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Hi Sarah,
I have just asked a similar question myself except that I have finished all my exams but not completed my PER.
I understand that Part-Qual is when you have completed 9 Applied skills exams (All the F papers) and I read 18 months experience in a relevant accounting/finance role.
Passed!! 50% Thank you Lord Jesus!!! Finally an Affiliate! So so happy. I will donate to Open tuition because the materials helped me so so much.
This was my 3rd attempt and I used ACCA’s Student virtual learning centre this time.
Will be celebrating for sure!
bokuwa wrote:Not good…. Not sure what the questions were actually asking / the topics were being tested on, like one of the questions was asking something about the advantage for a worker renting an apartment instead of renting a house?? I don’t even know which topic is this question referred to…
It was to do with work benefits as a non-job related accommodation is a taxable benefit…the house was the better option but the question asked to work out the savings.
Emma wrote:This was my 4th attempt. By far the nicest paper I’ve had but somehow still not feeling confident. Couldn’t work out the basis periods and got to 5 mins before the end and relalised I didn’t answer the groups question (8 marks)
This was my third attempt and I agree, this has been the best paper by far which is why I hope to God I’ve done it this time.
Most of the paper was fine, only tricky points for me was not knowing how to account for the brother’s receipt of the benefit money from the trust? Could have been part of his income for that year but I didn’t want to chance it. VAT capital goods scheme was niche to include but I only remembered about 2/3 of the formula correctly. Hoping to still score half marks maybe.
For the change in accounting dates, the question asked how this would affect capital allowances and corporation tax dates. I explained that the capital allowances and the AIA would have to be pro-rated for the 15 month period. For the payment of Corporation tax, I explained there would now be 2 separate payments for the 12 month period and 3 month period. BUT there would only 1 filing date (12 months after the 15 month period) and then I put what those dates would be.
Fail 38. To be honest, I am surprised and thought my mark would be a lot lower as I took the paper with F6 level knowledge and therefore didn’t attempt most questions.
I had just passed AAA and didn’t give myself enough time at all to be prepared for this exam. Hoping for much better for Sept fingers crossed. Congrats to those who passed!
First attempt and passed with 57% using just open tuition notes and doing some exam question practice from the exam kit. Didn’t know what to expect and to be honest I’m shocked.
Just 1 more paper (ATX) left now and it’s over.
Thank you God and thank you Open tuition!
Couldn’t tell how I’ve done either.
First question I just calculated as many ratios as I could and explained the results.
Struggled with some ideas on the marketing strategy front but as it’s a highly competitive market, I just talked about focusing on product differentiation and where they’ve added/can add value.
There were a few points in their proposals of what they want to achieve such as using biodegradable materials. Talked about how they should highlight that in marketing, as well as that they’ve simplified the design so it shows they’ve added value to the product.. and also market how it would benefit the consumer as compared with competitors..also talked about how that could use data analytics as well for current and future marketing purposes like keeping an eye on what price point consumers may be willing to co sided other products, using the internet, finding out what their main priorities are, extra services they would like.
First attempt, 2nd to last paper and I’m not holding my breath.
Ohhh emm geee!! I passed!! 3rd attempt. Surprised because I didn’t have enough time to tackle question 3 properly but pushed myself to at least finish all the questions with bullet points.
Do not give up folks! I never really did tackle the past paper questions and once I failed the second time I realised I needed to roll my sleeves up with this one.
Did a load of past paper questions using Kaplan exam kit and studied the answers to see where marks went! Also read the technical articles.
Planned to sit ATX but now that March sessions is remote I’m not too sure!!
wilsonr wrote:How did you find it? I struggled with time management, I find the CBE slows me down!
Oh wow, didn’t realise that! so we all just gave away our answers?
I had the same points as you both and have remembered more that I put down thanks to both your lists. Fingers crossed!
Also, I forgot about the bank in business risk and ROMM:
Was the Bank Aquisition potential reporting segment? I.e affecting disclosure in FS?
For business risk on the bank I put that as this is a new & different business operation for the group, the banks are very heavily regulated. Group key Managment would need to be wary of legalities etc. May not be a valid point but hey.
Also talked about how they may not be objective in how they lend to customers who want to buy their products.
I always struggle with time in this exam and it is my biggest downfall but I think this time was the worst as I rushed question 3 completely. I hate that they asked for 2 types of risks, took up time to differentiate.
