[khaloodk]

For the risks faced by the company
no common approach was bring used
Approach was made without consultations
No internal quality control review since merger

Implications for Competition
They had resources and infrastructure
Big data
Non audit services

Set a culture & tone ensure specific audit approach being used,
Development of strong contextual relationship with clients to ensure they don’t move to competitors if their work is delayed
Invest in big data analytics
And perform regular internal reviews to ensure effectiveness and efficiency

[khaloodk]

I had the same @chi.dao

[khaloodk]

In my last queestion there were three parts
Part 1 slide about main risk co faced
Part 2 implications for the development at competitive firm
Part 3 how the partner leadership in the firm can be used to deal with the risks and competition the firm faces
I wasnt asked to make any recommendations on the culture change

[khaloodk]

Same. Can anyone please mention the points they made in this part

[khaloodk]

What did u guys write in question 1 & 3

[khaloodk]

Same i am confused about this too :/

[khaloodk]

.

[khaloodk]

How was wacc calculated after the issue of bonds? How did you reflect all the bonds in the calculation

[khaloodk]

Any idea what was the answer for lease in question 1 part D

[khaloodk]

Same here! I just randomly picked them went totally blank with the mcq’s

[khaloodk]

Anyone remembers the mcq question in which they asked who should be appointed to audit committee and a list of NED’s were given .

I found the mcq’s really confusing wasted much of time in it!

[khaloodk]

What were th other options?

@nayazrojid1 said:
so the answer was right? i recall it was the value per share?

[khaloodk]

Exactly

@chally said:
For e.g lets assume a share has a nominal or 1$ per share. And the company makes a stock split of 2 for 1 of 50c each. The total nominal value of the company remains the same but the nominal per changes.

[khaloodk]

Share repurchase *

@khaloodk said:
Did anyone get a question related to share option scheme where they were asking to calculate the annual interest cost?

[khaloodk]

The nominal value will remain the same

@chally said:
So the the answer might be correct if they said that a stock plit will change the nominal value of a share?

[khaloodk]

Did anyone get a question related to share option scheme where they were asking to calculate the annual interest cost?

[khaloodk]

Stock split is when a company divides its shares into mutiple but the overall value of shares remains unchanged

With the IRR approach to cost of debt we should take the MV of 102 which was given in the question i got my cost of debt something between 2-2.3

@vixengard said:
Did anyone have a q in section b about stock split??? What is this seriously.
And another about environmental externalists or something? Some very odd things coming up.

I think I messed up with WACC q with pref shares and also value of debt and cost of debt. Was it an IRR approach require? Also confused me becuase they gave a market value of 102 but the mv I calculated was only 97 so I wasn’t sure what to do… ?

Simulation question was awful I wrote a whole page but really had no idea what because I did not read the text book and had no idea what simulation is so have the concept completely wrong.

Also another q in Sec A re: commercial paper issue and how much would each paper cost? Does anybody remember this?

I think I will be seeing this paper again In September.

[khaloodk]

Sales price 100 for first two years and 90 for year 3 and 80 for year 4. VC 50 with inflation of something 2 or 4. FC 12000 with inflation every year. Working capital investment 5M and investment 60M and scrap value 25000 tax rates 25% and tax allowable dep 20%

@vixengard said:
I had 6 marks on Islamic finance, Wacc, expected values NPV ( I inflated sales cost and working capital?)
Came to around 9100
Then 8 marks on sensitivity analysis and some more on benefit of lease vs buying with debt finance
My section b was around fx and calculating mv of debentures
Many things in section a and b that I have never heard of!!

[khaloodk]

Was your npv question with different probabilities for demand? And Wacc as cost of capital?

@vixengard said:
I had 6 marks on Islamic finance, Wacc, expected values NPV ( I inflated sales cost and working capital?)
Came to around 9100
Then 8 marks on sensitivity analysis and some more on benefit of lease vs buying with debt finance
My section b was around fx and calculating mv of debentures
Many things in section a and b that I have never heard of!!

[khaloodk]

Passed with 57%.

[khaloodk]

There was one question about redeemable preference share in section B about the issue cost and the finance cost i dont remem the question what was the ans for it?

[khaloodk]

Does anyone know how consolidation question is marked coz i did small silly mistakes in the CSOPF any idea how much marks will be deducted?

[khaloodk]

@jamusuf said:
The ans for not for profit is 2&4 i think cause they are allowed to make surplus. ND yes d was the right ans for the first one.

I did the same!

[khaloodk]

@rajina said:
I selected 1.9 m …
Coz There Is A Case Of 6 months Not Full Year. …
I hope I am Right .

I selected 1700 because u have to eliminate current year and current liability elment from non current liability I’m not sure if i am correct but thats how it was done in the past exam

[khaloodk]

@khaloodk said:
I did the same

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