*** June 2022 ACCA AAA exam – Instant Poll and comments ***

Ninocka wrote:That went… ok. That fraud question was a doozy but hopefully I scored a pass.

Felt that fraud question was more AA! Didn’t do a whole lot of study on goods notes etc! Struggled for time big time. What did people get for the audit report for Q2?

The exam from what I remember is below, tried my best to remember everything but hopefully the below helps anyone who did the exam remember what came up etc

Question 1 – Ripley Co – 50 MARKS

ROMM (24 marks)
Outsourcing Payroll (6 marks)
Closing down of law deparment (8 marks)
Legal damage claim (8marks)
Professional – (4 marks)

Question 2 – Forensic accounting / Fraud – 25 MARKS

Quantify loss as a result of fraud (9 marks)

Evaluation of internal controls – identify opportunities for fraud (8 marks)

Directors complaining that auditor didn’t detect risk, explain (8 marks)

Question 3 – Ribbon Co – 25 MARKS

Misstatements 3 areas identified – explain to management (12 marks)

Management not adjusting misstatement, and impact on audit opinion (5 marks)

Ethics, previous other work done on listed company, unknown prior to audit (8 marks)

Wthat did you write in the ribbon co?The audit report was qualified?what was the impact on forward contract on profit?should we recognize that profit in pnl or oci?

How many of you were able to complete the exam?

There was risk of revenue being recognised too early as payments were paid inadvance for two years.

Loan interest had been incorrectly capitalised for loan for new premises.

Joining fees of known lecturers had been capitalised incorrectly as intangibles.

Other income was over stated due to a provision for a legal claim that shouldn’t have been added as outcome was unknown and legal proceedings had only commenced.

Can’t remember the others.

only managed 6 ROMM as follows;

-impairments for the assets of loss making dept,
-treatment of asset held for sale for discontinued operations,
-segmental reporting for Law, accountancy and pharmacology-
-Intellectual property (new lecturers)
– commented on ratios and trends
-Legal case-contingent asset

I did not include revenue since the scenario stated that revenue was being recognized as courses were offered=don’t know if i was correct.

I had to withdraw first could not launch on vue then they were not happy pictures it was 13 .05 by the time I got started was in a bit of a tiss rush through q3 first didn’t even open 1 or 2 finished that was happy enough considering then clicked on q2 screen went blank end of exam ,
I’m still shaken after the experience

What did everyone put for the quantifying the loss of the fraud bit?

My exam unfortunately gave so many issues I had to rebook . I started at 12pm and finished at 17:30 !! So many phone calls and relaunching with unsaved work but these are the questions I got .

Question 1 – Ripley Co – 50 MARKS

Question 2 – Forensic accounting /
Quantify loss as a result of fraud
Evaluation of internal controls – identify opportunities for fraud
Why it was difficult for Management to identify fraud

Question 3 – Ribbon Co – 25 MARKS

Misstatements 3 areas identified – explain to management
Management not adjusting misstatement, and impact on audit opinion

Ethics, previous other work done on listed company, unknown prior to audit

The intellectual property should not have been recognized as an Intangible asset as the asset is not controllable. The lecturers can leave anytime as the Riley does not control the lecturers. The signing fees should have been expensed instead.

Also I included Corporate Governance as a risk.

tendaichewe wrote:only managed 6 ROMM as follows;

Hi all I had a question regarding borrwing cost in q1 24 marks Romm so should it be captalized or not???

Only during construction of qualifying assets interest can be capitalised.