[olaf]

I was also the person who failed 3 times and was trying to understand what I am doing wrong. I was aware about the facts like applying to scenario, answering remembering to askung yourself why or so what in order to get deeper answer. What I did different this time I subscribed to the course with Mustafa Muchhala, you simply write your answers and he is checking it providing you the comments which are driving you to the right direction.
I finally passed and I am sure that its due to his help. He is helping people like us, struggling to pass and what is also important he knows how the positive attitude for p5 is needed. He starts from this 🙂
Good luck everyone and dont give up.

[olaf]

@dinasul said:
I have had many attempts and finally passed with 54%!

For those who wants to change the paper, please DON’T DO IT!!

You have already spent so much time getting ready for this paper and all P’s are similar complexity. There is no easy paper at professional level.
Firstly, you have chosen this paper for the reason and secondly, it would take you long time again to learn new paper.

Instead I changed the strategy, I would fully write my answers to questions and would submit them to Mr Mustafa Muchhala for reviewing. It is very very important that somebody knowledgeable checks your writing and directs you. You can write a lot in the exam but completely irrelevant points which would not score you anything.
It is just eye opener when you actually get feedback and start working on it long before the exam.

First mock, takes you ages to write (forget about 3 hours) but as you practice you would write quicker and quicker because you would understand what you have to cut and where to concentrate.
Even if you don’t have time to write fully answers, you must always plan what points you would cover and compare with answers. Not always your answers should be the same as in the book. As long as it fits with question asked you get score!

Please try what I did and keep practicing questions with feedbacks , don’t change the paper! All the best for those who retaking again in July!!!

Hi Dinasul,
Can you tell us something more regarding your cooperation with a tutor? Was the specific package you bought? Did you submit your answers whenever you wanted and for the questions you wanted? Or were you navigated/guided by him every week?

[olaf]

@trox138 said:
Hope you will be affiliate wait for 18jan

The results are not in first week of February?

[olaf]

@princessb said:
does anyone have any idea on question 2b, about relevance and measurability of the performance information. for measurability i was thinking more of the difficulty for the auditor because of its subjectivity and needs auditor’s judgement. relevance is more of reporting performance against set targets… any opinions????

That was very well explained in the last article, therefore whoever was reading that before exam knew what to write.

Extract from technical article on ACCA website
“Measurability means trying to ensure that there is consistency in how performance information is captured and reported. The measures should be clearly defined and unambiguous.
For example for an ambulance service it would be quite easy to measure the average time taken for an ambulance to respond to an emergency as this is quantifiable, but more difficult to measure the patient’s satisfaction with the service provided as this is based on the patient’s opinion.
Relevance means that the performance information addresses a valid concern and public sector organisations should consider the specific needs of their stakeholders.
Different stakeholders have different needs, for example patients may focus on the effectiveness of a certain medical procedure, whereas management may focus on the cost of providing that procedure”

You could then apply this information to scenario.

[olaf]

I stated the procedure to review the notes to FS whether the disclosure about these operational segments (revenue, profit, and other finacial information) was given.

Inquire with management about the reasons behind these changeS in accounting changes,

And when I am thinking now due to the change in accounting policies according to IAS8 there should be also disclosure in the notes to the FS.

[olaf]

@imtired said:
For qn 1b) did anyone realized the qn saying: machine 2 costs has included inflation? Since we r using nominal rate, does this means machine 1 we also have to include inflation?

Exactly that’s why I used 7% for EAC calculation….not sure if it was correct but I was wondering about that as well and finally decided to use 7%.
In my opinion the sentence to ignore taxation and capital allowance was for maintenance costs that if there was not this sentence they would require tax deduction.

[olaf]

For question 1 I disregarded fixed costs as there was nothing mentioned about them that they are additional (incremental) fixed costs.
I was wondering about that but all the practise questions I did there was clearly mentioned about FC. Here they seemed to me irrelevant.
Anyway at the end of the day it’s probably 1/2 mark for including them, I stated the comment why I didn’t take them into account….

