- This topic has 88 replies, 40 voices, and was last updated 8 years ago by
.
- Posts
Anyone else know if it was correct to use the ACCURATE accronym for question 3 part C?
I don’t think it asked for the quality of information per se – it asked for the key principles that the disclosure should follow –
I wasn’t 100% on it but ended up doing a mixture of-
accountability/probity/transparency and a couple from accurate – timely (refer to the fact the leak occured before the disclosure), understandable – so the shareholders understand.
I don’t think the paper was particularly hard, but at the same time I really don’t think they gave away any of the easy marks like NEDS roles, or board structures – or importance of CG – in fact what little CG there was in the paper was pretty crap considering its supposed to make up 40%
I am pretty certain it was the ACCURATE accronym. I made sure to read the question several times. It was cleverly worded, any else have an input for question 3 part C?
In q3, I wrote about fundumental principals, specialy transperancy, integrity.
As question was about principals for disclosure and communicationI guess from the ACCURATE accronym. Complete is linked with transparency and accurate or authoritative is linked with integrity. As soon as I read it ACCURATE accronym flagged up for me. But im not too sure, any other opinions from others would be greatful.
I agree with AndyT on 3(c), it did not ask for the quality of information from my recollection. It was more to do with disclosure as a form of communication….’a way to assure and communicate governance’. Then talk about reasons of disclosure…asymmetry of long term SH objectives etc. I do, however, think mentioning some characteristics of ACCURATE would provide marks.
I answered questions 2 and 4. i spent nearly 1hour 40 minutes on question 1 alone. so was getting as much done as possible.
got stuck on one area in question 2 the 10 mark.
hopefully i pass and then back to f9 which i have been struggling on for the last 4 attempts 🙁Yes i used ACCURATE – not for all Marks though, im pretty sure there was other reasons in the case you could mention.
Found exam ok, tough with time. Lots of Risk, kind of felt at different points of the paper i was repeating myself..
Found Q1 good. and Q4.. Q3 was rushed for me
- Topics: 0
- Replies: 15
- ☆
Answer to
vebemParticipant
does anybody remember question 4 about risk in speed rail net? it seems i answered only point a, can’t remember other points b, c etc…4B- was about what risk types railway was facing and There was a question on ALARP and something on risk assessment on probability and likelihood.
Also I briefly remember there was something to do with risk management- how railway was mitigating its risk, with emphasis on financial risks- I guess it was talking about Enterprise Risk Management system that was already in place.- Topics: 0
- Replies: 15
- ☆
So what did you say about the what safeguard could they use on ethical behavior to avoivd the conflict of interest? I had no clue what was examiner asking and started taking about TUCER but I’m sure its wrong. Just didn’t know what he wanted.
- Topics: 0
- Replies: 15
- ☆
Trishee,
It was supposed to be a statement to be published on banks website from chairman to stakeholders;
So I have written a title: “Statement from Chairman of SFB to shareholders”
Then I have briefly written in 1st person that as a Chairman I would like to write on behalf of the board to our shareholders explaining….
Then I did point 1
then point 2
and at the end I have just written
END
I am not sure this is correct but hopefully yes- did anyone else did the same?@agnieszkamann said:
So what did you say about the what safeguard could they use on ethical behavior to avoivd the conflict of interest? I had no clue what was examiner asking and started taking about TUCER but I’m sure its wrong. Just didn’t know what he wanted.I’ve written about: retirement from the contract, change audit partner, independet review, audit training.
I remember in the notes, wasnt it suppose to be “recourse to the legal system, audit standards, governance standards?
- Topics: 0
- Replies: 3
- ☆
I think it was time challenging not easy as i saw different answers in the comments but in total i dont know
Hi All,
If this is of any help. Some facts that I can recall on Question 1 (March 2017 session).
