*** ACCA P7 September 2017 Exam was.. Instant Poll and comments ***

So this was a resit for me. I got 49% in June.

I have to say this exam is brutal! it is the time pressure. Maybe I’m slow at reading but time just slips away so easily.

How many of you actually finish all parts of the questions?

I answered Q3 and Q4 thoroughly.

Q1 Part a mostly and bits of part b. There was so much going on in this question!!!

Q2 bits of each section due to time.

I also gat 49 in June 🙁
I found section B harder this time.
I answered q3 and q4 and was happy to see due deligence, but then the way it was asked I am not sure I ve answered it correctly. I felt that everything I wanted to say was already included within the question.
I spent too much time on Q1 but overall i tried to put something in every part of the question but not sure if it will be enough to get me a pass.

@kasia86 said:
I also gat 49 in June 🙁
I found section B harder this time.
I answered q3 and q4 and was happy to see due deligence, but then the way it was asked I am not sure I ve answered it correctly. I felt that everything I wanted to say was already included within the question.
I spent too much time on Q1 but overall i tried to put something in every part of the question but not sure if it will be enough to get me a pass.

I felt the same. There were so many risks of material misstatement we could have been there forever. Hopefully the ones we did mention get us decent marks. It could be interpreted that this was a gift of a question are there were so many potential answers.

I got 48% june sitting. But compare to september paper. I think i pretty screwed up for q2 and q3

I’m sure it was business risk? Or did I read it wrongly?

Look at it this way folks. From what I have been told, Q1 biggest marks were for business risks and risks of mat misst. Both of which are core, were heavily tipped, and so you will have practised them. So the scenario had lots of risks, not a problem! Just produce 10 mark answers (around 7-8 business risks, and 5 risks of mat misst) and then stop looking for any more.

Not sure on the NOCLAR (as I said have not seen paper) but again this was a virtual guarantee to come up so presumably some straightforward marks available.

And typically 3 of the prof marks are a gift a well.

Also a predictable Q2 by the sound of it. Well practised = lots of marks.

Sounds like the optional questions were tougher in a technical sense, but if they are tough for one person they are tough for all, and the pass rate cannot get any lower (I say this with a sense of hope).

I am interested to hear what the due diligence question actually asked. Can anyone detail it, as it sounds like it might have been a bit different to recent past exam examples?

I think three hours and 15 minutes is not enough to critically examine the case and provide a well thought of answer. Not to mention provide a legible hand writing.

Time just flies… Hope the examiner considers these and the fact that under examination condition, the examiner’s request (from examiner’s report) is really hard to do.

Hope we get a pass and hope passing rates this time around is not as low as the previous ones…

Good luck guys!

@kylerlu said:
I think three hours and 15 minutes is not enough to critically examine the case and provide a well thought of answer. Not to mention provide a legible hand writing.

Time just flies… Hope the examiner considers these and the fact that under examination condition, the examiner’s request (from examiner’s report) is really hard to do.

Hope we get a pass and hope passing rates this time around is not as low as the previous ones…

Good luck guys!

I end up writing in point form for question 2 because of time constraint. Did Q2 as my final question and might have messed up a lot. Hopefully i can gain some points in the audit evidence even though the i did real bad for matters to consider.

It was a time pressured exams as any other previous P7 exams.
Q1 was lengthy and there was a lot to grasp in little time but it was not too difficult I guess(BR+ROMM+Group audit planning+Evidence on the $10m as claim from pressure groups)
Q2 was typical P7 questions on ISAs+Matters to consider & evidence. Provision for decommisiong costs+change in estimate technique for calculating depreciation+Trade receivables.
Q3 was on due diligence where it was asked why two points made need to be investigated. One was on a major customer who is not renewing the agreement with the manufacturer and the other point was on a piece of land which was gifted and used as a nature reserve – a bit of an odd type though. Then the investigation procedures was asked and the questioned finished off with a bit of ethics.
Q4 was on ethics+professional issues+recommendations in a three sub parts.
Q5-No idea did not get there!

Questions as I remember:

Q1. a. business risk – 10m; romm – 10m
b. group audit planning – 5/6m
c. further procedures for claim – 5/6m

Q.2 – Matters to consider and expected audit evidence on the following:
a. Provision for decommissioning costs (change of implicit rate used from 6% to 8%) – ?m
b. Smth with change in depreciation policy and revue of useful life of assets and retrospective adjustment – ?m
c. There was smth on recievebles, ratio on rec days and alloawance. – ?m

Q3. a. – Why due dilligence performed was not enough and further actions
i. loss of customer that presents 5% of revenue – 6m
ii. smth with land that was granted by government and there were restrictions on usage / ownership (don’t really remember, didn’t get to this one) – 6m
b. smth that parent for which we perform group audit asked to perform advisory services for its sub (significant component) to advise on purchase price of another company – 8m

Q4. – what were the scenarios?

Q5 – part b – audit report (didn’t choose to answer)

Can you please remind me what was in q4? And what you answered shortly on the questions.

Thank you!

I also found this exam very difficult in time.
Q3 – I advised for 1 that there was risk of reputational damage, cheaper competitors to consider for acquisition, drop in revenues ans possibly most customer may be lost. Material customer lost etc

Q4- I can barely remember
Part B was a listed co that requested we help them with a due diligence review on one of their material group subsidiaries, but I said as it was a PLC we can’t offer audit and non audit services if they are materials.
Part C- we had audit partner that needed rotation was had been partner for the client for 7 years, audit client said he would put audit out to tender if we changed audit partner as he was only staying with the auditors due to close relationship.
I said not possible , partner rotation necessary and if intimidation threat so may lose client but may have stepped down from audit anyway if relationship soured and threats in place , too big to safeguard.

I did Q2 second, not too bad I think, then Q1 which half way through i realised i was 15 mins over time on….so had to totally squeeze Q4 cause had only 20 mins left ?

What were the implications to be assessed from the Ocean protection case against the co in Question 1?
Was it just that the integrity of co was in Question and that kinda thing….or how did people answer this part?

Hope I did enough to pass, preferred the paper to the June one which I got 41% in so fingers crossed!!! ??

@spud said:

Q4- I can barely remember
Part B was a listed co that requested we help them with a due diligence review on one of their material group subsidiaries, but I said as it was a PLC we can’t offer audit and non audit services if they are materials.

wasn’t it question 3b? 🙂

Q1.c. (Claim) I wrote smth from standard, like result of past event, probable, measurable, so must be recognized now. If not => qualified report. But ppl above were writing smth about NOCLAR. I don;t know whats that 😀 I used old book, probably smth new and hopefully I can fit with my answer with it…