AA*** December 2022 ACCA AA exam – Instant Poll and comments ***

I was sitting in the morning with F8 and in the evening with P7 How was your exam guys There was one question on GC status where dates were given I think 31 December 20X6, 5th October 20X5, and two more dates

Did any of you get a question relating to depreciation where the answer I got was 1.108m

me. I also got the same answer

Anyone remember the answer regarding independence of NED?

It would be at least a one year extension of the cash flow for going concern - had a recent audit at work and they wanted 15 months from SOFP date.

It's 31 march

No It was 0.9 was the answer I am sure in this question

2.2m accumulated depreciation 5.9 cost of asset 4.6 revalued amount Depreciation rate 2% not calculated for current year so 5.9*2% = 0.118m Total depreciation 2.2+0.118 = 2.318m 5.9 - 2.318 = 3.582 Surplus 4.6 - 3.582 = 1.018

@sankwww the independence question was 2 and 4 I think (one person was CEO of other companies and another one was a person who provided the company with a loan that was paid in full 5 years ago)

Was the depreciation charged on a straight line basis? And what about the question of audit committee responsibilities! I unchecked hiring and firing external auditors? Was it correct?

This is how I did it. 2.2 was the accumulated depreciation at the start of the financial year, the asset was originally bought for 5.9. That would mean its carrying value at the start of the year was 3.7? So then 2% of 3.7 would mean the carrying value would be 3.626 at year end. Less revalued amount of 4.6 = 0.974. I selected that option. I thought if the straight line basis is 2% per annum this is applied to carrying value as opposed to the original cost? didn't see anything about it saying straight line 2% based on original cost so assumed just on what the carrying value was each year- anyways that was only 2 marks, so wasn't going to spend too much time there. On the audit risks 18 marker, there was one I spotted about $4m redeemable shares being issued to raise funds. I couldn't remember what the accounting risk would be here?

I have sat this paper for the bazzilianth time and sure I am not the only one. I had an audit report question about a receivables balance becoming unpayable- I just realised I had an amazing brain zap and think I wrote 'needs to modified through qualified opinion giving an 'emphasis of matter' paragraph instead of 'except for' I was typing so fast and on auto pilot. Just realised this now, what a kick. I really hope I wrote the right thing! If not, hope the examiner gives a few points for me explaining the other little bits. there was a 4 mark I was a little uncertain on about how internal audit can assist the external auditor- was excluding the inventory count as the question stated 'other than the inventory count'

I dont remember seeing excluding the stock count part so i included that in my answer and that the external auditors can rely on the IA assessment on the internal controls and processes if there are no deficiencies noted. Pretty sure ill only get 1 mark there lol

@Jayhelena i skipped that shares risk and included the amortization risk and the 0.6m that wasnt classified as a deffered expense to compensate. Lol Btw how did you find the controls question for 18 marks?

I took a gamble on the redeemable shares and said risk that share premium and share capital not allocated accurately but just a guess lol

@nathan how did find the control deficiencies question?

@jonnhy138 It was a strange one, it seemed like they gave a lot of points that could've been a control deficiency then said a control was in place. Commented on sequential order numbers, payment list being authorised and paid by finance director, 90 days payment terms (unless im confused with another question) forgotten a lot tbh. How about you?

@nathan Is this the paper where we were to identify a control deficiency, the control recommendation and list a test of control to test our recommendation? The entire question was based on a stock count lol

Exam was ok except control Q for 14 marks was difficult for me. There is question about going concern u have to choose date I choose 30 September is it correct?

I don't remember that I got question where I have to calculate depreciation where were that ? Auditor report impact was easy and 2 questions for 10 marks was in MOC exam

Was there a benefit of Audit planning for four marks?

There was a question in sec a regarding modofied or unmodified opinion and it's disclosure what have you gyes chosen

In the last two marks questions there was a table showing the difference between the GL and statement was it related to Accountants receivable or trade receivable??

This Q was in my sep attempt didn't get this time

Yes modified and uncertainty of going concern phara

There was a question about reason for not going concern. Sale of surplus property Operation loss Loan And one more What was the answer for this?

Was that the printing costs?I said was a Prepayment and so only 3 months should've been expense and the rest moved to balance sheet - forgot to mention deferred. grr. Found it hard to find 8 risks in the question though The control risks I found ok. Don't remember much on this...One of the control risks I put was about the removal of the passcode for the day and how there is a risk of theft or unidentified personnel getting in, to make sure team leaders were allocated the passcode and that surveillance was monitored. Put something about tagging inventories on the counts. Then also something about allocating a proportion of pre counted inventory to one side of the warehouse for the orders being fulfilled still. How did you find it?

Deferred expense is a prepayment so youre perfectly fine lol I think my 8 risk were: 1. New client ( risk of unfamiliarity) 2. Training costs being capitalized 3. Risk of incorrect amortization of the asset 4.0.6m advert costs being expensed the in SOCI instead of being classified as a deffered exp. 5.The decease of the warranty provision even though the level of claims remained the same. 6. The provision for the legal claims (risk of no provision being made) 7. The new purchasing system (risk opening balances not being correct) 8. I cant remember the last one lol And our answers seem similar for the controls question. For the pass code issue i said they there is an increased risk of unauthorized access to the warehouse and fraudulent activity. And they should monitor access through having a security officer at the entrance with list of authorized personnel who should sign and date the document upon entry. And that they should include stickers to mark inventory items that were already counted.

In section A I got questions about ethics and planning and risk assessment and also corporate governance. In section B the first one was control deficiencies, control recommendations, and test of controls for inventory stock taking./ Some random knowledge questions like the benefit of audit planning and what to consider when deciding to rely on Internal Audit department controls. I also had audit risks and auditor response question Then substantive audit procedures was quite a lot, I remember for bank loan and director bonus and trade receivables All in all, I think the exam was fair and reasonable and if I fail it is definitely because I didn't prepare for the exam enough because there literally were no questions that I did not see in the revision kits, the videos or the past papers