AAA*** December 2023 ACCA AAA exam – Instant Poll and comments ***

Please is any one can tell me Exam structure, what happened today.

Question 1 - identify risk of material misstatement Question was a group structure with an acquisition and disposal and lawsuit and there were deficiencies in internal control with integroup transactions - audit procedures for the disposal - matters to consider and procedures when using the work of a component auditor Questions 2 - ISA 260/ 265 Example of deficiencies in internal control and whether to include them in a report to TCWG Critique the extract from the auditors report Question 3 - ISQM 1

what did you put sameera for: work with the component auditor work on the acquisition of sub things to tell TCWG EoM paragraph the deficiencies and improvements of the acceptance process

I didn't get that set of questions, I got: Q1 Business risks 10marks, material misstatements 24 marks, further evidence of a property valuation 6 marks Q2 Reviewing the audit file before completion - fall in an investment property portfolio, subsequent events with a drop in revenue from strikes, and I can't remember the other section - did anyone have the same? Q3 Engagement quality review - the eligibility of a reviewer was 8 marks and then two scenarios on files after a review I wish I had gotten the critique of auditors report!

Don’t wish for that question my brother. It wasn’t about critiquing the audit report. It was about critiquing the EOM draft of an audit report and it was worth 7 marks. It was a tough question with a very short exhibit.

This is also what I got.

I had the same as you. Found some parts OK, some parts rough. Wasn't keen on the ISQM2 as that didn't feature in the course notes. Just via technical articles. The saving grace on that question was the 2nd part of it, where you had to indivually discuss the quality. Q1 - lengthy, as always. Found some of it strange and difficult to get my head around due to the industry they were in. Couldn't think of a full 7 marks for valuation of property so I think I've prob only got half there as I'd stated things that aren't necessarily for the valuation. Q2 - Found this OK at the start but then started to question myself. And for the audit report impact 5 marker that showed as the last part, I'm sure I didn't give enough points for the 5 marks. Main issue, and seems to be for most people, is the absolute time pressure. I literally wrote until the last second. Didn't get a chance to look back over anything. Insanely time pressured! How did you find it?

I made a big mistake on q1 materiality was supposed to be 3.75m but I was thinking ahead too much and put 37.5m moved the decimal point. I had the questions @samerra, the rest of the question was OK but now materiality was all messed up probably get marked down alot because of this.

I got the question of RoMM only for 22 marks Why did they show internal and external sales? Should we have calculated materiality on external revenue because it was group? Or on whole revenue normally

I think I've just realised I've made a similar error. I had to base it off revenue and I'm sure the total value was 47.5m. I think I've put 4.75m as the 1% part incorrectly. I did say 0.5% and 1% though. Damn

what did everyone put regarding the EoM question? for materiality i based it on external sales as internal sales should net to 0 in the group i put but could be wrong

@amariag1982 - I agree, time pressured!! I didn't get to read over any of my answers either and I also agree the ISQM2 was tough for 8 marks as I hadn't really covered much of that so deffo didn't get high marks for this. What risks did everyone put for the JupiterLive question?

I based on an external sales but said as there were issues with intergroup transactions so figure might have to be amended I said it would be possibly revised once the revenues for internal group were recalculated

@amariag1982 for the revenue materiality my total was 52.7m which is 263,500 at 0.05% - i set materiality as lower due to this being a new client and detection risk being high

I had ISQM 1 question - mine did not mention ISQM 2

Q1 22 Mark ROMM question with no financial information or comparatives - was near enough impossible to do any sort of ratio calcs or margins to add depth to the answer A few ROMMS I rmr were profit on disposal of 18m should not have been netted off to Opex - it should be in “other income” and it was material Legal breach probs required either a provision or contingent liability The disposal of sub was a IFRS 5 discountinued operation as it mentioned each sub was a major line of business Profit likely overstated if they didn’t split this out as discontinued For Clarke the parent provided them letter of support to repay any loan they have - needs to be provision or contingent liab probs in group financials Revenue risk - mark up of 2 % was management estimate - might not be an arms length transaction between subs Deficiency internal control around intragroup - risk of misstatement with regards to consolidation of recievables/payables

Overall it was very tough exam the ISQM 1 I hadn’t really gone over I just talked about sufficient direction supervision and review and made points around that

Yeah, just done the calc wrong. However I did use 0.5% throughout so maybe just the 1 mark lost for stupid error in the calculation.

Did you get 3.75M for the lower end of the range?

I’ve made totally the same mistake, described range, chose lower end as listed client and control deficiencies but incorrect calculation. Should be 1 mark less and potentially incorrect conclusions on 1-2 risks on material/non-material, thus I believe potentially 3-4 marks less.

What was the aggregate impact on audit report answer you write

Scenarios: Poorly given scenarios, not thorough enough. Insufficient financial information, mainly comparatives, to give more detail answer. ACCA wants to examinate business acumen but the questions were not tailored to give such answers. Impossible to give deep answers linked to scenario and business environment. Technical issues: The word processor doesn't work correctly. I wrote a paragraph and wanted to change or add something in it, once I started to write the new word the old words were overwritten by the new characters. Poor technical environment provided by the examiner. Conclusion: Poor service provided for £180.

@hellomynameis I had the same technical issue in a previous exam sitting but it only started halfway through the exam - I realised when I googled it afterwards that I'd just accidentally activated the overtype toggle on the keyboard. I do agree it was very annoying but unfortunately just needed turning off on your keyboard and was nothing that ACCA could help.

Had the same issue very annoying indeed

If in case we miss to mention question sequence in Q1 - a) business followed by b) ROMM without mentioning Romm heading but correctly written Business risk and ROMM risk separately. Will examiner get that for marking ?

Yes I did and I think it’s the correct answer ?