AAAACCA Paper AAA exam was - June 2021 Exam - Instant Poll and comments

Difficult and lengthy

I could not get any Audit risk for some reason.. only revenue could be over/understated otherwise I could not find any, did any one get more Audit risks ? this was for 24 marks

Not sure what question you got but I had Part a) business risks, - 12 marks Part b) material misstatement - 18 marks And part b) I could only find about 4 points Another tricky paper and lengthy paper

The exam itself was not impossible I was short on time and my exam froze as I started question 3 I lost 5 valuable minutes because of this

Hi what did you guys put for q 2- investment property adjustment, sales adjustment and internal controls. Also anyone remember/have q1 on the restructuring provision? Any answers here? Thanks

Q1 I had a 24 mark risk question Q2 due diligence question 17 marks Ethics and quality control 8 marks Q3 ISA 250 5 Marks Reporting 20 marks

Good luck every one

Agree, was nothing much to pick from. Really difficult

Weird exam!

Had Dolphin for Q1, decent question.

Lengthy paper and everyone's exam froze mid exam as well in the center. Hope the markers take this into consideration.

That question about the Dolphin group offering the subscription services, was it just me or did anyone else find it impossible to work out whether various aspects were material to the financial statements? It only gave the total assets didn’t it? I don’t recall it saying what the total group turnover was at all anywhere? Or did I miss it amongst the 26 Windows you have to have open at the same time to make any kind of sense of what is going on in the question ?

I could only find few material points for material miststaements impairment on licence Amortisation Investment in associate Financial asset New client Cant recall the rest

Yeh at first I thought the same but then I assumed the revenue was the EBITDA figure as that is earning before interest, tax, depreciation etc

kamdarvivek wrote:I could only find few material points for material miststaements

Profit and loss on disposal of investment Associate loan disclosure Related party transaction disclosure Operating segments New client is an audit risk not material misstatement.

Q1 - A audit risks 24 marks B impairment 8 marks C Restructuring 6 marks D ethical issues 8 marks Q2 A ... 9 marks B due diligence 10 marks C ethical and professional issues to request 6 marks Q3 A difference between TCWG and management and responsibilities And reporting 5 marks B impact of matters 20 marks Investment property Subscription Revenue Internal controls

You needed to calculate operating profit. I remember the operating margin being 10.5% and then you should be able to calculate it

From what I remember, it wasn't an associate, it was an investment, as they acquired 18%, not 20%+

1.Dolphin group providing communication service... difficult to find many ROMM..and many business risk... very difficult to handle in remote based exam with 5 different exhibit..multiple screens... unlike paper based exam. A.Business risk; b.ROMM, c,audit procedure for related party disclosure and difficulties in finding related parties 2. Going concern - evaluate events casting significant doubt and cash flow audit procedure. 3.Due Diligence - difficult question to get anything out of scenario . but easy bit is ..client asking to appoint his son in partner firm.

rafeeq2717 wrote:1.Dolphin group providing communication service… difficult to find many ROMM..and many business risk… very difficult to handle in remote based exam with 5 different exhibit.. multiple screens… unlike paper based exam.<br>Business risk; romm, audit procedure for related party disclosure and difficulties in finding related parties<br>2. Going concern – evaluate events casting significant doubt and cash flow audit procedure.<br>3.Due Diligence – difficult question to get anything out of it.. but easy bit is ..client asking partner son to take appoint him in his firm.

Had the exact same paper

What was the Risks of material mistatements for the case study on Dolphin Co? I got around 4 for 18 pts. Time management very tight.

impairment on licence Amortisation Investment in associate Financial asset New client Revenue recognition

Q1 Dolphin co -Business risks (12) -ROMM (18)- impairment on licence Amortisation Investment in associate/18% investment-may have significant influence at 18% Financial asset New client-opening balances (ROMM) Revenue recognition -Planned Procedures -Related parties -explain why it is difficult to identify related parties -Procedures to be performed for related party transactions Q2 Due diligence exercise where matters had to be assessed on the potential acquiree business (a) -purpose of due diligence & benefits to the company of due diligence (9) (b)-investigative procedures to be performed for the due diligence exercise. (c ) request from finance director to employ his son in our department else this will have impact on future audit tender & provision of non-audit services-evaluation of this request for ethical & professional implications. (6) Q3 (a) matters to be considered for the going concern (10) (b) procedures to be performed for cash flow forecast (10) (c ) impact on audit opinion & audit report for going concern (5) I guess i had these- may have mixed up the order & questions. i found Q1 very lengthy where it was difficult to move between exhibits & try to make a link beween the data & figures. (many exhibits). Even the Figures provided were not in traditional manner with EBITDA and revenue for only 10 months versus 12 months revenue for prior year. not a straight forward scenario.

