[marcin060482]

I think the business risk was not going concern but relatively low cash balance compared to the whole business – it was around thousands something like that – how are you going to fund your working capital requirements etc with such a low cash balance on a daily basis?

And going concern would be an Finan. Stat. Risk not a business one I guess 🙂

btw I THINK the exam was not easy it is just so time pressured – I am sure most of us would guess what was the problem with loan and rest etc having more time. I just didn’t have time to think more about these issues, but it’s always better to write something and make an assumption than to write nothing ( so always a chance for a mark )

Also there was an issue with revenue and costs – there was a fall in revenue and rise in cost of sales? why???

@belize202 said:
UGHHHH first of all i regretted reading your comments,made me doubt my answers!!! lol

Q2 was definitely the trickiest,i read you guys mentioning some of the problem identified with the 9 key points,but from what i remember they asked how is the key points adjustments going to affect the closing of the audit..correct me if im wrong..but just mentioning whats wrong with the key points doesnt really answer the question in my understanding ,i mean how is it gonna affect the audit closing or something aaaaaa n i couldnt….goshhh lisa!

Q1 had a lot of possible answers to it but I saw a lot of u guys mentioned gg concern as business risk?? i dont know it didnt really cross my mind as if they were having going concern problem,sure they’re adding debt but from what i remember current ratio was still more than 1 (1,1 if im not wrong) and they have enough cash to cover the interest.it didnt really strike me as they are having going concern,i mean revenue is just down by less than 10percent i think,seems to me its just like another company in the current crisis / financial weather having difficulties. i might be wrong but i didnt list out gg concern.

i still wish i hadnt read your comments,really doubting myself now lol 8feb come faster!! all the best guys!

[marcin060482]

good luck to everyone, let’s forget this exam it’s over now it’s past let’s concentrate on future;)

cheers

[marcin060482]

I think there was one more business risk – if you looked at cash balance it was very very low compared to the size of the entity – poor cash balance is a business risk as the company may not be able to finance it’s day to day operations which was even more exacerbated by the fact that they have already took a loan from the bank to fund large capital expenditure project.

@khurramsaleem1989 said:
Yeah the fact that the audit team did nothing and the associate balance didn’t change could indicate that the movement in associate was un accounted for under equity method. Yes I was preparing accounts at one of our kpmg clients at least a heading held for sale should have been there under ifrs 5 (am an audit semi senior 🙂 ) though I didn’t write any procedures as question stated so and yes our q1 answers match major risks being exposure to fluctuations in forex debt servicing and repayment impairment of inventories and compliance risks

[marcin060482]

hi khurramsalee1989

many thanks, I am too nervous I think 🙂 Overall the exam was ok, nobody can say it was difficult. Definitely time pressured – I started with q3 and q4 and wrote well (I guess) and then I had less time to properly embark on q2 and q1.

By the way what did you write regarding associate – what was the problem with it ? I thought the problem was that it has’t grown on B/S which was strange. Also I wrote that 1/3 of sub should not be separately disclosed on the face of B/S because that wouldn’t comply with IFRS 5 – is it correct?

Re business risks q1:
– FX fluctuations exposure
– reliance on 1 supplier
and few other stuff I don’t remember.

From F/S risks I wrote about inventory – should be written down, about FX losses and gains not included in reserves in full, about possible mistakes (loss of financial controller) and I don’t remember the 4th one.

The problem was that I spent too much time on q3 and q4 ( I started with these q’s).

@khurramsaleem1989 said:
And Marcin I don’t think it will affect your marking! Happens all the time 🙂 cheers!

[marcin060482]

HI

The exam was ok. During 15 minutes reading time I started writing in answer booklet and then was interrupted by invigilator (I forgot I am not allowed to write in an answer booklet – exam heat, nerves etc). She took my booklet and has given me a new fresh one – do you think it will adversely affect my exam marking?

Cheers

[marcin060482]

sorry it was June 2010 question

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