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

What version did you do, int or UK? I don't see or remember this point at all

There were not many issues to justify 26 marks period... Its like they expected us to bring audit risks from home with so little background information and 3 flagged issues from the financial information....

Have APM on Wednesday so trying to move on and stay optimistic here too. Good luck with your AFM.

Okay guys!!! Q1 a) Audit risks ( interest repayable on both loan amounts are material and should be capitalised up until ships are ready for use. Risk they will still be capitalised after asset is ready, Licence issue with sub material to revenue, will impact cash flow and revenue projections so risk revenue overstated, related party inadequate disclosure risk, Indicator of impairment for the older ships so assets may be understated and PBT overstated, Assets held for sale/disposal (ships and gym equipment) risk not presented seperately (?), Intangible assets should be also be presented seperately, not as part of PPE, Non-Compliance and weak Internal controls re cyber attack, so possible litigations and revocation of licenses but have to quantify how material this will be, etc) b) audit procedure for the Group's revenue (Correspondences to confirm govt intention for the loss of licence to be temporary and any further plans or terms that may indicate when to permit use, Enquire with mgmt re the impact on group's revenue of licence loss, note down issues that it may raise and how it will impact revenue, Analytical procedure on revenue figure, does it make sense? compare to past years and industry avgs, are mgmt assumptions plausible? (Can't remember anything else I put now). c) Matters to consider before take up offer on the social and environment information,which will report to regulation ( Self review if will be audited later, Whether use of the report is appropriate e.g on the website?, Will carrying out the work affect independence and objectivity, possible exposure to legal proceedings as will be perceived as advocating for company as other users may rely on this, reporting on Social and environmental issues may inadvertently lead to Auditors assuming mgmt responsibilities which is prohibited under standards). Was this the time pressured one? I also put did they even have enough staff with the expertise? d)benefit of use of data analytic for audit work ( No time! forced myself to leave this one to move on). Q2 a) Evaluation of 2 issues.and implication on completion and impact on audit report Issue 1: (Sale of division after year end,IFRS5 ,discontinued (major) operation, disclosure required as division accounts for over 10% revenue and 10% profits reported and is material. Also, event according to standards is an adjusting event as even though the sale will happen shortly after year end, conditions indicating this already exist right now and therefore mgmt point re next year's results is incorrect and not compliant. Negotiations are at an advanced stage and already found a buyer so will likely have to derecognise the division shortly as sale is likely now. As will have material impact that will eventually become pervasive to the presentation of the reports, I put the opinion would be adverse if they won't disclose the sale? because then the rest of the division's results won't mean much. Not sure if "except for" though. (change of IFRS 16 Lease. Lease was material and also change of accounting policies in standards means a change must be made retrospectively for all the leases held in the same class. If mgmt won't make the change, definitely a qualified 'except for' opinion in auditor's report. Issue 2: b) Responsibility of auditor in other information& impact on auditor’s report Chairman's statement had contradictory info. Auditors should address inconsistency by putting a statement/clause in Audit report that their responsibility is solely to provide an opinion on the financial statements and are not responsible for opinion and nor does their opinion extend to the chairman's statement. Also the chairman claimed all printing moved to recyled paper but auditors have evidence otherwise. They will need to evaluate whether this claim throws into doubt any other evidence obtained during the Audit. Lastly, can address this inconsistency in the 'Other information' heading in the Audit report. Q3 a)Comments on planning of audit, ethical And professional matters during quality control review and further actions (Engagement partner responsible for direction supervision and planning of audit. Bob spent just 2 hours so obvs throws into doubt quality of audit. Also familiarity threat, self review threat by accepting non-audit service whilst also serving as engagement partner, The Audit manager isn't at the level of expertise to be able to sign off the final review, nor does she have the authority to do so. Should be responsibility of engagement partner. Also Junior accountant - should also be engagement partner's responsibility to ensure the team are well experienced and qualified which our lovely Bob has evidently failed to do. So I put that substantive procedures would need to be done on Junior's work as she may have been susceptible to threats of intimidation and therefore objectivity. b)Evaluation of issues to be considered before accepting the Audit of the Group ( With a lot of the subs being foreign, will framework apply to all/most? expertise and experience of staff, resources available for the work, Due dilligence ID checks for fraud and money laundering legal requirement, possible litigation going on, how material is this? think they can't accept engagement if it's a big'un but correct me if I'm wrong. Wildfire going on..how would that affect reputation? and then going concern if fines, penalties? also have to rely on other auditors for the components..would they be able to trust their work? Time management has always been an issue for me but I'm hoping to have at least given myself a fair shot! fingers crossed!!!!!

