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This exam just driving crazy with time pressure….a lot to write but no time !!. min additional 30 minutes need to complete the exam.
Omg ACCA p7?? Why so little time? I feel like crying already. Definitely feel I’ll be rewriting in March 🙁
OMG! I found the questions manageable but couldn’t do justice thanks to lack of time :(((
Reading takes like 15min so no point in makin the exam 3h15min IMO.
The first question took me like 1.5h and i had like 1.5 hours for the rest . I just messed up quesn 5 as I didn’t have time 🙁 Feeling terrible cos it was an easy one on a few accounting standards.
Quesn 1- Business risk & Risk of Matl Misstatement of an airline group company with 4segments . (10*2) , Additional info to evaluate Internal control-4marks & Ethics-7 Marks
Quesn 2- there were 3 cases and we had to evaluate the sufficiency & approp of Audit evidence, list out other procedures to collect evidence and also report on deficiencies of internal control to TCWG.
Quesn3- something on forecasts of cashflow (Left it)
Quesn 4- Had a group audit in which a subsidiary was having going concern issues + disagreement between subsidiary auditor&grp auditor/mgt on modified report (14 marks) + Professional scepticism (6marks)
quesn 5- KAM (8marks) & 3 cases involving possible accounting misstatements (one goodwill impairment, court litigation provision & cant remember the third) – 12marks
(Messed this big time cos of lack of time 🙁 )Hope to get 50 ! Lets see !
Exactly the same with me. Didn’t do justice to question 1 I feel so bad about it
Does anyone know exactly what the additional info was for Q1 c)? I talked about importance of understanding the industry and doing tests of control in inventory but not sure that was the answer!?
I can only agree, time pressure was too bad, I wasn’t able to finish the exam, but I think it should still be enough to pass. Q1 was probably too much packed into one question.
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time pressure was an issue and 1 was obvious but to pick ethical was had but it was about forensic auditing which had self review, advocacy, independence and conflict of interest.
5 was about recent article KAM@Guy- Oops that didnt strike me at all. I jus wrote about assessing the competence of internal auditor & reviewing his report and then getting more management representations + board meeting minutes, Inventory control systems etc.. too bad I cant remember much !
Are you allowed provide a forensic investigation for an audit client if they are listed?
@gavin23 said:
Are you allowed provide a forensic investigation for an audit client if they are listed?I wrote about the threats, safeguards and how for listed cos Tax&legal services are prohibited etc.. I also said that it’d be better to avoid taking it up to avoid the threats and that in some countries like India(where im from) it is expressly prohibited which means the auditor shd check such regulations also before deciding. My final conclusion was that it’d be recommended to not accept the forensic investigation.
I didn’t go into all the threats .. just explained it was a forensic investigation and that our independence would be compromised therefore there was no suitable safeguard. Also wrote that Auditor was prohibited from entering into such an engagement would a listed company .. thought I read that somewhere.
It was a fair paper but time sure was a killer.
Anyone remember the bit about Landing rights in Q1 … had the company acquired inappropriately – as in not going through the relevant regulatory authority?
Too much going on in Q1 – was very hard to construct a fluent answer in the time. It should have been a 50 marker.
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How did you answer question 5 b? Seems like all the treatment was correct. Were they trying to ask us about how this matter should be reflected in KAM and EOM etc?
I think the paper was fair. i have done at least 5 past papers under exam condition so had no issue with the time management. But the result will tell…just hope for the best but left the exam with a feeling that I have done my best and should pass. failed to prepare prepare to fail!
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the material risk were landing rights, inventory, loan and derivatives but you see business risks political, ban, internal control, profitability of one company had loss, going concern due government restrictions, derivatives risk, liquidity risk, safely, fuel, reliance of one supplier of air line asset and customer preferences risk
For the 4 material misstatement risks I put NCA (IAS 16), Borrowing Costs (IAS23), Fin Inst (Hedging) (IFRS 9) and Inventory (IAS 2). Anyone else get anything similar??
for risk of Material mistatment i went with loan,derivatives,landing rights and goodwill(since the government has changed landing slot timings) and revenue of the low cost airlines was decling…:P
i forgot to write about derivatives in business riski did mention about self advocacy threat..self review and self interest threat(as it was non-audit assignment) but forgot to mention about forensic investigation
Q5 was bit confusing
@divy32 said:
For the 4 material misstatement risks I put NCA (IAS 16), Borrowing Costs (IAS23), Fin Inst (Hedging) (IFRS 9) and Inventory (IAS 2). Anyone else get anything similar??So glad someone else put borrowing costs in. I thought it was a stab in the dark.
I also put in about brand names because it said they were operating under three brands so I said they shouldn’t have capitalised if internally generated but I was really clutching at straws with that one.
I found this exam quite difficult. All the practice questions and mocks I’ve done have been fine but today i struggled to get enough info out of the scenarios for the marks available.
It is very hard to know at times if you have done well, I ran out of time and ended up writing lines of nonsense near the end, it really is tough to manage that aspect.
Q1 was ok, I found hunting out the business risks not so easy with this scenario.
Q2 quite liked that had seen most of the accounting issues to be audited before.
Q3 Best of the bunch in my opinion. Auditing a cash flow forecast and related party loan from the CEO.
Q4 Looked easy but was a PITA, professional sceptiscm and lack of audit evidence to substantiate going concern. So wish I’d done Q5 as I was red hot on KAM after the examiner article. Probably jeopardised a pass by choosing 4 and not 5
My biggest issue was feeling I hadn’t really got into my flow and I knew I could write a lot better than that.
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This paper was really different from his past year papers
@dd92 said:
So glad someone else put borrowing costs in. I thought it was a stab in the dark.I also put in about brand names because it said they were operating under three brands so I said they shouldn’t have capitalised if internally generated but I was really clutching at straws with that one.
I found this exam quite difficult. All the practice questions and mocks I’ve done have been fine but today i struggled to get enough info out of the scenarios for the marks available.
Woah! I missed all that. I wrote about segment reporting cos 4 segments were involved(is it right?) , commodity derivatives, Intangibles impairment, non cash transaction, possible material inventory frauds and also abt consolidation risk & loan. I wrote extra actually :/
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