AAAACCA Paper AAA September 2020 Exam was.. Instant Poll and comments

What topics came up in the exam

Long paper Anybody finished ?

I mean finished the paper

What came up in Question 2 and question 3 for you guys?

Q1. a) Audit risks, b)Audit procedures relating to Group revenues, c) cant recall d) use of data analytics for audit work Q2. Evaluation of issues (Sale of division after Year end and nit disclosing this information, First adoption of IFRS16 and not disclosung the information about the change in Accounting policy) on completion of Audit work and actuons to be taken; Assuming the issues not corrected what is the impact on auditor’s report Q3. Comments on planning of audit, ethical And professional matters during quality control review and further actions if necessary Evaluation of issues to be considered before accepting the Audit of the Group

What were the ethical and professional matters which came up?

Q1) a) audit risks 26 marks b) 5 audit procedures relating to degment reporting c) matters to consider before accepting to report on company’s environmental and social reporting d) benefits to data analytics 2) a) quality controls planning and performance evaluation and quality control ethical and professional issues evaluation b) matters to consider before accepting engagement of a new audit client involved in bribery and foerign operations 3) a) comment on matters and recommend firther actions of (i)selling of a CGU but not disclosing ifrs 5 ii) new adoption of ifrs 16 and not disclosing why the policy change ii)Impact on audit report if not adjusted b)i) auditors responsiblity regarding the other information and consistency of chairman’s statement and the actual performance ii) impact on audit report if not adjusted I’d say overall this was a relatively easy paper. By the way anyone attemped in Saudi Arabia?

Familiarty and self interest for the engagement partner as audit fees was 250k and ither service he provided had a received 890k xD Plus been 8 years since he’s the partner on this engagement

The last question on sales of division and change to IFRS16 and their impacts on opinions really threw me off. I honestly felt ready but saw those and genuinely didn't know what to write. Also the audit risks question was like 28 marks that's a lot! I wrote give or take 10 risks so can only hope thay were enough. For me, it was definitely difficult.

What I can recall 3(a) 1. Listed client with same audit partner for 8 years, familiarity threat, should be rotated every 7 years. 2. Audit fee is $250,000, $890,000 so called "special procedures" fee unexplained by partner just stating no threat to objectivity, again listed client a lot of non-assurance services should be prohibited so nature of service to be identified. The non-assurance service fee is around 3 times the amount of audit fee, lucrative non-assurance service can create self-interest threat and the materiality of this service fee should be assessed and not just based on partner's comment. 3. A newly promoted audit manager input 36 hours in the time sheet and signed off as final reviewer while a senior manager contributes 6 hours only. The audit manager being newly promoted is unfamiliar with her new role and will require direction and supervision/review which should be provided by the senior manager. 4. Audit of going concern is performed by audit associate who simply follow last year procedures and ask for management's review. An important part of quality control is assigning tasks based on competency and experienced. Associate is not likely to have the knowledge and experience to challenge management assumptions and audit of GC involves significant subjectivity so should not be assigned to associate. Part a contains 15 marks so I believe I forgot some points.

Q1 a) Audit risks( maintenance or upgrade,related party transaction,indicator of impairment of license,segment reporting of food and beverage, control risk cyber attack,borrowing cost ,etc) b) audit procedure for the segment reporting c) advise how to measure the social and environment information,which will report to regulation....etc d)benefit of use of data analytic for audit work Q2 a)evaluation of 2 issues.and implication on completion and impact on audit report (Sale of division after year end,IFRS5 ,discontinued operation,discloure,possible of smoothing profit)(change of IFRS 16 about not reference the change of accounting policies ,IFRS 1 ? not sure) b)responsibility of auditor in other information& impact on auditor’s report 2 inconsistent (first is stating that the division which will sale next year will continue to grow better performance,second is statement about they claim that they all using recycled paper ,which is not in case) also claim that auditor has confirm their view in something .......in chairman's statement Q3 a)Comments on planning of audit, ethical And professional matters during quality control review and further actions (going concern let junior do,partner involved only 2 hours in whole audit,manager claim her work is final review,partner become eighth year of the listed company,partner's suspicious behaviour with client b)Evaluation of issues to be considered before accepting the Audit of the Group (low fee as possible, 60% is foreign subsidiaries which we won't audit it, given one remote foreign business but not company not subject to audit,2 media claim that the integrity probably not good-incentive payment which maybe corruption,another forgot

What answers did people put down for the following questions; Q1b) Audit procedures on the operating segment revenue. Q3b) What is auditors responsibility in regards to chairmans statement and auditors report. Q3a) regarding the change in Ifrs 16 policy, did people say that because no disclosure then must qualify opinion.

3(b) The other is protest against the Group's operation polluted the forest I think.

