*** P7 December 2012 Exam *** Instant Poll and comments***

overall paper was ok but it was impossible to complete in time really hard to manage time i hope i get 50

Can anyone remember the breakdown for Q2? Particularly 2b. Was it 4 for (a) materiality , 6 for joint audits and 20 for (b)? Q2b was hardest one in terms of what they were specifically asking for. Only covered 6 out of 9 points as had to move on. Fair paper but second question was too time pressured. Cheers

Also apart from part b, did anyone even use calculator for any other parts in the paper?

i left out optional Q….didn’t managed my time that well just now….so I lost 16 marks…hope it would be enough to pass the test…what a waste….

Reasonable exams but time pressured.

Thanks for the breakdown on q1. It was my my best question. Reckon I should pick up maximum points on the business risks and the 4 misstatements. (I even worked out the borrowing cost to be capitalized here ($0.46 m).

Question 2 was horrible and I did not even touch the balance sheet notes.
Don’t remember the second part of question 2 for 6 marks but I think I answered it.

I did questions 3 and 4 which were not difficult but was time pressured. Dropped marks (maybe up to 10 in total) on these questions just for not attempting parts at all. Horrible, because they were easy marks (Internal/external audit ethics in q3 and forensic audit in question 4)

Anyone with the breakdown of the marks in questions 2, 3 and 4 please post.

Q3 was 8 marks for specific tender document and 8 marks for ethics,

Q4 was 6 marks for Revenue Recognition, 4marks for Forensic Investigation and other 6 i left it.

Q2 was 4 marks for changing materiality during the Audit, 6 marks for advantages and disadvantages of joint audit and 18 marks for the horrible accounting treatment.

Cool, had it in my head it was 22 marks but forgot 4 professional marks in question 1. Numpty. Good luck everyone

O.K.

So in summary:

Q1 Business Risks 12 marks
4 Misstatements 8 Marks
Ethical Issues 8 marks
Insurance claim 8 marks
Professional marks 4 marks

Q2 Change in Materiality levels during planning 4 marks
Advantages and disadvantages of joint audits 6 marks
Accounting (various IASs) 18 marks

Q 3 Tender documents 8 marks
Ethics (Financial controller and Internal/External audit) 8 marks

Q4 Revenue recognition 6 marks
????? 6 marks
Forensic Audit 4 marks
Can someone please fill in q 4.

@abbas12345555 said:
considering question 2 part b had 9 scenarios and every scenario was worth 2 marks. Major scenarios were related to revenue, goodwill, acturial loss, assets held for sale and 3 specific scenarios in which the audit team didn’t bother to collect evidence. You only had to tell whether these scenarios would be susceptible to material misstatements and whether sufficient audit evidence was collected and reccomend if further evidence was needed. How was this question difficult?

I had trouble finding material misstatements in the first question. I found risks related to the overdraft and new loan and their impact on financial statements. The new supplier and the risk of the payables opening balance being understated, the foreign currency risk and the treatment of gain or loss as it would have to be included in full because the company had no hedge. I don’t know if all were right but I made logic and it sounded correct. The business risks part was extremely easy and the ethical considerations was a walk in the park.

Are my material misstatement risks right? I have doubts over this area.

Hey, I was a bit worried on Q2 after seeing everyone panic on here. For the 9 scenarios, I gave a heading for each (skipped a couple of the nasty ones to save time)… for example, the goodwill I wrote that it was subjective and complex accounting under ias38 plus no mention of whether the subsidiaries were aquired or if internally branded. Insufficient evidence. Said that the bank loan evidence from the bank was sufficient and approp.

Anyone do Q5??

@abbas12345555 said:
considering question 2 part b had 9 scenarios and every scenario was worth 2 marks. Major scenarios were related to revenue, goodwill, acturial loss, assets held for sale and 3 specific scenarios in which the audit team didn’t bother to collect evidence. You only had to tell whether these scenarios would be susceptible to material misstatements and whether sufficient audit evidence was collected and reccomend if further evidence was needed. How was this question difficult?

I had trouble finding material misstatements in the first question. I found risks related to the overdraft and new loan and their impact on financial statements. The new supplier and the risk of the payables opening balance being understated, the foreign currency risk and the treatment of gain or loss as it would have to be included in full because the company had no hedge. I don’t know if all were right but I made logic and it sounded correct. The business risks part was extremely easy and the ethical considerations was a walk in the park.

Are my material misstatement risks right? I have doubts over this area.

Would you mind sharing the ethics points you found? i was a bit stuck on this as wasn’t sure if the audit manager going to the company was self review, and thought the fee might have something to do with intimidation but i wasn’t entirely confident!!

I’m new here so don’t know how to quote. I’ll just tag you and answer.

@05008967 Yes it was like that, however I didn’t quote proper IAS’s in a couple of scenarios I knew what had to be done and how they had to be treated. I just made 9 different headings and explained how they could be materially misstated Like in revenue it just said one sub had 25% less revenue and others were stable. I explained either this one subsidiary could be manipulating revenue or other 4 accelerating – as revenue should be recognized when rights transferred. To conclude properly we need to find more audit evidence, evidence not sufficient. I explained the scenarios like this and made sense and answered the requirements.

@makemesparkle I thought the auditor, Bob, interviewing would create some problems because independence and objectivity are seen as both from the point of view of one self and from the point of view of others. However I also said there are appropriate safeguards for this. The other thing was that bob was last year’s auditor and our new team might at some point want to consult bob on opening balances and going concern issues as he would have more knowledge of the business. Him being enticed by Grahl co’s offer would impede his judgement. I just recommended that he should take the interview after the audit is completed

the paper was ok overall..except the 18marks question of number 2..
now since many has found the paper affordable, i fear they reduce the pass mark and correct the paper severely leading to failures…

i mentioned that interest is materially mistated as compared to the interest should be payable to the loan in the first question.
any1 mentioned tht?