[Alex]

Can anyone help with question 3, even now looking at the exam again I’m still not sure how to approach this one.

I was working through the BPP revision kit, and don’t recall seeing any questions like this so it threw me somewhat in the exam.

[Alex]

@abbas7796 said:
i agree it was very tricky. I am just hoping for 50. in question 5 there were two additional marks for the cover letter. were these 2 marks including already in the marking scheme or were they just bonus marks?

These were a bonus two marks for presenting your answer in a report format.

[Alex]

In terms of the valuation I was a bit unsure of my answers –

Substantive tests I put the auditor should inspect fixed asset register and compare to physical assets for existence.

Then compare physical assets held to fixed asset register for completeness.

I remember one of the mcq question asking about substantive test for existence so assumed I would be ok with these two answers. However I know they are assertions? So are they valid tests?

[Alex]

I also remember that they only sent statements to the hotels and not trade payables/receivables, so I stated that they should do as they were not performing reconciliations until year end, and therefore more likely to incur bad debts/dispute of invoices

[Alex]

Definicies in the system that I remember picking out –

Sales ledger doing all tasks
Sales ledger manually changing prices
Change of courier company
Finance director setting credit limits

I picked out three others but can’t remeber off the top of my head.

Audit risks

Going concern because of the new competitor, reduced selling prices and increased levels of inventory

Payables understated because of reconciliations not being performed

I think I may have put inventory as being overstated and to attend inventory count.

[Alex]

Does anyone remember their answer for the activity based mcq?

I tried to calculate this a number of times and got 31.25 which unfortunately was none of the answers so took a stab in the dark at 46.25 simply based on the .25

I remember my drivers were around 75k for set ups, 20k for the general overheads and maybe 30k for the inspections divided by the 4000 units gave me 31.25!!?

Anyone know where I was going wrong??

[Author]

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