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I realised after the exam, that I named my subheading for Q1 Audit risk instead of Risk of material mistatement. Will this be penalised?
i got procedure of goodwill for 8 marks, n dint get any other procedure questions, the paper was kinda weird
It was very time pressured as usual. I tried to put something down for each part then swiftly move on. Not sure I achieved my aim!
Q3 was a weird one on due diligence! Couldn’t make head or tail of it. By the time I got to grips with the requirement it was time for me to move on to the next question.
Q1: (a) The usual suspect – evaluate- ROMM (24 marks) (b) Audit procedures (c) Money laundering and (d) Weaknesses in new client acceptance procedures.
Q2: Completion stage: Matters and evidence/effect on auditor’s report (I think!) and something discovered before financial statements/audit report signed (plan to sell the company).
I made some silly mistakes so it could go either way! This is my final exam so it would be lovely if ACCA would give me a pass 🙂
@asila It was indeed 🙂 Very weird.
Q3 accrual of revenue rebate, pension,
Q2, Preference shares of cfo and ceo,
Q1 the goodwill/acquisition of company related to prior year.These questions destabilised me, i just pray for a miracle to pass.
I had the same paper and thought it was a bit oddly worded the requirements in some parts
why CBE 🙁
switching from screens is weird, at lest qtns should be on paper sheet.
please someone ask to ACCAAhh I just realised I kept saying audit risk instead of risk of material misstatement. Do you think I will be penalised for this:/
Yeah same time pressure again. lots of procedures which was weird also. overall i tried to answer all questions i wasn’t too sure about question 2 – just wrote about the warranty provisions. Fingers crossed! last paper, pls ACCA have mercy
damity wrote:I realised after the exam, that I named my subheading for Q1 Audit risk instead of Risk of material mistatement. Will this be penalised?
There is no negative marking – candidates are credited for what they get right – there is no deduction of marks for getting things wrong.
littlemiss94 wrote:Ahh I just realised I kept saying audit risk instead of risk of material misstatement. Do you think I will be penalised for this:/
RoMM is a subset of audit risk – so it is not technically wrong to described a RoMM as an audit risk – only less precise. (Whereas all RoMMs are audit risks, not all audit risk are RoMMs – because detection risk is not RoMM.)
Although I would encourage candidates to be careful and always be as precise as possible, there is no negative marking – and it will be what is described as the risk that gets the credit.
If an account balance is 1.6% of total assets and you say that it is material, would that be correct given the general materiality threshold is between 1-2%?
Jennie_fierz wrote:Materiality threshold
Profits 5-10%<br>Revenue 1/2 – 1 %<br>Assets 1-2%<br>(P.R.A)well, thanks for the reply but it does not address my question 🙂
So trying to remember the exam – please correct me if I’m wrong
Section A – Theme Park industry, potential money laundering issues.
1 – 24 marks on Risk of Material Misstatement
2 – 6 marks on procedures around impairment of an asset
3 – 8 marks on money laundering (a lot were quite obvious in the text around the Sons upping revenue)
4 – 8 marks evaluating Meadow Co, a similar company, audit engagement assessment. Was quite difficult as not much info given beyond a basic check listSection B
2 – 16 mark question on enquiries specifically around intangible assets and financing in a textile company – found this very difficult as not much info given to match up to 16 marks.
2b – 9 mark question on audit evidence in regards to the financing3 – ai) – question on fieldwork undertaken by the audit team, specifically in regards to intangible assets for a smart vacuum – tricky question
Ii) was around the audit evidence you would expect in relation to the above (or procedures cant remember)
3b – 9 mark question on ethics with an FD as we go to get an audit with a company we have provided non audit services for. More straight forward.Overall i think this was a tough exam, mainly because the industry’s were niche (textiles, theme parks, smart tech), there weren’t clear signposts for bits of the answer especially in section A there was alot of content to think about and then Section B was okay if you knew alot about intangibles, if not I think you struggle here. Confusing financial information too, so materiality wasn’t as simple. Going to be a very close pass if I get it.
What ROMM did you guys highlight?
Jennie_fierz wrote:Materiality threshold
Profits 5-10%<br>Revenue 1/2 – 1 %<br>Assets 1-2%<br>(P.R.A)I would say yes
barbadoshk wrote:What ROMM did you guys highlight?
By Yes, you mean if the % is between the brackets you can still say the underlying figure is material?
What ROMM did you guys highlight?
Chris777 wrote:Jennie_fierz wrote:Materiality threshold
Profits 5-10%<br>Revenue 1/2 – 1 %<br>Assets 1-2%<br>(P.R.A)I would say yes
@chris777 if it’s over the lower threshold it’s material.
How many more exams do you have left
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What do you mean about goodwill/acquisition question being previous year ?
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