*** F8 December 2012 Exam *** Instant Poll and comments***

1st 2 questions are easy but 2nd last and 3rd 1 is difficult…:D
overall passable paper…I hope so i will be passed…

Question 3 was a bummer. Rest was fine. Even had trouble with question 5. What were the answers to Fuschia and the other part of question of impact on audit report’. What were the impacts? Part a and b? PLEASE answer

@khizrak said:
Question 3 was a bummer. Rest was fine. Even had trouble with question 5. What were the answers to Fuschia and the other part of question of impact on audit report’. What were the impacts? Part a and b? PLEASE answer

a) disclaimer of onion, it is unable to form an opinion.
b) the matter should b disclosed n the emphasis of matter paragraph.

To be honest I hate discussion exams, But this one was quite easy.
I don’t think that it should be disclaimer in 5.
I think it should be modified for Daisy on “except for” basis. It was impact only on revenue and receivables and other was fine. Financial statement was also made before issues, so probably it was fine.
And for Fuchsia I think it should be adverse opinion if the issue wasn’t resolved and management doesn’t want to disclose cash outflow in FS. Who with me?

I answered to all. Probably not all will be correct, but I hope I’ve passed this boring one:)

I put adverse for Fuchsia as well.

Though for Daisy, I have the disclaimer of opinion because of the materiality of the issue. (also, revenue wouldn’t be affected right? I’m thinking only receivables are affected?)

Also yes, I’ll have to repeat for tomorrow’s F9. The paper I fear the most this semester ._.

I put fuchsia should prepare F/S on a breaking up basis but that’s probably wrong 🙁

@khanasad said:
i think if the auditor cant find sufficient and appropriate evidence based on which they give their opinion and the matter is material, then they should say that we r unable to form an opinion. and if u remember in the question it was clearly said that the virus destroyed all the sale record, the management only know the balances without any supporting documents. so nooooo evidence….

disclamer of opinion is appropriate
sales revenue, receivables and profit could not be recoreded . not just one area.
for fuschita
it is adverse or qualified but i wrongly wrote it could be qualifeid or disclaimer. made mistake there

For the first scenario in q5 I said that although it only related to sales and receivables, because they couldn’t verify sales the profit itself is also in doubt. On this basis it should be a disclaimer as its material and pervasive. I did also say it could be argued that it should be “except for” as well.
For the second one I said adverse opinion as the whole of the accounts have been prepared on the going concern basis when it’s clear that this is wrong from what we are told in the question.

@vipin70 said:
disclamer of opinion is appropriate
sales revenue, receivables and profit could not be recoreded . not just one area.
for fuschita
it is adverse or qualified but i wrongly wrote it could be qualifeid or disclaimer. made mistake there

I am agree with this, dasiy has one opinion, but F got two. I answer all, and give opinion on audit prcedure about discuss with management about the funding, and cash flow problem.

Hi Admin…
I forgot to mention the question numbers on the cover page of the answer booklet… would my script be checked or would it effect my marking??? Kindly reply…. Cheers!!

Adverse for the second one due to the lack of disclosure in the financial statements?

I think as long as you have justified your opinion that’s the main thing anyway?

Daisy – auditors were able to estimate revenue from analysis of previous years, other ratios etc. If the figure from financial director was close to this estimate I would say qualified opinion as they have not audited this part but indirectly confirmed revenue. If director’s figure is miles away from what they estimated it means something with revenue, receivables, profit may be completely wrong so material and pervasive – adverse opinion.