[gloriakuan]

Dear Mike,

Yes, these poor questions made me confused.

you know…..Q2,Q3,Q4 are the ACCA F4 Multiple Choice Question in Dec 2014 (HKG Version)

Q.1 is exercise question

and now you explain to me and I know my concept is correct

Thank you.

Gloria

[gloriakuan]

yes, thank you

[gloriakuan]

Hi, Mike,
Actually this is a question of ACCA Past paper(Dec 11/Q.9) (HKG), as I know the HKG version of partnership ordinance is same as Eng version. This is a really tricky and the model answer is as follows :

Since both A and B had not consulted or informed of the use of the name of the partnership for the purpose of entering into the Loan Agreement, therefore C cannot be said to hold herself for the purpose of the Loan Agreement deliberately.
While the Bank may argue that the name of C as appears in the Partnership name by itself had already been a representation, given that C has already retired by the time the Loan Agreement was formed, at most, C was just negligent in allowing her name to remain in the partnership name. As such, C is probably not liable under the doctrine : see the Ingram case.
In addition, Carol may also raise the argument that the Bank had not relied on the name of the partnership before the Bank decided to enter into the Loan Agreement when it was only A and B who entered into the Agreement. Hence, the Bank cannot establish reliance on the representation by C, if any, for the purpose of the Loan Agreement.
By reason of what have been said it is probable that C will not be liable for the repayment of the Loan.
Tutorial Note : the candidates should note that, in practice, it is normal for retired partners to allow their name to remain in the name of partnership by agreement with those partners who have not retired at the same time.

end

My answer :

When I first attempted this question, in simple, my answer is C does not remove her name from the partnership when she retired and there is no mention that she had advertised of her retirement in the Gov’t Gazette, moreover, the question states that A & B have authority to enter a loan agreement for partnership. As such, C is still liable for repayment of loan even she retired.
(If I answer in this way, it is totally failed !, By the way, I take HKG version and I must attempt to answer the long question, Too bad!)

Gloria

[gloriakuan]

Thank you, Sam ^v^

[gloriakuan]

@usamaniaz said:
Companies are not required to maintain and establish internal audit.

It is better tot have it if you have got audit committee so they can work with them but it’s not a requirement

Dear Sam,

Did you mean this(Q.10) should be D in your opinion ?

[gloriakuan]

I cried and want to die as I forgot the new policy is 6 questions instead of 5 questions and I ignore the last question in the back page of the question book.

[gloriakuan]

Hi, what is the right answer ?

6 Which of the following procedures are TESTS OF CONTROL an auditor should perform in testing the inventory
cycle of their client whilst attending the inventory count?
(1) Observe whether the client’s staff are following the inventory count instructions
(2) Review inventory present in the warehouse for evidence of damage or obsolescence
(3) Obtain a sample of the last goods received notes and goods despatched notes and follow through to ensure
inclusion in the correct accounting period
(4) Inspect and review management’s inventory count instructions

A 2 and 3
B 1 and 4
C 1 and 2
D 3 and 4

10 Which of the following statements, if any, is/are correct?
(1) Internal auditors should report to the finance director as they understand internal controls and are best placed to
implement any recommendations in a timely manner
(2) Companies are not required to establish and maintain an internal audit function
A 1 only
B 2 only
C Both 1 and 2
D Neither 1 no 2

Thank you^v^

[gloriakuan]

A practice question in F8 :
To avoid a self-interest threat arising, auditors of a listed company should normally not received more than a certain percentage of their total fees from that client :

What is the recommended maximum percentage :
My answer is 15% (wrong)
should be 10%, why, could you please explain to me ?

[gloriakuan]

thank you ^v^

[gloriakuan]

Thank you

[gloriakuan]

Hi,

Anyone remember Q2d, I forgot the exactly question, but in my memories, the question is regarding 3 internal method of hedge the foreign currency trans. risk, could you tell me what is your answer if you remember ?

[Author]

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