[priyak]

I guess there is someone who posted in mentioning that there is one tomorrow, ie 12th April @ 10:30 BST

[priyak]

hai,
have anyone recognised that que 1 is almost the same as que 1 of dec 2008 paper named Bluebell with slight modifications?

[priyak]

Hai,

Check this link https://www.accaglobal.com/students/acca/exams/professional_scheme/

You can select the respecyive levels that you require for all the past question paper from 2001 – 2007

[priyak]

Hai Delfia,

Follow this link
https://www.intelligentaccountancytutorsltd.co.uk/

You just have to give ur details and then you can get a copy.

Or else it is circulated thru e-mails in the P4 Group you could get a copy from them directly e-mailed to you

[priyak]

Good that you are cleared off the doubts.

However you could have a look at Sunil Bandari’s notes also where he have provided solutions to many recent past question papers.

[priyak]

Hai Jetta
I tried posting in the part (a) of the question but it looked weird and would confuse you only as it is difficult to align here.

[priyak]

@jetta said:
Can someone also please help me out on the calculations in the answers under “tax savings on annual interest” and “discounted value of tax shield on interest” and “cost of financing”?

Hai there again.
I have my way of calculating the APV that I have made in a word doucument which maybe simple to understand. Copy pasting wont align the figures properly. If there is another source that I could send you ie by e-mail then guess you could have a look at it. Hoping that maybe it could clear out your doubts.

[priyak]

@jetta said:
Hi, could someone please let me know how the sale of capital equipment is 2.67?

Hai,

As you know the residual value after 5 years of operation is $ 40m and the WDV is $ 31.1m, so the profit on sale of equipment is $ 8.90m (40-31.1)

Tax rate is 30%

As we are calculating the tax effect, only the tax on the profit on sale is to be taken, ie; $ 8.90m * 30% = $ 2.67m.

I hope you got the point.

[priyak]

Thanks a lot Cyma.
Well explianed and well understood.
All the very best for your papers

[priyak]

I have the same doubt. I have tryong to find it out, but till date in vain. not only this question many others also I did not understand how the value of “N”is derived at

[priyak]

Hai Mabel,

I am so sorry I have only provided a portion of the answer. This is how I solved it out.

2005 2006 2007 2008

EBIT (1-t) 285 307 328 348
Add: Depreciation 165 179 191 203
Less: Inc. in land & bldg (40)
Inc. in plant & mach (91) (88) (84) (76)
Inc. in invetory (40) (39) (37) (34)
Inc. in recievables (51) (49) (46) (43)
Inc. in cash (2) (2) (1) (2)
Add: Inc. in st loans 36 21 45 (12)
Inc. in other paybls 42 42 39 35

---

Free CF 344 371 395 419

---

Short term loans is a blancing figure in the answer

Hope this clears out

[priyak]

Oops the figures didnt get aligned properly. biut hope you could understand it.

[priyak]

Hai Mabel,

Here the change in working capital is the total of the increase in receivables and increase in the short term loans and overdrafts taken together.

individually u would get

2005 2006 2007 2008
Increase in recvbles (51) (49) (46) (43)
Inc. in s.t loan 36 21 45 (12)

---

(15) (28) (1) (55)

[priyak]

I hope this will directly take you to the article

https://www.accaglobal.com/pubs/students/publications/student_accountant/archive/sa_nov10_P7_final.pdf

[priyak]

Hai

An audit engagement letter defines the legal relationship between the audit firm and its client, whereby there ia an agreement set between both the parties that the client is engaging the audit firm to perform audit and/or assurance services for the client. This letter states the terms and conditions of the engagement, the objectives and scope of the work to be performed and the fees and the basis of fee calculated for which the work will be undertaken. This agreement is prepared way before the audit work is performed.

An audit notification letter is where the audit firm or the responsible audit senior sends a letter to the client informing that at so and so date the staffs would be arriving to perform the services that they had agreed upon at an earlier stage referring to the engagement letter. This letter would also form as a reminder notice to the client that there should be no barriers or limitations to be put up on the audit team while performing the aforesaid assignment. This letter is given just before the audit team is about to perform the designated assignment.

Hope you have understood the concept. If you still have difficulties or haven’t understood them, then I have a proforma of both the letters that you could look at to have an idea of it, which I could pass on if you provide me with your e-mail id.

[priyak]

@kingzaman said:
@ Rave : Thnx mate i will surely luk into wht u have said once i get bak to tht question…

@ Ruchin: I cant actually understand whts confusing u ..the the tax rates or how they reached the capital allowance figure :S..

Ok moreover i have a few doubts .. in question 6 of ftc exam kit TOVELL INC ..in the calculation of capital allowances why have they taken the written down value as 1050 instead of 1250 as they have mentioned in the question tht 1250 is the orignal cost ..and secondly same doubt in question 9 SLEEPON HOTELS INC ..the written down value shud be 250 instead they r showing it as 205…i really cant get how they reach these 2 figures..

