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I am confuse how much should i write for 1 risk of material misstatement or audit risk (often i write too much for just 2 marks,). Usually 2 marks is given for the risk of material misstatement or audit risk. i need to know that how these 2 mark are allocated?
For example it is given in the question that one component is in foreign country.Ans: The component is operating in foreign market, so the asset,liabilities,income and expense will be translated. The standard requires that asset and liabilities should be translated at closing rate and income,expense should be translated at the spot rate(rate at the date of transaction).
The risk is that asset and liabilities are not translated at the closing rate and/or income or expense are not translated at the spot which mean asset and liabilities and income,expense could over or under stated.
will this be sufficient for 2 marks?And what if i give the materiality level for example :the asset of the component represent 3% of total asset which mean it is material. will this explanation for materiallity is sufficient?
How many total marks will i get 2+1=3 or 2?“Ans: The component is operating in foreign market, so the asset,liabilities,income and expense will be translated. The standard requires that asset and liabilities should be translated at closing rate and income,expense should be translated at the spot rate(rate at the date of transaction).
The risk is that asset and liabilities are not translated at the closing rate and/or income or expense are not translated at the spot which mean asset and liabilities and income,expense could over or under stated.
will this be sufficient for 2 marks?” – YES!!!!“How many total marks will i get 2+1=3 or 2?” – if the part question is worth 2 marks, then 2 marks is your maximum score
There’s a very simple way for you to find out how much to write – get a piece of paper and some writing that you can copy (newspaper, study material, telephone directory, spam mail through your letter box …. anything that you can copy from)
Get a friend to help with this exercise, and a stopwatch
Get you friend to say “Now” and you start to write as fast as you can, but legibly!, and your friend must say “Stop” after 1 minute 27 seconds
And that’s as much as you should be writing for 1 mark. NO MORE!
That has allowed you reading and planning time of 50 minutes for the full exam, so 145 minutes for writing
For a 2 mark part question that’s 3 minutes 54 seconds time allocation; you should be spending 1 minute thinking / planning what to write for those 2 marks and 2 minutes 54 seconds writing out your two points …. and those sentences DO NOT EXCEED the length of what you have just practised writing
Try it
Try it NOW!
No, not tomorrow. Do it NOW!
Did you do it? If I were asked to place a bet on whether you did or didn’t do it straight away, I’d bet that you didn’t!
So, do it NOW
Well, i didnt do it at first but when i saw your comment betting then on the very moment i took pen and register and start my mob stop watch !.
I can send a pic of it if you like SIR ! 🙂
And how much did you manage to write? 3 lines? That’s the maximum length of a sentence to earn 1 mark in the exam
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