*** F8 June 2012 Exam was… Comments and Instant Poll ***

Found it time restricted, although did manager to write something for every
questions and every part, but could have written more. Not sure if I was writing in proper sentences for the last 1/2 hour was just trying to get all the imporatant words and points in, hopefully will still pick up 1/2 marks even if not explain fully?

@frogstar said:
Ok I’m worried now. I’m sure it said opinion so I said qualified, adverse and disclaimer. Was I wrong?

I think I read “three” so automatically thought of these!

Maybe it did say opinion and I could well be wrong. We’ll find out in a few days I suppose. Only 3 marks at the end of the day 🙂

the paper was suprisingly alot easier than expected. Some of the previous exam papers were alot more difficult IMO. I have a feeling the marks might get scaled down.

@lewisbush said:
On the going concern question it was asking for going concern indicators that does not indicate going concern wasnt it?

Indicators were highlighted in it

very easy question that was

was expecting a tougher ppr,even a fail…bt to ma surprise the ppr was easy…sure to pass inshaAllah 🙂

(a) In respect of the internal control of Pear International Co:
(i) Identify and explain FIVE deficiencies;
(ii) Recommend a control to address each of these deficiencies; and
(iii) Describe a test of control Apple & Co would perform to assess if each of these controls is operating
effectively. (15 marks)
(b) Describe substantive procedures you should perform at the year end to confirm each of the following for plant
and equipment:
(i) Additions; and
(ii) Disposals. (4 marks)
(c) Pear’s finance director has expressed an interest in Apple & Co performing other review engagements in addition
to the external audit; however, he is unsure how much assurance would be gained via these engagements and
how this differs to the assurance provided by an external audit.
Required:
Identify and explain the level of assurance provided by an external audit and other review engagements.
(3 marks)
(d) Distinguish between internal audit and external audit. (4 marks)
(e) Explain the potential impact on the work performed by Apple & Co during the interim and final audits, if Pear
International Co was to establish an internal audit department. (4 marks)
(30 marks)
_____________________________________________________________
(a) ISA 300 Planning an Audit of Financial Statements provides guidance to assist auditors in planning an audit.
Required:
Explain the benefits of audit planning. (4 marks)
(b) ISA 530 Audit Sampling provides guidance on methods for selecting a sample of items for testing.
Required:
Identify and explain THREE methods of selecting a sample. (3 marks)
(c) Describe the three types of modified audit opinions. (3 marks)
_____________________________________________________________
(a) Explain the external auditors’ responsibilities in relation to the prevention and detection of fraud and error.
(b) (i) Explain SIX ethical threats which may affect the independence of Currant & Co’s audit of Orange
Financials Co; and
(ii) For each threat explain how it might be reduced to an acceptable level. (12 marks)
(c) Orange is aware that subsequent to the stock exchange listing it will need to establish an audit committee and
has asked for some advice in relation to this.
Required:
Explain the benefits to Orange of establishing an audit committee. (4 marks)
_____________________________________________________________
(a) (i) Identify and explain FOUR financial statement assertions relevant to account balances at the year end;
and
(ii) For each identified assertion, describe a substantive procedure relevant to the audit of year-end
inventory. (8 marks)
Describe substantive procedures to obtain sufficient and appropriate audit evidence in relation to the above
two issues.
Note: The total marks will be split equally between each issue. (8 marks)
(c) List and explain the purpose of FOUR items that should be included on every working paper prepared by the
audit team. (4 marks)

_____________________________________________________________
(a) Explain the three stages of an audit when analytical procedures can be used by the auditor.
(b) Explain the potential indicators that Strawberry Kitchen Designs Co is not a going concern. (6 marks)
(c) Describe the audit procedures that you should perform in assessing whether or not the company is a going
concern. (6 marks)
(d) Having performed the going concern audit procedures, you have serious concerns in relation to the going concern
status of Strawberry. The finance director has informed you that as the cash flow issues are short term he does
not propose to make any amendments to the financial statements.
Required:
(i) State Kiwi & Co’s responsibility for reporting on going concern to the directors of Strawberry Kitchen
Designs Co; and (2 marks)
(ii) If the directors refuse to amend the financial statements, describe the impact on the audit report.
(3 marks)
_____________________________________________________________

Same here did this in another question however 2/3 in that part will be ok i guess . Still hoping for a pass else DEC 2012 for F8 izzon . Lol

@liverbnz said:
So it was modified audit opinion and not report and I need to read the questions better. Emphasis of matter will get no marks 🙁

So over 85% of candidates thought the exam was ok or easy… Looks like there will be a lot of disappointed people come August!!! On the positive side I imagine the pass rate among opentuition users is far higher than average;) best of luck everyone 🙂

D standard of ACCA should be reviewed…what r d 3 method of sampling ? 3 stages of substantive analytical review ? I distinguished between IA & EA using table, hope its ok ? God helping me I pass dz time, can phantom writing dz paper again ?

…I mean I can’t phantom writing f8 again, never…I hate writing papers…col.

Hi everyone

I did F8 paper after a long break and it came across to me as a pretty fair paper compared to previous papers. I just did finish on time. There were loads of points to write in respect of the test of controls qiestion and the going concern but the key issue was the number of issues asked in the question and thus the time allocation. That was the tricky thing in the question. It was emphasised as to give “five issues and four” and so on.
I hope and pray I will get 50% as last time I got 48%. This is my last paper in this level.
As I did after a long time, is marking computerised? Can someone shed some light on it? I did home study with the help of Kaplan revision kit and O/T notes, hence no connection with the real classroom atmosphere where you tend to get other info about marking and setting of question papers etc.
Now preparing for P1 on Wednesday.
Good luck with other exams.

@ ALL can please share me your answer what you wrote on this Qtn? thanks.
4 (a) (i) Identify and explain FOUR financial statement assertions relevant to account balances at the year end;
and
(ii) For each identified assertion, describe a substantive procedure relevant to the audit of year-end
inventory.

@sabamughal said:
Actually i attempted this paper second time and i found it very easy and surprisingly i finished it on time. The only part i have left the “working papers” part, i couldn’t answer it. If anyone knows, please share it. Rest of the paper i completed as i practiced the questions.But one thing i have a fear about the paper the more easy paper, the more difficult marking to pass the exam.F8 paper is not difficult to prepare and even answer in exam but difficult to answer according to the examiner point of view.Hope everyone may pass.

I have attempted this paper for the second time and also found it to be easier than the first time. I really hope I get 50%!

regarding the working papers, I wrote that each WP should include:
– The name of the audit client (to distinguish from other clients WPs)
– The reporting period
– The account balance tested
– the objective of the paper and tests being used
– the audit procedures applied
– the conclusion
– the name of a preparer
– date.

and briefly explained each point.

I guess that was required in this part.