What answers did people put down for the following questions; Q1b) Audit procedures on the operating segment revenue. blank,no time to go back Q3b) What is auditors responsibility in regards to chairmans statement and auditors report. identify material inconsistent of other information with audited financial statement Q3a) regarding the change in Ifrs 16 policy, did people say that because no disclosure then must qualify opinion. the lease is material in paragraph, not reference is mistatement, material mistatement ,qualified opinion.

Who else could not complete their remote based computer exam? I feel terrible. The software would not navigate to the next question and the proctors had to revoke the exam

What were the marks for q1 part 3 and any suggestion About ansr?

Well idk if what i wrote is right or wrong but for procedures i just stated to analyze the break up segments and asses their completeness and all that B)statement that management is responsible for other info and that the audit opinion does not cover the other information C)i stated because of the nature of the disclosure not stating in notes would make it a material misstatement so a qualifed except for opinion

10 marks I just wrote it’s gonna be a managment role issue and self review issue

Hey Binc ,my remote exam didn't start itself and I don't even know the reason , because all the verification process was complete, and stable internet connection too , but the exam didn't launch ,I waited for 1hr from my appointment time and xam didn't even launch ?

I wrote these: 1.Since it is new regulations and management have no understanding of it may be reluctant to make any decision on their own and may rely on auditor's advice, so we must be careful not to assume management role. 2. Again it is new regulations and we must review whether we have the expertise and up to date knowledge in this area. 3. The reporting has tight deadline so we must ensure we have the resource to complete it on time for example through temporarily transferring staff from other assignments. 4. The management is willing to pay high fee due to the tight deadline, we must consider possible self-interest threat.

I just attempted first part of q1 and there was unexpected technical issue exam was revoked dont know what will happen will they reschedule exam

Hey my exam didn't even launch due to some technical issue , let's hope they'll possibly reschedule in next week because many ppl faced technical issues or else we should wait till December I guess..

1)audit procedures : totals of segment must be cast.. Threshold recalculate... Review whether codm reviews the perfoemance of them... Etc etc 2)auditor has responsibility to read other information and look out for inconsistencies. Should establish what is wrong- the financials or the directors statement. If the statement not changes, no impact on the audit opinion but auditor should mention the inconsistencies in the 'other information' section. 3)new policy-disclosure requirement, and the financials to be restated for the previous year to allow comparability. Leases are material (was told in the question) and if not adjusted would have to qualify the opinion

Hope you and everyone else passed the exam. What advice would you give for sitting the AAA exam? I am looking to sit AAA in December alongside possibly SBR so any advice/tips would be much appreciated. Thanks in advance

What procedure are there for remote exam ? I will be sitting in AFM plz help me what will be the starting procedure wwhat will Invigilator ask and alll?

international&paper. version was ok . You had to write too quickly to catch it all. Data analytics I was expecting that to appear and was glad to see it.I struggled.with the procedures on segmental information and the quality control seemed bit odd but ok,maybe because it was the last one I was tired. Q1 a travel group company ,new client with 3 segments.Part a required for 25marks. Audit risks, b. audit procedures. for segmental information around 8 marks I think…. c. matters to consider for acceptance on advice for social&environmental 8 marks. d. 5 marks for data analysis benefits Q2 a. it had a sale on division. at carrying value of 45m, value in. use. 41m and value to sell less. costs of distribution 42m. Management had made a write down on 41. Division was about to sell August and year end is March. Management does not want to disclose, or has made any other changes. i. consider the matter. ii implications on auditor report. IFR16 the company has used the ifrs for the very fisrt time and has not make changes on last years figures nor disclosures i. consider the matter ii. implications in auditors report if no changes made. 15 marks b.Matters to consider on acceptance of a new group client 10 marks. Q3 quality control question a.given the hrs per partner 2, manager. 8, senior 10 and assistants 130 hours .Comment that assistants had made the most of the work. Partner has spent another 40 hours on specific non-audit. Audit fee 280.000 and specific non-audit 890.000. Unmodified opinion the last 8 years. The last 8 yeas same audit partner.Going concern matter approached by the assistant , who reviewed the 5 major contracts that Management defined and gave her, and reached to conclusion that like past years there is no uncertainty. 15 marks maybe b.on other matter social & environmental, what are the auditors responsibilities what implication it has if no amendment made and sth else. That’s all I remember. Whoever. remembers more. please share among with answers.

Please report to ACCA Connect. No clue what other options we have.

Sale of division - discontinued operation. Held for sale criteria met. Disposal group assets and liabilities will now be classified as current. No more depreciation after held for sale. The profit or loss from discontinued operation also shown on face of SOPL. Leases - new policy. Disclosure requirements and the previous years figures to be restated. Leases material hence modify opinion Chairman - report in other information, opinion unmodfied in this respect

Yaa ,I have done the same ,let's hope for the best .

It’s so true marsou this paper is something else I been fed up with it to don’t know what they want n examiner wants out of this paper lol I been struggling with it to There always something comes up in this exam which stop me to pass ?I guess this time was question 3 !