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Hi, as per Kaplan kit, this is:
– checking framework acceptable
– checking managers implemented internal control
– obtain mngrs confirmation and agreement that they used applicable framework, give auditor access to records and provide written representation about smth) do not remember))
however tough exam for me, will hardly pass it@richardscully said:
i put hourly paid for time doneI dont think that the hourly paid was the correct one in the notes is mentioned that directos need to have sufficient time for the company i picked the option that said that they will get money according to their perfomenace and the long term succes of the company or sth like that I dont remember the wording exactly
What was the answer to last question on substantive procedures on redundancy of employment (provision)
Did any one notice that on question 16 , Managers placed orders that where then delivered to central warehouse but were not kept fro the store that ordered hence stock outs? does that sound right or I was lost?
I also wrote the same………….There was no clear knowledge question in the paper, I am still shocked………..so worried ………tough paper indeed.
@skar89 said:
What was the answer for the preconditions of the audit? I put professional clearance, assessing resources but I think it was actually applicable framework?Your ans was about auditor appointing not about precondition. precondition is about – f/s in accordance accounting framwork, fair presentaion, management responsibility includes auditor access in all information,ICS.
I think you are right, I put the same as you did, because hourly paid wouldn’t assure that all NEDs allocate sufficient time to the company.
Could you please write your answers for MCQs tests if you remember? I want to compare my answers.
MCQ Answer
A C C D C C C A C D D D B D D DFor last question Redundancy, because it was material & not disclosed so Auditor report will be modified Qualified Except for and explanation in Basis of opinion
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Yes
@dipatil said:
I dont think that the hourly paid was the correct one in the notes is mentioned that directos need to have sufficient time for the company i picked the option that said that they will get money according to their perfomenace and the long term succes of the company or sth like that I dont remember the wording exactlyIf it relates to performance then they have a self interest threat. So, they need to be paid for the hours they put in eg hours. I’m sure a very similar question come up in a previous exam.
I’m not sure if it’s correct but I chose option 3 because all the other options felt wrong.
@dipatil said:
I dont think that the hourly paid was the correct one in the notes is mentioned that directos need to have sufficient time for the company i picked the option that said that they will get money according to their perfomenace and the long term succes of the company or sth like that I dont remember the wording exactlyNon-executive directors are directors who do not have day to day operational responsibility for the
company. They are not employees of the company or affiliated with it in any other way.In your sentence NED do not have day to day operational responsibility in the company. So it is good for company to pay them according to hours they have worked for the company rather than performance. However it is still debatable that which performance company has achieved?
It might be financial performance or non financial performance. If financial performance (Favourable to Executive Directors) then their OBJECTIVITY will compromise.In your sentence NED do not have day to day operational responsibility in the company. So it is good for company to pay them according to hours they have worked for the company rather than performance. However it is still debatable that which performance company has achieved?
It might be financial performance or non financial performance. If financial performance (Favourable to Executive Directors) then their OBJECTIVITY will compromise.@poppy13 said:
I must admit, I sometimes don’t understand marking. I paid for remark. They did not give much info. I scored 61% on F7 last sitting and found exam solid. Failed F9 when found paper easier!..
What are the procedures of getting paper remarked???What’s the answer to the question about realying on internal control reports from last year?
@ashishhegde said:
Remuneration of directors
1. Enough to attract, retain and motivate, without being excessive.
2. Significant proportion should be performance-related.
3. Should consider industry pay levels.
4. NED remuneration should not be performance-related, but should reflect time
involvement of the role.
5. If a director is removed before the end of contract, provisions should be in place
to ensure they are not over-compensated for failure.
6. Notice periods no longer than 1 year.This is an extract from LSBF notes.
The fourth point should explain everything about the NED pay mcq.the 4th Option seems to be not correct
The UK Corporate Governance Code states that the board and shareholders should determine the NEDs’ remuneration. NEDs’ remuneration consists of a basic salary or fee with NO PERFORMANCE related element.
Ken Garrett
KeymasterThe guidance states, however, that non-executive directors should not receive shares on a deferred
basis, share options or performance-based remuneration, as these might compromise their
independence. Non-executive directors should also not receive:
? Attendance fees in addition to their basic fees – attendance at meetings is a primary duty of nonexecutive
directors
? Severance fees
? Rights to participate in defined benefit retirement schemes, since non-executive directors are
elected representatives of shareholders and not employees@dipatil said:
I think it is 2 years for the auditors if im not mistaken is 5 years to change the partner that is auditing the company ..Independence
A non-executive director is considered independent when the board determines
that the director is independent in character and judgement and there are no
relationships or circumstances which could affect, or appear to affect, the
director’s judgement.
Such relationships or circumstances would include where the director:
• is a former employee of the company or group until five years after
employment (or any other material connection) has ended; Mind that the issue is about NED not audit partner@vind1994 said:
Does anybody remember the sub-questions for the 18th Question?
There was Positive Circularisation for 5 marks, then substantives for 6 marks, then audit report for 5 marks. I don’ remember the other 5 mark question. Does anyone remember that?
TIAThere was a 5 mark question on substantive testing regarding redundancy provision.
the positive circularization was 4 mark, not 5
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