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https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p4/exampapers/p4-2013-dec-q.pdf
Can OT tutors give thier solution to the exam? like before stndard solution in feb 14?
Q.1 (a) Risk of Material misstatements in group .. with issues of acquisition of a forieg subisidiary during the year (intra group balance and due dilligence and forex also tested), and a disposal during the year.. (12 marks)
(b) further information needed (4 marks)
(c) audt proceudres on diposal. (8 marks)
(d) ethical issue relating to fee of audit and using the work of internal audit. (7marks)
professional marks =4
total marks = 35
Q.2 (a) benefits of due diligence (6 marks)
(b) matters to be considered for due dilligence (16 marks)
(c) difference between audit report and due diiligence report (3 marks)
total = 25 markswas a fair exam for the one who studied really hard and for the examiner off-course .. but a bit lengthy for me .. was not able to finish last question (the theory part) Q1 was simple NPV with inflation and working capital adjustment .. part b was to explain between nominal terms and real terms part c was two financial objectives of a listed company question two was WACC with ordinary shares, irredeemable preference shares , redeemable bonds, and a bank loan with a floating average interest rate .. next parts were theory on CAPM and a project specific rate and systematic risk and financial risk and business risk .. and why cost of equity is expensive thn cost of debt .. question 3 on working capital management with asking effects on operating cycle and current ratio and financing cost with effect of new policy .. second part on receivable management policy .. and foreign exchange risk theory and forward market hedge and money market hedge .. q4 on options of raising 3.2 m and its effects on EPS and valuation .interest cover and dividend yield , and last part on theory on sources of finance
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