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One thing is clear Acca pappers are unpredictable.. i got guess pappers from Bpp and kaplan site .. and also from some well known teachers in my country..
Not even one question was from that guessQ2 was odd and completely different to what has been seen before. Easyish 6 marks on the benefits of quality control reviews at the start but I honestly think I got like 7/8 marks in total here as it was so odd.
Q1 & Q3 were easier and lots of good marks available I thought.
I also did Q4 which was not as easy I thought but hopefully a pass here too.
Q1 audit risks I covered e-commerce online sales risks, inventory valuation, impairment on brand, goodwill recognition, related party disclosures, potential consolidation errors on intercompany balances, detection risks, and I also mentioned something on currency translation risks as the text said the group was known worldwide and therefore sales must also have been worldwide….
Q3 – who else did this? The matters and evidence was relatively easy I thought but keen to know what standards people talked about? I mentioned IAS 16 for the newly built building and the firms failure to recognise depreciation, and then the last but was on grants IAS 20 I thought…..agree….
Q4 – anybody do this? Within the second section, did you talk about professional appointments and how the new auditor needs to speak to the previous auditor before accepting the new engagement?
@kerrimcm1 said:
16 marks for audit risks, 5 for procedures to test inventory and 10 for reliance and evaluation of component auditor
4 marks for presentation of answerWhy don’t they show the breakdown of marks on the UK Paper?
@craigalong said:
Why don’t they show the breakdown of marks on the UK Paper?Not sure! I’m in Jersey so we do the international paper.
@arvind111 said:
Q3 – who else did this? The matters and evidence was relatively easy I thought but keen to know what standards people talked about? I mentioned IAS 16 for the newly built building and the firms failure to recognise depreciation, and then the last but was on grants IAS 20 I thought…..agree….I said that but also said it could be held as IP so no depreciation would be correct especially as they were going to rent it out to external parties.
@arvind111 said:
Q4 – anybody do this? Within the second section, did you talk about professional appointments and how the new auditor needs to speak to the previous auditor before accepting the new engagement?I said something along the lines of them not responding doesn’t mean you turn down the audit just means they become high risk.
I am a finalist So I got 44% in September and knew i’d failed when walking out. I feel like this exam went better.
I started with Q4 ethics think I did really well on that question.
I then moved onto Q1 where I think I mentioned enough to pick up some decent marks but I was starting to run out on time I think I had 75 minutes to do Q2 and the other optional question. I did Q2 to the best of my ability no clue how that one went.
Usually I always for for the most common optional questions but this time I did Q3 instead of Q5. I had 20 minutes left and just went for as many marks as possible. I thought Q3 with KPI’s and evidence was straight forward.
Felt good walking out the exam. Every time i’ve walked out an exam i’ve known whether I had passed or not. Fingers crossed this is my last exam. I’m feeling relatively confident 🙂
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I mentioned Government grants and how income had to match the costs in that period.
With regards to the second one, i mentioned Investment properties as the properties were solely for rental income
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@dclch said:
What were the Q2 questions? I sat the exam today and cant remember for the life of me!It’s so funny you’re saying that…..I’m exactly the same, couldn’t hazard a guess
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For q1 I got
1)mid year acquisition
2)ifrs 15 revenue recognised when dept stores sell the product.
3)website sales need to be integrated to the accounting system-control risk
4) Goodwill discount rate could be inappropriate????
Goodwill fv could be inaccurate
5)internally generated brands not to be capitalised (or was this q2) its all a blurrB) check consignment agreenents
Physically inspect inventory at the dept stores to confirm thar they are from the subsidiary.
EtcC) is it something about a component auditor and placing reliance?
Think we check the auditors approach/methodology, qualifications of those on the audit team.
The auditor had an extract which i cant remember details off. Think they had a checklist for romm which is useful but the risks vary from audit to audit.
The partner was too familiar with the company.