Anywho, my business risks:
– Management resigning (lack of knowledge retention and risk to strategy)
– Aquisitions (staff training to familiarise with group systems will take time and resources)
– Cash was almost non existent, pressure on cash flows
– Gearing was too high (75%) and they were about to take on another loan. Risk that existing loan threshold agreements have been broken and may need to repay debts. Can they pay?
– 5% interest on £65mil on potential loan material as would essentially have taken the profit into a loss (did anyone else get this)? The profit after tax was forecasted as only 3 mil. Can’t remember what the operating profit was.There may be more.
ROMM:
– Share based payments – Management bias so increase professional scepticism
– Inventory increased significantly and was slow moving. Some may need to be written down & Balance may be overstated.
– Advertising costs have been wrongly capitalised to intangible assets. Profit overstated, assets overstated.
– Internal controls weak – system needed approval for the expenses and was able to produce a coherent average apart from the one anomalie. Also suggested possible fraud from senior management as may be claiming smaller amounts frequently to try to get round the system (who knows)?
– GoodwillSide note: I think we were supposed to calculate EPS ratio? however I couldn’t see the number of shares. Mine said ‘Number of stores’ which may have been a typo? Did anyone use that info?
If I don’t pass I’ll move on to SBL or TAX as those are my last two!
Hmm…any HFS asset still needs to be reported on until it’s actually sold. It’s the disclosure part that it’s HFS and separate line classification is very important in SFP to show a true and fair view and they didn’t do either of those. They actually valued the division using VIU and not lower of CV vs FV-CTS.
We are told the sale will be shortly after yr end as they had already found a buyer. It would be an adjusting event as it is due to happen shortly after the year end and the conditions this is very likely currently exist. The auditor would be responsible for detecting this and making sure the statement reflects what will shortly happen, everything disclosed, etc.
The sale would mean all that division’s assets and liabilities and all those figures reported on will cease to exist. Kind of like knowing the division will not be a going concern but not saying anything about it I thought??
It’s an interesting one though – I thought to pick the brains of others on here about this one so thank you for also giving the other side of it!
OK – I put adverse opinion as didn’t value it correctly as HFS nor disclosed the sale at all. In any case as long as we justify the basis of our opinions should be fine as in practice not every auditor will have the same opinion
What Audit opinion did people put for the sale of division? curious about that one.
Yes, that’s correct. I also remember adding that although he was chairman for the board and technically isn’t able to solely execute decisions for the company (It is advised chairman and CEO can’t/shouldn’t be the same person for this reason), his son is CEO and he would at least be able to exert significant influence because of the close relationship..so either way it needs to be disclosed.
I’ve got you now. The audit procedures aren’t so much the issue for me – just the ROMM and Ethical issues and having to explain how something is a risk. Either way, I could aim to cut down next time if there is one..hoping there won’t be 🙁
I’ll definitely take this point on board going forward!! because I do tend to build up my answers (lolz). Also the marks they were giving for what I wrote felt like it was too much?? or maybe I wrote too little..this is what makes me write more and hence the cycle continues…
Okay guys!!!
Q1
a) Audit risks ( interest repayable on both loan amounts are material and should be capitalised up until ships are ready for use. Risk they will still be capitalised after asset is ready, Licence issue with sub material to revenue, will impact cash flow and revenue projections so risk revenue overstated, related party inadequate disclosure risk, Indicator of impairment for the older ships so assets may be understated and PBT overstated, Assets held for sale/disposal (ships and gym equipment) risk not presented seperately (?), Intangible assets should be also be presented seperately, not as part of PPE, Non-Compliance and weak Internal controls re cyber attack, so possible litigations and revocation of licenses but have to quantify how material this will be, etc)
b) audit procedure for the Group’s revenue (Correspondences to confirm govt intention for the loss of licence to be temporary and any further plans or terms that may indicate when to permit use, Enquire with mgmt re the impact on group’s revenue of licence loss, note down issues that it may raise and how it will impact revenue, Analytical procedure on revenue figure, does it make sense? compare to past years and industry avgs, are mgmt assumptions plausible? (Can’t remember anything else I put now).
c) Matters to consider before take up offer on the social and environment information,which will report to regulation ( Self review if will be audited later, Whether use of the report is appropriate e.g on the website?, Will carrying out the work affect independence and objectivity, possible exposure to legal proceedings as will be perceived as advocating for company as other users may rely on this, reporting on Social and environmental issues may inadvertently lead to Auditors assuming mgmt responsibilities which is prohibited under standards). Was this the time pressured one? I also put did they even have enough staff with the expertise?
d)benefit of use of data analytic for audit work ( No time! forced myself to leave this one to move on).
