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lol i know I’m glad I wasn’t the only one but I should’ve used some common sense there bc how could a system be inaccessible to ALL employees right? ? aw well I hope I pass that question!
haha for real they had some great controls I was like well what deficiencies, examiner?
ugh I really hope I pass =[@gianina said:
Yeah Rana. I understand your frustration. I spent like 2 minutes trying to figure out what they meant by that, hence i recall even now the paragraph “access to the master file is restricted to all employees of the purchasing department”. Then i said what the hell…they must mean that all the PD employees have access and nobody else…was worth a shot as i was running low on finding 7 deficiencies…those guys had some pretty darn good controls set up in place 😛
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Anyone else remember any of the other questions – What about the audit risk question. I put:
– Repairs and upgrades – capital vs expenses – need to investigate – Totally agree– Sales increase – cut off – I noted that the director’s were keen to increase sales, so mentioned that they may be trying to achieve a bonus, so we should scrutinise the sales in March/April as a result of the jump. Should check that fictious sales were not created by tracing PO to GDN to invoice and also check for credit notes in the next year that effectively wipe these receipts off the books
– Share capital – Need to ensure it is correct in notes to financial statements – Wrote the same (allocation), but felt uncomfortable with my knowledge here, particularly as it was the same as revenue/capital
– New audit client – This brings risk in itself so need experienced staff on audit – EEK, missed they were new
– Can’t remember last one of top of my head@gianina said:
@David1988The interim audit…ahhh…the interim audit…who paid attention to the interim audit part? Not me…
The interim audit Q was earlier. i think it was a 10 marker…but i might be terribly wrong.
I probably made a fool out of myself but i gave my best shot with answering this Q:
1. Procedures:
*observe/assess the client’s controls
*observe the employees during daily work
*other bla bla like discussions with the management2. How it helps with the final audit:
*auditors can focus more on the high risk areas
*they can test less data as the interim audit evidence is appropriate enough
*again some other nonsense probably but i can’t recall it….I said firstly the interim audit covers the first half of the year and assists with reducing the workload at the final audit. Procedures as follows:
– Controls testing to ensure working effective
– Document controls systems which can be used at final audit
– Substantive testing on first half of the year can be doneEffect on final audit part
– If controls testing is showing effective controls then can be reduced providing system does not change
– Substantive testing can focus more on the 2nd part of the year as first half done at interim – Only need further testing if significant errors or frauds were found at interim@ccoda and everybody else
Wasn’t there supposed to be an inventory count somewhere? 23 warehouses….was it this with the audit risk?
Cuz i remember writing something about this but don’t know to which one…
Spot on David regarding the interim audit! So if i get like 2 marks that would be great!
@gianina said:
@ccoda and everybody elseWasn’t there supposed to be an inventory count somewhere? 23 warehouses….was it this with the audit risk?
Cuz i remember writing something about this but don’t know to which one…
Yes that was my final audit risk. Thanks, that was annoying me ha. Third party were sending stock reports direct to head office – Said risk of undertstatement or overtstatement in stock and subsequently the balance sheet – I said attend the count, ensure instructions are given and followed and perform test counts
@claudeverson said:
My MCQ answer: ADACDCDABDABI got ADCCCCDBBDAD so a few different
Anyone else remember their MCQs?
@david1988 said:
Yes that was my final audit risk. Thanks, that was annoying me ha. Third party were sending stock reports direct to head office – Said risk of undertstatement or overtstatement in stock and subsequently the balance sheet – I said attend the count, ensure instructions are given and followed and perform test countsI said they can’t attend all the warehouses counts -> should have put risk of not gaining sufficient appropriate evidence but instead wrote inventory might be misstated significantly…o man….., they should sample the count, discuss with management to see which ones were with errors or mistakes in last years, and attend counts to the ones with material amounts, the ones with high risk of misstatements and held at third parties….
@david1988 said:
I got ADCCCCDBBDAD so a few differentAnyone else remember their MCQs?
Don’t recall them at all…just remember seeing a lot of Cs one after another in some portion and was like…this can’t be correct, then i was like…kehh..whateva…
the question was: if the fs should be amended because the manager disclosed and included the contingent receivable in the fs,and how will affect the audit report if he refuses to amend the receivables. so the effect on the report will be modified if he disagree to amend the fs, with a qualified opinion. if he agrees to the auditor to do amendments than an unmodified report will be issued. This is my opinion based on my understanding
@nati1981 said:
the question was: if the fs should be amended because the manager disclosed and included the contingent receivable in the fs,and how will affect the audit report if he refuses to amend the receivables. so the effect on the report will be modified if he disagree to amend the fs, with a qualified opinion. if he agrees to the auditor to do amendments than an unmodified report will be issued. This is my opinion based on my understandingYes you are right about it being qualified – It said in the question what would the opinion be if he does not agree to adjust the disclosure I am sure so only need to talk about the qualified part.
