[salle205]

I passes P7 in June which was my first attempt.

Although the paper is interesting its also very tricky and things can easily go wrong.

I think you need to pay more attention to the application of your knowledge to questions, exam techniques and interpreting the examiner’s questions correctly.

it might be helpful if you book a revision course with either BPP, Kaplan or LSBF which will help improve your exam technique, how to interprete exam questions and how to access and apply your knowledge under exam conditions.

will also be useful to study carefuly the examiners answers to past questions which should point you in the right direction.

Hope this helps
Osariemen

[salle205]

I did UK variant in June sitting just gone & its same as the Irish variant.

although UK hs nw adopted IFRS there are still some differences which is required as the examiner delibrately test your knowledge in those areas.

an example is that auditors in the UK are required to assess and report on directors report which is filed with FS as well as the auditable part of directors’ remuneration which does nt apply to the INT standard.

also, the standards from P2 has some differences as well but majority is same with IFRS.

Administration, liquidation and insolvency is an additional topic for UK/Irish students which INT students do nt need to know.

would advice you use either BPP or Kaplan along side OT which tell you where there are differences.

thanks Osariemen

[salle205]

i do on avarege 9-11 hr per week in Mar & Apr and 30-35 hrs per week in May & June and i work full time, so its a matter of commitment and how many hours you are comfortable with.

[salle205]

Wen considering principal audit procedures use the mnemonic AEIOU and PROVE. where A- analytical procedures, E- enquiry of managemant, I- inspection, O- observation, U- recalculation. P- presentation, R- report in terms of completeness and cut-off period. O- ownership of asset, liability, V- valuation, E- existence.

[salle205]

Auditors can be sued in context of auditors liability when clients or 3rd parties believe that audit opinion was wrong, auditor was neglegent in performning thier job, or professional due care was not exercised in carrying out audit work and this has cost them money but this claim can only be successful when it can be proven that;
– auditors owed 3rd part a duty of care – this is considered based on
– auditors knew or should have known that that reliance will be placed on audit report.
– where its reasonble for reliance to be placed on auditors work.
– where auditor was neglegent in carrying out thier work.
– consequences has been suffered by 3rd party as a result.

the burden of proof lies with 3rd party.

In terms of offenses auditors can commit;

– its an offense punishable by law for auditors to help client conceal money laundering activities.
– where auditors fail to report suspision or knowledge of money laundering to appropriate authority (SOCA)
– where auditors are involved in the act themselves
– tipping off after/before reporting to authorities.

thanks.
Osa

[salle205]

The qualification of a Sub will only impact on the group consolidated FS if the transaction that led to qualification of Sub FS is material to the group.

Even if sub is material to the group but the transaction/issue in question is not material then this will not impact group audit opinion as group auditor will only be concerned with material misstatements on group level.

Where issue resulting to qualification of Sub FS is material to group the below applies;
– Group auditor will need to discuss issue with parent Co and explain impact on group audit opinion.
– with permission of parent Co, auditor could arrange to meet directors/those charged with governance at Sub to discuss qualified opinion and try to convince them to make necessary amendments.
– group auditor could make the necessary amendments to the Sub FS themselves to eliminate misstatement before consolidation in which case group FS will not be qualified based on qualification of Sub FS.
– where parent Co refuses to allow Sub FS to be amended before consolidation, then group auditors will need to qualify group audit opinion with an ‘except for’ or adverse opinion depending on their assessability of materiality of issue to group FS.

Basically materiality is considered on the basis of the transaction/issue in question to the group consolidated FS.

From my knowledge regards to confidentiality, group auditors have the right per engagement contract to all books & records of parent Co & all its Sub over which it has control & significant influence.

Therefore it’s the parent’s Co responsibility to ensure that group auditors have access to Sub books/records, therefore discussing Sub info with parent does not constitute a breach of confidentiality.

where group auditors are restricted access to Sub books/records and no resolution could be reach, then this will give rise to a limitation of scope which will lead to qualification under ‘except for’ or ‘disclaimer of opinion’ depending on level of materiality.

Thanks.
Osa

[salle205]

Business risks are basically risks that may inpact on company’s profitability and going concern status.

while Audit risks is made up of inherent risks, control risks and detection risks.

Inherent risks – refers to transation that are high risk by thier nature (eg oil industries could be classifed as having high inherent risk due to the complexity of its transactions, processes and constant fluctuation in oil prices, complex financial instruments have high inherent risks, cash transactions etc)

control risks – risk that internal control is not strong enough to prevent and detect material mis-statements whether by error or fraud.
this could lead to a business risk as a fraud due to weak control for a substantial amount will definately impact on company’s cashflow/liquidity & going concern depending on its significance.

Detection risks – risks that auditors give wrong audit opinion either due to mis-judgement of client’s internal control system, poor planning strategy leading to non-identification of high risk areas, sampling issues, poor practice management etc.

Some audit risks could lead to business risks if it impacts on profitability and going concern, so for every risk question you need to ask yourself if it impacts on profitability and going concern (then its a business risk), where a risk of material misstatement exists of wrong classification, non recognition, inaccurate amount, presentation, non disclosures (then its a finacial statement risk).

hope this makes sense

thanks
Osa

[salle205]

Business risks are basically risks that may inpact on company’s profitability and going concern status.

while Audit risks is made up of inherent risks, control risks and detection risks.

