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

1. B
2. B
3. C
4. C
5. B
6. B
7. A
8. D
9. A
10. D
11. B
12. B

Yes, these are what I put down. I’m fairly confident on Q2 Q3 and Q12 though :p …

@sam123456789 what’s your answer be for 7,9,10

@usamaniaz said:
Q2 money laundering and terrorist offence is a legal duty not a voluntary.

Do you agree?

Agreed. That’s obligatory.

Guys I’m not sure if my answers are right. But basis on what I understood from the question that’s how I answered.

Q12 both statement s are wrong in my opinion

Option B is defo wrong. Coz they will give an adverse opinion not qualified.
Which will state FS are not true and fair.

Statement A
If they can’t make a judgement than how can yiu give assurance on it. Only disclosures will be emphasis of matter.

In my notes from my tuition provider:

Voluntary disclosure – an auditor may decide to disclose information if he feels it is in the public interest e.g. if the management are involved in fraud (I linked the money laundering sentence to this). They may also disclose information to defend themselves in a claim of negligence or if suing for unpaid fees.

Trust me money laundering is 100% obligatory.

Terrorist offence is also obligatory.

“If in the auditor’s judgement the company will not be able to continue as a going concern and the
financial statements have been prepared on a going concern basis the auditor shall express an
adverse opinion”

this is from bpp rev kit. this clearly says that use of the going concern assumption is inappropriate

@moofr00tz said:
In my notes from my tuition provider:

Voluntary disclosure – an auditor may decide to disclose information if he feels it is in the public interest e.g. if the management are involved in fraud (I linked the money laundering sentence to this). They may also disclose information to defend themselves in a claim of negligence or if suing for unpaid fees.

Sean.

Refer to exam paper December 2011 q4c

This whole paper was based from previous past paper questions.

Obligatory
Auditors are obliged to make disclosure where, for example, there is a statutory right or duty to disclose, such as if the auditor suspects the client is involved in money laundering, terrorism or drug trafficking in which case they must immediately notify the relevant authorities.
In addition, auditors must make disclosure if compelled by the process of law, for example under a court order or summons, under which they are obliged to disclose information

5 (a)
Voluntary
In certain circumstances auditors are free, as opposed to obliged, to disclose information without obtaining the client’s permission first. These circumstances can be categorised into the four areas below:
Public interest – An auditor may disclose information which would otherwise be confidential if disclosure can be justified in the ‘public interest’. This would be perhaps if those charged with governance are involved in fraudulent activities;
Protect a member’s interest – Members/auditors may disclose information to defend themselves against a negligence action, disciplinary proceedings or if suing for unpaid fees;
Authorised by statute/laws – There are cases of express statutory provision where disclosure of information to a proper authority overrides the duty of confidentiality;
Non-governmental bodies – Auditors may be approached by non-governmental bodies seeking information concerning suspected acts of misconduct not amounting to a crime or civil wrong. Disclosure should only be made to those bodies with statutory powers to compel disclosure.

Woho

I don’t agree with 2 of the answers which have been published

defiantly not 12 that’s not right
Q3 as well. Why is that C?

Which of the following statements, relating to the auditor’s reporting responsibilities for going concern, if any,
is/are correct?
(1) Where management is unwilling to make their assessment of the company’s ability to continue as a going
concern, the auditor should include an emphasis of matter paragraph in the audit report
(2) Where the use of the going concern assumption is inappropriate, the auditor should include a qualified opinion
in the audit report

This should be D ( Neither 1 nor 2) since the emphasis of matter para can only come if management assumption of going concern is correct but significant uncertainty exist. here in the question it clearly said that management assumption is INAPPROPRIATE.

I disagree with Q2 on the basis of my tuition notes!

Q5 I’ll concede as I was torn between the two. I had arguments for both of them…. for the going concern one I know they have to evaluate management’s use of the going concern but they don’t have to express an opinion in every report, only highlight where they feel it has been used inappropriately.

For ISA, surely as this is a global paper in certain national contexts it wouldn’t apply? Therefore in certain countries where ISA has no legal status the auditor would not be responsible for following them as it represents best practice like the UK corporate governance code.

Q10 I disagree with as well because internal auditors should report to independent NEDs / audit committee and not the finance director who could have a vested interest in the internal audit

Some of these answers don’t even make sense. Why would internal auditors report to FD? That’s outrageous