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Honestly Q1 was such a pain to hunt for risks OMG. So much info and really at the same time you need to decode what are the implications and frantically put something down. Argh. Hoping for the best.
There’s just no time. Any of you get the sustainability highlights? With the green loan?
Agree. It took so much time to read q1.
Anyway, I have started with Q2 and q3 and did it to time then moved to q1 at the end but struggled with the time anyway because of the ROMM. There was 17 marks question for the ROMM so 3 marks for materiality leaving us with 4 to 5 risks to write for ROMM. I wrote only 2 which was legal claim and the acquisition of E.
A in q1 was 8 marks for business risks.
C was audit procedures for goodwill on acquisition for 8 marks
And the last question for q1 was benefits and challenges of join audit.
Q2 I think was for 12 marks to discuss the impact the issues will have on the audit and ethical and professional issues using all exhibits.
Then 4 marks for b and 4 marks for c
B was for audit procedures for legal claim and c I don’t remember.
Then q3 for 6 marks a was to discuss the challenges in use data analytics by auditors.
Then b and c don’t remember too much but was split to discuss quality management..
We were reviewing the file post issuance and needed to comment on the quality management and give recommendation. Then the last question was to review another company audit report and critically appraise it and discuss if the opinion given was appropriate.The going concern question regarding fire occur after year end but client believes no impact. How do you approach it? Does it consider as non adjusting event? Client to disclose in notes to the account? And auditor should disclose in MURGC paragraph?
Yes, I have discussed IAS 10 Events after the reporting period. The fire was after the ye but and it was non adjusting event because the event did not exist at the ye so no adjustments to the financial statements but disclosure in the financial statements needed.
And I discussed that the management do not believe that this will have going concern impact because no other facilities are affected but if there were healthy and safety breaches and the local residents claim (I think more than 100m estimated) and the fact that the materiality was set at 26m and the damage to facility with carrying amount of 25m and also wip of 2m the issue will be material in aggregate.
I think then I did the reporting but wrong and not sure if I wrote about the MURGC but I have definitely state that this will have impact on going concern.Oh I completely missed the GC point- instead approached it as an IAS10 and impairment given RA will now be nil. lol this is the thing it could be ANYTHING ? now I’m stressed. It’s so easy to miss the point lol argh
Unless my requirement differed slightly. That audit report was so messy hahhahaha
Don’t be stressed ? we all did probably something wrong and tried our best. I know what I did wrong but we there is nothing we can do now. Let’s hope we will pass. I always say that failing an exam is not a failure. A failure is giving up. We will get there.
I have mixed feelings with this exam.For the critical appraisal part of Q3, I says it shall gives adverse opinion because the mgnt reluctant to disclose/change the misstatement. Am I wrong? For that part, could the opinion be wrong or just the style of presenting will be wrong?
Anyone else have similar questions to this?
Q1 – Waste management
Business risk ROMM Goodwill procedures Joint audit
Found it really difficult to identify the RoMMs prob made some up
Q2 – Quality management + evaluate audit report – this was a very unusual q that never seen before
Q3 – NOCLAR – again unusual q never seen before semed like i repeated myself a lot on thisHi gemroll,
I had these questions.
How RoMM identification was difficult ? Are you sure ? 🙂
There were many risks.
1. Kipper has 15000 specialist vehicles, so risk there is a risk that the cost of these specialist vehicles has been calculated incorrectly.
2. Revenue, there is a risk that scheduled deliveries are missed and revenue is calculated incorrectly as performance obligations are not satisfied.
3. Goodwill, there is a risk that goodwill has not been calculated as per IFRS 3.
4. Fair Value of assets in acquisition, not done
6. Exchange rate misapplication
7. Brand value calculated by group’s in house team
8. Cost of landfill sites incorrect
9. Provision
…etc etcI wrote 12 or 13 I think.
Q2 and Q3… yes, very unusual
Any one sat the morning aaa paper? If so what topics came up in all qs, thanks for any replies.
Re: q1 in afternoon paper, its easy to come up with tones of romms, if your calm & sharp with your aaa knowledge and your attempting q1 earlier in the exam duration, but if you attemp q1 in the end duration of the exam time, panic sets in and faced with huge amount of information and twists and turns in the scenario, one gets a mental block; it’s difficult to pick the material mistatements, as there just isn’t enough time to absorb the scenario information and implications under all the IFRSs and frantically write the answer. I got to put 4 romms down, time run out!.
Time-pressure is the cause of only 30%ish passing aaa in every sitting.
The aaa exam questions are actually not too difficult, for a well prepared student, buts the Limitted time that makes it difficult to pass.
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