Inherent risks – refers to transation that are high risk by thier nature (eg oil indutries could be classifed as having high inherent risk due to the complexity of its transactions, processes and constant fluctuation in oil prices, complex financial instruments have high inherent risks, cash transactions etc)

control risks – risk that internal control is not strong enough to prevent and detect material mis-statements whether by error or fraud.
this could lead to a business risk as a fraud due to weak control for a substantial amount will definately impact on company’s cashflow/liquidity & going concern depending on its significance.

Detection risks – risks that auditors give wrong audit opinion either due to mis-judgement of client’s internal control system, poor planning strategy leading to non-identification of high risk areas, sampling issues, poor practice management etc.

Some audit risks could lead to business risks if it impacts on profitability and going concern, so for every risk question you need to ask yourself if it impacts on profitability and going concern (then its a business risk), where a risk of material misstatement exists of wrong classification, non recognition, inaccurate amount, presentation, non disclosures (then its a finacial statement risk).

hope this makes sense

thanks
Osa

[salle205]

Business risks are risks that could impact on a company’s profitability and going concern status.
examples are,
– legal claims against the company which will impact on profitanility if no insurance cover & if very significant could increase doubt over going concern.
– fines (possible closure) from non compliance with laws/regulation.
– propsed withdrawal of operating licence in industries where this is important to operate.
– loss of key employees in a specialised market with shortage of such skills and where company is dependent on skills/know-how of such employees for its operation.

your formulas are correct with the exception of Business risk which is explained above.

Just to add F/S risks are risks that transactions have been wrongly classified, incorrectly entered, omitted, inaccurate figures, not currectly presented (e.g discontinued operations) and no sufficient, adequate disclosures made.

Hope this helps.

thanks.
Osa

[salle205]

got 67 first attempt……thks to God.

for all you still cant access thier results use this link https://www.acca-business.org/results_login.html

[salle205]

i think your safest option will be to do equity+reserves+retained earnings+long term liabilities.

[salle205]

hi guys,

from my studies my understanding is for a company to be said to have a high market share it either has to be the market leader or very close to the market leader.

In the instance above i would personally say 19% is not close enough unles thier are other indications in the question to suggest otherwise.

Anyone correct me if im wrong.

thanks.

[salle205]

hey,

BCG Matrix is used to analyse a company’s portfolio in terms of product to see if they hold a balanced portfolio.

market share is determined by comparing the company’s revenue with total market revenue, this is then compared to that of the market leader, if close say then the company is said to have a high market share but far from market leader then its considered as low.

market growth can be seen from comparing current yr with previous.

thanks

[salle205]

hey,

let me try to explain in my own words from my understanding;

deferred tax liability arises from taxable temporary differences. example is a revaluation of an asset. in accounting principle this is reflected immediately, however in tax principles the amount stays at original price until asset is disposed off, therefore this transaction gives rise to a diffference which is referred to as temporary because it will be recovered when asset is eventually sold at which point the company has a liability to pay tax on the difference between accounting figure & tax figure of asset.

Deferred tax assest is simply the opposite. it arises from deductable temporary differences. example is where a company incures development costs which is immeidately recognised under accounting principle but due to tax rules these may not be reflected until the whole phase of the development work is complet.
given that its an expense which reduces your taxable income the difference between the tax & accounting figure gives rise to deductable amount which is the tax assest the company can use against taxable income.

the reversal bit refers to when the income/expenditure is eventually recovered or settled at which point accounting & taxable income evens out.
until an expenditure is settled in full or an income recovered there will always be this temporary difference.

thanks.

[salle205]

hey,

i did do p2 with Martin for last June’s exam.
He’s really good with p2 but still a lot of practice needs to be done to support the tuition except you are planning to registered for the revision course which i heard from friends who went that it was really good and helpful.

[salle205]

hey,

its still doable as p3 & p5 have a lot in common so you will save some time there.

if you start studying seriously now you can still make it for Dec.

gud luck.

[salle205]

hey,

i would advice that since you have done it twice before what you need is a good revision course which will focus on exam techniques, how to interprete exam questions, apply knowledge to provide tailored answers and time management.

i would recommend LSBF (London School of Business & Finance), although not sure where you are based……………you could look up thier website & ring them up for more info on revision courses.

thanks.
Osariemen

[salle205]

hey,

it depends on hw you are planning to study.
if part time and home learning, i would advice p1 becos its a lot easier that p2.

to go for p2 you need to make sure you have enough time to dedicate to it as its a lot more difficult than p1 & the F papers, so you need alot more practice to achieve a first time pass.

[salle205]

hey richardade,

could you possibly send me same email on topic 8 as i have also just started mine.
my email is salle205@yahoo.co.uk.

many thanks.
Osariemen

[salle205]

had 57% first attempt all thanks to God who made it possible

[salle205]

For those who are still not able to access the results via the ACCA website, try this link

http://www.acca-business.org/results_login.html

[salle205]

passed with 59% nt what i expected though but still a pass & thanks be to GOD

[salle205]

passed with 64% – all thanks to God the Lord Jesus

[salle205]

Gud luck 2 every1 hope it goes well by God’s Grace

[salle205]

the results are out on monday morning…….i would guess from 8.am

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