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@jecksmelv said:
Q1 I found the 24 marks question really difficult for an audit risk question. The disclosure on the restructuring made it really hard. I eventually missed simple group audit risks like how complex the business was, the consolidation risks and the like. Restructuring had a lot of risks to identify.Joint ventures maybe for the new company, discontinued operations not properly presented, fair value risks etc.You’ve just made me realise so many easy marks I failed to get whilst worrying instead about the disclosures for the restructuring… Why didn’t I just go back to basics and talk about complex group (1 mark), consolidation risk (1 mark), high revenue increase for the coffee drive throughs (1 mark)…
From what I remember these were the questions and marks available:
Q1
Audit risks (24)
Additional information on disposal (4)
Procedures for a) joint venture classification, b) government grant (8)
Ethical and professional issues (10)
Professional marks (4)Q2
Matters to consider
a) Sale and leaseback (8)
b) Investment property (6)
c) Impairment of mall (6)
Audit opinion (5)Q3
Accepance of forensic audit (8)
What evidence needed to get value of fraud (6)
Criticism of controls and improvements to suggest (6)
Why auditors can’t always detect fraud (5)All in all this paper was awful. No easy business risk marks, instead a nightmare scenario with a group with held for sale assets, joint ventures, planned future acquisitions, restructuring, and a requirement to talk about disclosures which I’ve never seen in any past questions…
Matters and evidence – the sale and leaseback was a mess, I have no idea what they did right or wrong. The others were okay, but the inclusion of a load of figures for the impairment was hard to deal with whilst sticking to the timeframe – I don’t see how anyone has the time to calculate part-year depreciation and/or impairment adjustments. Why not the usual short scenario with accounting explanations required, instead of tables of numbers to take into account in the few minutes you have to read it.
The final question being on forensic auditing also threw me. I couldn’t quite get my head around the mechanics behind the fraud, so couldn’t explain how to analyse it beyond generic “use CAATs to analyse transactions”, and controls criticism was also a bit weird.
All in all I never felt like I really knew what I was on about except for a couple of questions in Q2, but I did manage to write something for everything, so there’s an outside chance I pick up enough marks here and there to pass. If not, at least I know the resit can’t possibly be this hard.