[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.

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