In q2 there was something about using the valuers of some paintings in the opinion which should not be done as it may give the impression that the audit opinion is not solely that of the audit firms.
The audit firm did not get access to the board minutes. This is a prerequisite for any audit and is in the engagement letter. This also was not duscussed with the audit committee due to the possible conflict with the fd. The audit partner should have enough exoerience ro be able to challenge management.
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q2) there was a famiiarity threat to independence as the audit managers brother is now fc. This should hsve once again been discussed with the audit committee.
The communication to management was sent 6 weeks after the audit report was signed. This was too late and should be ongoing communication about controls and any adjustments shiuld be advised prior to the audit report being signed.
Cant remember what else but i may have just stated rhe obvious in the exam but i just ended up stating why what happened was wrong.
Does anyone know the requirement of this area?
Q5) immaterial hence no modification
B) ias24 material by nature. Qualified except for a material misstatement
C) was it %ge of 1 months revenue. This was confusing so i wrote immaterial.
@tj200. Everything u have said like looks like me. I answered the questions in this same order and I’m a finalist too.
Wish us the best of luck.
I think if the examiner wants to test us in audit then do so. But please don’t make the exam a race for time- which is unfair.
You want us to plan, you want us to have a ligible handwriting, you want to see professional answers.
It is reasonable to want to see those at a professional level. But we need time to plan and write these out legibly.
I just hope you mark fairly with the not so legible handwriting. This paper is becoming unpopular with the lowest passing rate for the previous sitting.
What do you guys think? Comments? Suggestions?
Good luck everyone!
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Practice management. mainly quality control
Q2 was about external quality control review and students had to comment on reviewers findings. firm wide Materiality policy (inappropriate use), Use of expert (Can’t tag expert in audit opinion) and there’s another matter too which i am forgetting.
@sahil1234 said:
What was the answer to Q5 part a ,state 3 different types of missatements recognised in ISA 315 ?Check latest article on ISA 450
Interesting exam today. Very time pressured in my opinion, and one that I did not quite finish as I would have liked to.
I did Q1 first, and this was very good in my opinion, lots of Audit risks available on the brand name that was not being amortised, online sales, detection risks, related party disclosures, intercompany transactions, inventory valuation, good will impairments and good will recognition, I even mentioned something on currency translation risks as the group was a world wide brand and therefore assumed sales must also be worldwide. The next part asked for some procudriews on inventory valuation and to finish by evaluating elements of what the composite auditor was proposing to do. Not bad – but it was for 10 marks and was probably the hardest part of the question.
I then did Q3 on the procedures for the performance information and the matters and evidence, and again, I think this was a very good question, with lots of pretty easy marks available. The standards in use were IAS 16 PPE and IAS 20 on grants – anyone else agree with that here who did the question?
The problems however started with Q2, which was complelty different to any quality control review seen. The review had been done, and we had to comment on the findings in an odd way which in the time we had, I just found difficult to really get. The first part, for 6 marks on the benefits and findings of cold reviews, was decent and I think I scored well on that, but overall, from 25 marks available, I think I probably got 7/8 marks which was disappointing.
I then did Q4 on the ethics, and this was not as easy as I first assumed. The question was broken into 3 chunks and there were some obvious ethical issues. Definitely tricky but hopefully a pass overall.
Overall, I am hopefully a good show in Q1 & Q3 will pull me through and make up for the poor show in Q2, but based on what I have read, everyone found Q2 hard so that’s reassuring. Lol…
Q2 is horrible.I did not elaborate my point much due to running out of time 🙁
What’s the issue to write regarding the auditor did not have any engagement letter with auditor expert ?
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Yes i found the number too large and confusing . i wasted a few minutes doubting my own judgement about whether it was billions they were giving us.
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There are 1.8 minutes per point and it is vital to stick to this time… . I just find it impossible to finish the exam. You can not think, write and keep track of the time at the same time. I managed 80% of the exam and this is my third time sitting it.
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