AAAACCA Paper AAA December 2020 Exam was.. Instant Poll and comments

How was the exams guys. What was tested/examined?

Some ppl hav not taken their exam as there is technical issue??

Exam did not launch and was revoked for me. Cannot take until Mar'21. So disappointed. There was no support in resolving this. I cannot believe this happened and no solution or support provided. Did anyone else have the same problem? What error message did they get?

Interest in respect of exisiting building decoration was also capitalised. Evidence: So discussion note for the rationale behind it. Recalculation sheet for proportionate capitalisation in respect of building extention. I guess only evidences were to be written for Revaluation, borrowing cost and early revenue recognition. Other services like Business strategy to listed group, valuation of shares to material unlisted subsidiary, service for divestment of stake in subsidiary would be prohibited in case of listed co, as no amount of safeguard would reduce threats to acceptable level.

Ya..Pearson and myacca should be flexible in allowing second time launch for disrupted exams, today midway myacca server also got down.

Faced same issue back on September Anisa. They revoked my exam as well but thanks god I completed the exam today as it was paper based. Wish you all the best.

My exam also got interrupted

INT paper Q1 Business risk 12 Audit risk 18 Goodwill and advwrtising 10 Audit comittee responsibility 6 Q2 Capital expenditire forecast design 9 Ethic 8 Q3 Completion on with evidence Revaluation Building instruction Revenue recognition Audit report is its not corrected 6 mark

My exam started 45 mins late due to global login issue but was able to complete afterwards without any interruptions. Q1 Business risk 12 marks Audit risk 18 marks CFO and NEDs had resigned - called it a romm Procedure - goodwill on acquisition and advertising expense which was incorrectly capilised Audit committee responsibilities Q2 Capex forcast Non audit service for for further capex of next three years Corporate finance service to a component to of a listed group Ethical threats Q3 Going concern Evidence of something 8 marks Reporting just 5 marks in my exam Overall it was a ok paper Hope I get over the line.

Did you write paper or computer exam? I wrote cbe but only my number 1 matches with yours.

Hi anyone else able to run through some of the answers if you remember? In particular for the business risks and ROMM!

Here are my audit risks all i could remember: Audit risk 18 Cfo resigned New cfo Share based payment Advertising Goodwill Fault in product Management bias Internal control Inventory

Thanks anything for business risks? Or more on the ROMM?

Above is all Romm plus internal control. Unfortunately didnt do well with the business risk 12 mark question apart from ratio analysis luxury business, resignation of the management

Anybody else able to share some points on business risks and ROMM?

Is that the UK paper because i dont remember for going concern question on Q3. INT there were 3 companies and matter to discuss and evidence (revaluation-7mark, building -7 mark and revenue recognition-5mark) then 6 mark report if not adjusted i might be wrong with the mark allocation

It's a bit of blur but BR and RoMM sound about right. Time is such an issue, honestly had no time to go over anything to make sure answers were ok. Exam itself seemed ok. Fingers crossed. Postmortem stage...hate it! Best of luck everyone.

I thought it was okay again just not sure if I out enough! Would like to see how much people out for business risks and ROMM and what points covered

Yep, time management is the big issue. Can't even read the question 2 and 3 properly because of time pressure. The question 1 with CBE take a lot of time consume to organise the question well because of sepearte screen need for each part. Anyone else who could answer all question well?

100% agree. Exactly how I feel about it.

Do they put in loads of extra risks just so you go over on time or what? I had to move on from q1 so really I couldn't say there was so much more I could have put in and the quality of answers...who knows. We are the lucky ones, at least we got to sit it.

Exactly, do you remember some of the points put for business and ROMM risks

I really struggled with the last section on the advice of the other non audit matters. Hopefully scored enough on section A and B. So hard to know if you have raised valid points in the BR and ROMM!!

The BR I can remember are Loss of Key Personnel in the new business Gearing Luxury Business Diversification - Bank Weak Corporate Governance - Assumed no balanced board :) Internal Control New CFO New NEDs Weak IT Policy - Employee installing trial inventory software

This is me! I had the points but really couldn't develop them. I hope the marker is lenient enough. Fingers crossed.

As far as I remember Business risk is Group reorganisation could impact on day to day operation Changes in key management Cash Management and Gearing Management Insentive Brand name phase out K name with P product recall..cash out...quality impact on reputation RMM Group reorganisation...cosolidation Acquidation of K...goodwill Key management change...increased risk of error and control deficiencies Insentive...management bias and RMM of revenue and profit over stated Product recall...RMM if other faulty are not identify and made provision advertising cost record as intangible... Inventory..double increase, overstated risk..some inventory such as product recall should write off at zero loan being negociate with bank...

I always struggle with time in this exam and it is my biggest downfall but I think this time was the worst as I rushed question 3 completely. I hate that they asked for 2 types of risks, took up time to differentiate. Anywho, my business risks: - Management resigning (lack of knowledge retention and risk to strategy) - Aquisitions (staff training to familiarise with group systems will take time and resources) - Cash was almost non existent, pressure on cash flows - Gearing was too high (75%) and they were about to take on another loan. Risk that existing loan threshold agreements have been broken and may need to repay debts. Can they pay? - 5% interest on £65mil on potential loan material as would essentially have taken the profit into a loss (did anyone else get this)? The profit after tax was forecasted as only 3 mil. Can’t remember what the operating profit was. There may be more. ROMM: - Share based payments - Management bias so increase professional scepticism - Inventory increased significantly and was slow moving. Some may need to be written down & Balance may be overstated. - Advertising costs have been wrongly capitalised to intangible assets. Profit overstated, assets overstated. - Internal controls weak - system needed approval for the expenses and was able to produce a coherent average apart from the one anomalie. Also suggested possible fraud from senior management as may be claiming smaller amounts frequently to try to get round the system (who knows)? - Goodwill Side note: I think we were supposed to calculate EPS ratio? however I couldn’t see the number of shares. Mine said ‘Number of stores’ which may have been a typo? Did anyone use that info? If I don’t pass I’ll move on to SBL or TAX as those are my last two!

Also, I forgot about the bank in business risk and ROMM: Was the Bank Aquisition potential reporting segment? I.e affecting disclosure in FS? For business risk on the bank I put that as this is a new & different business operation for the group, the banks are very heavily regulated. Group key Managment would need to be wary of legalities etc. May not be a valid point but hey. Also talked about how they may not be objective in how they lend to customers who want to buy their products.

I used number of store for inventory count changes 85 to 140 store risk of inventory counting and over or under stated inventory

I had the same points as you both and have remembered more that I put down thanks to both your lists. Fingers crossed!