AA*** June 2023 ACCA AA exam – Instant Poll and comments ***

looks easy but very tricky MCQ

I 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

MCQ was really tough, realised now I mentioned IAS37 not IAS38 smhh

Fingers crossed for everyone!

OMG me tooo I was confused mentioned IAS 36 instead of 38

Was 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

The 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.

Cant remember the others but I dont think I chose Trish not too sure i blacked out ?? it was torture in the end

All 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

was inventory misstated by 3.9m meaning it had to scrapped out? in the report part

Just to confirm you dont lose marks if you left the empty rows right?! In terms of the risk or deficiency question

Hopefully only half a mark lost for the wrong standard, if the points valid

Section A Q1. Corporate Governance - 10M Q2&3 i don't remember Section 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)

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. 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.

there is no mark if you quote IAS standards. you will not be mark base on that

it should be sold at 60% of the original cost. it should be scrapped if it is not sold

Yes @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.

Hubby was 15yrs as CEO before becoming the chairman, sorry that was a typo.

I 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

For 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.

audit risk

I 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

you dont get marks for stating a standard

The 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.

the painting was material both in the SPL and SFP. 1 mark for calculation and one mark for stating that it was material It is a qualified report except for opinion. one mark, stating that management refuse to amend the fs is one mark

I had time and I wrote more than 8 risks, would I get penalized for that?

Agreed! I got 49% on my first attempt in March and I had 15 mins spare. This sitting had so much to read & write that I only managed to do 7/8 audit risks - I needed an extra few mins lol

I think they will just mark your first 8, but maybe your best 8. Personally I’d develop your other 8 instead of writing a 9th+ as you get no additional marks so effectively wasting time?

Fo the impact on audit report, the inventory was expired so it should have been removed from the inventory?

the painting was material both in the SPL and SFP. 1 mark for calculation and one mark for stating that it was material It is a qualified report except for opinion. one mark, stating that management refuse to amend the fs is one mark do you know @odean this question was of how many marks was it for 4 marks?