ACCA Paper AAA exam was – March 2021 Exam – Instant Poll and comments

hey is anyone willing to discuss the suggested answers to the paper?

Revenue – construction contract
Imp loss is not calculated properly, ViU – Present values had to be used
Impairment loss – decline in revenue
Borrowings as a current asset – not correct
Planned disposal for production line

Q2 was ????
3 wass ??

This paper was so strange … very different compared to the ones from past.

The materiality question (7 marks) – I’ve given the standard percentages but found it harder to justify. Like I mentioned there should be a broad range across different FS and that the industry has low margin so should be lower but I couldn’t say more ?

Anyone with a strong answer on that?

I got the following: Question 1:
audit risks
procedures for payroll
ethics
materiality
Question 2
quality control
Question 3
matters and evidence
audit report

Business risk
Audit risk
Bribery
Ahfs procedure
Quality control( a bit weird)
Defined benefit obligation
SBP
Ethics(weird)

I can’t remember them perfectly but I believe with this is what I can remember
Q.1 evaluation of business risk of a non listed family owned business that grows and processes plants for resale. (10 marks)
B. Evaluation of audit risk (20 marks)
C. Audit procedures in relation to fair value changes of plantation damaged by storm
D. I think it was an ethics question about how the cfo didnt want any further investigation into a legal case brought up by employees concerning health and safety which has led to a lot of accidents and some fatalities

2 was a question on matters to consider on audit quality, professional ethics relating to a post issuance review of a report (I am not too sure if there was more to it)

And the the last question was a matters to consider and evidence expected to about different scenarios relating to an audit client for (20 marks)

and impact on audit opinion for 5

For those who got a question on the Luxury canal boats..what business risks did you identify?

lizzyzingel wrote:For those who got a question on the Luxury canal boats..what business risks did you identify?

2 types of compliance
Fx risk
No product diversification
Theft or loss of inventory in transit
A few going concern risks

What did everyone write for q2?

very weird question paper I could not finish, not to say that I could not understand the question either

Which question was it?

vnetochukwu wrote:I only hope I wrote enough to score 50 as this is my first attempt

Can you say the scenario?

Encaladeus wrote:

vnetochukwu wrote:I only hope I wrote enough to score 50 as this is my first attempt

The question was , what are the audit risk in the planning stage.

Underneath it had a not that specified only audit risk peculiar to the KPI figures in exhibit 4. I didn’t see the additional note until 10 minutes to the end of the exam by then it was already late and the question carries 20 marks

I picked up
-IFRS 5 Non current assets held for sale and discon operations(depreciation was supposed to seize,assets recognized separately under current assets
-IFRS 15 revenue from contract (risk of early recognition)
-IAS 20 forex translation
-I think there was an event after reporting period
-IAS 36 wrong calculation of value in use
-New audit client
-Management bias

AAA INT VARIANT – Okay so does anyone remember anything about the operating License to Matty and the going concern issue what was that all about, the license was to be amortized over 5 years but what about the going concern, was the report to be modified to adverse or just a material uncertainty of going-concern because i remember the revenue of railway was about 60% of matty and the government had revoked the license but the financial statements were not prepared on breakup basis…..