AAA*** ACCA P7 March 2017 Exam was.. Instant Poll and comments ***

Dear Sir according to my thinking examiner asked additional information related to detail performing of analyitical procedures. Not general aditional information

@majedjam said: Q1 was fair Q2 was terrible especially part c had no idea what was going on lol. although part a and b their were easy points on quality control such as: auditing standards not being properly applied, not reported to cwg internal control deficiencies etc. Q4: Had run out of time but wrote some points on threats and whether its prohibited or not Q5: Was similar to December exam. however,was not sure on part a what was exactly required. anyone any ideas? Last part i also mentioned material uncertainty para to be added as management disclosed in the notes.

Q5 in December 16 was on KAM nd in this session there was nothing related to KAM bcz if material uncertainty adequately disclosed then auditor should include a separate para M.U regarding GC.

all the part of the question was average to me except question 2 related to quality control. And i think this turn my exam to disaster. :(

Is it Q5 Mar,2017 similar to the Q5 in Dec,2013? What is KAM?

Regarding question 4, I still remember for the first company, the paragraph talk about the increase in audit fee, the revised of materiality assessment For the second company, i almost forgot, maybe probable something related to Intimidation and advocacy For the third company, the paragraph talk about the client has ask the auditor to choose the suitable accounting system for them. Anyone here can please help me update me the issues and threat to objectivity?

For 1st company I put Advocacy threat - promoting client interest re bank loan Self interest - % increase in audit fee if complete before a certain date Self -review - review of internal control Possibly intimidation - significant client - dismissal from office issues 2nd Self interest Self review for valuation (but immaterial, still acceptable) Misunderstanding the role of engagement quality reviewer ?? 3rd can't rmb details Self interest Self review

Q2 is a tricky question for me

I put IAS10 for planned acquisitions too Audit procedure include Review the disclosure Review the legal document - consideration of 130m, date Review board minutes for approval the acquisition Discuss with management on the expected revenue earned, if it can replace the existing products Obtain the DD report and review the consideration to be paid is reasonable or not

worried but shall keep my fingers crossed. felt like i messed up q2 and q4 was not done as well as i hoped. hope i did enough to secure a pass.

After reading all the comments not sure I did too well now!! I don't think I have written enough to get 50%!! Just a waiting game now

Was there advocacy threat in q4 because it did not mention that the auditor is accompanying the client to the bank. It is fair to prepare an audit report for the purpose of a loan if this is required by the bank? isn't it? The other thing i have noticed with the ethics part of the paper is that there was a separate engagement team to advise the client on a bid for an accounting software. This was a non-assurance service but how would this be unethical or unprofessional? is the examiner trying to have an answer about this engagement team should not form part of the audit team in future audits, then may be yes. Client was not listed. Paper was quite tricky in general. Difficult to play the game in 3.15 hours i guess.

@wesbyss said: For Q1, i think the acquisition was mainly questioning about IAS10 / ISA560 as the planned acquisition date will be after the year end (during Jul if I did not misread)? For the audit procedures, most of the procedures I wrote were to confirm the actual acquisition date and the significance. Will we get marks if we say something like to check the classification / GW calculation / FV / retain earning etc?

GW calculation, FV, retain earning? i dont think so these are relevant audit procedures for acquisition which we are planning. Remember that acq will took place after 3 month in July and you can not calculate GW, FV, RE etc untill you acquired the subsidiary.

@kakahh said: I put IAS10 for planned acquisitions too Audit procedure include Review the disclosure Review the legal document - consideration of 130m, date Review board minutes for approval the acquisition Discuss with management on the expected revenue earned, if it can replace the existing products Obtain the DD report and review the consideration to be paid is reasonable or not

I have written almost same: - Due diligence review (also check competence of the person who performed this) - Board minutes to confirm that board is planning to acquire this subsidiary - Management representation, why they think that it will overcome loss - Bank agreement to provide loan for this acquisition (something like that) I dont remember enough but i have written about 10!

anybody know the q3(c),how to answer,i was confused.

Q1 B. what other info would be needed to carry out analytical review? i wasnt sure if they were asking about each risk or in general. Q.1a Material Misstatements - Current assets - Inventory - Development cost - Interest Exp did not change although a new loan - current tax did not change although different reported profits - all expense grouped under operating expense

They were so many misstatements in question 1, i think i got carried away and ending up braising for time at the end.

For q5 last question 5 marks i put - adequate information, IAS 1 complied with. - auditor will express an unmodified opinion - but include a separate section Material Uncertainty Related to Going Concern. - highlight the difficulties - draw the reader's attention to disclosure notes - immediately after the Basis for Opinion paragraph, before the KAM section. - charged with governance should be informed : inclusion of the paragraph, proposed wording

additionaal procedure Review the new legislation and the min requirement - confirm with HR the no of employee below min wage Discuss with management and HR for the possibility for salary increment Recal the salary Obtain the lease agreement and review tems (any max lease amount?) Discuss/ written representationwith lessor for expected lease costs Forgot other issues...anyone write same as me ?

Hi. I question no. 5. I wrote 5a I and ii and wrote the answer together as I was running out of time. Like even if I mixed the two, will I be given credit? For Q2, I couldn't understand the question much so I just calculated materialities? Will I be awarded marks and how much?

the exam was very tricky especially question 2 i didnt have enough time to thoroughly complete it .

Looks like everyone has done Q4 and Q5 ... what was Q3? Some sort of matters and evidence / accounting issues and audit work question?

@wesbyss said: Q3 was about forensic audit. The voting result shows that similar number of people chose Q3 and Q5.

I was basing my comment on the almost total lack of comments on here re Q3!! Which either means very few did it, or that those who did found it free from controversy and therefore it didn't stick in their minds.

Does anyone know if paper p7 is marked very strict or you could score marks for vague answers? It is very hard to make answers resemble that of the examiner's answers. what do you guys think?

@prof008 said: Does anyone know if paper p7 is marked very strict or you could score marks for vague answers? It is very hard to make answers resemble that of the examiner's answers. what do you guys think?

I think from reading examiners reports etc the main importance is referring back to the scenario with every point you make. Not sure how it works when the answers we give are not in the suggested solution. I think if you make a well explained point with reference to the scenario you get the mark. Very much depends on the markers opinion though.

I did self study on P7 exam. can anyone tell me if it is necessary to state the specific number and description of the related standards-IAS/ISA/IFRS etc..in answering/discussing your answers?

Can anyone submit all question breakdowns on what came up on the exam. and summarise answers maybe briefly like question one was......

one can mention control risk as well since i was a big group people and system will struggle to catch up with the volume of transactions. listing reuqiremnt that the company fals within the scope of IAS 33 Earnings Per Share and IFRS 3 Business Combination. Management bias as well since it is listed that might manipulate the financial statements.

for part q1b i said the follwing: revenue generated per every associate and sub revenue generated per product obtain a copy of the bank loan that is going to be used to acquire the company a schedule of all the intangible asset a schedule of all the products that are in the research phase

@evelang said: I did self study on P7 exam. can anyone tell me if it is necessary to state the specific number and description of the related standards-IAS/ISA/IFRS etc..in answering/discussing your answers?

i think yes. if u reviewed the answers the examiner did mention numbers.

From what I have read in examiners reports, the examiner mentioned that this is not a P2 exams and mentioning ISAs names and numbers will not bring you additional marks. In fact, the examiner mentioned that students may write" in accordance with the relevant IAS/IFRS or even ISAs. Your answer will certainly look better if you write the names and numbers of the IAS/IFRS/ISA but in terms of getting additional marks, I don't think so.

I do actually remember any i scribbled in this exams. my lack of exam technique