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(comments will open after 5pm UK)Its hard for me to judge this one, March sitting I didn’t pass with 48%, was distraught as it was my first exam which I failed.
Been preparing for F5 while also doing question practice for F8 since April.
In March the exam felt easier I’d say, however today’s exam was a lot more audit risk, control deficiency and assertion oriented.
Hope I pass this, audit is not one of my favorite subjects.
Hi,
During today’s exam I was examined in the following areas:
– Audit report & opinions
– Types of engagements & expression
– Subsequent events
– Audit risk
– Internal control deficiency’s
– Substantive procedures
– Test of detail
– Corporate governonceThese are the main ones I can remember.
Sat a CBE and was tested on:
-Audit Risk and responses
-Conflict of Interest
-Laws and regulations
-Substantive procedures
-Control deficiencies and recommendations
-Impact on the audit report
-MCQ’s consisted of ethics, subsequent events, substantive procedures, audit report and opinionsFor me it was hard and time pressured. I’ve been studying theory and spent way too little time on question practice and that was a huge mistake. Theory means nothing it you don’t do a massive amount of questions. Ehhh, I’m so sad today 🙁
I found the exam extremely time pressured and am hoping to scrape a pass. Did anyone else think there was a heavy focus in terms of marks on substantive procedures?
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I think it was okay.. But I find it is so hard to tell with Audit!
Did anyone have questions regarding substantive procedures for income (charity), loans for non current liability, and have to state if the management did not include 270k provision how would it be treated in the audit report?
If so, what did you put in your answers?!
Tough paper
Did anyone have a question in regards to impact on audit report if £80k of research expenditure was capitalised and mgmt did not adj financial statements?
i wrote it was material as it was 11% of profit before tax and a modified audit report with qualified opinion?
@iraitis said:
Hi,During today’s exam I was examined in the following areas:
– Audit report & opinions
– Types of engagements & expression
– Subsequent events
– Audit risk
– Internal control deficiency’s
– Substantive procedures
– Test of detail
– Corporate governonceThese are the main ones I can remember.
Hello, did the deficiency question request for implications and recommendation? Like is it a 3 column question of deficiency, implications and recommendations…
Have been thinking as I did not really read the requirements of the question properly due to time constraints. I only did deficiency and recommendations.
Regarding the 80k research i wrote that it should be expensed and therefore to qualify audit report’ except for’ since its material but not pervasive
@ltgorman said:
I think it was okay.. But I find it is so hard to tell with Audit!Did anyone have questions regarding substantive procedures for income (charity), loans for non current liability, and have to state if the management did not include 270k provision how would it be treated in the audit report?
If so, what did you put in your answers?!
I had the same questions, for the provision I said it was material so we would modify the report and insert a basis for qualified opinion paragraph explaining the reason for the modified report and the effects on the financial statements. The opinion paragraph would be qualified except for.
For substantive procedures I wont say my answer as I would rather not think about substantive procedures for the rest of my life.
What did you write for the conflict of interest question? I couldn’t find any conflict of interest in the case provided at all
I got that question and just to be brief I stated it was a material balance if not adjusted with relevant calculations and the audit report should be qualified except for based on a material misstatement because my lecturer said to always identify the grounds for qualifying a report
I got that question and just to be brief I stated it was a material balance if not adjusted with relevant calculations and the audit report should be qualified except for based on a material misstatement because my lecturer said to always identify the grounds for qualifying a report
@ltgorman said:
I think it was okay.. But I find it is so hard to tell with Audit!Did anyone have questions regarding substantive procedures for income (charity), loans for non current liability, and have to state if the management did not include 270k provision how would it be treated in the audit report?
If so, what did you put in your answers?!
I got that question and just to be brief I stated it was a material balance if not adjusted with relevant calculations and the audit report should be qualified except for based on a material misstatement because my lecturer said to always identify the grounds for qualifying a report
@mcgruber said:
I had the same questions, for the provision I said it was material so we would modify the report and insert a basis for qualified opinion paragraph explaining the reason for the modified report and the effects on the financial statements. The opinion paragraph would be qualified except for.For substantive procedures I wont say my answer as I would rather not think about substantive procedures for the rest of my life.
What did you write for the conflict of interest question? I couldn’t find any conflict of interest in the case provided at all
The conflict of interest you refer to was it not being auditor of clients in dispute?
@kevinnite said:
The conflict of interest you refer to was it not being auditor of clients in dispute?There must have been, I missed that both companies were clients somehow. I could not see that in the scenario, damn
I didn’t have qs on conflict of interest or substantive procedures for a not for profit
Do ppl get diff qs?
@rai175 said:
Regarding the 80k research i wrote that it should be expensed and therefore to qualify audit report’ except for’ since its material but not pervasiveI recall the question asking to describe the deficiencies and recommend on how to improve upon them, I know what you’re asking for as I did a practice question day before which was effectively a 3 column answered question so I would have known to apply the same method in the exam.
@damity said:
Hello, did the deficiency question request for implications and recommendation? Like is it a 3 column question of deficiency, implications and recommendations…Have been thinking as I did not really read the requirements of the question properly due to time constraints. I only did deficiency and recommendations.
I had the same question, I recall it being $150k was spent on R&D for a new product etc… subsequently it turned out that $80k was meant supposed to be expensed as it was revenue in nature.
I simply applied the suggested materiality guidelines as per ACCA course material, I dont recall the exact revenue, asset or profit but I do recall that it worked out as follows:
Revenue 0.5% to 1% – $30k to $60k
Assets 1% to 2% – $30k to $60k
Profit 5% to 10% – $70k to $140kI explained my rationale for the calculations and applied the above in my decision to apply qualified “except for” opinion and stated as the management are not willing to amend this for the year end financials this presents material misstatement however it was not pervasive.
Can anyone confirm that this would have been the right approach?
I dont know I will pass or not but I must say I found substansive procedures of 15 marks really hard. Substansive procedures required on income , non current liability and provision or something like that were pretty difficult for me . Although they asked for control deficiencies ,there explanation and what should auditor do . That control deficiency question was an exact copy from BPP exam revision kit so it went good ma sha Allah . As far as Audit risks are concerned they went fine as well . There was a 5 mark question for firm acting on behalf of both the clients and that question went well as well . Firm had to take several measures like inform both clients , obtains consents , confidentiality agreements signed ,separate engagement partners and separate teams etc . As for the balance of 270k was concerned . i mention ias 37 contingent asset and liabilites and also said that the balance is material and report shall be modifed and qualified with except for para . Allah knows I wll pass or not but I believe I might have a chance .I must say that many of the questions were a repeat from BPP revision kit which
I also used except for the substansive procedure . Atleast 55% of paper was exact repeat .@hits123 said:
Tough paperDid anyone have a question in regards to impact on audit report if £80k of research expenditure was capitalised and mgmt did not adj financial statements?
i wrote it was material as it was 11% of profit before tax and a modified audit report with qualified opinion?
Wait, was the profit before tax given in the question?
I didn’t get any profit before tax to calculate materiality ……… maybe the CBE questions are different from PBE ?
I did PBE and they only gave us the total value of equity and liability ……. and we had to calculate materiality based on that.
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