[graceec]

Q1
– Audit risks, think it was at least 23 marks. Materiality was based on revenue. An existing client but had a disposal in the year. Was told to include an audit risk of the completion/disposal of a sub.
– impairment of a store
-Component auditor – and matters to consider when planning an audit 8 marks. They were based in a different country to the group, which had a currency of Gildan, which was volatile. The component auditor was appointed mid year as the previous one, i think, went bust.

Q2 – cant remember what this was

Q3 Sustainability.

– why might a company volunteer to submit a sustainability report 4marks – stand alone question, didn’t link to the question

Client provided customer service for 3rd party customers, and have now expanded into a different country.

– we already do their audit, been asked to give limited assurance on their 2nd year sustainability report. They don’t need to do one. Matters to consider type question
– I remember something about Co2 emissions, the ratio of male:female managers and job share skewing the results, and % of recycled paper linked to a bonus. Was able to calculate % increase/decreases and explain the impact. Lots of potential for greenwashing their results

Unless I completely missed it, I didn’t get a specific question on audit procedures, which I was gearing up for. Didn’t do very well one Q1 audit risk which I’m gutted about

[graceec]

Q1 Unlisted group, high end jewellery seller, had acquired a perfume brand in the year who was audited by a component (Oud Co) and had seasonal sales. Already has a sub, Karat Co
Audit Risks – 21 marks, materiality on assets. Struggled finding audit risk which was disappointing!
Procedures on inventory
Can’t remember this question, something to do with component auditor
Ethical and professional issues

Q2
Matters to discuss & audit evidence we would expect to form part of the audit report:
Investment Properties – 7 marks
Defined pension contributions – 7 marks
Question on audit opinion, and if they didn’t make adjustments what opinion would we give
Adjustment was about an investment property, $3m, which was incorrectly accounted for, 1/3 of the costs should of been PPE and management didn’t want to adjust. Gave qualified opinion as material but not pervasive as only affected two accounted, but noted that if it had been impaired then it would be pervasive as it hits the P&L. No idea if that’s a valid mark though.

Q3
Pure knowledge question, no link to the scenario on ISQM2 & what an engagement quality reviewer did – 8 marks! which seemed a lot

Quality management question for two companies – 6 marks each
Pearl C was the EQR but had previously audited the company
one had an assistant auditor, and the audit report was submitted without collecting all evidence

The ISQM2 question completely stumped me but was able to give a bit about the EQR. Had just watched the ACCA pre-june workshop before my exam, which looked at ISQM1

[graceec]

Q1 Unlisted group, high end jewellery seller, had acquired a perfume brand in the year who was audited by a component (Oud Co) and had seasonal sales. Already has a sub, Karat Co
Audit Risks – 21 marks, materiality on assets. Struggled finding audit risk which was disappointing!
Procedures on inventory
Can’t remember this question, something to do with component auditor
Ethical and professional issues

Q2
Matters to discuss & audit evidence we would expect to form part of the audit report:
Investment Properties – 7 marks
Defined pension contributions – 7 marks
Question on audit opinion, and if they didn’t make adjustments what opinion would we give
Adjustment was about an investment property, $3m, which was incorrectly accounted for, 1/3 of the costs should of been PPE and management didn’t want to adjust. Gave qualified opinion as material but not pervasive as only affected two accounted, but noted that if it had been impaired then it would be pervasive as it hits the P&L. No idea if that’s a valid mark though.

Q3
Pure knowledge question, no link to the scenario on ISQM2 & what an engagement quality reviewer did – 8 marks! which seemed a lot

Quality management question for two companies – 6 marks each
Pearl C was the EQR but had previously audited the company
one had an assistant auditor, and the audit report was submitted without collecting all evidence

The ISQM2 question completely stumped me but was able to give a bit about the EQR. Had just watched the ACCA pre-june workshop before my exam, which looked at ISQM1

[graceec]

Passed on my 2nd attempt with 56%. I found the paper really difficult and pleasantly surprised it’s a pass! 🙂

1 more paper to go!

[graceec]

3rd attempt and finally scraped a pass.
1st 45%, 2nd 49%, 3rd 50%.

[graceec]

Pass first time – 50%! Close, but a pass is a pass 🙂

[graceec]

First attempt, 47%. I was expecting a fail, as there were so many questions on Agriculture accounting I just didn’t know.

[Author]

Posts