AA*** F8 June 2013 Exam was.. Post your comments ***

<cite>@vipulv said:</cite> Has anyone passed any exams not finishing the paper like missing 10-15 marks. This is what I worried about! :( I got f9 now tomorrow

Oh trust me i missed entire 25 marks question in F5, yet passed on 58, and 20 marks in F6, and passed on 60

it was not adverse..it was material not pervasive...so qualified opinion

yup..i knew the ans to q4(a) and hopfull to score well in it

3 b - calculate 5 ratios that will be useful for audit senior in planning the audit. 5 m - using ratios calculated identify 5 risks and give auditors responce to each of those risk while planning the audit. 10 m 4 a i list and explain 5 substantive procedures. ii give examples of appliation of this procedures in respect of property plant and equiptment total 10 m b - how new internal audit department could assist the company in accessing(?) fraud and error; 3m c which other functions the management of can ask the internal audit department to do 7m

Most of my paper went well. But i got a part of last question wrong. I wrote that both were adjusting events and adjustments need to be made. For the report i went with Qualified with except for. Now i am afraid, i here is there is a conceptual error in last question, they fail you ? :(

Yes.. but mayb if u got procedures fr amendment etc correct... u cn gain a few marks.. well atleast u did rest of the paper well eh...

Very easy and all expected question . .. Hoping for good score.. Thank you so much opentution...

<cite>@moazamrohani said:</cite> it was not adverse..it was material not pervasive...so qualified opinion

how? it was effecting multiple items

As for exam .. as usual with F8 :) 3d attempt you attempt all parts of all questions, u write on 2 booklets , u feel you write the right ideas and they are full and clear. You think you did very well ..then you get your result and it's a bad fail :) not 48 ..but a baad fail :) i do not ask for suggestions that i should improve my exam technique ..i just say that F8 is ...interesting :)

Item is pervasive if the impact is on all of the fs or substantial part of it... so both wre material.. they can b calculated as percentage of pbt n revenue.. first was material modify report n adjust ecen. Second non adjusting provide disclosure..

<cite>@tchigbo said:</cite> affected only inventory, valued at $0.85million instead of the realisable value of $0.1million... though in the procedures, you need to check if there are lagal cases brought against the firm since chemical substance are highly dangerous

im talking about explosion, it damaged multiple items

The condition didnt exist at time of report. Not adjusting. But its material.. hence disclaimer...

<cite>@captmario said:</cite> im talking about explosion, it damaged multiple items

<cite>@nupurkum said:</cite> The condition didnt exist at time of report. Not adjusting. But its material.. hence disclaimer...

disclaimer? :/ its either adverse or nothing

Oops I meant disclosure. Also in that case modify report qualify opnion n except fr para. Yes yhere is disclaimer just to clarify.. wen item has misstatements .. is pervasive n there is insufficient evidence.. surely not in this qs..

hope i remembr is correct :P q1) a- 14 mamarks question on deficncy,effects and recomendation(4 marks each with 2 marks fr presentation) b-i- the auditor and those charged with governence -comunication (3 marks) ii- the 2 maters to b comunicated wth thse charged wth governance.(2 marks) c- substantive procedure on bank and cash (7 marks) d- compltness and accuracy of entering data.(4 marks ) 30 marks question q2) a- ethical threat -(5 marks) b- managment assement for going concer and auditor for going concern(5 marks) 10 marks question q3) a) i-calcaulate ratio, ii- audit risk (10 marks)(5:5) b) 5 audit procedure with example -10 marks q4) a) intenal audit department -detection of fraud(5 marks) ii) other duties that intrnal ausit can do(5 marks) b) material and performance miissstatement(10 marks) q5) a) elemnts of audit engagemnt-marks 5 b- 2 events were give chemical piosened,assests on fire i) efect on financial statemnt, and audit procedure(total 13 marks) ii) effect on auditor opinoion(2 marks) total 20 marks

Yep thts wat I did.. I hop ppl hvnt confusd corp gov with those chrgd wth gov...

