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Failed on second attempt – 34% then 48% – Frustrating but heading in the right direction
I got positive NPV and can’t remember my WACC but it was quite low so not sure it was right
1.48 but it was a guess as I couldn’t get to any of the figures as I 100% did the inflations wrong
Found the exam hard & ran out of time. Felt like the majority of the questions were learning curve, variances and ABC.
Kim Smith wrote:Obviously I am not yet privy to the question but auditor’s reports would be very cluttered indeed if they were to draw attention to everything that is material in the notes in an EoM. If the irrecoverability of a receivable has been correctly accounted for – i.e. trade receivables have been written down for the expected credit loss allowance in the SoFP – the accounting treatment is correct and there is no material misstatement. There is nothing more for the reader to understand than is presented in the SoFP.
This was an OT question – it was an irrecoverable debt of £2million and the client had accounted for it correctly however the auditor had realised that it should have been £2.2million so the £200k was not material. The question asked you if the auditor report should be modified for the difference between what was accounted for by the client and what the auditor believed to be recorded.
There was an MCQ question where you had to select two people to take over was it for engagement partner? Can anyone remember what the answers for these ones were? Think there were 4 different people to select from – think one had a family member involved & one had previous employment with the client if i remember right.
I think i did put unmodified, cant remember what which unmodified i selected. What did you put for the auditor opinion for the inventory lost in fire after the year end – was this part of the same requirement?
What did people put for the audit opinion question where the irrecoverable receivable had been accounted for correctly but then the audit team discovered the amount should have been 200k more?
