[sherri]

@myaccca I am currently doing my RAP and will submit it this November, pls can you give me any advice on how to pass with an A Grade as you did? Thanks.

[sherri]

@rizu, please I’m currently doing my RAP and will submit it this November, that is, Period 26. Could you give me advice on how to pass as well as you have with an A Grade? Thanks

[sherri]

Do all three if possible.

[sherri]

Passed with 67. Last December 2012 i failed with 35! Wow ++++30marks this time

[sherri]

Passed with 65! so happy. Last December 2012 i failed with 45. Wow! i passed yeh!!!!

[sherri]

<cite> @abolaji said:</cite>
if you all got about (11,000) as the net asset, deducting it from the cost of investment and fair value of subsidiary should push the good will higher than even the cost of investment. i.e. shouldn’t the negative net asset of subsidiary have been added to the cost of investment??? Not quite sure though,but the goodwill value was quite higher than the figure you guys are quoting.

Nope. You are wrong

[sherri]

<cite>@danf1981 said:</cite>
The substantive tests were PROVE
Presentation
Rights and Obligations
Ownership
Valuation
Existence

and 1 mark for test and one to describe this – easy? I think AEIOU could be used but PROVE is a much better nmemonic for the fixed assets in my opinion

The AEIOU (ISA 500 Audit Evidence) procedures are used also for substantive testing. PROVE are the account balance assertions not the procedures.
For example an audit procedure for PPE as in Q5a in the exam will be;

I would (me the auditor) physically INSPECT some of the property, plant and equipment and agree them to the description on the purchase invoices or title deeds(for land) to ensure that they EXIST and the client has the RIGHT to control these assets.

Do you get the point?

[sherri]

[sherri]

<cite> @seth1 said:</cite>
Hi all.
Regarding the types of procedures, I remind all that the question was asking TYPES of procedures to gain audit evidence, and not TYPES of SUBSTANTIVES procedures to use PROVE OR AUIOU. So, my approach was to write
controls test
substantive test
representation letters
third parties confirmation
evidence from legal authorities

as I felt these were different TYPES of acquiring evidence

In order to perform substantive tests and tests of control (which are the main two types of tests the auditor will carry out depending on the strength of the client’s control system), auditors can use a variety of techniques/procedures. Go back to your notes. These are the AEIOU, as you know. That is Analytical procedures, Enquiry, Inspection of docs, Observation and Recomputation. Read ISA 500 Audit evidence. Sorry, but you are wrong.

[sherri]

<cite>@danf1981 said:</cite>
No the amount was given in the question as they agreed on the date they purchased the sub that the loss was 2000. Thats the acquistion figure then the figure on the balance sheet showed the retained earnings for the year end. They like to trick you
in these exams esp in question 1 as its the first

U r very right. I agree with you and i applied it in the exam.

[sherri]

<cite>@gospelqueen said:</cite>
Consideration 12000
Loan note 1500
NCI 6000

TOTAL 19500

FV of N/A @ DOA
SC 20000
RE (2000)
FV adj: ( 3000)
Total (15000)

Goodwill 4500

This was what i get. Did any one get this

You forgot the post-aqcn retained earnings of 4,000 (8,000/2), therefore 4,000 + (2,000) = 2,000 (positive value). If this is not the way u look at it, remember that the exam paper says that the directors accepted the (2,000) loss as the basis for the pre- and post-aqcn retained earnings value. This means IGNORE the (4,000) at 1 April 2012. Also, all fair value adjustments except for plant of (3,000) were not at acqn date but existed at consolidation date.

[sherri]

<cite> @sherri said:</cite>
Your answer is right. I’ve redone the calculation again and it is the same as i got in the exam. the other folks don’t just understand. I got 500 for G/W. Don’t be discouraged and don’t listen to the others.

Let me put it this way;
Consideration: 12,000
Loan Notes: 1,500
NCI : 6,000
_____
19,500
NA of sub at acqn:
Equity shares 20,000
Retained earnings 2,000
(ie. (2,000)+4,000 post-aqcn)
FV adj (3,000)
_____
19,000
_____
G/W in CSFP 500

So, same thing as @batman1993026

[sherri]

<cite> @batman1993026 said:</cite>
Messed up the G’will calculation by the sounds of what everyone got!

Consideration: 12,000
Loan Notes: 1500
NCI : 6000
_____
19500
Less:
Share Cap (20,000)
Pre Acq ear’ (2000)
FV Adj 3000
_____

G’will 500

Hopefully should receive some marks from that!

Your answer is right. I’ve redone the calculation again and it is the same as i got in the exam. the other folks don’t just understand. I got 500 for G/W. Don’t be discouraged and don’t listen to the others.

[sherri]

<cite> @batman1993026 said:</cite>
Also Q5 was poorly done, I put the gains on investment into OCI – FML!!!

Your answer is right. I’ve redone the calculation again and it is the same as i got in the exam. the other folks don’t just understand. I got 500 for G/W. Don’t be discouraged and don’t listen to the others.

[sherri]

Hi, please count me in.
Thanks

[sherri]

I will be sitting for F7 this June 2011 and I hope those involved as well as I will work together so that we can make it!

[sherri]

Hi, I would like to join. When do we start?

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