess the professional marks

[Satria]

2b question is similar to Q4a – June 2016

[Satria]

I spent almost 1 month self studying.
1. Watched dinos lectuee
2. Read most selected technical articles
3. Skipped all the content tested in march(bcg job design project management) did not even read even a page on them
4. Did 2015 2016 past year papers

I found the exam to be very easy!!!

Q1.
If you read the answer scheme for their SWOT and TOWS analysis, they have pretty similar and repetitive points.

Some other pointers i raised:
– company has good competence in acquisition… but marine is a new industry and they lack the knowledge in that industry and that continent
– WO: car industry is being threatened… thats why they decided to move to the marine industry… but would it have been better if they done it locally first?
– shareholders of marine was selling at a low price; negative goodwill – is there any possible ethical threats involved?
– gov building more roads… but if leasing of car is more expensive… isnt it counter productive?? So maybe can negotiate with the gov with regards to the impending tax and restrictions. It may even hurt the non for profit sector leasing!

1b) Acquisition just use the SAF format, as recommended on their answer scheme. I also used the JSW model. I talked about change management, possible cultural clash, and the need to do porters diomand and pestel analysis should they proceed with the acquisition. For acceptability, i Calculated all the financial ratios and compared with industry average… must remember to explain all the ratios because management is “weak in accounting”. Feasibility wise… does company has money? Guess so! And they are selling the company cheap. But need to investigate why they are selling so cheap since the management is only controlled by 3 people.

For Q2, dino’s webcast covered it. For part 2b, i reasoned why off shelf is better than bespoke
– no time, urgency
– high admin cost already; its a charity
– 2 it personnel
– do not need advanced functions
Thus no need for bespoke

I also did q4, thought it was an interesting question!
There was also a past year question similar to this so i just recycled the points but i made sure that i was explaining in the context of the scenario!

Extremely happy with my performance!

Cant believe i pulled it off alone in just 1 month 🙂

– singapore!

[Satria]

Hi is there anyone from singapore LSBF?

[Satria]

Read all the technical articles lol confirm come out

[Satria]

Payback answer will vary according to npv answer. There will be method mark as long you show ur full workings and calculations i believe

[Satria]

Yeah i think its IFRS 15 because its license agreement.

Anyhow does anyone know when will the result will be released? Mid august?

[Satria]

Hello what book and resources did you use for f4 and f5? Im planning to do f4 soon

[Satria]

@christa316 said:
I didn’t include it either. In my opinion we didnt get much information to confirm if there was actually overtime. we know none were idle… but there is a possibility that they had spare time before

Dont think ot or idle time is relevant

[Satria]

@christa316 said:
For your labour rates those were for the operational or overall variance?

Total adverse 3k

Planning
Both adverse

Operational
Rate 3k adverse
Efficiency 43k favourable

Thats what i could recall

[Satria]

For q1, i think as long you calculate the profit (or contribution) for the period for each batches, you should earn about 5 out of the 6 marks.

Then you justify why you chose 3 batch or 4 batch. But usually the aim of a company is usually to:
– maximise profit
– maximise contribution
– minimise cost

BUT maximise profit PER UNIT? Im not too sure on that

[Satria]

@cagass said:
I found section B ok but they were the hardest mcqs I’ve seen. Did anyone work out the EV mcq question?

I got 9.25 for abc.

For question 1 I mentioned that taxes had an effect on the variable cost and the variable cost needs to be constant for algebraic method.

For relevant cost mcq I said £20k although I’m worried that I shouldn’t have put the variable olverhead in. They didn’t state whether they were labour related.

Feed forward control for mcq although it may have been wrong.

Got stuck on mcq for CVP as to which amount to supply.

G only for outsource question. Does anyone remember if they were specific or attributable fixed costs?

Tax should be propotionate to variable cost. Because it is average cost including tax

Outsource neither

Yes feed forward

I included the variable oh. It is assumed

[Satria]

Self studied for f5 for 3 months witb singapore lsbf and opentuition materials. First attempt and i found the paper relatively easy (except q2 depreciation/roi)

The calculation questions have tricks in every one of them. I found the theory questions especially challenging

Some of my answers i can recall :
– neither e or g should be outsourced
– antivirus and encryption
– mis and eis: only 2 options were correct, internal and external data for eis, making decisions for mis. Unstructured is wrong.
– q1, there are many approach (like algebraic but not applicable this time) to solve i think. The question didnt specify what to base the decision on. So i wrote: i assume the company wants to maximise profit (and not contribution) and create a tabular format. 4 batches.
Why not algebraic which uses P and q? Because variable cost is not constant prolly due to shipment cost or bulk discounts or internal eos savings by the seller. Why fixed cost increase? Because of storage cost

-q2 super tricky … i create tables and broke down the different parts and adjust the inflation rate and find the new operating profit. Then calculate roi. Disadvantages: roi encourage use of old asset. Roi is in the % and it can worsen goal congruence when used with ri. Elaborate how. Think might lose 5 marks here…. 🙁

-q3 life cycle costs. Include all the sunk costs. Contribution lost is a relevant cost but should not be included in the life cycle cost of the new product. The manager 20k salary is a committed cost and not relevant since he works permemnant there. Made slight losses in year 1 but made huge profits in year 2. Around 62.2m

-q4 totally giveaway. One of the past year paper (2013-2015) has this exact same question for 15m on balance scorecard. Just had to copy and past while applying. They used a tabular format to answer part b

– planning both adverse
Operational eff favourable about 43k
Operational rate slightly adverse about 3k but not entirely his fault because his account was not aware of the pay rise too

Manager done exceedingly well.

Special mentions for performance: No idle hours too. Produced 12600 That year which exceeds the 12000 demand

[Author]

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