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Passed first time 59%, found this module really tough but only one F paper left to go now so getting closer to the end bit by bit. Keep going all xx
The syllabus may not have any significant changes to it. Acca publishes changes so worth a look.
Detection and prevention of fraud is management responsibility not auditors. Auditors responsibility is to design and perform audit procedures responsive to their assessment of risk in the business in order to provide only reasonable assurance that the FSs are free from material misstatement by fraud or error.
jomantess – I think it was “identify 5 ethical threats and what the auditor should do to reduce the threats to an acceptable level”? It’s the self-interest, self-review, familiarity, intimidation and advocacy one but the way the question was worded seemed as though you didn’t have to name them all i.e. you could have 3 self-interest threats and 2 familiarity ones if that was what you identified from the scenario? Anyone else get the same idea?
I feel like this exam went fairly well but I wasn’t as prepared as I would have preferred to be and so I may be in a blissful unawareness! I thought there was quite a lot of audit procedures questions but that might just be what I remember most because it was in the last question that I did.
Fingers crossed until the 1st Aug now, although hoping to do F4 while I’m waiting so hopefully it will go quickly!!
Good luck everyone 🙂
I hope it’s possible because I’ve only just started it! Im not working but I have 4 young children so only able to study during some of the school day. It’s taken me 3 days to watch the lectures. Now I will be going through my study text along with the notes I made from the lectures to make my flash cards. Then I will be doing the revision lectures.
My biggest difficulty is that this module is not fun for me. I prefer working with figures such as in tax and performance management. However, now we are so close to the exam I am being much more strict with myself. It can be done 🙂
@dekerg – I think that your method is correct
Oh dear, 8 marks is a lot to miss out! I feel like I’ve done enough to pass with what I did answer though but I don’t think I will be passing with a very high mark. My lowest so far I think. Need it to be over 54% to keep my average up for the Oxford Brookes BSc so fingers crossed.
@justkency – you would usually ignore a project with an NPV negative or zero but in this case we were told that the company were going to invest in project E regardless of whether or not it was financially acceptable so we did have to take that into account with the capital rationing.
For the 8 mark Q I first calculated the %age increase/decrease in inventory, receivables, payables & overdraft. Compared to a static sales & %age reduction in COS. Then I calculated the %age that WC investment using short term finance had changed & that’s when I finally understood what the Q was asking ie changing to a more risky aggressive approach so I think my first half of the answer may have been rubbish although it was another one of the ones that I couldn’t go back to for being ill grrrr
Completely left out the efficient market hypothesis too (weak, semi strong, strong), knew the answer but left it until last & couldn’t fit it in. Anyone know how many marks that was for?
@tallaghthoop – because they have to invest in that one so although the NPV is zero it still uses up $5m of the available $10m funds
If you ignored it but then only used $5m to capital ration then you would’ve got the same total NPV 🙂
@Byron – yes I did 🙂
So all of projects E, D and C and $500 of $2500 investment in A (ie 20% of A)
I’ve just remembered that I left out efficient market hypothesis to go back to but didn’t, can anyone remember how many marks that was? I have a feeling it was quite a few!
@Byron – I calculated the total NPV with projects B, C & A and then again with D, C & A and the total with project D was definitely higher.
I also got Kd 4.4 & Ke 10.3 with MVs 75 & 15 but I think I might have made a mistake after that in my WACC because it came out higher. I couldn’t go back over any of it cause I wasn’t well enough, just glad I got through it without having to dash out to puke lol!
I made it a 4.8 to 1 rights issue but I haven’t seen one that wasn’t a whole number before. I checked over & over it but I couldn’t make it equal a whole number. I then calculated 2 TERPS, 1 for the investment (including issue costs) which came to $4.54 & one for making it a 4 to 1 rights issue and raising more than the required investment.
Ps I did inflate the SP, VC & FC by (1+i) to the power of n, not sure if right though, did confuse me a bit because the SP & VC per unit were already increasing, haven’t seen that before?
My TERP was also $4.54 using same calc as you pakistan098
Ah I see, I got a negative NPV for project E but then when doing the rationing part it said to assume an NPV of zero so it must have expected us to use the $5m investment & decide where to use the remaining $5m which is what I did. I think it was E then D then C then $500k of A. Anyone else get that? Can’t remember what my total NPV for that came out at though
I am also aiming for 70% average in F4-F9 so that I don’t have to do so well in the research paper for the OB degree. I am good at exams, not so good at research so need the best chance of still getting a 1st
Same as others though, as soon as I get to P papers a pass will see me jumping up & down 🙂
I’m not sure but I think my WACC was 12.26% does that ring a bell? Can’t remember new beta but I can remember that my capm came out to be almost the same as WACC, maybe 12.25%???
I can’t remember exactly but I think my NPV was about -$49k
Thought exam wasn’t too bad over all, no long questions, all nicely broken down into smaller marks. I was unlucky to develop a really awful headache 1 hour in & had to stop 10 mins before the end because I felt like I was going to be sick with the pain but I do feel like I’ve done enough to pass, hopefully! Such a long wait to find out 🙁