@nati1981 said:
no, it said all the purchase staff had restriction on the master fileMight be as you say…it seems you have a very good photogenic memory as you can quote so nicely from so many Qs of the exam.
But none the less…how can nobody from purchases department have zero access to the file? not even the supervisor/manager? Anyhow..
When are the results out? Anybody knows?
@gianina said:
Might be as you say…it seems you have a very good photogenic memory as you can quote so nicely from so many Qs of the exam.But none the less…how can nobody from purchases department have zero access to the file? not even the supervisor/manager? Anyhow..
When are the results out? Anybody knows?
Access is restricted to the purchase staff – This means that only the purchasing staff can access the master file – so this was a deficiency due to errors as they can all make amendments.
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Results are on 18 April 2016.
I met a chap re-sitting his F8 exam in September. He got 49% and was certain that he failed as a result of changing his multiple choice questions because he saw two continuations of the same letter i.e. C in this exam and changed them because he could not conceive of the examiner having the same letter over and over.
Moral of the story, only change it if you think it is wrong ;0) It is totally conceivable that the MCQ could have been AAABBBCCCDDD lol, albeit, that would freak me the ‘beep’ out
What about the 4 objectives of purchasing system
– I said no damaged goods are accepted due to checks in place
– No wrong quantities or types of goods are received due to matching to PO when received
– All invoices are approved which achieves objective of accuracy of supplier invoices
– Can’t remember last one@ccoda said:
Results are on 18 April 2016.I met a chap re-sitting his F8 exam in September. He got 49% and was certain that he failed as a result of changing his multiple choice questions because he saw two continuations of the same letter i.e. C in this exam and changed them because he could not conceive of the examiner having the same letter over and over.
Moral of the story, only change it if you think it is wrong ;0) It is totally conceivable that the MCQ could have been AAABBBCCCDDD lol, albeit, that would freak me the ‘beep’ out
Totally agree. I had 4 Cs in a row in this exam but didn’t cross my mind to start changing for the sole reason they are all the same haha.
@david1988 said:
What about the 4 objectives of purchasing system
– I said no damaged goods are accepted due to checks in place
– No wrong quantities or types of goods are received due to matching to PO when received
– All invoices are approved which achieves objective of accuracy of supplier invoices
– Can’t remember last oneRiiight…the control and its objective:
1. Goods checked for quality and orders – to accept only good quality purchases and only the co’s orders
2. Authorization in place for purchases – to only purchase the needed goods, efficiency in the purchase system
3. Inventory update automatically – never to run out of inventory in order not to loose sales & customer goodwill
4. And i think there was something with matching invoices to GRNs and purchase orders but i do not recall properly …@gianina said:
Riiight…the control and its objective:
1. Goods checked for quality and orders – to accept only good quality purchases and only the co’s orders
2. Authorization in place for purchases – to only purchase the needed goods, efficiency in the purchase system
3. Inventory update automatically – never to run out of inventory in order not to loose sales & customer goodwill
4. And i think there was something with matching invoices to GRNs and purchase orders but i do not recall properly …Both kind of on similar lines with this one then – Haven’t seem many questions like this in past papers so had to take a good think before answering.
@gianina said:
Riiight…the control and its objective:
1. Goods checked for quality and orders – to accept only good quality purchases and only the co’s orders
2. Authorization in place for purchases – to only purchase the needed goods, efficiency in the purchase system
3. Inventory update automatically – never to run out of inventory in order not to loose sales & customer goodwill
4. And i think there was something with matching invoices to GRNs and purchase orders but i do not recall properly …Agree – but for the 1st one I had that down as a deficiency – as they didn’t check the quantity of goods vs the GRN/ PO
But I guess it could be a control too!
The audit risks – I also said that as they were planning to pay a dividend that they needed to vouch back to the supporting evidence to ensure it was in the right cut off or cash overstated..?
For Q2 my memory is so blurry but I remember it asking whether the event required an adjustment to the financial statement, and what audit procedures would need to be done before adjusting..is that correct? Was quite tricky.
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