How was your AAA exam? Please post your comments below, and vote in the Instant Poll
ACCA Forums
AAA*** ACCA Paper AAA June 2019 Exam was.. Instant Poll and comments ***
Time management is just impossible in this exam!
@keating84 said: Time management is just impossible in this exam!This exam is really nasty, i have no time management problem for all my professional exam except this one, tbh the topics are fair in this june exam but the requirement to write and calculate are just too much for 3 hrs..... I dont know i can pass or not, i m permissitic and will start revision the accounting standard after taking a rest this week. Hope u can pass too finger crossed
18 mark question left.. time was so less and requirements were so much
7y ago#4Q1 was not direct. It need student to be critical especially on part investment in associate
@lefteris said: Q1 was not direct. It need student to be critical especially on part investment in associateTbh i think question part a n b are not easy. If u study technical article ed 540 should gain some marks, i think i drop many points in those 30 marks... Sigh
U did not do the question 3?
7y ago#7This paper has more toward accounting standard
7y ago#8Q1
Biz risk (12m)
Risk of Material Misstatement (18m)
Ethical threat (6m) - advice on new payroll system, audit com ask for lower audit fees
Related Party Transaction (10m) - Difficulties to identify, Audit procedures on Related Party txn
Q2
Critically appraise audit report (10m)
Report to TCG (15m)
-PPE revaluation
-Capitalisation of renovation
-Audit partner rotation
Q3
ED-540 (8m)
Assess acct treatment and difficulty & Audit procedures (17m)
-Cash Based SBP (6m)
-Fine+IAS10 (6m)
-Capitalization of cost regarding development (5m)
One word to describe this paper....annoying Especially q.3
I thought the exam was quite easy, although I had a lot more business risks for 12 marks than ROMM 18 marks. I tried to fill that up with calculations. Q1 was the most difficult for me but still fairly reasonable.
I managed to answer everything, started with q2 which was super easy, I could have wrote another 30mins on that question however I was strict on myself and moved on after the time allocation.
Q3 I can barely remember but answered everything.
Here is hoping I didn't write 50% nonsense.
Anyone answer the Exposure draft question
Good u on sister i m really scared of this bloody exam lol i dont know wht i wrote for 3 hrs haha.....
I did but due to time pressure i can barely finish the last treatment... I only wrote the some audit procedures....
@lefteris said: Q1 Biz risk (12m) Risk of Material Misstatement (18m) Ethical threat (6m) - advice on new payroll system, audit com ask for lower audit fees Related Party Transaction (10m) - Difficulties to identify, Audit procedures on Related Party txn Q2 Critically appraise audit report (10m) Report to TCG (15m) -PPE revaluation -Capitalisation of renovation -Audit partner rotation Q3 ED-540 (8m) Assess acct treatment and difficulty & Audit procedures (17m) -Cash Based SBP (6m) -Fine+IAS10 (6m) -Capitalization of cost regarding development (5m)
All I can say is I'm glad I had a good night's sleep yesterday. I'd have been gutted otherwise. Time management was a real nightmare!
It's seems really impossible to me to finish the exam with attempting all questions within 3hours.
However, I left 15 marks of Q2 (b)
First complete Q1
Then Q3
Lastly Q2
ED-540 (8m) what was the correct answer for this question?
Hi all it was a tough one tbh, I was expecting nothing less.
Wasn't as straight forward either! ED540 relates estimation esp when using fair value Measurement re: IFRS 13. It just really requires auditors to apply more than ever professional scepticism!
Meaning more work required on it , documenting reasoning of the estimates used by management , more communication with TCWG!
What does everyone think of q3 (iii) property development ? I was confused on that one!!
that was relating to recoverable amount right? i calculated 4.4m-1.2m-0.174=3.026. the asset was in the books at 2.1m therefore 900k odd amount was revaluation and the remaining when to other comprehensive income.
Am i right?
Actually it has a technical article there about ed 540, i did read 3 times about it my 6th sense told me it gonna be examinable lol but others are tough, question 1 is hard, question 3 becomes hard when u are under time pressure
Check the technical article, it is very important!
Can someone discuss answer to answers to all questions in bullet points?
Is it enough to just name the points to the question " why related parties are difficult to identify ?? Is there a requirement to explain ?
I wrote bullet points I think it itself clearly conveys why
I thought the paper was relatively easy. I self-studied for AAA. I spent about 2 months studying this paper and I bought second-hand notes from Carousell. I rewrote the entire textbook in bullet points (my technique to understand the concepts), used it to review nearer to my exams. I also printed ALL technical articles and read all of them briefly (wrote small notes). I also reviewed some of the exam papers and I paid more attention to the latest papers with the new syllabus (Sep 2018/Dec 2018 Q1 especially) (which is of significant help).
[Below are my thoughts on the different questions. They may not be correct!!]
Q1.
Business Risk and RMM (30marks). This was very similar to Dec 2018. If you take a brief look at the answer key, you could actually use some of the points and structure there. There was a trick to the financial figures given I believe. The 20X9 figures are 10 months prior to the YE, thus when looking at SOPL items, you may need to be more careful.
Ethical issues (6 marks). The audit committee wanted the old auditor to develop the new payroll system AND also help out with the audit for payroll -> obvious self-review threat. I stated that they can help with the development but the current auditor (given that they have the resources) should still complete the audit for payroll. Then, the low-fee could also pose another ethical threat.
Related-party transaction (10ish marks). Why is it hard to identify such transactions?
- Complex group structures
- Poor disclosure
- Poor internal system at identifying new related party transactions
- Poor authorisation process for significant items
There is a CPD article on this: https://www.accaglobal.com/an/en/member/discover/cpd-articles/audit-assurance/related-parties15.html
Q2.
