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It’s pretty easy for those who did past years. My advice is to understand the question structure. I think it went well for me. I was nervous that would run out of time. Thankfully that was not the case
MQC – i found them easy, got lots of Cs too
Q6) it is material not pervasive, similar issue is in BPP practice kit.
lots of questions around inventory, quite annoying.
overall it was a standard exam. no surprise I would say. 🙂
@drice99 said:
Yes the auditor observes and checks, enquires and does test counts,the client does the actual counting, organising and labellingI said how:
Review Past years before the audit to see the common mistakes errors
Review stocktakes during the year to ensure the adjustments postedObserve the stocktake
Recalculate a sample etcThings like that
I couldn’t answer the question about how auditor should consider laws and regulations DIRECTLY affect the financial statement. I think the fact that the word directly was highlighted made me think that there must be something very special 🙁
there was a question about, the responsibility of the auditor regarding compliance with laws and how that affect the f/s??
@karinaq said:
I couldn’t answer the question about how auditor should consider laws and regulations DIRECTLY affect the financial statement. I think the fact that the word directly was highlighted made me think that there must be something very special 🙁Just stated that auditor responsibiltiy is to obtain sufficient appropraite evidence regarding compliance with Laws and regualtions that have direct effect on FS !
the exam went so well for me i had about 45 mins to spare to check and double check answers… then only in the last ten minutes noticed there was a question 6 for 20 marks!!! did anyone else make this foolish mistake?! i think after a week of doing past papers that all only have 5 questions i wasnt expecting a 6! also the fact that the question isnt part of the booklet its on the back sheet! very frustrated with myself!
mcq’s i can remember:
1c
2c
3c
4a
5a
6b
7d
8c
9?
10?
11a
12a@sarahblundell1985 said:
the exam went so well for me i had about 45 mins to spare to check and double check answers… then only in the last ten minutes noticed there was a question 6 for 20 marks!!! did anyone else make this foolish mistake?! i think after a week of doing past papers that all only have 5 questions i wasnt expecting a 6! also the fact that the question isnt part of the booklet its on the back sheet! very frustrated with myself!mcq’s i can remember:
1c
2c
3c
4a
5a
6b
7d
8c
9?
10?
11a
12aYour MCQ’s and mine are pretty same !! 😀
@sarahblundell1985 said:
excellent news! 🙂 feeling better already!Cool !! MCQ’s were easy though !!
I found this exam to be pretty fair, i struggled with four factors influencing the audit evidence, but just used common sense to answer all questions. I spent too much time doing Q5 so left the audit procedures after identifying the deficiencies and recommendations.
Moved quickly to Q6 as had only 15 mins to answer it. answered it all as the question was divided into parts so easier to gain few marks in each part.
Overall the questions seemed to make me use more common sense and overall knowledge of Auditing than testing testing a particular topic in detail .
The results will decide how well i performed. I THINK i performed really wellOMG i am so glad, to see people getting C’s! I was stressing out! I thought it was out of the ordinary lol
The time pressure in this is ridiculous. 6 questions, q4 the question about the audit risks and responses took me AGES. It nearly killed me!! If I only I bothered doing a mock I would have copped to do questions 5 and 6 first 🙁
Basically if you don’t do 5 and 6 first you are dead!!
Well not entirely but I reckon doing them in the wrong order cost me 15 marks minimum
Well guys for Question 6 my answers were like this (sorry for spelling mistaks)
6a) Reliability depends on whether information is: Written, Original, Obtained directly by Auditor and Entity controls over generating it.
b) Audit procedures before count: Review previous year instruction documentations, and inqure management regarding any significant changes in policies, determine whether Auditor Expert is required and to determine which locations to visit and from where returns or representations are required.
Audit procedures during count: Observe that counters adhere to polices, Conduct test counts, make sure that returns from sites not visited are obtained, conclude the value/condition of inventory to determine whether inventory in F/S is reasonable.
Procedures for Capitalising R$D: Inquire techincal stuff on their views aboyt feasbibilty of the projects, view budgets and management expertise, recalculate amortisation for project already commenced and other few procedures…
c) didn’t answer out of time…
Mult choice:
– First three were Cs.Nummer 4 was b I think as the changing sales mix may alter the gross profit margin. For example when you sell more high profit margin products than expected and only few low profit margin products.
Number 5 was b.
The last was c.
The auditor is never directly involved in counting of inventory to my understanding. What they do is perform audit procedures in order to obtain sufficient appropriate evidence so as to reduce the risk of material misstatement. The points I gave need good explanations to I guess. For example -ascertain that work in progress in separated from finished goods to facilitate correct valuation of inventory. Obtaining procedures and instructions for inventory count. Inspect the warehouse and ensure that inventory is marked and labelled before the count. To ensure that all there is no possibility of inventory missed. This procedure comesback during counting :for all inventory counted ensure that the counted shelves or places are marked as counted. In order to avoid double counting or missing certain lines……
@tinaboy said:
The auditor is never directly involved in counting of inventory to my understanding. What they do is perform audit procedures in order to obtain sufficient appropriate evidence so as to reduce the risk of material misstatement. The points I gave need good explanations to I guess. For example -ascertain that work in progress in separated from finished goods to facilitate correct valuation of inventory. Obtaining procedures and instructions for inventory count. Inspect the warehouse and ensure that inventory is marked and labelled before the count. To ensure that all there is no possibility of inventory missed. This procedure comesback during counting :for all inventory counted ensure that the counted shelves or places are marked as counted. In order to avoid double counting or missing certain lines……I’m not saying your wrong you do have valid points of course ! but I guess u didn’t notice there were no WIP !!
Hey guys, in the question about a company producing small fast moving items did you ask yourself why the research and development costs for the new production lines were capitalized and then amortized under intangible assets? What kind of intangible assets are these? I thought it was awekward!
It gave me hard time too. What made it ridiculous was identifying and explaining deficiencies, recommend controls and perform a test of controls. The only way to do it was to put a deficiency, control and test of control per paragraph until you reach six points
Maybe I missed it. I thought it said there was an immaterial work in progress. I don’t remember. However I always give at least 2 extra procedures since there is no negative marking
@tinaboy said:
Maybe I missed it. I thought it said there was an immaterial work in progress. I don’t remember. However I always give at least 2 extra procedures since there is no negative markingThat’s cool !!
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