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Funny thing… I have completed ALL the paper.
During tuition I have never felt like it is a difficult papers.
But during the exam I felt soooooo much time pressure that overall I am not sure I have passed.
Some of the questions had too many marks allocated and you realize that have to write as many points you can, but time is just slipping away….
Good luck guys to all of you!!!The examiner has written a number of times that those candidates who start from part B, do not usually pass.
It might be explained by the fact that they get tired and loose concentration.I agree with you to start questions in part B too, so that you will have more time for the compulsory questions.
This technique used to help in all P papers.
But after I have come across the examiner’s point of view NUMEROUS times, as well as tutors, I think everyone should start P7 paper by competing question 1 and 2 first.For management assertions we already know that ACCA COVER
but further classifying them into Transactions , Accounts, Presentation & DisclosuresT A P
1. Transactions: ACCA CO (to remember it is ACCA Company)
Authorization — all transactions were properly authorized
Cutoff — the transactions have been recorded in the correct accounting period
Classification — the transactions have been recorded in the proper accounts
Accuracy — the transactions were recorded at the appropriate amounts
Completeness — all transactions that should have been recorded have been recorded
Occurrence — the transactions actually took place2. Accounts: RECV (short form of Receiving)
Rights and Obligations — the entity holds or controls the rights to its assets and owes obligations to its liabilities
Existence — assets, liabilities and equity balances exist
Completeness — all assets, liabilities and equity balances that should have been recorded have been recorded.
Valuation and Allocation — assets, liabilities and equity balances are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.3. Presentation and disclosure: ( CAR CO) ie CAR Company
Classification and Understandability — financial statements are appropriately presented and described, and information in disclosures are clearly expressed.
Accuracy and Valuation — financial and other information is disclosed fairly and at appropriate amounts.
Rights and Obligations — the transactions pertained to the entity
Completeness — all disclosures that should have been included in the financial statements have been included
Occurrence — the transactions have occurred? ACCA COVER for Audit Assertions
A = Accuracy
C = Completeness
C = Classification
A = Allocation
C = Cut off
O = Occurrence
V = Valuation
E = Existence
R = Rights & Obligations? CAIRO
C=confirmation
A=analytical procedures
I=inspection of assets/records
R=recalculation/reperformance
O=observation? ASTOP for control objectives in general can use
A-Accuracy
S- Safeguarding asset
T-Timing Reporting
O- Orderly efficient business conduct
P- Prevention fraud or non compliance of law? POPCI -fundamanetal principles
P-rofessional behaviour
O-bjectivity
P-rofessional competence and due care
C-onfidentiality
I-ntegrity? PRADA Mnemonic for Audit Opinion Implication
P-roper accounting records have been kept
R- all returns adequate to the audit have been received from branches not visited
A- all explanations and information have been received from the officers
D- irectors report is consisent with the f/s and directors remun. and all other benefits hvae been properly disclosed
A-ccounting records are consistent with the fs
?
? SPAM SOAP Internal Controls
S – segregation of duties
P – physical controls
A – authorization and approval
M – management controls
S – supervisory controls
O – organization as a control
A – arithmetical and accounting controls
P – personnel controls? INSIDE A CRAB UK Combined code…
I=Internal audit – essential 4 listed co.
N=Nomination comitee – sub commitee of main board
S=Shareholders
I=Internal controls – sound system of int controls (Turnbull)
D=Disclosure of compliance and non compliance
E=Effective board – through continuous training, regular meetings
A=Audit commitee – main
C=Chairman & Ceo roles distinguished seperatly
R=Remeneration commitee made up of @ least 3 NEDs
A=Accounting
B-Balanced Board – between exec & non exec directors? ACCAMAPS
A= Authorisation
C= Comparison
C= Computer Controls
A= Arithematic Controls
M= Maintaining a trial balance & Control
A =Accounting & Reconciliations
P =Physical Controls
S=Segregation of duties? PAIDSAP
P= Pre-numbering
A= Authorisation
I= Independent Checks
Documentation
S =Segregation of Duties
A =Analysis & Performance Analysis
P=Physical Control? MARKSAT for steps in an audit plan/ strategy
M=Materiality Levels
A=Analytic Procedures- Ratios
R=Risk (Audit)-Ir X Cr X Dr
K=Knowledge Of Business
S=Staffing- Number And Skills Required.
