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My answers for MCQs, as much as I can remember to have marked them on my booklet 🙂
1. C
2. B
3. B
4. C
5. B
6. D
7. B
8. C
9. A
10. D
11. D
12. B
13. B
14. B
15. CAnyone to confirm?
ThanksI didnt write the, down :/ do you remember what was asked in the questions for 20 marks about sales and the question for 30 marks?….btw there was one question from multiple choice about what was supposed to do one of the first if the get list next year…what was the correct answer? chnge the engagement partner or this answer abot the 15% of the recurring fees?
I chose the ‘reduce recurring fee’ alternative.
What was your answer for salary increase? A?Exam seemed okay.. The questions weren’t unnecessarily long. Very Hopeful for a pass.. Thanks to Open Tuition
I got used to tackling the application questions during revision and forgot some knowledge questions like the processes of the post and pre issuance review.. That will be costing me 4 marks..
me too however once I left the room I thought about the option of changing the partner…was it mentioned that the 15% will be in 2 consecutive years or something similar?
It said it is reducing non audit service fees to less than 15%. I picked C – stop providing additional non audit services, as once company is listed that would be a self review threat.
Only in small companies audit firm can provide both services, and any if two separates teams prepare it… Perhaps I’m wrong?But you can still provide tax services. It’s only financial statement you must not do for plc’s
@dipatil said:
I didnt write the, down :/ do you remember what was asked in the questions for 20 marks about sales and the question for 30 marks?….btw there was one question from multiple choice about what was supposed to do one of the first if the get list next year…what was the correct answer? chnge the engagement partner or this answer abot the 15% of the recurring fees?About substantive test for Sales and returns?
I think change the engagement partner because in order to be listed you cannot do more than 5 years. and you can have more than 15% as long as you change it on the second year
Multiple Choice Questions
Please note the questions below may not be in order
1. Which of the following are NOT part of ACCA’s code of ethics
Confidentialty
Professional Competence
Prossional BehaviourAre in ACCA’s code of ethics
2. Which of the following are threats to your resulting from the audit of Hasting
Options
Familiarity
Self review
Advocacy
Self interestAnswer
Self review since we prepared the financial statements and we audited them which is wrong and self interest threat3. Jo Smith the finance director of Cho Cho joined the audit firm as a audit partner what should the firm do to safeguard itself
Options
Dont audit Cho Cho for two yearsCarefully determine the composition of the audit team
Jo Smith should not be involved in the audit for two years (correct answer)
Jo Smith will be allowed in a supervisory role
4. Which assertions relate to salaries choose four
Options
Existance (no)
Valuation (no)
Cut off (yes)
Accuracy (yes)
Presentation (yes)
Classification (yes)
5. Useing the information provided by the entity develop an expectation of salaries
Prior year 1,100,000
4% increase
1.1 mil ÷ 2 × 4% 22,000Bonus for permenent staff 25,000
50 × $500Temp staff 240,000
Total 1,387,000
6. What was payables ratio
The payables ratio was 41 days which was admittedly difficult to calculate
U needed to determine the cost of sales by subtracting revenue from gross profit which would give you 6002 i believe
Now there were two options with 41 days
One stateing that credit was loosened was wrong
One stateing that there might be a misstatement is correct
@damian23 said:
I think change the engagement partner because in order to be listed you cannot do more than 5 years. and you can have more than 15% as long as you change it on the second year… you are rght that is why I asked if there was nothing mentioned about the consecutiveness of the fees? If there was not then you are absolutely right
@damian23 said:
I think change the engagement partner because in order to be listed you cannot do more than 5 years. and you can have more than 15% as long as you change it on the second yearI thought it was more than 7years?
what about this question/answer? 5. Useing the information provided by the entity develop an expectation of salaries
Prior year 1,100,000
4% increase
1.1 mil ÷ 2 × 4% 22,000Bonus for permenent staff 25,000
50 × $500Temp staff 240,000
Total 1,387,000
why does we divide into the 1.1m?
We divide the 1.1 mil by two because the salary increase occured in May 2017 and the year end is October 2017
What kind of deficiencies and recommendations did everyone come up with on question 18
@laughingcoffin said:
We divide the 1.1 mil by two because the salary increase occured in May 2017 and the year end is October 2017oki make sense what about the rest of the MCQ do you have them by Chance?
Hey Dipatil no i cant remember anymore MCQ but i might be able to recreate some more if ppl provided information to refresh my memory
@laughingcoffin said:
Hey Dipatil no i cant remember anymore MCQ but i might be able to recreate some more if ppl provided information to refresh my memoryOMG you have fantastic memory 🙂 …
The MCQ about misstatements, materiality level was around 40,000 I think and the total of
uncorrected misstatements was less than the materiality level.
The two choices I can remember were :
To extend substantive testing to see if more misstatements would be found;
or to get written representation that directors believe aggregate of misstatements to be immaterial.
I chose the latter because the question said it was in the final review stage.Also, the question where the Auditors were considering tendering for a client’s competitor’s audit. I was stuck between two options:
Have the quality control reviewer review both audit files;
Have the quality control reviewer review controls over both audits;
I chose the latter because it was just at tender stage, so there’d be no audit files to review yet. Don’t remember the other choicesPayables question I chose reduced to 41 days because payables were understated
MCQ 7.
Materiality is 40,000 and Uncorrected Misstatements are 32,000 what should the auditor doOptions
Do nothing because its immaterial
Perform substantive provedures to identify more misstatements (answer)
Obtain written representation from management on why they believe its immaterial
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