March 9, 2016 at 10:38 am
opentuition_teamKeymasterMarch 9, 2016 at 5:18 pm
You can post your comments now 🙂March 9, 2016 at 5:41 pm
Can someone post a copy of the questions for P1 2016??March 9, 2016 at 5:44 pm
The exam was ok….however there was a time pressure.March 9, 2016 at 5:49 pm
Question 1 was not that difficult, it was quite long but manageable. It focused on stakeholders, internal audit, internal controls (that was quite difficult for me), and it needed to draft a statements to shareholders on changes of regulation
Question 2 was focused on agency concept, ethics of CEO and alignment of interest between shareholders and management
Question 3 dealt with differences between rule-based and principle-based systems and other aspects to consider for listing. I didn’t mange to do the last bit on development of principle based systems due to running out of time.
I didn’t chose question 4 as it was related to objective and subjective risks, and i particularly disliked the part on environmental audit, although the part of the question on the concept of environmental footprint was quite easy.
All in all, I feel optimistic!March 9, 2016 at 6:48 pm
jehanzaib19ParticipantMarch 9, 2016 at 7:21 pm
Q1 I picked up on a few points: The lady was an employee for 30 years and now she was entrusted to be auditing, independence big no no. Rule states cannot be an employee within last 5 years or have business relationships within past 9.
Also, she had to report directly to the finance director rather than audit committee. This can result in self interest.
She was also a popular and well liked person in the company, so i said that there would be a familiarity risk and she would have to many personal allegiances.
I also picked up on the fact that she had to check the compliance herself, then i mentioned self review threat as she was reviewing her own work.
And the question about the loan, assess the new legislation impact on shareholders , employees and customers. Well customers will have to go through rigourous checks so they could not get their money on time or at all. On the plus side they won’t get into spiraling debt on the other hand, no money for them.
Employees would need training on how to do the checks, they might lose job over the legislation as it might make the company less profitable. (paragraph talks about lender will only get back 2 times what they borrowed only)
Shareholder, the value of shares will go down as the lender gets less money and there may not be a guarantee they get their money on time (new legislation stated that irrespective of how long they keep money they only pay back two times initial sum and its capped)March 9, 2016 at 7:32 pm
talked about the strategy, scrutiny, risk, and people role of the NEDS. Then mentioned the benefits of having NEDS. They facilitate shareholder representation , the facilitate comprise and create balance on board, they provide expertise to the board, they demonstrate decisions made in the shareholders interest, they act in a monitoring capacity to curb excess of executives.
Then d ii talked about risk management and justifying the risk management policy. So i talked about TARA (Transfer , Acceptance, Reduction and Avoidance accepts)
q2) talked about conflict of interest. The director only wanted to prolong his appointment for another year as we would get a tax break if he cashed in his stock options during this time. I said that if he can no longer perform adequately and act in the interests in the shareholders then he should resign and forget about the stock options as his fiduciary duty to act in the interests of the shareholder and not his own and continue to make operations profitable.
It also talked about him reporting the inventory figure differently to bolster his profits, i said that he should report honestly and disclose any reporting in the notes to the accounts.
Also, it talked about he had a friendly relationship with the auditors and that he could get them to agree the inventory reporting method. I said that in order not have a conflict of interest he should hire an independent committee one that he had no prior relationship with so they could give a trust and fair view.March 9, 2016 at 7:35 pm
q3) I think it was basically a memory dump of what you know about SOX and comply and explain, i referred to the case once or twice. I picked up on the point that US already had a competitive defense infrastrucure so going to listings SOX standards and registering the company there would prove to be comeptitive. But in Xiland the legislation is comply and explain and they would be better off as they get tax breaks, the laws are less draconian and foreign investment would flood in.March 9, 2016 at 8:59 pm
What an exhausting paper. Painfully exhausting. There was just too much to be able to write about…the questions seemed general and planning the answer was important. There was a lot of knowledge that had to be applied. If you misundertand the question then it’s possible that the answer is not what the examiner is looking for. Under time pressure ideas do not flow freel. Very stressful exam, mainly to do with time.March 9, 2016 at 9:26 pm
It was boring to revise that is for sure. Also i couldn’t believe environmental footprint came up as 25 marks, in my text book there hardly 2 paragraphs on it, so how can i have 25 points to talk about in the exam?March 9, 2016 at 10:11 pm
Let me summarise it in one word “Disaster”! I spent 5 weeks revising this paper…. defo a retake in JuneMarch 9, 2016 at 10:19 pm
Totally agree about it being time pressured! I spent 2 hours on Q1
Attempted Q2 & 3 but ran out of time!!!
0_0March 10, 2016 at 10:58 am
Rubbish exam ever…March 10, 2016 at 11:39 am
I attempted Q1 2 and 3. I don’t think they were difficult but whether I answered exactly to the questions asked is another story- it could be 14 non relevant pages then.
I found it physically exhausting, 3 hours flat writing…
Fingers crossed to everybodyMarch 10, 2016 at 11:43 am
Could any of you write out all the requirements for Q1?March 10, 2016 at 9:03 pm
It was bad… I just wr0te what I came in my head..
Question 1 was about regulation for lenders it was a case in Uk about that.,
The interest was too much for ppls to repay.
One question 10 marks Describe Independence
Stakeholder was there.
Rule-based n principles-based rules.
They asked for a statement,
Hope for the best now..
All in His (God) Hand…let pray we pass
We need only 50 🙂March 11, 2016 at 3:32 pm
It was a straightforward paper I would say. The greatest challenge was time management. I spent 2 hours on question 1.March 12, 2016 at 2:30 pm
Fair exam overall in my opinion.
I started with Q3 and then did Q1 as felt this was an easier questioin to answer before getting bogged down in the endless requirements for Q1.
Finished the exam with a few minutes to spare which is always good.
The exam invigilator attempted to end the exam 1 hour early which was extremely off putting and unhelpful. Can only wait and hope for a pass now!March 13, 2016 at 9:39 pm
Very tricky questions easy to go off topic and tell the examiner your own answerMarch 14, 2016 at 12:24 pm
daaaahMarch 21, 2016 at 8:47 am
The answer sheet paper is not good for handwriting!March 28, 2016 at 7:59 pm
Time pressure exam in this p1 attempt lets hope for some marks
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