(a) Critique the report. Some points i came out with:
-Missing title, addressee, signature, date of auditors report
-Order of opinion and basis for opinion
-Opinion paragraph: did not state what opinion was given?
-Material uncertainty for GC: shouldnt this be a KAM instead? Does failure to get loan financing cause a company to have GC problem? No alternatives of financing? What did auditors do to confirm this? These details are not explicit in the paragraph.
-Missing KAM which is compulsory for listed company
-Basis for opinion paragraph referred to responsibility of auditors paragraph, which is missing
(b) Communicating with those charged with governance
There is a technical article that explains about this. But for all 3 matters that are shown in the exam, I reasoned to communicate those matters to those charged with governmance.
https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/auditors-reports-governance.html
Q3.
(a)
If you read the technical article, this 8 marks could be easily gained.
Link:
https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/iaasb-ed.html
(b)
The remaining 17 marks.
This is a useful technical article to guide you.
https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/audit-of-estimates.html
To answer RMM questions, there was also a technical article to guide you how marks are given.
https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/exam-tech2.html
Please let me know on your thoughts and whether you agree/disagree with my answers.
Cheers!!
"that was relating to recoverable amount right? i calculated 4.4m-1.2m-0.174=3.026"
Yes agreed with 900k odd! The difference is in fact material. There are a lot of judgements and estimates in a couple of the figures given.
Furthermore, i also commented that since the company has been using cost model under IFRS 16, and suddenly wants to change to revaluation model -> is that allowed? is there a genuine reason in doing so? auditors must be more sceptical about the change in accounting policy and management's intentions.
I did this kind of calculation. But I think it was referring to IFRS 13 highest and best use. So FV of 4.9 was to be used rather than deducting the estimated costs converting it to residential building. I think this was a trick question !
I think it was ok, just didn't expect so much IFRS interpretation and so little financial information on Q1. Totally missed the point of adjusting figures for the 10 months as well.
I was very hesitant about what analytical procedures to apply. I think I messed that up.
As for the question 3, wouldn't it be that the point is that in order to revalue the building there has to be a change in used? Change from PPE to Investment Property, therefore derecognise it altogether and recognise it at FV as investment, but not until the change in use happened.
Time requirements in this particular exam was genuinely the hardest I have faced in any ACCA exam to date
With regards to Q2/b for reports to those charged with governance did anyone mention modifications to audit reports/opinions and that if revaluations as well as the capitalisation of renovation costs were not adjusted in financial statements and because of materiality would require in isolation a modification/qualification to the audit report/opinion. If the case were that if both were not adjusted for in the financial statements could pose a material and pervasive hence adverse opinion?
@eneltonsatria said: I thought the paper was relatively easy. I self-studied for AAA. I spent about 2 months studying this paper and I bought second-hand notes from Carousell. I rewrote the entire textbook in bullet points (my technique to understand the concepts), used it to review nearer to my exams. I also printed ALL technical articles and read all of them briefly (wrote small notes). I also reviewed some of the exam papers and I paid more attention to the latest papers with the new syllabus (Sep 2018/Dec 2018 Q1 especially) (which is of significant help). [Below are my thoughts on the different questions. They may not be correct!!] Q1. Business Risk and RMM (30marks). This was very similar to Dec 2018. If you take a brief look at the answer key, you could actually use some of the points and structure there. There was a trick to the financial figures given I believe. The 20X9 figures are 10 months prior to the YE, thus when looking at SOPL items, you may need to be more careful. Ethical issues (6 marks). The audit committee wanted the old auditor to develop the new payroll system AND also help out with the audit for payroll -> obvious self-review threat. I stated that they can help with the development but the current auditor (given that they have the resources) should still complete the audit for payroll. Then, the low-fee could also pose another ethical threat. Related-party transaction (10ish marks). Why is it hard to identify such transactions? - Complex group structures - Poor disclosure - Poor internal system at identifying new related party transactions - Poor authorisation process for significant items There is a CPD article on this: https://www.accaglobal.com/an/en/member/discover/cpd-articles/audit-assurance/related-parties15.html Q2. (a) Critique the report. Some points i came out with: -Missing title, addressee, signature, date of auditors report -Order of opinion and basis for opinion -Opinion paragraph: did not state what opinion was given? -Material uncertainty for GC: shouldnt this be a KAM instead? Does failure to get loan financing cause a company to have GC problem? No alternatives of financing? What did auditors do to confirm this? These details are not explicit in the paragraph. -Missing KAM which is compulsory for listed company -Basis for opinion paragraph referred to responsibility of auditors paragraph, which is missing (b) Communicating with those charged with governance There is a technical article that explains about this. But for all 3 matters that are shown in the exam, I reasoned to communicate those matters to those charged with governmance. https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/auditors-reports-governance.html Q3. (a) If you read the technical article, this 8 marks could be easily gained. Link: https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/iaasb-ed.html (b) The remaining 17 marks. This is a useful technical article to guide you. https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/audit-of-estimates.html To answer RMM questions, there was also a technical article to guide you how marks are given. https://www.accaglobal.com/sg/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/exam-tech2.html Please let me know on your thoughts and whether you agree/disagree with my answers. Cheers!!I think the problem with the material uncertainty regarding going concern is that since it wasn't disclosed in the statements at all, an unqualified opinion wasn't suitable. This paragraph can only be used to emphasize the issues of going concern whet they have been disclosed already. That's my understanding!
I think the problem with the material uncertainty regarding going concern is that since it wasn’t disclosed in the statements at all, an unqualified opinion wasn’t suitable.
This paragraph can only be used to emphasize the issues of going concern when they have been disclosed already.
That’s my understanding!
Topic lockedNew replies are closed.