Q2
a) Evaluation of 2 issues.and implication on completion and impact on audit report
Issue 1:
(Sale of division after year end,IFRS5 ,discontinued (major) operation, disclosure required as division accounts for over 10% revenue and 10% profits reported and is material. Also, event according to standards is an adjusting event as even though the sale will happen shortly after year end, conditions indicating this already exist right now and therefore mgmt point re next year’s results is incorrect and not compliant. Negotiations are at an advanced stage and already found a buyer so will likely have to derecognise the division shortly as sale is likely now. As will have material impact that will eventually become pervasive to the presentation of the reports, I put the opinion would be adverse if they won’t disclose the sale? because then the rest of the division’s results won’t mean much. Not sure if “except for” though.(change of IFRS 16 Lease. Lease was material and also change of accounting policies in standards means a change must be made retrospectively for all the leases held in the same class. If mgmt won’t make the change, definitely a qualified ‘except for’ opinion in auditor’s report.
Issue 2:
b) Responsibility of auditor in other information& impact on auditor’s reportChairman’s statement had contradictory info. Auditors should address inconsistency by putting a statement/clause in Audit report that their responsibility is solely to provide an opinion on the financial statements and are not responsible for opinion and nor does their opinion extend to the chairman’s statement. Also the chairman claimed all printing moved to recyled paper but auditors have evidence otherwise. They will need to evaluate whether this claim throws into doubt any other evidence obtained during the Audit. Lastly, can address this inconsistency in the ‘Other information’ heading in the Audit report.
Q3
a)Comments on planning of audit, ethical And professional matters during quality control review and further actions (Engagement partner responsible for direction supervision and planning of audit. Bob spent just 2 hours so obvs throws into doubt quality of audit. Also familiarity threat, self review threat by accepting non-audit service whilst also serving as engagement partner, The Audit manager isn’t at the level of expertise to be able to sign off the final review, nor does she have the authority to do so. Should be responsibility of engagement partner. Also Junior accountant – should also be engagement partner’s responsibility to ensure the team are well experienced and qualified which our lovely Bob has evidently failed to do. So I put that substantive procedures would need to be done on Junior’s work as she may have been susceptible to threats of intimidation and therefore objectivity.b)Evaluation of issues to be considered before accepting the Audit of the Group ( With a lot of the subs being foreign, will framework apply to all/most? expertise and experience of staff, resources available for the work, Due dilligence ID checks for fraud and money laundering legal requirement, possible litigation going on, how material is this? think they can’t accept engagement if it’s a big’un but correct me if I’m wrong. Wildfire going on..how would that affect reputation? and then going concern if fines, penalties? also have to rely on other auditors for the components..would they be able to trust their work?
Time management has always been an issue for me but I’m hoping to have at least given myself a fair shot! fingers crossed!!!!!
@bvpillaijr said:
The paper seemed very easy for me to be frank. I wasted maybe 10-15 minutes on the first question and that costed me at the end. This is the first exam I struggled with time. I managed to finish SBL with 5 minutes to spare.I genuinely thought I’d clear or even if I fail it’ll be in the 45% area. To my surprise 30%. I don’t know if I could’ve done a better job than that. The worst part is I’ve to wait till September for the next attempt. More time is never good for me but I’ll try my best.
Best of luck to the re-takers and congratulations to all those who passed
Felt the same way – the paper wasn’t bad at all and I felt if anything, felt it would be a close fail for me given I didn’t finish the paper.
Did you finish the paper? I would say I really finished around 80% of the paper – no time to do a 10 mark question and completely rushed through the other 10 mark question without much thought at all. So, getting 39 marks is a bit comforting to know I was at least correct in almost half of what I focused on..I’ll need to work on my time allocation and also exam technique for September’s paper.
It’s also really good to know the exam we just took is on the ACCA website – I’m just waiting for the answers to be published to that I can compare them with what I wrote down ( I wrote down my answers and points I made after the exam) to see how far off I was.
@Tsiknaki, what did you do? Or what did you find most helpful? I scored 39% and I’m genuinely shocked.
