AAA*** ACCA P7 June 2018 Exam was.. Instant Poll and comments ***

Can anyone remember the requirements of question 2? Can't remember if recommending procedures was a part of it!

Q1,Q2 and Q4 there is audit procedure and evidence

This exam seen time pressure for Q1 and i am rushing for the remaining question with 1hr 45 mims

@jake360 said: Can anyone remember the requirements of question 2? Can't remember if recommending procedures was a part of it!

yes it was procedures as well.

Most time pressured exam I have taken! 6 pages Written for question one.. took up half the exam time! Qu one and two ok.. the options questions I feel my answers were weaker..! Chose 4 and 5.

Completely agree with other regarding time pressure. I don't think the examiners really understand this from a students perspective. I gave the depth required for Q1 and Q2, and just about finished Q3 and Q4 although not my best work. I just hope it's enough to pass.

The time allocated is not adequate for this exam considering the same amount of time is given for the fundamental papers , will be back doing this in September due to time pressure and not my lack of knowledge....very frustrating

same here. not enough time to finish

Can anyone share what you all wrote for question 2 and question 4 .

i think q2 was something along lines of.. ...quality control ethical and professional issues and recommend and actions (including further procedures) a) late journals FD b) new costing system and credit control c) ??

Damn I had 15 minutes to finish Q5.. thank god the errors were quite obvious

Watched a lecture on KAM a couple of days ago, but q4 on KAM benefits and disadvantages.. mind blank!? Benefits I put highlights to shareholders and potential shareholders the significant issues that could influence their decision..

Also something about expectations gap..

Do you recall how much mark is the criticise of audit report ?

Yup.. caught me off guard there haha.. but I only had time to appraise the report so I skipped the benefits and disadvantages.. although all I've ever learned from the study guide was how to determine whether a matter is KAM and what should be addressed in KAM.. Kinda disappointed they asked benefits & disadvantages instead

The report appraisal was worth 12 marks. You get 1.5 marks per identified&explained point

@tangibleasset said: Guys What was in question 3? I have completely forgotton what was in it I know question 4 was about matters and evidence Can someone please help? Regards Tahir

Question 3(a) was about implications on the completion of the audit & further actions. 3 (b) was about difficulty in providing assurance for CSR reporting & examination procedures

Can u remember what error? I state the sequence of basis of qualified report should be place after the opinion paragraph. The kam should be after the basis of opinion. Should remove the emphasis of matter and replace material uncertainty related to going concern. No accounting standard mention in valuation of financial instrument . Unprofessional language saying finance director is inexperience. The pharse we believe state not uncertainty by auditor. And never mention which customer

Did anyone else use the lack of diversification as a business risk? Also the gearing was 70% which seemed high but I wasnt sure whether its high for a construction company.. regardless I went on about breaching loan covenants and going concern risk..

@vorkath said: Did anyone else use the lack of diversification as a business risk? Also the gearing was 70% which seemed high but I wasnt sure whether its high for a construction company.. regardless I went on about breaching loan covenants and going concern risk..

Lack of diversification in acquisition. Unsystematic risk not mitigate. Put further cashflow pressure on boxer due to acquisition cost and legal cost. As boxer have only 0.3 millon and gearing increase at 0.7.

@lesbella said: Can u remember what error? I state the sequence of basis of qualified report should be place after the opinion paragraph. The kam should be after the basis of opinion. Should remove the emphasis of matter and replace material uncertainty related to going concern. No accounting standard mention in valuation of financial instrument . Unprofessional language saying finance director is inexperience. The pharse we believe state not uncertainty by auditor. And never mention which customer

I think all of your points are valid..ill add on: KAM did not state how the matter was addressed during the audit and make reference to the related disclosure, the qualified opinion title should not include the misstatement, no quantification of the effects of misstatement in the basis of opinion, IFRS should be stated in full, EOM did not make reference to how the matter can be found in the notes (assuming EOM is appropriate).. the rest should be same like yours

When writing business risk and material misstatements for boxer, did we have to write for risks for each division??

@mumbaikar said: When writing business risk and material misstatements for boxer, did we have to write for risks for each division??

Not necessarily.. business risk concerns the company as a whole.. as for RMM anything that may cause the FS to be materially misstated is fine

@vorkath said: Not necessarily.. business risk concerns the company as a whole.. as for RMM anything that may cause the FS to be materially misstated is fine

So i wrote for each division its fine ya?

And for question 2 the answers i felt mine were pure reptition example the auditors lacked some competence and required training! What abt others? acca examiner dislikes repetition i guess

@mumbaikar said: So i wrote for each division its fine ya?

Yes, in fact there is a business risk in each of the division.. as long ask it is a business risk you should get the mark

@mumbaikar said: And for question 2 the answers i felt mine were pure reptition example the auditors lacked some competence and required training! What abt others? acca examiner dislikes repetition i guess

Same for me haha.. I suggested training quite a few times

Q1 Business risk: Liquidity: 0.3m in cash with acquisition planned and already 0.7 gearing Gearing: 70% liability, potential high interest cost and covenants Continuity of funding on Residential: Government reducing funding on grants, it's 25% of their Revenue, any going concern risk? Exposure to Property market: On their commercial undevelopped land held at FVTPL, in case of market crash (2008), very large SOPL charge and risque of insolvency Reputational: Disposal of the sub with redundancies, negative media coverage and strike with costs Audit risks: Grants: Are they recognised in line with IAS20? Risk they are deferring when not allowed Land: Investment property, requirement to FVTPL, incorrect 10K gain when it should be 1m loss, risk the rest of portfolio is misstated Disposal of rail: Risk that the disposal of asset is incorrectly recorded, very material figure. Disclosure risk: Should be showing as Discontinued operation Disposal of agriculture: Risk provision is overstated as training costs not allowed. Same risk as above, shoud show as discontinued operations. Risk of litigation if any redudancy deemed unfair dismissal Audit of restructuring provision: *Recalculate employer calculations, agree to employee salary per GTN *Obtain letter from ER to EEs, verify date *Obtain copy of media coverage for audit file *Ensure in line with employment law and taxation law for any taxable/non taxable lump sum Anyone with theirs? I feel like I could have missed loads

Q5a) KAM 8 marks b) Critically appraise 12 marks

I done the UK variant. Can anyone tell me what the mark scheme was for Q1?