Forum Replies Created
- Posts
Recap for my test AAA_Sep 2024
[1] Telford Co, unlisted comp.
(a) Business risk (8-mark)
Foreign exchange risk when the company has four autocentres in a foreign country (Farland)
SET licences could be revoked by appropriate authority
Poor review from customers
(b) Significant ROMM (16-mark)
IA recognition from Investment in Associate
Bonus of FD
FX fluctuation (IAS 21)
(c) Audit procedures with respect of Investment in Associate (6-mark)
(d) Ethical and professional considerations related to the engagement of Internal audit of the company (10-mark)[2]
(a) 8-mark
(i) Why all RP transactions are difficult to identify for the auditor, linking to the case of Melody Co Melody Co has RP transactions including Lease contract and Loan contract.(ii) Matter should be considered in RP transactions in Melody Co and the evidence is expected to obtained in the planning audit.
I dont remember exactly “obtained in the audit” or “in the planning audit”.>> I wonder “the evidence” is the same what the audit procedure obtained or not. So I answer by “Obtain the loan contract”, “Discuss with management…”
Would I gain marks for my answer?(b) The FD denies to provide Loan contract. He thinks its wasteful. What matters should be concerned? (8-mark)
(c) One question 4-mark
[3]
(a) Capitalisation of costs of construction and interest expense. What matters should be considered and the evidence should be obtained?
I wonder again that the evidence is the same the audit procedures would be obtained?(b) Limitation of the scope.
About travel costs.I passed 53 marks on the first attempt and I study by myself on Study Hub and BPP Study text.
Thank you John.
So it is the same method between “additional assets” in Investment and “extra WC” in WC, isnt it?Sorry I havent. Which video shows Currency swap Tutor? I guess it is in Chap 18 Forex risk.
It seems that the counterparty who borrows at floating rate will receive at Bank rate. Is it right?