A=Audit Approach- Procedural Or Risk Based
T=Timing- After Year End.? FAT SIS threats to auditor’s independence
F=Financial
A=Advocacy
T=Threats
S=Self Review
I=Intimidation
S=Self Interest? A,E,I,O,U i.e. vowels (Audit Procedures)
A=Analytical procedures
E=Enquiry
I=Inspection
O=Observation
U= recalcUlation and reperformance? CACSO Audit stages
C=Client acceptance/retention stage
A=Audit planning stage
C=Control testing stage*
S=Substantive testing stage
O=Opinion formulation stage
* only applicable where the audit approach includes reliance on one or more control procedures.? PEEDO Audit Activities
P=Planning
E= Evidence gathering
E= Evidence evaluation
D= Decision making
O= Other activities (delegation, supervision and review- required continious throughout the audit engagement)? Ethical Threats – SIA FS
S = Self Review
I = Intimidation
A = Advocacy
F = Familiarity
S = Self Interest Threats? Matters to consider in Appointments – FOC IRR
F = Fees
O = Others services
C = Competence & Due Care
I = Independence
R = Resources
R = RiskAudit Risk = IR x CR x DR
IR = Inherent Risk
CR = Control Risk
DR = Detection Risk? Understanding a Business “INOM”
I – information System
N – Nature of Business
O – Objective/Strategies/Risk
M – Measuring Performance? Evaluation of Tender- FPPP
F= Fee
P= Professionalism
P= Proposed approach
P= Personal service? Contents of Tender WW ROCE
Who we R: History, portfolio, group structure, Senior profile
What we Offer: Services etc.
What we Charge: quote fee exactly.
What we Expect: Client Responsibility.? Facts that auditor has to consider before acceptance:
LIST
Logistics: deadline of AGM, location, staff availability, clients mangt(risk attached with client).
Information Tech: Software, ERP (used by client)
Subsidiary Report: What kind of reports required.
Timings: Timing of procedures, test of control and Substantive Procedure.? Matters to Consider before accepting PFI PINED
Period covered by the PFI
Intended user
Nature of assumption
Element of PFI
DistrubutoriesFor management assertions we already know that ACCA COVER
but further classifying them into Transactions , Accounts, Presentation & DisclosuresT A P
1. Transactions: ACCA CO (to remember it is ACCA Company)
Authorization — all transactions were properly authorized
Cutoff — the transactions have been recorded in the correct accounting period
Classification — the transactions have been recorded in the proper accounts
Accuracy — the transactions were recorded at the appropriate amounts
Completeness — all transactions that should have been recorded have been recorded
Occurrence — the transactions actually took place2. Accounts: RECV (short form of Receiving)
Rights and Obligations — the entity holds or controls the rights to its assets and owes obligations to its liabilities
Existence — assets, liabilities and equity balances exist
Completeness — all assets, liabilities and equity balances that should have been recorded have been recorded.
Valuation and Allocation — assets, liabilities and equity balances are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.3. Presentation and disclosure: ( CAR CO) ie CAR Company
Classification and Understandability — financial statements are appropriately presented and described, and information in disclosures are clearly expressed.
Accuracy and Valuation — financial and other information is disclosed fairly and at appropriate amounts.
Rights and Obligations — the transactions pertained to the entity
Completeness — all disclosures that should have been included in the financial statements have been included
Occurrence — the transactions have occurredACCA COVER for Audit Assertions
A = Accuracy
C = Completeness
C = Classification
A = Allocation
C = Cut off
O = Occurrence
V = Valuation
E = Existence
R = Rights & Obligations? CAIRO
C=confirmation
A=analytical procedures
I=inspection of assets/records
R=recalculation/reperformance
O=observation? ASTOP for control objectives in general can use
A-Accuracy
S- Safeguarding asset
T-Timing Reporting
O- Orderly efficient business conduct
P- Prevention fraud or non compliance of law? POPCI -fundamanetal principles
P-rofessional behaviour
O-bjectivity
P-rofessional competence and due care
C-onfidentiality
I-ntegrity? PRADA Mnemonic for Audit Opinion Implication
P-roper accounting records have been kept
R- all returns adequate to the audit have been received from branches not visited
A- all explanations and information have been received from the officers
D- irectors report is consisent with the f/s and directors remun. and all other benefits hvae been properly disclosed
A-ccounting records are consistent with the fs
?