<cite>@tabsom said:</cite> hope i remembr is correct :P q1) a- 14 mamarks question on deficncy,effects and recomendation(4 marks each with 2 marks fr presentation) b-i- the auditor and those charged with governence -comunication (3 marks) ii- the 2 maters to b comunicated wth thse charged wth governance.(2 marks) c- substantive procedure on bank and cash (7 marks) d- compltness and accuracy of entering data.(4 marks ) 30 marks question q2) a- ethical threat -(5 marks) b- managment assement for going concer and auditor for going concern(5 marks) 10 marks question q3) a) i-calcaulate ratio, ii- audit risk (10 marks)(5:5) b) 5 audit procedure with example -10 marks q4) a) intenal audit department -detection of fraud(5 marks) ii) other duties that intrnal ausit can do(5 marks) b) material and performance miissstatement(10 marks) q5) a) elemnts of audit engagemnt-marks 5 b- 2 events were give chemical piosened,assests on fire i) efect on financial statemnt, and audit procedure(total 13 marks) ii) effect on auditor opinoion(2 marks) total 20 marks

Can you remind me what exactly he asked in material and performance misstatement

I wasn't too sure about the audit procedures,and I didn't finish.As usual;-(

it does matter that it was affecting multiple items..overall effect was not material and event was non adjusting because there was explosion after year end nd only disclosure was required...managmnt refuse to privid disclosure ...qualified opinion should b given

I thought the exam was pretty good. Finished about ten mins early as well! Dunno what other people were referring to re:Q5, though I put that explosion was non adjusting as was after yearend. Also, no material affect on any balances, and can't have emphasis of matter as not disclosed so do nothing (also mentioned going concern possibility if down to chemicals combusting to cover all possibilities). Ask management why, consider management integrity and possibly resign and speak at AGM?

thanks open intuition to help me to study ; because of the material learned I knew all the questions; question remain if I used the verbs properly and if the examiner can read my :) sentences.... hope to pass

ANSWER PLZZ... What additional duties internal auditors perform excluding detecting frauds and errors.... ? procedures of obtaining audit evidence "sampling" is right or not ?? which five ratios are required to calculate e.g. GP Ratio

I wrote Value for money audits on economy efficiency and effectiveness Carry out assignments on it & systems, compliance with laws nd regulations Make recommendations to management abt internal controls Carry out mystery guest review by pretending they are guests in order make further recommendations Abt service etc Same question was in the dec 2010 exam so I knew it from there

hi! Conserning question 5 (Exposion) - I had written that the matter was material (as it higher than upper limit of acceptable level of revenue and PBT) but NOT pervasive. As far as I understand many people wrote the same. But why you think it is NOT required amendment???? As a result of explosion inventories which WERE in stocktake as at the year end had been damaged!!! Or I understand incorrectle??? Such inventories did not exist as at the year end???? waiting your answers!!!!!!!!!!!!!!!!!

Even though the inventory WAS in there at the year end, what was the condition of the inventory AS AT the year end? Typically, one-off events are non-adjusting events and require merely disclosure rather than being reflected in the numbers within the financial statements

:( Thanks... )))) then in case I correctly indicated that the matter is material but not pervasive but incorrectly pointed the nature of the matter than I lost 1 mark?

Yes, the beauty of these ACCA exams is that they are not ALL OR NOTHING. A wrong conclusion is a lost mark. But there are lots of other marks available for the discussion about the various matters involved.

Hopefully I got this one out of the way. Never done audit, never worked in it and never want to - just want to get onto P2 and P4 and P5 ASAP!

Requirement was easy - 3 marks for explaining each and 3 substantive procedures for each to prove it was legit. No more no less

The questions were just occur.there is no absolute conclusion about my work but hopefully,will scale through.there are hidden technicalities to some of d questions.e.g.identifying audit risks with reference to scenario and ratios calculated.was stuck there,applications controls too.pray I scale through.fingers crossed