*** P7 December 2013 Exam was.. Post your comments ***

I must be some sort of freak as I seem to be the only one here who loved Q2.
I approached it from the angle that the main reason for buying the subsidiary was for the expertise and there was no guarantee that they would remain with the business which was being sold from under them by the venture capalist company who were attempting to make the business seem attractive whilst they could as year on year growth was slowing (330%, 60%, 23% respectively).
There was loads in that question to get your teeth into if you disected the question and looked at the commercial reality under the hood.
Quite often I think that P7 papers are set based on P2 knowledge but as the examiner has said before she can call on any expected prior knowledge and as such this question seemed more born of P3 (and to a certain extent P5) type knowledge.
Q5 I think that there was a twist on the opinion at the end as there were two options, either the management improve the note or they don’t and I gave the opinions for both scenarios with arguement.
I almost did Q3 and missed Q4 but glad I went Q4 as once I started writing every point seemed to lead to other matters and that one that I almost skipped was possibly the best of the bunch on the day.
I do not think that I did so well in question 1. Fingers crossed I picked up at least half the marks but I had difficulty writing at length about anything other thtn the overseas acquisition and even then, much that I wanted to write for foreign acquisitions did not seem applicable to the scenario and I’ve made that mistake before where I go off writing everything that I know and lose time.
Also, there were 4 points for presentation of the briefing notes which would give one point for a conclusion but it wasn’t the sort of answer where a conclusion seemed appropriate as there were too many disjointed facts.
On the time side I finished just as the exam ended so at least not my usual of hoping to gain a pass from only attempting 70-80% of the paper! (It seems to have taken to here to realise that trying for perfection doesn’t work when exams that could easily take 4 hours need to be sat in 3).
Have I passed? No idea and not going to hazard a guess as I’ve had my hopes absolutely dashed before on wrong assumptions (my worst score ever was from the exam that I felt most prepared for). But, I gave it my best and enjoyed question 2,4 and 5… Just wished that Q1 had been more intuitive for me.
Good luck to everyone espechially those like myself where this one is the final hurdle.
Kind regards,
Shaun.

did anyone say about the disposal of broadway that it should have been classified as held for sale during the year, with the assets having to have an impairment review, if this was not done then profit on disposal would have been calculated incorrectly. also the reveues and expenses should have been excluded from the soci as held for sale so could be mistated. was it a separate line of business tho?? oh dear, i could have been on the wrong track here

Hi Toosh007
We were already the auditor of the client but the question was whether to continue the engagement. I commented on that one that in order to continue with the audit we would require a payment on account.
I said no to hand holding the client at the bank due to third party perception of our stance..
I also suggested that in response to the threat of putting the audit out to tender we would have no problem with that (I am personally much happier not being paid for not doing the work than not being paid for doing it and missing the opportunity cost of other work).
Damn it… In hindsight I cannot for the life of me remember writing the word advocacy in that part of the answer… Hindsights a great thing isn’t it!

HI Khonkean
how about the part for due diligence,what did you do with the profit and loss statement which was given?
i did another variant for the p7 but i think the question were the same

if i am not wrong question 4 (A) it was about a prospective client not a current one?
the 4 (b) was the one you talked about:) this was about the bank..
oh in case it wasnt the same,then blame it on the variant difference:)

i dont think you guys need to discuss on the details of the answer.. it would create tension to some of our friends here who might not answered as what you guys did. i strongly believe we need to pay some respect to them.
just chill bro and sis, we hv just finished attempted the paper, lets wait for the result and see if we could make it to the finished line. if not, accept as what it is and learnt from the mistakes. examiner report would be much more useful for us to use as a post-moterm result. just enjoy for this coming two months. we have put enough effort, at least give some space to your brain to relax.

peace.

Hi Slumber,
but surely the arguement is that if one does not want to think about the exam then one would not read this thread.
The act of reading the thread therefore equates to wanting to ponder and discuss performance.

The question where there were unpaid fees..

I wrote that this could constitute a loan from the auditor to the entity and this is prohibited. A demand for payment must be issued immediately and the auditor should consider resigning from the audit if this is not paid.

Fair paper, though. Did not expect due diligence to be asked as a 25 mark question

yup, u are right khonkean. please continue with the discussion 🙂

Does OT publish solutions to the papers?.. The P7 questions are on the acca website now

https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p7/exampapers/int/P7int_2013_dec_q.pdf

Well, I think it was fair but time was a factor to go through all the info in just 3 hours. Massive thank you to Open Tuition.
I expect a pass.