? SPAM SOAP Internal Controls
S – segregation of duties
P – physical controls
A – authorization and approval
M – management controls
S – supervisory controls
O – organization as a control
A – arithmetical and accounting controls
P – personnel controls? INSIDE A CRAB UK Combined code…
I=Internal audit – essential 4 listed co.
N=Nomination comitee – sub commitee of main board
S=Shareholders
I=Internal controls – sound system of int controls (Turnbull)
D=Disclosure of compliance and non compliance
E=Effective board – through continuous training, regular meetings
A=Audit commitee – main
C=Chairman & Ceo roles distinguished seperatly
R=Remeneration commitee made up of @ least 3 NEDs
A=Accounting
B-Balanced Board – between exec & non exec directors? ACCAMAPS
A= Authorisation
C= Comparison
C= Computer Controls
A= Arithematic Controls
M= Maintaining a trial balance & Control
A =Accounting & Reconciliations
P =Physical Controls
S=Segregation of duties? PAIDSAP
P= Pre-numbering
A= Authorisation
I= Independent Checks
Documentation
S =Segregation of Duties
A =Analysis & Performance Analysis
P=Physical Control? MARKSAT for steps in an audit plan/ strategy
M=Materiality Levels
A=Analytic Procedures- Ratios
R=Risk (Audit)-Ir X Cr X Dr
K=Knowledge Of Business
S=Staffing- Number And Skills Required.
A=Audit Approach- Procedural Or Risk Based
T=Timing- After Year End.? FAT SIS threats to auditor’s independence
F=Financial
A=Advocacy
T=Threats
S=Self Review
I=Intimidation
S=Self Interest? A,E,I,O,U i.e. vowels (Audit Procedures)
A=Analytical procedures
E=Enquiry
I=Inspection
O=Observation
U= recalcUlation and reperformance? CACSO Audit stages
C=Client acceptance/retention stage
A=Audit planning stage
C=Control testing stage*
S=Substantive testing stage
O=Opinion formulation stage
* only applicable where the audit approach includes reliance on one or more control procedures.? PEEDO Audit Activities
P=Planning
E= Evidence gathering
E= Evidence evaluation
D= Decision making
O= Other activities (delegation, supervision and review- required continious throughout the audit engagement)? Ethical Threats – SIA FS
S = Self Review
I = Intimidation
A = Advocacy
F = Familiarity
S = Self Interest Threats? Matters to consider in Appointments – FOC IRR
F = Fees
O = Others services
C = Competence & Due Care
I = Independence
R = Resources
R = RiskAudit Risk = IR x CR x DR
IR = Inherent Risk
CR = Control Risk
DR = Detection Risk? Understanding a Business “INOM”
I – information System
N – Nature of Business
O – Objective/Strategies/Risk
M – Measuring Performance? Evaluation of Tender- FPPP
F= Fee
P= Professionalism
P= Proposed approach
P= Personal service? Contents of Tender WW ROCE
Who we R: History, portfolio, group structure, Senior profile
What we Offer: Services etc.
What we Charge: quote fee exactly.
What we Expect: Client Responsibility.? Facts that auditor has to consider before acceptance:
LIST
Logistics: deadline of AGM, location, staff availability, clients mangt(risk attached with client).
Information Tech: Software, ERP (used by client)
Subsidiary Report: What kind of reports required.
Timings: Timing of procedures, test of control and Substantive Procedure.? Matters to Consider before accepting PFI PINED
Period covered by the PFI
Intended user
Nature of assumption
Element of PFI
DistrubutoriesFrom my own experience, I have always spent more time on learning mnemonics and models for exams like F8, P1, P3 (theory exams). The most effective way for me to study is mnemonics, which helps you score all the marks in the question. I also think it is boring to solve past papers for theory exams.
The better way of solving past papers is reading the scenario and then writing down in a bullet format some key things you would mention in your answer and then ALWAYS read the WHOLE answer, comparing your points to the examiner’s ones. Reading the past exams solutions work as revision of theories as well.
Hope this might help 🙂
Good luck!!! 🙂Hello guys,
Congrats to those who have finished with their ACCA hell 🙂 really excited for you.
I have another 3 exams left, so aaaalmost there.
Can anyone tell me how the procedure goes.
I have been working for the BIG FOUR for 36 months already.
On the myacca site i pressed button to claim exemption from PER.
Is there anything else I have to do to make sure everything is fullfilled ?? 🙂
thank you in advance.
