- This topic has 52 replies, 30 voices, and was last updated 7 years ago by
.
- Posts
@lolabun said:
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
regarding the second question I picked the option related with the receiving the approval from both companies…I’m not native I didnt fully understand this about “tending” I think if the options that you are mentioning are once job is done…
@laughingcoffin said:
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
Here the correct answer is done nothing? I picked that one because its inmaterial and was the final review…
If misstatements are approaching the level of materiality there is a strong possibilty that even more misstatements exist that werent picked up because of sampling risk as a result more testing is done
Some parts Im able to recall…
Question no 16 –
– 7 audit risks
– what should an auditor do before and during inventory count
– assertions occurence and existence (inventory)
– pre and post issuance (i think this was part d)Question no 17
– what is the impact on auditor report
There was question about things to consider before setting up an internal auditing department, for 4 marks I think. Also, how internal auditors would help deter against fraud aside from fraud investigations, for 2 marks. That was a pretty nice question.
Another question was about substantive procedures on sale or returns. I haven’t see anything about this in the book so I had a guess. I said to ensure they are accounted for separately, not included in revenue til past the 60 days, ask the director why he believes only 15% will be returned and review supporting documentation, and that it should be in liabilities til the sale is finalised – but I believe that is wrong! So I don’t have too much hope for marks here.
Another one was objectives of the sales and despatch system, I think they were looking for 4 objectives.
deficiencies:
1. sales clerk is decision maker re credit limits for new customers / must be credit controller
2. ordering by phone / no trace, must be by e-mail or via internet site
3. no customers’ approval re placed by phone orders
4. no responsible for sales price data ( monitoring, changing, etc)
5. discount manually typing by sales clerks / must be automatic calculation for certain period
6. no reconcliation sales ledger to accounting books
one more point don’t remember 🙂can anyone tell me the audit opinion and impact on key audit matter for the question 17
Hello,
From memory this is what I remember about the whole paper:
3 scenarios, 5 MCQs per scenario – not in any particular order and I am also paraphrasing:– $45,000 material misstatement was the level, if there were $30,000 more what should be done?
– Question reference ACCA’s code of Ethics and Conducts, which is NOT one of them?
– Calculation of wages question from all the increase, temporary staff and bonuses?
– Question reference marketing costs, I believe it had reached $300,000 but it was also pre-paid for a certain period?
– Question reference wages accrual (cannot remember anymore).
– Director of a company joining the Audit of the same firm?
– First year’s fees had already amounted to 15%, next year should not also amount to 15%, I thought rotation occured after 7 years and not 5 (may be wrong).
– Audit of two companies who are competitors?
– Payable days, I put 41 days but probably the wrong option.Written questions (16, 17 & 18)
16 was for 30 marks, 17 and 18 were for 20 marks.
Q16 – 8 Audit risks and responses to these risks.
Q17 – 8 Seven deficifiencies, identify, explain and provide recommendations (this was to do with the Sales and Despatch System)
Q18 – Cannot really remember to be honest.It was Ok.Actually lot better than my previous attempt.
Could have done more better with more a little bit more past paper practice.Hello,
I also remember question about Key Audit Matter paragraph. It was 4 marks. How did you answer?@raushantasshoinova said:
Hello,
I also remember question about Key Audit Matter paragraph. It was 4 marks. How did you answer?I just explained what is a kam and stated it is only used for listed companies.
Then I explained it in the context of the question, stating that if the management is not willing to make the adjustment, will have to issue a qualified ‘except for’ opinion because the amount of the adjustment is material.
I just expanded upon this.
It said immediately, which imo is wrong. You had another year to negotiate the fee/services, hence I selected quality control reviewer.
You don’t back out from the audit, you just go with a different team, having a different partner.
Did everyone here sit the paper exam? I did the CBE and don’t recognise some of the MCQs. I would have thought they’d be the same though
Could someone please let me know what they got for the control objectives in Q18?
@sophiemgilbert said:
Could someone please let me know what they got for the control objectives in Q18?a) -goods not delivered to same customer twice
-goods delivered on time
-goods delivered safely to customers and not stolen.
-sales system working correctly and updating inventory levels accordingly.
-goods sent to the correct address.
There were so many you could come up with.
b)The sales clerk gave me about 3 deficiencies. Something about manual inputting of discounts and many others I can’t remember, Examiner asked for seven I gave nine, just to be on the safe side.
Did anyone else gets 5 extra mcq’s for quality assurance purposes? They said you won’t be marked on that however don’t know which ones they were. 20 mcq’s in total
- The topic ‘*** ACCA F8 December 2017 Exam was.. Instant Poll and comments ***’ is closed to new replies.