Seems I got different questions...and I can’t finish on time Q1 I had a 24 mark audit risks question Audit procedures 8marks Investment in subsi 7marks Ethic and professional issue 7marks Q2 PFI 8marks Ethics and quality control 7marks ED 9marks Q3 Ethics issue 5marks MTC provision & impairment 16marks Audit opinion 4marks

In Q1 there was a question about ethical and professional implications..what did y'all put for that?

For dolphin question 1 did anyone put the provision or contingent liability in relation to litigation claim? Can be a business risk and romm? Also for business risks and romm the new payroll system to be implemented? For q3) did you give an unmodified opinion to do with the material uncertainty to going concern paragraph?

I think that the approach in this paper was different than the past exam papers, for example in audit risk question there was a disposal and not much else, what does the examiner expect, a different phrase on every possible aspect of a disposal? This seems to be milking 1 issue for 20 marks which felt to me the unethical thing to do as i felt that in previous attempts such an approach would have been frowned upon (at least based on my understanding). I am looking forward to examiner report. From the start 3 possible risks were crossed out by the examiner (all companies in the group have the same year end, same currency and report according to IFRS) so you would have to go ahead and make up something else for some marks I guess. Although I am pretty good with the computer, I found myself struggling in question 2 going back and forth trough 3-4 exibits to calculate materiality and at some point i knew i saw more info somewhere but no time to go trough 3 exibits again (which would again make me struggle to return to the more relevant ones while time is running out) so nevermind... I would also like to add that many of us do not work on small screens or only with 1 screen anymore in the REAL WORLD (i have not worked on a screen this size since 2010) so if ACCA knows we will be sitting exams on 1 small screen to cut cost, then reduce exibit number. If you do not want to reduce the number of exibits, then less questions would be fine as well.

B due diligence 10 marks Re this part - what procedures did you note ? Any examples ? I used mostly enquiries of management and analytical procedures

thirthy wrote:I think that the approach in this paper was different than the past exam papers, for example in audit risk question there was a disposal and not much else, what does the examiner expect, a different phrase on every possible aspect of a disposal? This seems to be milking 1 issue for 20 marks which felt to me the unethical thing to do as i felt that in previous attempts such an approach would have been frowned upon (at least based on my understanding). I am looking forward to examiner report. From the start 3 possible risks were crossed out by the examiner (all companies in the group have the same year end, same currency and report according to IFRS) so you would have to go ahead and make up something else for some marks I guess.<br>Although I am pretty good with the computer, I found myself struggling in question 2 going back and forth trough 3-4 exibits to calculate materiality and at some point i knew i saw more info somewhere but no time to go trough 3 exibits again (which would again make me struggle to return to the more relevant ones while time is running out) so nevermind…<br>I would also like to add that many of us do not work on small screens or only with 1 screen anymore in the REAL WORLD (i have not worked on a screen this size since 2010) so if ACCA knows we will be sitting exams on 1 small screen to cut cost, then reduce exibit number. If you do not want to reduce the number of exibits, then less questions would be fine as well.

I found I couldn’t get any audit risks other than new audit client and asset to be held for sale if it doesn’t sell by august as anticipated. Then small bit about the fine provision. Awful exam, ACCA seems really unfair lately.

I also got the Dolphins Group Q1 From what I remember I included the following RoMM: -new client - opening balances and comparatives -revenue might be overstated due to risk that client might be overcharging customers -related party disclosures might be missing -licence accounting - does it need to be depreciated over its 5-year life? It does not seem to have an indefinite life as there are conditions to be satisfied -accounting for the investment - if significant influence can be proven, then it is an associate even if only 18% is owned -control risk with the payroll system - tax deductions might be incorrect -investigation started by the government - does it give rise to contingent liability? -trend analysis - EBITDA 25% decrease vs operating margin - 8% decrease - possibility for understatement of expenses