My "intelligent guesses" and predictions for the F8 June 2014 Exam.

Tips for F8 (I’m just guessing on them so please study all the past papers and read OT notes)

Question 1 is likely to be a scenario on inventory mixed with a bit of payroll. We may be asked test of controls and deficiencies maybe with the inventory system and the payroll system (notice she didn’t ask anything of inventory in the whole 2013, apart for a few marks (3 marks) in Dec 2013). Please do Lily Windows glass (question 1 Dec 2012) to get a feel of inventory or Smooth brush Paints Co (June 2010 Q1) or Chuck Co (Dec 2011 Q1 for payroll). There are also likely to be substantive procedures covering both areas. For the knowledge parts, she may ask us how to use CAATs to make auditing easier in payroll (as she included this in her technical article on wages, August 2013) with a bit of considerations regarding internal audit. e.g do we outsource or what factors should be consider before setting up internal audit.

Q2 could be on anything! But she might ask us for five marks the five fundamental principles of ACCA and for another five marks, she might bring an ISA standard (really can’t predict that!)

Q3 is got to be on audit risks. Probably identifying four to five audit risks, with knowledge questions on planning. Like where we can get information from, what are the benefits of planning, what is contained in the audit plan, etc..

Q4 is going to be like Dec 2012 question on substantive procedures. Various little case studies like Dec 2012, mainly asking for substantive procedure on provisions (her favorite come on every paper), procedures dealing with depreciation, payables, receivables and/or non current assets with a bit of knowledge on assertions and the ISAs relating to material misstatements. e.g. ISA 315.

Q5 is going to, this is the question I really have confidence on, be like Medimade Co (June 2010) and Strawberry (June 2012) on going concern and their related procedures. There will also be a scenario detailing modifications to the audit report and some knowledge on subsequent events (look at Dec 2011 question 5 for this!)

So that’s what I think the paper will be. One thing to note is the examiner, is very fair so if you practice all her papers (she started from June 2010 and used to work for BPP before, according to PQ magazine) then you should be fine. So don’t rely on these tips. Read all past papers but do give me your thoughts on my tips. Do you have different ideas?

Thanks,

Gabriel.