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Oh I didn’t realise that I am really sorry.
And thanks for considering my request. I will keep an eye on new uploads.
Thanks.
Mr Moffat this video lecture was very helpful. I always appreciate your work and efforts that you make for us on this free website.
Can you please upload some more past exams lectures.Thanks.
@masterwei
This is basic math
0.89= (PABx0.15) + (0.80×0.85)
0.89= (PABx0.15) + 0.68
0.89-0.68 = PABx0.15
0.21 = PABx0.15
0.21 / 0.15 = PAB
PAB = 1.4my tip is that you break the equation into few steps to avoid making errors.
Good LuckA fair paper made hard by extreme amount of time pressure. Would have been a piece of cake if not lengthy. Hoping a Pass. Good Luck All !
Spent more time on difficult ones and left the easiest one as I ran out of time. Q2 was terrible as it is difficult for any one to write about due diligence for 16, 18 marks in part b especially when examiner asked about general benefits and reporting styles in separate parts.
Im regretting i couldn’t complete question 4 which was the easiest part overall.I can see that time management was the issue with every one so hoping a pass.
Vista Plc Audit
(assume the misstatement if not corrected by management)
Matter is material and can also be pervasive. (subjective judgment of auditor is needed for pervasiveness) a qualified except for opinion shall be given if only material. or an adverse opinion if the matter is material and pervasive.
(I would say its material and pervasive so an adverse opinion shall be give,)Expo Ltd
75% of inventory is material therefore except for opinion should be given.
If it is both material and pervasive than no opinion shall be given. Disclaimer of opinion would be best choice in this case.
Again it depends on auditor’s judgment of material and pervasiveness.Emphasis of Matter paragraph may be included in auditor’s report when:
Auditor believes that there is a need to draw user’s attention to significant uncertainty surrounding accounting estimates
In case new or amended audit report has been issued after the discovery of subsequent events.
In case material uncertainty exists surrounding the use of going concern assumption but the same has been disclosed to the satisfaction of the auditor in the financial statements.
In case financial statements have been prepared under two financial reporting frameworks then auditor shall include Emphasis of Matter paragraph pointing to the disclosure in respect of extent of compliance of framework
In case of early application of accounting standard that has pervasive effect on financial statements i.e. new accounting standard has been followed and applied before its effective date.
In case auditor discovered that prior period financial statements contain material misstatements and also amended audit report has not been issued but the corresponding figures have been restated and appropriate disclosures have been made in the current period financial statements.
In case financial statements are prepared under special purpose framework
An entity is facing major catastrophe and its effects are expected to propagate to future periods and it is and will significantly affect the financial position of entity.well 15% of total fee income doesn’t make any sense. It is, for listed companies once again, 10% of audit firm’s total income from all clients.
I am pasting contents from ACCA global to answer first part of your question.
“The APB issued a revised Ethical Standard 3: Long Association with the Audit Engagement in October 2009. This now enables audit committees to decide that a degree of flexibility, which allows the audit engagement partner to remain on the audit for an additional two years, is necessary to maintain audit quality as long as this extension is disclosed to shareholders. Whilst the normal audit rotation period remains five years with five years when he or she does not participate in the audit afterwards, additional guidance has been introduced to allow some flexibility over the timing of rotation.”In short, rule is 5 years but Audit committee can extend it to further 2 years if they think it should improve audit quality. A disclosure to share holders is needed though.
Well ISA 705 Modifications to opinion in the independent auditor’s report applies here.
If the event was occurred after balance sheet date and there was no evidence on BS date on the occurrence of the event then it is non-adjusting, but if it is material then auditor should ask management to revise FS and disclose the matter, auditor, on the other hand shall add an emphasis of matter paragraph in audit report. And as per ISA 706 emphasis of matter paragraph, auditor only needs to give reference to the notes to the accounts for the specific event/ transaction. no calculation and financial effect needed to be calculate as matter was properly discloses.If management refuses to revise the FS because they think it is not of significant importance then auditor can include “Other matters paragraph” explaining the event and its financial impact in order to give better understanding of financial statements to its users.
If matter is material and pervasive and there are going concern issues aswell then auditor is required to ask management to revise FS and if the audit opinion has been given already then auditor might need to seek legal advice.
If management is agreed to amend financial statements then auditor will issue a revised audit report aswell.@kuddus Yes its a lengthy paper indeed. I also tried to do 100% but i left 8 or 7 marks un-attempted. But I did attach an extra sheet this time lol
But I think they should pass me this time. Lets hope we both pass this time. I.A.@kuddus
No it wasn’t first. I failed it at 47 last time thats why I was more conscious about it this time and ended up spending more time on the core parts.Aditional information can be the theoratical jedgments made by management on diversifying into saloon business, feasibility of new organic product and citeria of revaluation. Plus your firm’s ability to conduct due diligence along with external audit can also be discussed in additional matters or information that was asked in Q1 a.
