*** March 2023 ACCA AAA exam – Instant Poll and comments ***

Did anyone question why they were planning on restructuring the european segment when the revenues were projected to be good?

No I was concentrated on the pension and dividend thing (if I remember correctly the question)

Yeah, 16 marks out of 20 in Question B was ridiculous.

Luckily, you could structure your answer in relation to each of the subsidiaries from the extract.

For example where they were like “The FD thinks it’s immaterial to the subsidiary so why include it in the group if need not include in the subsidiary”.

Not sure it was frustrating so many marks and its like well what do you want me to talk about lol

My PC kept going off throughout the exam and the screen was freezing too.?

It’s all a bit of a blur now, oh yes I remember the one where he wanted to retire and withdraw $1m from the sale of the brand that was owned by him!
Valued at 100,000 – can’t even remember what I wrote

I know 16 marks…

I had this exam too.

I really struggled for audit risk in terms of trying to get numbers into Q1.

There were so many marks on quality management with the Remley Q. I think I just answered the question I wanted, rather than what it asked!

The Aaron Slaindair(?) question was just weird. There were so many red flags but I don’t know how you would score as many points as were given for it.

Not looking forward to getting the results!

If i remember correctly here are the details ?
Mar 23 Exam questions
Q1 Gaming industry – unlisted co – planning on listing – no audit committee – one staff in internal audit
1. Evaluate and prioritise audit risks (25)
2. Discuss ethical issues require auditor to provide internal audit functions (7)
3. Discuss deficiencies of company corporation governance and recommend how to satisfy the good corporate governance (8)

Q2 Quality management on group audit – given audit assistant findings and comment
1. Comments on the findings from audit assistant, discuss the deficiencies on quality management issues, and suggest suitable audit procedures should preform (12)
– component audit:
revenue not review and accept the management explanation (in stable market condition) on subsidiary’s revenue while there are decline 25% in current year)
– group audit:
interest cover is reduced
auditor comment the ratio was consistent with the expectation
Gearing ratio is reduced
management claim the issue of redeemable preference shares should be classified as equity
2. Comment on the auditor’s opinion: (8)
– giving another scenario
The art work was valued by an expert and there is no documentation and review of it

Q3 Assess the given materiality level & discuss the implications on audit opinions individually if client does not make adjustment
1. Discuss the appropriateness of materiality level given:
-auditor set the materiality level for listed, retail and public sector as 10%
-property management company as 20% (7)
2. Discuss the changes of materiality level of auditor firm and why would they do that (7)
3. Matters to consider and the implications on auditor’s opinion (6):
– materiality given as $500k (not mention of PBT or Asset) – impairment goodwill $4m misstated & redeemable preference share $240k misstated

Omg yesss. I got this same question. I couldn’t find enough risks for the section A question. Section B I messed the 3rd question extremely bad. How was yours?

You should apply for mitigating circumstances. Hopefully if you are close to 50%, they might give you few marks and pass you.