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I sat remotely at 8am Uk time.
Not a bad paper at all, felt well Prepared 5th time round so I am hopeful to pass this time.Q1.. So audit risks 22 marks
Audit procedures on inventory returns where stock had 6m return policy 10marks
Audit implications and recommendations 8marksQ2 was 3 parts
Can’t remember the first part
Procedures that should be carried out to confirm if going concern had been correctly accounted for 8 marksCritically appraise The smallest audit report extract 7marks
Q3 post issuance audit review 3 separate companies, small scenarios
Planning and procedures, Quality, ethical and professional issues for each
7marks, 6marks, 7 marksHi, what did you write about the asset held for sale in the audit risk question please?
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Do you remember which were the 2 most significant risk u wrote?
and in Q 2 which was about post assurance audit review not Q 3 where there were three companies and we have to comment on the ethical professional issues there marks were 7-6-7 but i could only fine one issue in them do u remember any thing about it?- Topics: 0
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i wrote there should not be classified as held for sale as the criteria has not been followed as they will start looking for a buyer after the year end
That was the most difficult paper i’ve sat in my entire life!! After all this hard-work, everything feels useless. Didn’t even finish the paper.. The time wasn’t enough at all
Yh I noticed that note in the account after I finished writing that the asset held for sale was correct but the audit risk was that the result of it was included in revenue and so it should be deducted from operating profit so that materiality should be calculated on the adjusted profit before tax. This means my materiality calculation was incorrect too. I am so disappointed in myself for not noticing that note first. When I noticed it was too late.
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i hv heard from a teacher if i can remember correctly if u take materiality on non adjusted profit it is still correct
Question 1:
(a) Significant Audit Risk (22 marks) – some risks include revenue, inventory returns, detection risk, assets held for sale, amortisation of accounting system, recognition of online sales, provisions
(b) Audit procedures on inventory returns (8 marks)
(c) Audit implications in terms of NOCLAR (10 marks)Question 2: Quality mngt, ethical and professional issues
(i) (dont remember exactly) – 7 marks
(ii) reliance on IT system, control deficiencies detected but not further audit procedures performed – 6 marks
(iii) providing results of audit data analytics from audit client to audit firm and expection bonus payment ( not really sure if its right) – 7 marksQuestion 3
(a)(i) sufficiency of audit evidence – the case talk above renegotiation to the bank to extend loan , sale of property but revaluation not up to date, finance director lack integrity – 7 marks
(a)(ii) Audit procedures on issues leading to co. being going concern – 7 marks
(b) criticize auditor report – MURGC paragraph not provided – 6 marks- Topics: 0
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Q 2 was the first company control effectiveness in service organisation where the company sells their products on some website
second company it control deficiencies
and third company audit team was getting the potential client detailsHi.
I sat afternoon session, AAA INT.
Here is what I remember:
Q1
-Audit risks 18 marks (company designed and produced boats for fishing industry)
-Justify why inventory (made of raw materials, work in progress and finished goods) is material and audit procedures regarding this (14 marks I guess)Q2
Communication with TCWGM
Critics to Key audit matters section from audit reportQ3
Group audit
– Evaluate etical matters in whether audit commettee should appoint one or the other auditor who were in tender
– evaluate why matters should be included in the report to be sent to managementI had the same exam as you did you notice that the materiality was based on revenue.
Yes materiality based on revenue.
I thought it was identity significant risks of material misstatement though, not audit, so I’ve really messed up 🙁
I’m still so confused. I did it as revenue so 5-10% but nothing was meeting the threshold. Did I go completely wrong?!?
I had the same exam on boat Q1
Q2 TCWG
Q3 KAM and audit committee selecting the external auditor.Probably a fail again. I spent too much time on Q1 and barely finish Q3.
How did you recognise the engineer for the joint arrangement?
Yes you did because I initially did the same.
It’s 0.5-1% of revenue for materiality isn’t it.
I wouldn’t worry though as surely you’ll only get penalised once for that? Own figure ruleJun 23 Exam – AAA – INT
Q1 – new client- listed – online sales to worldwide
a) Significant audit risks (22) – materiality at PBT (there was a PBT after deduct the loss of discontinued operations)
b) Procedures (8) – new inventory return policy launched for full refund of 6 months
c) Audit implications and recommendations for actions (10) – non-compliance of environmental regulationsQ2
a) evaluate the audit evidences obtained whether they are adequate (7) – going concern issue related to the loan extension will be expired in next mid reporting period
b) design substantial audit procedures for going concern issue (6)
c) critically appraisal the proposed wording of the draft audit report (7)Q3 – post-assurance review – quality management
Discuss the quality of performance of the audit and quality of management, ethical and other professional issues
a) (7)
b) (6)
c) (7)Left 1 question of 10 marks in section A , other fully attempt,but sure fail again because not fully attempt.
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audit risks were i think assets held for sale, revenue, new client, previous auditors, impairment of some asset i think inventory returns
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