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- This topic has 30 replies, 16 voices, and was last updated 1 year ago by karansingh@99.
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- June 5, 2023 at 10:00 am #685750June 5, 2023 at 8:22 pm #686101
looks easy but very tricky MCQ
June 5, 2023 at 9:13 pm #686105I thought I had done well, till I went back and realised all the “risk” areas I outlined didn’t link to show what part of the financial statements and how it would effect them
June 5, 2023 at 9:32 pm #686109MCQ was really tough, realised now I mentioned IAS37 not IAS38 smhh
June 6, 2023 at 3:55 pm #686189Fingers crossed for everyone!
June 6, 2023 at 4:48 pm #686200OMG me tooo I was confused mentioned IAS 36 instead of 38
June 6, 2023 at 8:37 pm #686253Was confident until my whole risk sections got copied over ?? now I am praying and was it just me or did they put too many boxes for only six control defiencies panicking now Good luck to all
June 6, 2023 at 9:33 pm #686265The 8 audit risks had 10 boxes for me, I tried deleting them but couldn’t find a way! I had to double count to make sure I definitely had 8 risks identified ?
Did anyone get the multiple choice about independency? I went Trish in the end who had retired 5 years ago, but wasn’t 100% sure… I feel like it was none of them.
June 6, 2023 at 9:59 pm #686267Cant remember the others but I dont think I chose Trish not too sure i blacked out ?? it was torture in the end
June 7, 2023 at 9:38 am #686332All of the boxes have two more than requirement
You have to go into the insert table
Rows
Delete row
It’s why practicing an actual CBE is so important
There was a 6 requirement one too where there are 8 rows
June 7, 2023 at 2:10 pm #686348was inventory misstated by 3.9m meaning it had to scrapped out? in the report part
June 7, 2023 at 2:29 pm #686350Just to confirm you dont lose marks if you left the empty rows right?! In terms of the risk or deficiency question
June 7, 2023 at 2:30 pm #686351Hopefully only half a mark lost for the wrong standard, if the points valid
June 7, 2023 at 5:00 pm #686367Section A
Q1. Corporate Governance – 10M
Q2&3 i don’t rememberSection B
Q1. Relevance of Internal Controls (2M)
Internal Controls – Deficiency, Recommendation, TOC (18M)
Q2. Materiality and performance materiality (4M)
Audit risks and audit responses (16M)
Q3. Substantive procedures – Intangible Assets (5M)
Substantive procedures – Provision (4M)
Substantive procedures – Payables (6M)
Impact on Audit Report (5M)June 7, 2023 at 5:19 pm #686371Did anyone get the multiple choice about independency? I went Trish in the end who had retired 5 years ago, but wasn’t 100% sure… I feel like it was none of them.
Trish retired from the audit team not 5 years but 2 years ago, she will be more independent than the other. i choose Trish.
the last one who was a director and a major supplier to the company pose a threat to Independence such as close business relationship.
June 7, 2023 at 5:25 pm #686374there is no mark if you quote IAS standards. you will not be mark base on that
June 7, 2023 at 5:28 pm #686378it should be sold at 60% of the original cost. it should be scrapped if it is not sold
June 7, 2023 at 10:09 pm #686423Yes @odean but the qxn went on to say the directors weren’t going to change financial statements because of the expired inventory and it was a subsequent event matter ie after reporting date I think? Shouldn’t the audit report be qualified “except for” then??
I had to number my audit risks to be sure they weren’t more than 8, I hope I don’t get penalized because the boxes were more than required.
The qxn that threw me off on the corporate governance section A part was the one about the hubby as the new chairman after 25yrs as the former CEO and then the wife as the new CEO, I didn’t think either of them were qualified to chair the audit committee as they weren’t even NEDs…and the number of NEDs was fine and 1 had experience in the company’s field so why would we need more? Neither of the answers were correct to me, I was confused.
June 7, 2023 at 10:10 pm #686424Hubby was 15yrs as CEO before becoming the chairman, sorry that was a typo.
June 7, 2023 at 10:26 pm #686426I may be mistaken but more was required as there were 2 NED’s and 3 ED’s. Has to be 50/50 I think. So whoever was the most independent, but I can’t remember the question tbf
June 7, 2023 at 10:29 pm #686427For the £3.9m painting the directors were aware of the conditions at the financial statement year end which was March. The painting expired February therefore it is an adjusting event which requires adjustment if material individually or in aggregate.
Therefore stock was overstated materially as you could calculate materiality using 5-10% of PBT & 0.5%-1% of turnover.
Therefore if not adjusted the auditor is to issue a qualified opinion ‘financial statements are true and fair except for stock’. However, if they did make this adjustment an unmodified report can be issued.
June 8, 2023 at 7:30 am #686448audit risk
June 8, 2023 at 8:45 am #686459I bet you are right @acca789. I thought I saw 6 NEDs were appointed to join the 3 EDs…it felt like acca was trying to confuse me….or maybe it was because there was so much reading to do on the paper that I started seeing things that weren’t actually there. Iol
June 8, 2023 at 9:28 am #686465you dont get marks for stating a standard
June 8, 2023 at 9:40 am #686466The audit report should be qualified except for. an a basis for opinion paragraph .
I dont think you get penalized for numbering or not numbering your audit risk. i dont number mine.
i dont remember that question about NED.
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