June 10 Exams POLL Paper F8 was Post your comments here

@boscobosco said:
Question said that management made appropriate disclosures, and auditor is happy that going concern assumption is ok, but material uncertainty exists. So, UNMODIFIED REPORT with emphasis of matter is the answer.

ISA 570
Going Concern Assumption Inappropriate (Ref: Para. A26)
21. If, in the auditor’s judgment, the entity will not be able to continue as a going concern, the
auditor shall express an adverse opinion if the financial statements have been prepared on a
going concern basis, regardless of whether or not appropriate disclosure has been made.

Maybe the guestion said that going concern is inappropriate?

i left my 20 marks questrion back..is tha cost me passing??
i did very well to the rest of them

@boscobosco said:
Pretty sure the auditors were ok with GC assumption.

Thanks for clearing up the above opinion/report distinction. Very confusing. I’ve lost marks there.

If so then 2 marks can be expected…As 4 marks will be granted to those who stated as in ISA 570 paragraph 19:)

@boscobosco said:
Pretty sure the auditors were ok with GC assumption.

Thanks for clearing up the above opinion/report distinction. Very confusing. I’ve lost marks there.

understanding that question

lets read the sentence again(i’ve copied it from ACCA website Question paper is out!)
“Describe the impact on the audit report of Medimade if the auditor believes the company is a going concern but a material uncertainty exists.”
This Confirms that Auditor is happy with the going concern assumption so Auditor will issue a modified Report with out modifying his opinion with an emphasis of matter paragraph..

The adverse opinion comes when going concern is not appropriate(also if disclosures are made or not) in auditors judgment that is when they issue modified report and modify their opinion(Adverse opinion) but this is not the case here in this question..

The question clearly says “auditor believes the company is a going concern” Which means auditor’s judgment, The entity will be able to continue as a going concern

You will(i hope!) not loose marks if you have written a modified Report(with emphasis of matter paragraph) and an unmodified opinion as an answer.

I do not agree with the Unmodified ‘thingy’ as that means you are failing to inform the members of a material issue.

@mustay said:
I do not agree with the Unmodified ‘thingy’ as that means you are failing to inform the members of a material issue.

Its an ummodified opinion, but a modified report. Very confusing and unfortunately going to cost me 2 marks at least.

@mustay said:
I do not agree with the Unmodified ‘thingy’ as that means you are failing to inform the members of a material issue.

Auditors are already modifying the report by emphasis of matter paragraph informing members of that material issue in this paragraph.
however modifying opinion is not necessary here, to support my point of view i will definitely tell you to look at this https://www.accaglobal.com/pubs/students/publications/student_accountant/archive/sa_May2010_matterofopinion.pdf read the 2nd page reg Emphasis of matter

Hi…friends i need your assistance…i want to have F7, F8, F9…earlier i had never attempted 3 papers…in fact when i taken 2 last year i got fail in one…anyways my 6 papers will be done till this result…i want to be serious in this session as i heard F7,F8 are quite tough…that’s why i planned to start studying F8 after 2 3 days break…i will buy F8 Book soon, though i will join college later but i want to go through 2 3 chapters which could be done with self study without..please tell me what chapters i should start with which could be less tricky…

overall i thought the exam was ok. Hoping for 51%

Is quite easy this term exam but i dont have enough time to done all the question. So are all the candidates that take exam at the same time.

For audit risks I identified the following risks for Q1(a):

INHERENT RISKS

Since the Co. operates from one central site it has to travel inventory items sold or purchased over long distances so there is risk of inventory being damaged or lost in-transit.

The Co. has entered into a new line of business so it now faces the risks of import exports as well

CONTROL RISKS

The credit control at the client appears to be weak because it secured the contract through significantly reducing prices

This is the first time that perpetual inventory system is implemented by the Co. This means that client has no previous experience of the perpetual inventory system.

DETECTION RISKS

FD has left the Co. and financial statement are being prepared by a less experienced individual so errors in accounts may exist.

Tell me friends how good is this.