*Please note these details are not comprehensive – just what I remembered from memory and in my own words.*Case scenario revolves around the State Bank of Forenia (SBF) that is trading in highly risk derivatives i.e loan documents to the extent that the “capital ?? ratio” is below recommended industry average level. The existing auditor had been auditing the bank for 20 years and the audit partner happened to be a good long-term friend of SBF Finance Director who highlighted privately to the Finance Director on the issue. But he still signed off the audit report despite his reservations.
Issue was found out and exposed by a journalist and his reporting triggered mass hysteria and many bank depositors went to withdraw out their money and the bank was unable to fulfil such massive demand of withdrawal and nearly faced collapse. It was bailed out by the government of Forenia with a 49% stake in exchange of cash injection.
Several outcome from the crisis:
i) A tender was opened for services of new auditor.
ii) Board propose for internal audit report to be reviewed by an audit committee before being received by the main Board.Question Requirements:
a) Explain responsibility of the Board of Directors in internal control by reference to the case.
b) Give reason why it is better for audit committee to review internal audit report before being received by the main Board
c) Explain why it is beneficial to the shareholders to have open tender for external auditor service.
d) Draft statement by chairman to shareholders on following
i) state how the board had failed in its fiduciary duties
ii) < cannot recall >
iii) highlight major risks faced by SBF and what counter measures can be takenHello everyone, good luck to you all. Please I will be attempting this paper in June but I don’t really find it straight forward and I keep going back and forth as it’s quite not straightforward answering questions after reading the textbook book. I’m currently using BPP as I noticed most Acca past answers has been structured in a similar way as Bpp revision kit. Please can you kindly share some of the tips that helped during your studies. Though I don’t find it difficult and it seems enjoyable just the problem of tackling the questions. Thank you in advance and God bless you.
I think Q2 required to consider how FAK being Accountancy firm of accountants can play role in public interest. what verious threats to indepence was existed at FAK. How this threats affected the ethical behaviour at FAK. What safeguard should be in place to independence to have ethical behaviour.
There were clues in question like working as auditor from 20 years , overdue fees, finance agreed to give clear report where major debtor gone into liquidation etc
**Note: This is purely recalling from my memory the facts of the case so the information is not comprehensive. Just want to share out for discussion purpose here. I like to do post-mortem of my attempt which is why I jot down facts of the case scenario after I come out of exam hall 🙂 **
Question 2
Case scenario revolves around an audit firm, FAK, which had been operating for 25years and had earned long standing reputation locally and had many long standing clients. One of its audit and tax client, Blake Plc, was facing cashflow issue and was facing short-term liquidity issue and the audit partner agreed to stagger their bills, totalling $50,000 for the client over a period of several months to help ease the burden on the client.
To tide it over its short term cashflow issue, Blake Plc needs to get an overdraft extension from its bank but the bank requires the latest audited report before it can process the OD application.The audit firm was actually in the process of finalising the audit but case scenario did not mention what the audit partner subsequently did. Option was laid open. It was mentioned that if the OD application was not approved, the client may go into liquidation and the audit firm would not be able to recover any portion of the debt.Requirements:
a) Explain how the actions of the audit firm can have influence on the accounting profession as a whole. <or something along this line>
b) Explain how threats of independence can arise in this case.
c) Discuss on what ethical safeguards that the audit firm can impose to prevent such issue.Question 3
Case scenario revolves on a major national retailer which overstated its profit by $250million. It issued a warning statement to shareholders on this issue.Shareholders reacted negatively and the share price suffered huge drop. Meanwhile, risk committee preliminary findings into this issue and found out that the error was due to revenue was recognised in advance and belated accrual of cost. Scenario mentioned that the internal controls was very poor. Due to scope of investigation, the quarterly report to shareholder was delayed by one month and investors was left in the dark during that time when waiting for the investigation to be completed.Requirements:
a) Directors have responsibility on internal control. Explain how risk committee can help directors discharge their duty relating to this.(7marks)
b) List of objectives of internal control. (8marks)
c) Explain general principles of disclosure and communication and how can the retailer utilise them in this scenario. (10marks)
** remembered clearly the marks allocation as this is the final question I attempted with not enough time to write and left part b unattempted 🙁 8 marks gone!**Question 4
< Did not attempt therefore no information to share but I recalled something on “risk awareness”>Hope it can help you people in your discussion thread. 🙂
I think it was regarding the ALARP concept considering the impact of risk and probability of risk being realised.