Not sure if my answer was right but I said there were deposit and I think another set of payment 6 weeks before cruise takes off. There is risk revenue recognise earlier than when performance obligation is met.

*Assets may be overstated

I think I did 3 analytical reviews just comparing yoy revenue, operating profit and PBIT. Did use them to identify one risk...

I could not do my paper, technical issues - my exam never launched - the internet kept disconnecting jus before the launch of exam. Ah ! Dont kno whta next

Yep I did same and my risk was that increase in operating margin wasn’t correlated with increase in revenue so there may be incorrectly classified expenses. I talked about depreciation too. Wasn’t smart enough to link it to the 6 month acquisition but I said the increase in depreciation wasn’t in line with increase in assets. Hopefully got the materiality marks

Hello did anyone get the quality control question where all the subsidiaries were named oasis, Liam and Noel and Jarvis and we are doing a post issuance review on the blur group? This was my Q2 but I left until last. Really ran out of Ideas and found this harder than the audit risks?

Me too

Hey what did you put in your audit appraisal? Their disclaimer was incorrect right? Because 40% of group assets would be Material but not pervasive? Also the other mistakes weren’t so obvious I struggled to drum up marks for this part hopefully I got enough

I'm thinking the same thing hope I write what the examiner is looking at least enough to pass

Yes I got it as Q3 and done it last. Done it in 38 mins I had left as I did Q1 second and Q2 first.. Put Q1 in the middle as I knew a would over run a bit. Completed the paper at least.. Which should increase chances of passing.

The Questions weren't hard, but as expected time management was issue. Although, I tried to complete all the paper within the time, still some questions left at end were vaguely answered. The key in completing this paper in given time is to be concise, and answer your paper within 3-4 factors - Materiality, Treatment, Risk and Impact (especially for Q1 a part) - which should be answered within 3 lines to manage time. If you spend time in unnecessary building on your points, apart from above, you are definitely planning to waste time and failure.

I'll definitely take this point on board going forward!! because I do tend to build up my answers (lolz). Also the marks they were giving for what I wrote felt like it was too much?? or maybe I wrote too little..this is what makes me write more and hence the cycle continues...

The examiner only gives you point on whether you have answered your points by providing sufficient details, MTRI - for risk questions, it can be answered in 3 lines, and extra time spend will not obtain any extra marks, only consume time. Same is applicable for audit procedures questions, were, if you have answered you points addressing - Action, Source and Reason, you will get maximum marks, which can be answered within one line. Example: Obtain and reconcile fixed asset register to confirm with figures report. Here, Obtain and Reconcile is Action, Fixed Asset Register is Source, and to Confirm is Reason. As you can see, the shouldn't even take a minute to write.

I've got you now. The audit procedures aren't so much the issue for me - just the ROMM and Ethical issues and having to explain how something is a risk. Either way, I could aim to cut down next time if there is one..hoping there won't be :(

This is exactly how I learnt, we use MARE (materiality, accounting standard, risk and evidence) and for most questions it worked well. But in the exam the time pressure just makes your mind go blank and I’m trying to write answers so so quickly to ensure I get it all done so have very little time to properly make notes or plan answers. It’s almost like I panic type and don’t think deep enough into the requirement. I suppose that’s why exams are difficult though, they aren’t meant to be easy.

You should firstly, spend enough time in planning the questions. If you have planned properly, and points highlighted, you would be effectively able to write the answer within time. I know in exams, it is not easy, but I believe this is what exams are, to be able to compose your self and management. We all have enough knowledge to pass and ace this paper, if time restriction was not there.

If you follow some kind of technique, like MTRI, you will be able to close your point within 3 lines. Same of for Ethical issues, which have different technique.

Hi guys. Please contact ACCA asap and request rescheduling of your exam, otherwise they will not know what happened and you won't be able to receive your refund in order to book for the next sitting

Lucky you! I was told that I have 4 minutes only and if I went to 5 minutes, my session would be revoked

Can we approach Q1. (c) in the form of Audit of Performance Information? Social and Environmental Information?

Yes they have to qualify their opinion as they are not making appropriate disclosure according to IFRS 16.

Matters to consider for new group client - Is it going to be the following factors? Pre condition Risk Independence Resources Fee Professional Competency and Due care Or Audit Risk in Group - FX Translation issues, Consistent A/C Policy to be adopted, etc..

My 1st time

Q1 c Whether to accept the engagement, which is how to measure that information , just ethic issue, competence, deadline is one month... Etc

I think the deposit all correct except the point of recognition, which performance obligation not yet complete...

Agree, question is almost same as past year, but time management is the critical point to pass I believe computer based will better to manage the time