[teeboyz]

thank you so much

[teeboyz]

the theme for this paper ..for this september exam is to manage your time strategically ..well..as you all said , there were a lot of craps which is stupidly useless..like Man Lal’s degree, and his air passenger experience crap

luckily i managed to finish all questions, left me 10 minutes to do checking ..well its time for me to move on..taking p6 in my country version

for those who might ask how did i complete in time..the secret is your writing speed and thinking all the same time ..plan your answer before write, otherwise u will end up multi task while writing and churning out answer from your brain , which slows you down badly

[teeboyz]

yeah Q4 is annoying, when i saw the swim lane thing, pfft, ignored

luckily Q2 and Q3 is all doable, easy

[teeboyz]

one word to describe : LONG

[teeboyz]

So the P2 examiner decided to spare the lifes of the candidates this september? Ah i remember when i took the March exam this year, the consolidate account was so freaking alien and the adjustment is just mind blowing that you are not sure what to do with it

well lucky back then i passed the paper

goodluck for those whose taking this session!

[teeboyz]

KAM = significant issue

significant issue you could think like..its very significant issue..arghhh ..the auditor thinks that the issue is so headache

EOM= fundamental issue

fundamental means, the issue is needed to be understand first before another issue

extra notes

EOM can be placed after basis of opinion, before KAM, or after KAM

Other matters paragraph

involved in telling the reader that:

the report was audited by ex auditor

the opening balance was not audited (maybe they dont need have auditing before)

KAM cannot be replaced by EOM, nor OM

KAM does not modify the reports, nor opinions

EOM modifies report, but not opinions

thats my 2 cents though

Mr Mike help me scan my content, knock my heads off if there is mistake

[teeboyz]

there are few rare occasions that the significant matter cannot be disclosed as KAM ..For example fraud, because by doing this you will be considered commits tipping off offence , from BPP textbook

[teeboyz]

i dont think its KAM, its more likely Other Matter category ..minutes ago i read it in textbook, perhaps..you should lookup for the answer

[teeboyz]

hmm ok..wheres the article?

[teeboyz]

Additional information to continue Mike’s tutor words

Recently , our country’s scandal, 1MDB , the audit firms also withdrew their audit opinions due to the significant error and fraud ..by Deloitte and KPMG

[teeboyz]

you did not read the answer requirement

it says:

(i) Assess the implications for the completion of the Group audit, explaining any adjustments that may be
necessary to the consolidated financial statements, and recommending any further procedures necessary;
and

read the words [adjustments], there you get your idea

So in this case,

DR bad debts 1.44m
CR trade receivables 1.44m

Sorry Mike i hijacked another thread again..just to practice more

[teeboyz]

i see…i will never understand UK english ..But uhm i know what to do in the exam…to be safe

[teeboyz]

to be precise:

Review engagement reviews financial performance and non financial performance, non financial performance include operational issue, company stuffs ..It performs limited amount of financial statement review…more on forecast and checking stuffs

auditing provides a full financial statement checking, it includes further transaction testing to ensure that it is true and fair ..and conclude that the financial statement is true and fair

both provides assurance ( yes practitioner assures you) , only differs in limited, and reasonable assurance

sorry Mike i Hijacked this thread, just wanted to practice more ..heh

[teeboyz]

i agree with Mike, as the review engagement is considered as “limited” assurance , pay attention to limit, it is still considered as an assurance service, however the scope, or the “range’ isn’t broad

compared with Auditing, which provide “reasonable” assurance, means true and fair , it will perform a much more detailed procedures to ensure the financial statement is “reasonably” true and fair

[teeboyz]

hi just sharing my thoughts

IAS 39 is no longer used it is replaced by IFRS 9 , do check the IFRS updates

[teeboyz]

Hello Mike

Thanks for the confirmation ..Guess some of the old past year papers answers are not reliable anymore..I should sort it out soon

Thanks again!

[teeboyz]

Thanks for giving a very useful info mike..It greatly enhance my studies in this paper now

[teeboyz]

Ops ..Sorry just read all the comments …My bad ..

[teeboyz]

Hello Mike

I have finished the whole course now i am preparing for the exam ..Can be said im in exam mode now

So i got question in my mind

Is the ISA auditing standards are important? As in memorising the title , and number, i remembered the content very well but i can’t memorise the title and ISA number, so is it ok not to write any of the titles and ISA number?

But of course all of the previous knowledge of accounting standards from P2 all remembered, titles and content

My thoughts for this paper:

I liked this paper very much! It makes me very excited on how i audit and check company transaction! Like criminal investigation ..Its a wonderland for me in this paper

[teeboyz]

@alistarr said:
I’m pretty sure Q2b was regarding only the ethical concerns for the company moving to foreign land … as that’s what I answered ?

As SRO did not add disclaimer that it only evaluates FEATURED company, so people would have false trust on SRO that anything that pasted on the website is a good company

[teeboyz]

As SRO did not add disclaimer that it only evaluates FEATURED company, so people would have false trust on SRO that anything that pasted on the website is a good company

[teeboyz]

Q1(a) im not sure what im writing, hopefully i could scrap some marks from it

(b) decision tree, looks ok, some calculation, and some discussion about the weakness of trees, like the option X and option Y risk is different ..Due to the high demand cash flow and low demand cash flow, option Y has more steady cash flow

(c) very long and lengthy question

original receivables is 49 days and payables 24 days , adjusting it both to 30 days will realised about 589k from receivable , 134k from payables, add retained earning 775000 and will only gives you around 1.5m cash, which is still far away even cheapest option Y, since gearing ratio only 32%, pumping 1.7m cash into the company will become 60% gearing ratio, looks ok since 55% is the standard rate

stock issue is not an option because shareholder against it , they want retain control

however, even when loans of 1.7m has taken , only 3.2m raised , still 800k left, so the only last option is to persuade the current shareholder to buy more shares, in order to raise fund and retain their power

Q2(a) Wonderful question for those who is pro in IT, simply suggest solution for the weakness

(b) corporate governance! first CG question appeared in P3, the issue would be since the SRO website is relying on sponsored link and advertisement for revenue (keeping the website alive) , but it doesn’t actually gives feedback to those company who advertised it , or sponsored link, since the scenario says the online shopping has grown number of unethical seller …it only evaluate FEATURED company..not from the avertisement or sponsor link

another ethic concern will be moving to foreign land, this may lead to worse condition , unethical trading is even worse as corruption is bad, unauthorised payment could be paid

Q4(a)

Portal diamond

Factor condition
skilled labour, easy access to building materials

demand condition

strong presence of market for Engin

Supply related industry

Theres problem finding environment experts

Rivalry

This is the STRENGTH of Engin as intence competition shape Engin into strong competitor , before they are ready for global market

Thats all my 2 cents thoughts

[teeboyz]

dont speculate and think which one will not come out, at least put some defenses into the area you mentioned above..don completely not learning it

if my memories serve, in the period of 2010-2012, ratio analysis was frequently came out

just study all materials

just my 2 cents thought

[teeboyz]

passed 51%!

[teeboyz]

nevermind its different question, this was in part b ..my bad

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