[MuhammadAhsan1822]

Section A:
Question 1: Group of hotel companies with the parent company called Mortimer who owned Winthrope. They acquired Ophelia as well.

Mortimer was luxury hotels for people who wanted to unwind and relax.

Winthorpe hotels was mostly used by people who were on work trips.
Winthorpe had refurbishments of its hotels and they bought a license so they can sell food and beverages at the hotel for 24 hours a day.

Ophelia was acquired because it had budget friendly hotels.
Cash consideration of acquiring Ophelia = around $142m
FV of net assets = around $120m
Goodwill = $22m

Exhibit related to Ethics:
The group had requested assistance from the firm in preparing financial information that would be presented at board meetings.

They also requested something for designing new KPIs (not sure, i dont remember)

Note: Mortimer was NOT a listed company.

Requirements:

a) ROMM (22 marks)
b) Audit Procedures on acquisition of Ophelia (5 marks)
c) Describe Internal Controls (6 marks)
d) Ethics question (7 marks)

Section B:
Question 2
Completion and Reporting

a) Evaluate the sufficiency and appropriateness of the audit evidence collected by the auditors (15 marks)

Then they told us about an event which affected the audit opinion where they could not collect SAE.

b) What would be the impact on the audit opinion because of this event (5 marks)

Question 3:

a) Quality management, professional and ethical issues question (14 marks)

b) Corporate Governance Deficiencies (6 marks)

So this is all that I remember from the exam that I had.
From what I discussed with my friends, we had the same Section A but we did not have same Section B. If anyone had the same Section B as me, please let me know.

[MuhammadAhsan1822]

I think I got the same exam as you…
Question 1 Risk Management: Sannas Co was OK overall, it was just the mix of interest rate swaps and MMH that was hard for me. In the hedging, i got lowest payment with futures.

Question 2 was Mergers and Acquisitions: Zulla Co and it had IPO and reverse takeover and they told us to find gain with the dividend valuation method as well as free cashflow from equity. It seemed really tricky.

Question 3 was NPV: Kogkhan Co: and they had given an option. They asked us to calculate NPV before the option and after the option. Then there was a discussion question about the capital investment management system which i wasn’t too sure about but the calculations were simple enough.

[MuhammadAhsan1822]

Yes, it makes much more sense now, thanks a lot again!

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