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

How did you find it? I struggled with time management, I find the CBE slows me down!

I cannot believe ACCA are allowing remote students to sit the same exam as we had on Monday if they were unable to access it on Monday, really has annoyed me. I’ve sent a complaint.

Business risk

Governance Risk -Discuss the resignation of newly acquired company managers and lack of banking experience in parent board

Control Risk- discuss significant subsidiary( with 55 branches and40m)Revenue which is material to the group i.e control over multiple stores making these sales

Compliance risk – Parent does not have the expertise to manage the bank, though the bank retained its experienced staff risk still exist

Reputational risk – stems from control risk Banking is a highly regulated business a highly published investigation on non-compliance could damage the reputation of group.

Transaction/Demand Risk: Recall of badly manufactured sold product could affect the brand and demand for the product in future

Financial risk – High gearing and borrowings profit is almost the same as interest payable. Risk of not meeting with interest and lack of availability to further credit due to high gearing.

Credit Risk: Loans to customers to buy their product, risk of default which will affect the company in 2 ways

Audit/ROMM

Subsidiary purchase partway through the fin yr -over or understatement of the value of an investment -Adjustment for intercompany sales, disclosure of subsidiary or wrongful classification.

Non Accrual for share-based payment could overstate profit and risk of material disclosure of directors pay

Capitalising advert .materialy overstate profit and loss and balance sheet by 5m

Management bias and incentive to overstate profit (refer to calculated analytical review in a spreadsheet

Loan and interest – could be an incentive to overstate revenue and profit to make the company appear profitable for successful loan application

Risk of Non-recognition of 3.25m interest could overstate profit material to profit and loss

Control risk -repeat what you said in business risk but add ratios -over /understate revenue

Not only time pressured exam but also copy paste highlight etc function didnt work for me in section A which didn’t help..

Yeah we have 🙁 I’m waiting to see what ACCA say as I don’t see how they can justify giving students sitting the exam Tuesday onwards the same exam we had! Just gives those students an unfair advantage. That’s why I’ve held off talking about answers on here

Did any one remember whether 3rd question had procedures for capitalized expense for constructing warehouse?
I wrote procedure. Does anyone have any idea? Please reply…

Wow ! Reading all the answers , i feel like mine were bad. I am not hopeful of getting through.

From what i can see ACCA will fail alot of us again just to make a point , in my opinion this is not fair at all . The moment you will start receiving them Learn Signal adverts and that lot just know as they have access to our results … Lost all the credibility with ACCA sadly

We’re there 2 versions of aaa paper or everyone got the same question ?

How can they seriously go in to this session with just one paper ready? I know they’ve built up a large number of questions for the F papers so that’s a little easier, but I was expecting four or five varients considering the time zones involved and how easy it would be for someone to cheat if they wanted to.

Hi I had the same issue. My exam was launched but I was able to do the exam initially 45 minutes but after that due to internet problem it was revoked, have to sit again in March 2021 very disappointed

What opinion in reporting question did everyone state? I though it would be qualified, except for as the 2 issues were material, but not pervasive.
Reviewing the answers, some calculated ratios, but there was no COGS given, so the whole P&L calculation could have been questioned and ratios not relied upon.

First time I struggled to find enough risks, but picked up in goodwill calculation that included ( wrongly) in the consideration was 2 mln consultancy fees of previous CFO.I though its IAS24 Related party standard was applicable as ROMM, obviously gearing , overstatement of goodwill , poor corporate governance -errors in FS and as business risk to due system inefficiencies. Other business risks I though change in key mngm personnel, new system , inexperienced new CFO .

What did you guys write for ethics – did you state that for bothunlisted and listed you codul apply safeguards? I though that for unlisted co for what they asked auditors to do was not acceptable.

The launch of the exam was 45 minutes late, but then it went all right ( home based), so fingers crossed!