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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
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
Section 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)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.
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.
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.
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
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