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24 marks for audit risk was crazy!! Discontinued operations & joint ventures – wow. Very different scenario to any past papers
Hmmm. The paper was surely a different type compare to past papers. Not confident to say whether its a pass or not. Will have to wait and see.
I struggled with question 2. I added the adjustments per scenario together to determine materiality, don’t know if that’s right or I royally messed up!
Q3 on forensic accounting I didn’t find too bad. Especially the second part on internal control deficiencies, and recommendations.
Q3 – quantifying inventory loss, i found very hard
Q2 – was tricky… i said sale and leaseback was accounted for correctly, investment property should have been carrying value.. i didn’t really know what was wrong with shopping mall
Q1 – i had difficulty finding a lot of audit risks… new client, loads of expanding so they might manipulate etc
I agree that 24 marks on audit risk was a bit too much.
I couldn’t identify that many audit risks in my answer
It was a tough exam, and was up to its reputation.
I found Audit risks disaster. 24marks be hard to score even 12marks.
Q2. Tough but audit evidence not bad.
Q3. No clue forensic Audit.
The rest of question was ok to score marksAgain, a tough one, very time intensive (3rd attempt after 49 & 35).
Q1: agreed, so many audit risk marks, with apparent emphasis on disclosure. I missed easy marks on new client, but focussed on the acquisitions/ disposals, in respect of disclosure in group and individual FS. Hope I did enough to get 50% here. Spent too much time on this bit (and how much revision ‘wasted’ on financial analysis..!).
Q2: due to time pressure I left the Lease question, seemed very technical to get the marks. For part (ii) I said the classification of profit was incorrect – should be OCI upon initial recognition of Investment Property… leaving the final 5k to be credited to P/L at year end… hope that was correct! Either way, immaterial (unless disclosure required). Part (iii) I thought was OK- incorrect to recognise any income, as no costa incurred? Should be recognised in line with expenditure? So all deferred, and potentially some element discounted, depending on additional info about timing of expenditure..?
Q3: relatively straight forward, but only had 25min for this. Gutted I left this until the end, as so many easier marks available.
I previously sat Dec 18 & Mar 19… this ‘seemed’ more straight forward… fingers crossed for results day… final exam..!
Good luck everyone!
I thought the audit risk question only referred to disclosures in regards to the group restructuring and therefore everything else was a legitimate audit risk? For example the license should be classified as a intangible asset and amortised, the disposal of the burger company should have been classified as held for sale and so forth?
Audit risk – grant I think there were 5 marks in total here. 3 for the materiality, standard and risk of recognition of a grant and then another 2 for the risk the condition of the grant might not be met.
I also said the restructuring plans should be disclose as a note in the FS there is a risk of no disclosure or risk that the disclosure would not be adequate.
The licence of 15k was depreciated over 20 years, this should have been depreciated over the 3 years. Materiality and standard – 3 marks
Managent trying to recoup the capital expenditure of 43 – risk of manipulation and over statement of profit
That’s right hits123, 24 marks just for disclosure would be nuts, so much info in that question, I forgot about over the licence, wrote about the massive 29% revenue growth of just 50 new coffee shops.
I feel like a complete numpty now not picking up on it being a new client and the joint venture, cripes. Hopefully I picked up good marks elsewhere, I’m confident I did well got Q3, but will only find out next month.
For Q1, is it possible that the company owning 50% might be a joint control ? Did anyone think about it and should be accounted for as a joint control, using equity method ? Also it it non adjusting event regarding disclosure ? I couldn’t come to a conclusion on that one.
Also did anyone talk about operating segments ?? 10% revenue and asset ???
Also the capitalization of the full $43, reconstructing cost may have some expenses that need to be expensed? Change in depreciation policy ?
Q3. Was it ok to use Assurance engagement preconditions as I didn’t read forensic audit even when my gut told me to.
I found this is a lengthy question, how time management helped me to answer all.
Audit risk question had so many risk. Procedure and ethical questions relatively easy.
Matter question bit tough but evidence would help to gain few marks.
Forensic question bit knowledgebase and procedure would help to gain additional marks.
Finger cross for exam result.Can anyone tell me how it was recognised as a new client, i actually checked whether it was a new client and dint find any clues during when i was reading the question, feels dumb now
Very disappointed with my self. I prepared technically better this time but the time pressure most probably failed me. How can the examiner ask for evidences and I write procedures? December again!
I agree. I was pretty careful on looking out for whether it was a new client or not in the scenario given. I couldn’t find anything. I do remember reading on how I, the audit manager, was new to this group audit but nothing about the client being new to our firm.
Maybe I got it wrong, who knows. It was definitely a tough paper but can’t do anything but wait now :/
24 pts on audit risks, 4 marks additional information, 8 marks procedures, 10 marks on ethics & 4 marks professional marks
How can you answer 24 marks on audit risks based on disclosures? I think there is no reason bothering with this qualification . Totally unreasonable . It’s all about confusing people to fail 70% every sitting and label themselves as a difficult to achieve qualification! Rubish
There was nothing in Q1 that said it was a new client, it said the acquisition was a newly formed company not that the group was a new client. i was careful to check this as easy marks for audit risk! There were disclosures needed such as operating segments, discontinued operations. This exam was very different to past mock exams, lots of standards to discuss, i sat the UK version and i expect there wasn’t any difference between the International version due to the questions not being related to country specific ISA’s
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