ACCA Paper AA September 2020 Exam was.. Instant Poll and comments

Circuralisation of Receivables MCQ. There was one company who did not reply to the circularisation. I selected “Check pre-year end cash receipts/sales invoices”. I think some of the other options mentioned the recoverability of the balance, however there were no initial investigations done by the audit junior, so that seemed to be a bit extreme to doubt the recoverability. Although if I remember it was quite a large balance. Such a tricky question.

I struggled with that one as well, as sample taken by intervals should be systematic sampling and there was no option for that. I went with monetary unit sampling only because the monetary unit was taken into account in the selection process (however, the balances were not weighted).

I went through the course notes after the exam but this is still not clear.

Hi all, on planning (risk assessments) there is 1/2 mark awarded for identifying the risk, and then 1/2 mark for explaining it fully. You MUST explain the reason it is a AUDIT risk (not a business risk) and the effect on an assertion/balance/detection risk. For example; inventory days have increased. There is a risk that there is slow moving or obsolete inventory and it has been valued in the financial statements at cost when it should be at NRV (per IAS 2). Therefore inventory may be OVERstated. You will not get 1/2 mark for saying “misstated” if it’s obvious that it’s either understated or overstated.

To get the other mark, you need to give the Auditor’s response. This is not a list of substantive procedures but instead a general direction the auditor should take to address the risk. For the example above, this would be along the lines of “detailed substantive testing of inventory to take place to verify valuation, such as reviewing an aged inventory listing and making enquiries with management for the treatment and plans of any old inventory items”. It’s a good idea to put in an example of a substantive procedure just to show the examiner you know what you’re talking about.

So, so many students think they’re hitting the mark and they really aren’t – it’s all exam technique and is the reason why students over think they’ve done better than they have.

The exams are out of 100 now (CBE used to be 120) so whoever said your grade is scaled down 120/100 is incorrect.

Hope this helps!

I also checked that answer – the issue was with verifying existence and rights (as the customer hadn’t responded) rather than actual payment of debt. So the other answers weren’t really relevant 🙂

It should be familiarity. And he was the auditor from 2 yrs ago if I remember it correctly so no self review threat I guess.

Planit, if it makes you feel better I’m pretty sure they left out information systems so the question was worth 4 marks rather than 5. One more extra mark gained back! I was relieved as that’s the one I find confusing. I thought it was a bit mean to give a written question on those though. I would’ve expected an OT on those.

what do you mean left out?

I choose the auditor should check any correspondence with the client.
For the issue of share capital I have chosen that is an adjusting event and a provision must be made (as a contingent asset)
There was one mcq if auditor can represent for the client with Companys lawyers. What’s the answer to this?

I did my exam in Watford yesterday, exam suppose to start 1.30 and stared 4.15pm, .
Un organised and unprofessional, this my 1st exam, I didn’t expect this at all, we are paying money, ACCA must done better. It was a horrible day, at the Part A MCQ is very hard.

I was at the same session at Jury’s inn! Agree very unorganised and what a long day!!

The section A was something else, but I’m sure of up to 7 or 8 of my answers, however, the rest were guess work.

As for the section B, the internal control question was way too easy(listed all 8 deficiencies and and recommendations), followed by all the 4 mark cheap questions in the section B. For the risk assessment question, i made sure to outline as many as i could (8)out of the 10 requested due to time constraints but only responded to one so, hopefully 9 marks from there. It was a 20 mark question, so you get 1 mark for identifying the correct audit risk and another for the appropriate response, making it a total of 20. I can’t remember the rest, but the risk assessment question was 30 marks in total.

For the substantive testing question (also 20 marks), i just winged it. I made sure to answer everything in the question, because for some answers you get wrong, you might get 1 or half marks for the rest. My advice is to make sure that you answer everything. Type away and fill up that answer sheet with everything piece of knowledge you have stored in your head. Some answers might seem silly to you, but acca is an exam where an “mere” half mark could be the deciding factor over your success or failure. Regardless of the outcome, i hope and pray that we all pass.

Can anyone please tell the question of control on which cylcle?
purchase, sales, cash nd bank or payroll