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Hello! The mcq you are talking about us assessment of NEDs.
Rumeration committee and re-election of directors.
Only directors were re-elected 3 years after other 3 were done after 1 year.anyone who wants to discuss audit paper can reply here @me or just email me
at lixjwd@gmail.comranganaherath wrote: @rashard I got 1.95M
Same answer!
ranganaherath wrote: @rashard I got 1.95M
I got 2.25m.
The increase in revenue by 25% from online sales is correct but for warehouse sales, they had told the fifth one has got sales in line with the previous ones.. That means they must have had 4 earlier, which means 1.2/4 =0.3. And if 5th one is also included its 0.3*5=1.5 plus 0.75 equals 2.25
Guys, I got a question related to materiality in part A. Preliminary materiality was set at 25k. And also there was a misstatement of 12k which was uncorrected. The question asked was to select two correct statements in relation to a misstatement of 15k.
I can remember I picked
1. This misstatement is not material therefore adjustment is not required
2. Opinion will not be modifiedWhat are you answers guys if you can remember????
What is the first thing to do if the management refuses to provide written representation?
I chose reevaluate the integrity of Management.
What about you all?
” Which of the below is not a role of audit Committee? ”
Anyone can remember the answer for that?@rashard I can’t remember the other options we got for the 15k materiality thing.
But for the written representation yes that’s the answer I put as well
Did you get a MCQ question about the two analytical procedures for a certain figure ( I can’t remember what it was exactly for )
Could anyone who remembers all the 15 MCQs or as much as you remember please send them on the forum. I seem to have forgotten the questions ?
I remember
1) Proof total Q2)independent/non independent of 3 NEDs out of which 2 were independent and 1 was not who was the sister of the CEO
3)When management doesn’t want to give written representation
4) Directors re-election, Nomination committee, internal audit department requirement 1 or 3 years.
5) A question about CAAT for which 1 for each Test data and audit software and both for ability to corrupt client systems
What else were the questions yall came across
For me 2 were not was independent the sister of ceo.
Secondly the materiality question told us that the company already had 12K mistatements done now a further of 13K are uncorrected which means its materiality combined 25K and qualified due to material.For 50000 assets that couldnt be located they needed disclaimer of opinion.
For audit software i got same as yours.
For director’s re election every 3 years other 3 options were every year.
For management dosent wants to give representation check their integrity
For the proceedures question i had it numbered ” 4 3 1 2″
The corporate question i answered 1 only. I.e its only responsibility was to direct and govern the company’s direction.
For representation functions.
1-4 were the only options relevant i.e its content is auditor based. And its client generated.If anyone wants to ask more or discuss them reply here or my email : lixjwd@gmail.com.
what is INC and what is the procedure for settlement discount .. if anyone could help me out
Hey guys! What was the right answer for the most reliable audit evidence in the mcq?
My answer : – calculations made by a member of the audit team
– industry analysis by the internal auditor
– written representation from directors
– verbal confirmation.That’s the order I picked.
But they had not told it’s material in aggregate.. So I thought it’s not material
For 50k, I think it’s qualified due to inability to obtain sufficient evidence because it doesn’t affect the whole FS right?
sir materality was set at 25K while they already had a 12k error.
Even tho this issue was isolated but the issue was huge in total i.e double the basic materiality and they already had some uncorrected issues which the management wasnt intending to correct.
this in total have effect of 12+50 = 62 which is 2.38 times more than the material amount and if u look at standard materiality its simply 5-10 % of the profit and assuming this get around 10-20% material amount.also check my other answers above do they match to yours?
and for the single 13k i guess they had only 1 option to tick b/c only one decision was relevant.I got
substantive procedures for revenue, settlement discounts, intangibles
audit risk and responses
control deficiencies and recommendations
implications of a scenario on audit report
components of audit riskwhat u guys did for the corporate board? i choose remove her sister and get someone with industry knowledge?
and the only responsibility corporate governance had was to direct and governance?
and for written representation?
1. client generated evidence
2. auditor make its content?For the physical verification I put unable to obtain SA evidence hence qualified opinion.
It is not pervasive for it to be a disclaimer of an opinion was my thinking when I answered but I’m not sure.
It was a listed company as far as I remember and therefore shouldn’t the directors be re-elected annually? For Nomination committee assessment I put 3 years because it consists majority of NEDs and NEDs are normally appointed for 3 years and others were all 1
For the corparate governance Q I put 1 but listed companies does not have to follow all provisions for corporate governance. ie. It is not compulsory to have an Internal audit department but they should consider annually.
Those were my thinking behind the answer and in no way do I claim it to be correct. Just a heads up 🙂
@ranganaherath
they said evaluation of the rumeration committee so its done on yearly basis how they are working for the firm and are same as directors should be annually assessed.
and for listed directors they are changed every 3 years by the shareholders (as far as i know in sbl its applied)ranganaherath wrote:Did you get a MCQ question about the two analytical procedures for a certain figure ( I can’t remember what it was exactly for )
Yes.. When they ask about analytical procedures, we have to pick the answers those come like comparing with prior year or industry.
I got definiton of audit risk and risks and auditors response, internal control deficiency and recommendation for purchases, impact on auditor report, subs for trade payables, intangible nca, provision and susb analytical procedures for revenue
@hassan.k got the same
rashard wrote:Guys, I got a question related to materiality in part A. Preliminary materiality was set at 25k. And also there was a misstatement of 12k which was uncorrected. The question asked was to select two correct statements in relation to a misstatement of 15k.
I can remember I picked<br> 1. This misstatement is not material therefore adjustment is not required<br> 2. Opinion will not be modified
@Kim Smith from the below, can the first option be correct in general? I.e adjustment is not required as it is not materialMy exam had audit assignments,substantive procedures for revaluation ,inventory ,provisions and sales tax liability …….also ask about the definition of materiality and performance materiality …..anyone who wrote that exam ????
i think there was only 1 option to tick.
and there were a total of 25K uncorrected (12k before) and 13k as suggested by the question in total it met 25K so isnt thats what our materiality was?
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