[olaf]

From my point of view everything is important, I mean everything is related to each other…In my opinion these are the areas which are key ones: risk, internal control, audit procedures (AEIOU, where I-Inspection O – Observation cover test of control, A-analytical procedures, E-Enquiry U- recalculation,R- reperformance cover substantive procedures), assertions, corporate governance,reporting.
However theory is just theory when you will practice past papers you will see that theory will show you only direction you need to follow, but most of the answer will depend on scenario. And from the first point of view scenario looks “easy”, looks like everyone from the street could advice something and I think this is a trap….See the solution and try to follow the pattern of answer. Read several times the requirement to see if you in line with it, it’s easy to get most of the marks if you know what you are doing, but also easily to go totally in different wrong direction. That’s why I think it’s difficult to predict if you passed or not.
Good luck 🙂

[olaf]

I don’t think so. At this stage we need to know the difference between audit strategy and audit plan.

[olaf]

Giving assurance means express an opinion about some information (subject matter) so the users of that information (intendent users) can make a confident decision knowing that the risk of that information being incorrect is reduced.

Regarding audit regulations the only thing that brings to my mind is International Standard on Auditing which provides guidance, regulations and procedures that should be followed by every external auditor. ISAs are promoted by International Audit and Assurance Standard Board (IAASB).

[olaf]

it doesn’t really matter if you round up to 14.58 or 14.59.
you get the marks for technique.

[olaf]

I would say that when calculating cost of debt (Kd) you need to use market value sometimes book value. eg.if its redeemed bond you need to use IRR and for small NPV calculation. For current period in your small NPV calculation you need to ask yourself how much would you pay for this bond if you bought it today. If you have given current ex int. market price you would use this price.Normally you should be given also redeemption value ,which will be different than current market price (example December 10,q.4)
But if you dont have given current ex int. market price of the bond you need to use book value and then as a redeemption value you will be told , like ex. June 11, q. 2).
BUT for WACC calculation you need to use always MARKET VALUES of the components of cost of capital. I mean you first calculate Ke, Kd, etc. and then you need to calculate market values of your shares, bonds etc, which give you the proportion and which then you will multiply by calculated Kd,Ke.

[olaf]

My understanding is that when you are leasing something you are loosing capital allowance but you can write off tax so that’s why it is saving for you.

For the second question I am not sure to the end as well, when I was doing question myself I did wrong deducting tax. I just try to remember this kind of situation when it will be on the exam, 🙂

[olaf]

I started the question with the explanation what is money laundering and as a part of analysing I stated that accountat and this other guy were guilty of fraudelent behavior. I have added that financial director can be disqualified for that for 15 years under CDDA (1986).
As regard the core answer , I have answered that he should double check the accounts and if he discovered this illegal source he should react immediatelly, inform the board of directors etc. He should call 991 (:) ), of course I didnt answer that…. 🙂
capital statement is the document that should be submitted by the company to registrar companies during the process of incorporation, and it should include the number of shares, their nominal value, and i think it should also contain the number of members…?
there was not so much about that in the book, but i think it was already appeared on the past papers….

[olaf]

Global version:
1. Arbitration process and advantages and disadvan.
2. express authority, implied , apparent
3. Explain withdrawal, revocation , rejection
4. Preservasion of the goods
5. Ordinary shares, preference shares
6. chairman, board of directors, managing directors, non-executive directors, shadow directors,
7. dont remember
8. scenario: there was a guy, Aldo and he supplied the bottles to Greek customer. Aldo made a special bottles for him and packed them. Contract was based on EXW (ex work). Greek arranged the carrier who delivered the goods for him, but when the bottles came in, they were destroyed and contaminated.
The question was to advise Aldo and Greek for their obligations and liabilities.
9. a
There was a guy (supplier) who went with contract with his friend, but when the contract was made supplier found that his friend’s company is insolvent. Question was to advise supplier.
b. there was a guy who hired someone and made a notice in the contract that in case he would like to set up his own business he can not solicit the same customers.

10. There was an accountant who was asked by some guy to advise on the following issues: he had two activities, one legally, the second illegal. Accountant advised him to buy golf club (or whatever it was) and therefore the money from illegal activity will be go. Moreover accountant became a financial director.
There was a third guy Lol (LOL:)) who discover increase in profit but he thought that this is becasue of this new company who entered to them. The question was advise Lol.

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