Hai,
Sorry couldn’t get back to your previous query.

I have seen the following 3 doubts put forth by you as well as ruchin. But I didnt get time to look at it properly so give me a while to chk thru to plz.

Another thing the doubt regarding Que 9 on Sleepon Hotels of why the WDV is shown as 205 instead of 250 is plainly a clerical mistake. The amount to be taken is 250 as when you calculate the CA (250 @ 25%) gives 62.50 itself for year 0+1 and when carried forward the WDV for year 2 is 187.5 (250-62.5).

The answer is correct only but a mistake in typing it as 205 instead of 250. Thats all. No tensions.

Catch up with the other doubts later.

Pri…

[priyak]

@kingzaman said:
Hey every one …
Even i have some problems .. but mine is related to FTC Kaplan..I am havin problems with question 3 of exam kit i.e WURALL …in that question i cant understand how is the short term loan & overdraft amount is coming 266,287,332 & 320 in the statement of financial position…

I would be grateful to any one who helps me out 🙂

Secondly even i would like the notes etc

my id is kingzaman@hotmail.com
pls do lemmie knw when u send da notes
thnnx

It is mentioned that it is the balancing figure.
I have no idea if any other method could be adopted to calculate the same.
If anyone could lend some brains to help us out would be highly appreciatable.

Thank you

[priyak]

You are right Neeru. On behalf as well as against the client too.
Say if you, as an auditor have knowledge of your clients details and say a friend or relative of yours have filed a suit against this client. The information which you obtained via professional work would benefit this friend and you turn out to go against your client in the court is also advocacy.

In short, not only in favour of your client but also against your client advocacy arises.

No mention dear the forum itself is to help each other the way anyone and everyone can from which ever part of the world they are in.

[priyak]

Hai Neeru,

Intimidation threat arises when the auditor is forced or threatened by the assurance client or the interested party to give an untrue opinion on the financial statements they are auditing.

Advocacy threat arises when the auditor acts as an advocate for or against the client’s position or opinion, or even act as an agent to promote the client’s business.

Intimidation is like a forceful act implied on the auditors whereas advocacy is done by the auditors for personal benefits.

Examples for intimidation.
Removal of auditor from assignment due to disagreement regarding the application of accounting standards.
Threat to reduce fees by the assignment client if the scope of the audit is not reduced.
Threat of intimidation due to the personal relationship between the auditor and the assurance client director.

If your are the auditor of ABC Company, and while auditing you found out that the application of the IAS standards are not complied with, which, if rectified would affect the going concern of the business, and even after you recommend for the changes, the client threatens you of reducing your fees or removing you from the assignment, and continue the audit the way it is to provide them with a favourable opinion on their financial position. It is intimidation or threatening.

Examples for advocacy
An assurance team member acts as an advocate in the client’s legal proceedings.
An audit team member involved in corporate financial dervices like dealing in financial securities or shares of a client or underwriting or selling a client’s shares on behalf of them.

Say XYZ Company which you are auditing had filed in a legal case against one of their customer, DEF Company for recovery of debt and you go to the court argueing in favour of or being a witness for your client, XYZ Co. by providing evidence, then this is advocacy.

It is said that the position of a company secretary can lead to an advocacy threat because, the duties of the company secretary includes maintaining records and registers, ensuring compliance with regulations and advising on matters of corporate governance.

Hope this clarifies your doubt. If I have missed anything or made a mistake please excuse and forum friends do correct it too.

[priyak]

Count me in. Hope we will be able to start it asap. Olease do inform me of the date n time. Thank you.

[priyak]

Hai,
I haven’t received any e-mails from your end.

@Hamdy_Hafez said:
Dear all colleagues
I was very busy last two weeks at my work, & when I visit OT site I surprised that there were a lot of messages asking about;
P4 study group (how it work)
P4 free materials
Our time table for the study
So firstly please visit the here-below link to remind you that we’ve already refer to the mentioned time table which is according to ??? course notes (that I’ve already sent the first two parts of it by e-mail)

https://opentuition.com/groups/p4-advanced-financial-management/forum/topic/p4-free-material-news-for-share/

any way, it’s supposed that we’ll finish the first 10 chapters this week (end Saturday 18 Sep 2010)
so please firstly visit this link & we’ll start the first study session today for all P4 colleagues

see you next post

[priyak]

Hai,

Pls count me in too in ur group mailing list .
pri_ya2000@hotmail.com

It would be highly appreciatable if u could please forward me the soft copy of the study materials for P4 ?

Thank you…

[priyak]

Could someone please tell me when are the group study sessions going on as on the dates. I guess I have lost a lot as it looks likes it started from Aug 20th.

[priyak]

Count me too in the group study. Please do mention of the dates and topics that would be discussed in advance so everyone could brush through the topics. Please do specify the book followed too.

Thank you.

[priyak]

Thanks. Its a lot of help. Almost like capsules.

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