AAA*** ACCA Paper AAA March 2019 Exam was.. Instant Poll and comments ***

@nataly1986 said: As I remember the question was to consider the matters when using an auditors expert, so I discussed as previously stated competence, independence, the scope, conclusions

Me too. I wrote about the competence, objectivity, capability...

Has anyone discussed NOCLAR in Q1?

I did touched upon Noclar but given generic answer rather case specific

On Q2 I concluded Qualified Adverse. Is anyone reached same conclusion?

Yes write on law and regulations as the email from the production Mgr centre around the company applying prohibited chemicals, the firm a duty to report as there are no breach of confidentiality.

@nataly1986 said: Has anyone discussed NOCLAR in Q1?

Ya I mentioned NOCLAR and that auditor had to do specifc procedures and obtain legal framework as recommendations - and that they also had the right to report to enforcement authorities

What RoMM did people mentioned for the Impairment calculation in Q1?

Viu calculated wrong by fd . I concluded that Viu should exclude restoration cost.

@a.mohamedibrahim@hotmail.co.uk said: Viu calculated wrong by fd . I concluded that Viu should exclude restoration cost.

I said VIU should exclude costs of replacing machinery

Did anybody notice that the first case of the subsidiary in Q1 literally had little or NO information on RoMM?? Everything written about the subsidiary was just about a single line on their principal activity and nothing much of importance, I think. The other two subsidiary actually had More details and more points to talk about!!

@mjibola said: Did anybody notice that the first case of the subsidiary in Q1 literally had little or NO information on RoMM?? Everything written about the subsidiary was just about a single line on their principal activity and nothing much of importance, I think. The other two subsidiary actually had More details and more points to talk about!!

I think the matter there was that the year end was different from that of the group. It had November year end whereas group had a December year end.

@tjsoloaded said: I think the matter there was that the year end was different from that of the group. It had November year end whereas group had a December year end.

Yeah I mentioned that but I felt I didn’t write enough.

Guys, I wrote a song RoMM that the loan should be capitalised for the part attributable to the capitalised development cost, since it will take 2 years to complete this. I also wrote that the non recognition of the internal brand name might be inappropriate if the fair value had been reliable determined. I said that although IAS38 says internally brands should not be recognised, that this is only the case if the fairvalue cannot me reliable measured. And if it was correctly not recognised, the disclosure in the notes might not be complete if it doesn’t include the nature of the estimate and basis for the estimate. I don’t know if this makes any sense.? ?????

I noticed that too. only 11m to be consolidated and request the revised draft CFS as evidence in working paper file.

Risks that the family members are all members of the board and not independency Also any e-commerce risk? The systems are under pressure with growing on the online sales? Control risk? What do you think? These are risks well to mention? Thanks.

questions too much. December was easier.

For everyone's benefit, I will try to pull together what people have said so we have an accurate (ish) representation of what the questions asked. Please comment if you think this is wrong in any way: Q1 20 marks on ROMM 5 marks audit tests on Development Costs 5 marks audit tests on an impaired building (damaged by weather) 6 marks on use of auditor's expert (need for one, or reliance on their work, unclear?) 10 marks on impact on audit caused by illegal ingredients, and a bribe 4 Prof Marks Q2 ? marks on Matters + Evidence (??) re a Sub 80% owned, parent bought remaining 20% ? marks on Matters + Evidence (??) re Sub in GC trouble, supported by parent ? marks on Matters + Evidence (??) re sub with different y/e and interco balances?? ? marks on criticising a given audit report (client being investigated for some legal thing) Q3 ? marks on pre-tender issues for a DD, where audit also up for grabs for winning firm ? marks on matters to consider / info needed, and procedures to do in the DD If someone could remember marks breakdown for Q2 and Q3, that would be helpful.

Could not have said it better myself!!

@opeyemiogunjimi said: Lol. Everyone saying this exam was fair. I am not too sure if we too the exam. I prefer Dec and the older exams 10times to this one. It was sooo time demanding, I was writing asif my life depended on it. The questions were so wierd, like zero information in the case and they were requesting us to identify matters and risks with nearly no information. I was seriously confused by the way they asked questions, nothing like before. And then again, they bring up reallly technical and complicated accounting standards. I just pray I wrote enough nonsense to scare me a pass

Could not have said it better myself!!!

Please let me know something about what additional information will want for due diligence 3b(i) I wrote for additional information: Prior year audit fin.statements Contracts agreements with suppliers Organisational structure with the key members of the company etc. Do i needed to say like this way instead? A copy for prior year audit FS Obtain a copy of contracts etc. If i include them without saying a copy or obtain is wrong? Thank you. Please someone to reply me i am quite concern!

the words you use are not that important, as long as you are specific and explain WHY you need each piece of information (it is the WHY that most students leave out, and which is one of the main reasons the pass rate on this paper is so low every time). As a marker I would want to see something that included the words "supplier contracts" and "to see how tied in the target company is, whether terms would vary on a change of ownership" etc.

If the factory is damaged and ceases its operation, should it be de-recognized from the Company's fixed assets? Does anyone have similar points?

@seishirou said: If the factory is damaged and ceases its operation, should it be de-recognized from the Company's fixed assets? Does anyone have similar points?

If the factory has no lasting use then yes, derecognise. If it is very damaged it may have zero value at all.

in q3 1) did we have to consider pre-tender issues like fee and pre-conditions of audit?

Are there any responses/answers mentioning IAS41. Although the question 1 gives the information of IAS41 but I have not found any points to give comments about it.

Hello is someone who remembered the ROMM from Q1a)? have you found the below risks? 1.assets destroyed-separate presentation and disclosure 2.bank loan and interest expenses-recognition and disclosure 3.development expenses- recognition and disclosures 4.advertising expense- recognition in P&L 5.software -capitalised + depreciation 6.brand disclosures not in accordance with the Financial Position 7.impairment calculation 8.operating margin- understated costs 9.inventory valuation 10.Revenues -due to electronic sales system newly implemented

Regarding the impairment calculation, as per IAS 36, Cash flow projections should relate to the asset in its current condition – future restructurings to which the entity is not committed and expenditures to improve or enhance the asset's performance should not be anticipated. So, the value in use in the question was based on these contingent considerations. Therefore, the real impairment -in my opinion-was bigger, due to the real value in use which was lower than the value given in the question.

Hi everyone, I am planning to sit for AAA exam in june 2019. Really dont know where to start from. Can anyone one provide me few tips and provide me any self made hand notes? My email is [email protected]. Thank you and hope nobody in this forum has to sit for this paper again.

I still did not attempted this paper

I agree, paper was fair but will be surprised by the global pass rate, number one is going to make many fail.