[hoishan]

Jun 23 Exam – AAA – INT
Q1 – new client- listed – online sales to worldwide
a) Significant audit risks (22) – materiality at PBT (there was a PBT after deduct the loss of discontinued operations)
b) Procedures (8) – new inventory return policy launched for full refund of 6 months
c) Audit implications and recommendations for actions (10) – non-compliance of environmental regulations

Q2
a) evaluate the audit evidences obtained whether they are adequate (7) – going concern issue related to the loan extension will be expired in next mid reporting period
b) design substantial audit procedures for going concern issue (6)
c) critically appraisal the proposed wording of the draft audit report (7)

Q3 – post-assurance review – quality management
Discuss the quality of performance of the audit and quality of management, ethical and other professional issues
a) (7)
b) (6)
c) (7)

[hoishan]

If i remember correctly here are the details ?
Mar 23 Exam questions
Q1 Gaming industry – unlisted co – planning on listing – no audit committee – one staff in internal audit
1. Evaluate and prioritise audit risks (25)
2. Discuss ethical issues require auditor to provide internal audit functions (7)
3. Discuss deficiencies of company corporation governance and recommend how to satisfy the good corporate governance (8)

Q2 Quality management on group audit – given audit assistant findings and comment
1. Comments on the findings from audit assistant, discuss the deficiencies on quality management issues, and suggest suitable audit procedures should preform (12)
– component audit:
revenue not review and accept the management explanation (in stable market condition) on subsidiary’s revenue while there are decline 25% in current year)
– group audit:
interest cover is reduced
auditor comment the ratio was consistent with the expectation
Gearing ratio is reduced
management claim the issue of redeemable preference shares should be classified as equity
2. Comment on the auditor’s opinion: (8)
– giving another scenario
The art work was valued by an expert and there is no documentation and review of it

Q3 Assess the given materiality level & discuss the implications on audit opinions individually if client does not make adjustment
1. Discuss the appropriateness of materiality level given:
-auditor set the materiality level for listed, retail and public sector as 10%
-property management company as 20% (7)
2. Discuss the changes of materiality level of auditor firm and why would they do that (7)
3. Matters to consider and the implications on auditor’s opinion (6):
– materiality given as $500k (not mention of PBT or Asset) – impairment goodwill $4m misstated & redeemable preference share $240k misstated

[hoishan]

OMG! I cannot image that happen. You should file a compliant to ACCA since this is ridiculous! 3hours is a huge delay! The plane would have taken off by then…

[hoishan]

Thank you for your prompt reply.

I understood now thank you very much. May I ask what would be the strategy for listing substantive procedures since there are a variety of areas such as trade payables & receivables, bank balances, PPE & inventory and so on?

I tried to memorise as much as I can in order to pick the appropriate one that tailor to the question however my score was not well enough.

Thank you a lot.

[hoishan]

<cite> @jackywhlee said:</cite>
none of the questions were similar to any of the past papers OR from the BBP study book. i did 300+ past exam including 2013 study book exam questions and I could answer only 15 questions confidently, and there were 1 hour left ! this is crazy. i will go switch to australia CPA exam.

I agree what you said. I did 2 or 3 times past paper. And I think I did more than300 questions at least. But when I got the exam paper, I couldn’t really find any similar question. This is crazy. Hope that we can pass the exam. 🙂

[Author]

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