Means all some one can reduce the risk but in reality it is not possible to eliminate complete and company will have residual risk which organisation will accept.
Management can reduce the impact of the risk by taking risk management by TARA but can not control the probabilities of risk as it is dependent on external factors and out side the control of entity’s control like adverse weather because of rail accident realized.
I thought that q2 was a bit like f8 scenario therefore i connected outstanding fees , bank requiring audited f/s ,audit partner unable to perform work on whole procedures and few other issues with self interest intimidation threat e.t.c.. unfortunately after reading few comments regarding q2 it feels like i answered it in wrong direction and will suffer nearly all marks…what do u guys think?
@usamamustafaa said:
I thought that q2 was a bit like f8 scenario therefore i connected outstanding fees , bank requiring audited f/s ,audit partner unable to perform work on whole procedures and few other issues with self interest intimidation threat e.t.c.. unfortunately after reading few comments regarding q2 it feels like i answered it in wrong direction and will suffer nearly all marks…what do u guys think?I’ve done the same)
- Topics: 0
- Replies: 15
- ☆
To Agnes
@agnes4325 said:
**Note: This is purely recalling from my memory the facts of the case so the information is not comprehensive. Just want to share out for discussion purpose here. I like to do post-mortem of my attempt which is why I jot down facts of the case scenario after I come out of exam hall 🙂 **Question 2
Case scenario revolves around an audit firm, FAK, which had been operating for 25years and had earned long standing reputation locally and had many long standing clients. One of its audit and tax client, Blake Plc, was facing cashflow issue and was facing short-term liquidity issue and the audit partner agreed to stagger their bills, totalling $50,000 for the client over a period of several months to help ease the burden on the client.
To tide it over its short term cashflow issue, Blake Plc needs to get an overdraft extension from its bank but the bank requires the latest audited report before it can process the OD application.The audit firm was actually in the process of finalising the audit but case scenario did not mention what the audit partner subsequently did. Option was laid open. It was mentioned that if the OD application was not approved, the client may go into liquidation and the audit firm would not be able to recover any portion of the debt.Requirements:
a) Explain how the actions of the audit firm can have influence on the accounting profession as a whole. <or something along this line>
b) Explain how threats of independence can arise in this case.
c) Discuss on what ethical safeguards that the audit firm can impose to prevent such issue.Question 3
Case scenario revolves on a major national retailer which overstated its profit by $250million. It issued a warning statement to shareholders on this issue.Shareholders reacted negatively and the share price suffered huge drop. Meanwhile, risk committee preliminary findings into this issue and found out that the error was due to revenue was recognised in advance and belated accrual of cost. Scenario mentioned that the internal controls was very poor. Due to scope of investigation, the quarterly report to shareholder was delayed by one month and investors was left in the dark during that time when waiting for the investigation to be completed.Requirements:
a) Directors have responsibility on internal control. Explain how risk committee can help directors discharge their duty relating to this.(7marks)
b) List of objectives of internal control. (8marks)
c) Explain general principles of disclosure and communication and how can the retailer utilise them in this scenario. (10marks)
** remembered clearly the marks allocation as this is the final question I attempted with not enough time to write and left part b unattempted 🙁 8 marks gone!**Question 4
< Did not attempt therefore no information to share but I recalled something on “risk awareness”>Hope it can help you people in your discussion thread. 🙂
Agnes,
So what did you say about the safeguard in question c)? I did not know what was the examiner asking for- did he want a model or general advise? I think this was a bit nasty part of a Q
Thanks
- The topic ‘*** ACCA P1 March 2017 Exam was.. Instant Poll and comments ***’ is closed to new replies.