[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]

First time sitting, 64% self study in 2 weeks!!! Thanks lsbf and opentuition. I shall start studying for P3 soon, good luck everyone

[Satria]

Hi is there anyone from singapore LSBF?

[Satria]

The word actions could be intepreted in both ways

– what he did
– his action of recommendation

[Satria]

@d3structor said:
I understand your rationale for this, but wasn’t the question along the lines of ‘Using transaction cost theory, explain the actions of the HOD’? So should I use the theory to explain what the HOD has already done or to explain what he/she is going to do?

Well it could be either one. He did the part time contract and he is going to expand this contract to more teachers.

So you use transaction cost theory to evaluate whether it is better to have an inhouse(permanent) teacher or the part time contract

[Satria]

The difference is government(and taxpayer) for public org and public investor for listed company. Elaborate in contexr using examples

Thend define accountability and owndership

You can talk about agency and agency problem

[Satria]

For transaction cost (q1) theory, i explained the following concepts in context to convince the government to disallow the new contract scheme and instead persue full time employment of teacher

Opportunism(self interest of de)
High frequency
Low uncertainty
Low asset specialisation

Benefit>cost in general thus worthwhile to increase budget to employ full time teachers to meet lobg term goal

[Satria]

@jxlimzixuan said:
During my exam, I was flipping the optional question and i found that Q3 requirement was asked about internal control. This examiner is sucked because the way he asked the question is very different compare to the last few sittings.And i skipped Q3.

I did the question 2 and 4 first because I’m so afraid that i will running out of time if i try question 1 first.

Question 4 (a), I’m so confused that the risk attitude is influencing the company in past or in future decision?
I answered the company should do the action if it is risk seeker… and if it is risk averse.
But i feel like the requirement for this (a) is asking how the company’s behavior influencing its action in past & not asking for future. Luckily this is 6m question

Q4b & c is relatively easy since risk assessment and risk committee is quiet straight forward.

For 4a, risk attitude of a company can change depending on the strategic attitude taken by the board and risk committees recommendation.

There isnt hard or fast rule. As long u justify well in exam u should get ur marks.

In my opinion its risk seeking because market expansion into a new region,according to ansoffs matrix, is risky given that he did not bother to make any risk committee, in order to maximise his returns/benefits over costs

[Satria]

Google acca p1 technical 🙂

[Satria]

Read all the technical articles lol confirm come out

[Satria]

About 6 of the technical articles got tested

Transactional cost theory
The entire of CSR ethical dilemma
AAA model
Risk, dynamic, assessment, purpose of risk committee
Independence and NEDs

Thank god i read them just before exams

[Author]

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