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Don’t be stressed ? we all did probably something wrong and tried our best. I know what I did wrong but we there is nothing we can do now. Let’s hope we will pass. I always say that failing an exam is not a failure. A failure is giving up. We will get there.
I have mixed feelings with this exam.Yes, I have discussed IAS 10 Events after the reporting period. The fire was after the ye but and it was non adjusting event because the event did not exist at the ye so no adjustments to the financial statements but disclosure in the financial statements needed.
And I discussed that the management do not believe that this will have going concern impact because no other facilities are affected but if there were healthy and safety breaches and the local residents claim (I think more than 100m estimated) and the fact that the materiality was set at 26m and the damage to facility with carrying amount of 25m and also wip of 2m the issue will be material in aggregate.
I think then I did the reporting but wrong and not sure if I wrote about the MURGC but I have definitely state that this will have impact on going concern.Agree. It took so much time to read q1.
Anyway, I have started with Q2 and q3 and did it to time then moved to q1 at the end but struggled with the time anyway because of the ROMM. There was 17 marks question for the ROMM so 3 marks for materiality leaving us with 4 to 5 risks to write for ROMM. I wrote only 2 which was legal claim and the acquisition of E.
A in q1 was 8 marks for business risks.
C was audit procedures for goodwill on acquisition for 8 marks
And the last question for q1 was benefits and challenges of join audit.
Q2 I think was for 12 marks to discuss the impact the issues will have on the audit and ethical and professional issues using all exhibits.
Then 4 marks for b and 4 marks for c
B was for audit procedures for legal claim and c I don’t remember.
Then q3 for 6 marks a was to discuss the challenges in use data analytics by auditors.
Then b and c don’t remember too much but was split to discuss quality management..
We were reviewing the file post issuance and needed to comment on the quality management and give recommendation. Then the last question was to review another company audit report and critically appraise it and discuss if the opinion given was appropriate.I had about CEO who had choice to take it as cash or equity
And in the end he chose cash
But we needed to provide with the results for 1 Jan 20×6 so at the beginning these share options were given and that time company did not know which option CEO will chose
In the end I did this wrong
But I think it was counterparty where this should be split between liability and equityI had only about investments in shares and I wrote that investment in shares are valued at OCI or fair value through profit and loss and that usually not many people understand the reason for inclusion some of the entries in OCI
Also that the inventor will look at profit and loss to access the financial performance which will also give them insight of earnings per share
Confusing because different measurement methods of the same investment cannot be compared like for like
If other company which have the same investment measures this investment through other comprehensive income and other through profit and loss then there is no comparison between these two