*** ACCA F8 December 2016 Exam was.. Instant Poll and comments ***

@amrita1 said:
mohammed seems like we wrote exact answers to each other 🙂

cheers to that 🙂

@tayyabom said:
take it this way; 1% of assets is material and you have been provided with total assets of the company and one material misstatement in assets, what you’ll do? compare with assets and try to establish materiality. it is exactly same thing, just replace assets with liabilities.

Ah ok
Thanks

there were too many deficiencies, easy to spot e.g.

aggregating all tills as one (till accounts should be reconciled individually)
logon with everyone (separate logon for each cashier)
anyone can go to till and do the transaction (dedicated cashiers)
cash being kept at the store overnight (should try to move to HO or a better security system is needed as cash collections during peak days can be substantial)
clerk being sent for change from till (it should be either transferred from HO or taken from petty cash account)
clerk at HO doing daily recon and no one authorizing it (someone should authorize) otherwise he could collude with branch manager and steal cash

cash receipt system objectives

All received cash is recorded and accounted for
in context of question I also mentioned that to prevent fraud (this might be wrong I’m not sure)

@sa1pw said:
I wrote the same exact answer.

cheers to you also 🙂

@tayyabom said:
cheers to you also 🙂

What substantive procedures did you write?

@tayyabom said:
don’t forget to PM me when result is announced, we’ll compare at that time also and see who got more lucky 🙂

thats a deal!

I described storing cash is small safe overnight as a deficiency, because it can be stolen. I proposed…built-in wall safe 😀 Do you think I will get any mark for that one? 🙂

@kicek7 said:
I described storing cash is small safe overnight as a deficiency, because it can be stolen. I proposed…built-in wall safe ? Do you think I will get any mark for that one? ?

It works either way. The mark scheme will probably only have one option for the safe, whoever both sides have a valid arguement. I noted it as a deficiency at the start but then used it as strength as in previous papers, just a simple locked drawer was considered safe so an actual safe whether big or small in our case, in my opinion is much safer than a drawer.

Compromise NEDs I independence – Make remuneration in line with their time committed to work

As I remember – hope right

@tayyabom said:
there was one MCQ about going concern assumption

I had chosen 12 months from the date of last reporting hence chose

31-May-20X7

anyone remember?

Yes – I put the same answer based on requirement to cover nearest 1 year after period end for going concern basis by manegment

@tayyabom said:
there was one MCQ for internal audit committee

I remember I chose 3 & 4 which were

IA committee is responsible for appointment and removal for external auditors
and reviewing effectiveness of internal controls

anyone else remember this question?

I was unsure on this one but I think re the appointment and removal of external auditors, this is actually the responsibility of the shareholders not the audit committee? The audit committee is responsible for the relationship once the auditors have been appointed I think. Not 100% though…

This is my last Fundamental Paper then i move the P1 to P7 … Wooowwwwwwww

@kerrimcm1 said:
Re the MCQ on the audit opinion, I put unmodified and other matters paragraph as it didn’t mention anywhere that the issue was large enough to affect the going concern of the business so assumed the material uncertainty re going concern wasn’t correct and as it had been adequately disclosed, thought it was only necessary to draw attention to it using other matter? Anyone else think this?

I thought the same, it didn’t mention that the issue was material, so went with unmodified with other matters paragraph.