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I think personally that not the paper has some problem,the examiner has some issues.P5 passmark is everytime low.If you are given a syllabus and you know it well then you got to pass it.I have heard that syllabus covers only 30% of the knowledge..so the 70% knowledge is in the nature.Where?Any exact location.Do we have a complete syllabus??? We need to bring this to the attention of ACCA.I highly believe we must do a petition to make the current examiner out.As said above by a fren we cannot be so stupid and dull…passing so much papers and stuck wiz P5The examiner must be questioned..may be he is the problem and not the P5 exam paper.Friends think about it.
Please add me on bepositive444@yahoo.com
Hello All
I am also preparing to sit for DipIFRS in Dec 2014.
Please keep me updated (so will I) on any changes,support to get it in first attempt.
All the best to you all.
• Not for profit organisations
• Risk assessment
• Ethics
• Computer based auditing
• Analytical procedures
• FraudThere are several different possible forms of audit report, depending on the situation. For this exam, there are 6 forms that you need to understand.
The different outcomes are in groups, as follows:Unmodified report
This is the standard report that is the outcome for the vast majority of companies. In this situation:? The auditors believe the Financial Statements are true and fair
? The auditors believe the Financial Statements were properly prepared
? There is nothing else the auditors wish to report.Modified reports
There are 5 modifications to know:
1. A qualification due to a disagreement with something in the Financial Statements.
2. A qualification due to a limitation of scope on the audit.
3. An adverse opinion – where the auditors disagree with the truth and fairness of the Financial Statements overall.
4. A disclaimer of opinion, where a limitation is so large that the auditors are unable to give an opinion at all.
5. An Emphasis of Matter, where there is nothing wrong with the Financial Statements, and no limitation on the scope of the audit work … but there is something major that the auditors wish to draw to the shareholders¶ attention.
1. Qualification due to disagreement
When there is a single material mistake in the Financial Statements (or a small number of individual mistakes), the overall Financial Statements remain true and fair.
The auditor reports that, Except for the effect of the error(s), the Financial Statements give a true and fair view.
There are many examples that would lead to this opinion, for example:
? Failure to provide for a material doubtful debt
? Material error in the calculation of depreciation
? The treatment of a material expense as an asset.
2. Qualification due to limitation of scope
With a limitation of scope, the auditor was unable to fully carry out his work due to a lack of the usual evidence. Whilst he is happy that the overall Financial Statements show a true and fair view, he has concerns about possible material errors with a particular balance (or balances).
The auditor reports that, Except for any adjustments that might have been necessary, had the auditor seen the evidence, the Financial Statements give a true and fair view.
Examples include:
? The auditor was unable to attend the year-end stocktake (e.g. due to being appointed auditor after the year end)
? There are lots of cash transactions (where there is not a lot of documentary evidence).
3. Adverse opinion
This is a form of disagreement that is so strong, it affects the opinion of the Financial Statements as a whole (pervasive).
The most common form of this in the exam is a disagreement that the company is a going concern. As such, the auditor is disagreeing with the entire basis of preparation of the Financial Statements, which is likely to result in disagreement with many of the figures in the Financial Statements.
The auditor reports that the Financial Statements do not give a true and fair view.
4. Disclaimer of opinion
This is a form of limitation of scope that is so strong, the auditor feels unable to report on the overall truth and fairness of the Financial Statements.
Imagine turning up to an audit client to be told that all of the accounting records were lost the previous day in a fire, and that there are no back-ups. Without any evidence, the auditor is unable to do an audit, so cannot give an opinion.
The auditor reports that “we are unable to form an opinion”.
5. Emphasis of matter
Sometimes the auditor is happy that the Financial Statements are true and fair, and that all evidence has been received. However, there remains something that the auditor wishes to draw to the attention of those reading the Financial Statements:
? There is a very important Disclosure Note which the shareholders must ensure they have read (typically involving going concern threats)
? There is a mistake / inconsistency in the unaudited documents attached to the Financial Statements (“Other Information”).
