*** F8 December 2014 Exam was.. Instant Poll and comments ***

@abbas7796 said:
thanks. what about revaluation? do you think the points i made were good enough for substantive procedures?

I wrote the same but included the recalculation of gains

Ensure the gains have been disclosed in the reval reserve in equity

@abbas7796 said:
ok. so the same points of revaluation were valid for both land and buildings and warehouse right or were we suppose to separate the warehouse element?

A valid point for either or warehouse and buildings. It’s in the same class of assets.

@abbas7796 said:
thanks. some relief after ur comments. what about factors auditor considers to rely on expert? i wrote qualification, experience, independence, licence to operate, their previous work reputation, whether or not their previous work was reputed etc. are these points ok?

I included those, in the question, the work has always been done. I mentioned evaluate the assumptions used in the report. Assess if there is sufficient and appropriate evidence to form conclusion of valuation

10 Which of the following statements, if any, is/are correct?
(1) Internal auditors should report to the finance director as they understand internal controls and are best placed to
implement any recommendations in a timely manner
(2) Companies are not required to establish and maintain an internal audit function
A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2
——————————————————————————————————————-

(2) Companies are not required to establish and maintain an internal audit function

This is worded so unclearly, even the question set like i following:-

-Companies are required to establish and maintain an internal audit function

OR

-Companies are not required to establish and maintain an internal audit function

I won’t agree both of them:

The Question should be worded like this :-

-It is not a mandatory requirement to establish and maintain an internal audit function

or Companies are not required to establish and maintain an internal audit function but it is better have one………

Then i will agree this answer. This is not an English test , we require a very clear cut question.

@abbas7796 said:
ok. so u mean that those i have alreay included were fine but if i had included the ones u suggested as well like “Assess if there is sufficient and appropriate evidence to form conclusion of valuation” then i would have been perfect? sorry for reconfirming

Marks are capped but I put in more than the allowance. Your points are still valid.

Since the work has already been peformed. I thought it would be better to apply it to the story in the question.

If we get unreliable courier service , then eventually we will get complained by customer ,who are not receiving goods.

it is. even kaplan also says it comes before counting while the question specifically mentions while attending the counting event.

@usamaniaz said:
I think k the only mcqs which I have problem with are 3 and 12

Q12 D I think we agreed

Q3 is D.. that’s about it the test I got right well apart from the disadvantage of questionnaires coz I can’t remember what I ticked

Why is question 3 D? I hope question 12 goes as a bonus lol…

ISA 580

Objectives
6. The objectives of the auditor are:
(a) To obtain written representations from management and, where
appropriate, those charged with governance that they believe that
they have fulfilled their responsibility for the preparation of the
financial statements and for the completeness of the information
provided to the auditor;

Use of Going Concern Assumption Inappropriate
21. If the financial statements have been prepared on a going concern basis but, in
the auditor’s judgment, management’s use of the going concern assumption in
the financial statements is inappropriate, the auditor shall express an adverse
opinion.
(Ref: Para. A25–A26)

Wish for the best on 8th Feb to all of you

the ans is B
but i put A. 2.damage goods and 3.cut off. i saw lecture on open tuition about inventory system
i dont know if am right, please correct me

i have a quick question for f8 students.

this was my first attempt and i never really managed to read the examiner reports thoroughly except for few. i want to ask why student normally fail in this exam? i know why students do fail in f7 since they just try to attempt first 3 questions which (in old format pre December) used to be for 75 marks. so students normally didnt even bother to attempt the rest of 25 marks and hence ended up failing. but what about f8? why it normally goes the other way? why results in f8 comes beyond expectations? in f7, the examiner in his reports have highlighted many times that on many occasions students ended up getting 20 out of 25 marks in questions regarding consolidation of financial statements etc. are there any similar questions in f8? what do people normally get if they do their audit risk and control deficiency question well? please advise

thanks sam for your input. so u meant that students just put down every possible risk rather than focusing on the scenario and putting down those risks specific for the question? as far as i remember, i managed to put down 7 risks in our exam 1) inventory overvalued due to significant decreases in prices. response of auditor: extended nrv and cost testing and review of aged inventory report to assess write downs. 2) risk of overvaluation of inventory due to director saying they expect increase levels of inventory. response: being extra alert during inventory counting at year end or if possible increase sample size while testing inventory from floor to sheet and sheet to floor. 3) receivable going bad response: extended post year end cash receipt testing and review of aged rec ledger to assess valuation. 4) potential risk of lawsuit from finance director who was dismissed (risk of not recognizing provision) 5) as this guy was dismissed so more burden on finance dept and hence increase chance of errors (inherent risk) 5) purchase ledger supervisor left hence risk of payable understated. response would be performing analytical procedures etc. have u got something along these lines?

can anyone please tell about the f8 mcq results? Thanks