AAA*** P7 June 2012 Exam was … Comments and Instant Poll ***

3rd time at this exam and it doesn't get any better, time management, don't know enough detail.

think i will change to somethign else - can't go through this again. The failure is soul destroying!

argh... why my first paper always get bad. is it becuase of anxiety or time pressure?

I left 20 marks.:((

q1 it said audit implications on individual And group of CS

so can any1 please share Ideas on it I want to see what I did

talk about co-terminus, materiality of canary, accounting standards of canary, reliance to be placed on compnent auditors, goodwill valuation, group share of post acquisitions profits, NCI....

@faheyc2 said:
talk about co-terminus, materiality of canary, accounting standards of canary, reliance to be placed on compnent auditors, goodwill valuation, group share of post acquisitions profits, NCI....

There was no NCI because subs were 100% owned. I left easy marks on Internaly generated brand name plus the part b od Q1 :(

I think for me the time management was an issue as I only got 15 minute for 15 marks for the qn 4 .... arrgghhh the paper was ok if it is was a longer paper....

@1777731 said:
q1 it said audit implications on individual And group of CS

so can any1 please share Ideas on it I want to see what I did

Component Materiality, Cash Consideration, FV of N/A, Deferred Consideration, Impairment, Loan, Website Capitalization, Grant, Intercompany Balances for 2nd part

1st part Dates of acquistion (post acq & pre acq profits), Reliance on component auditors, Different accounting policies, Foreign Exchange Translation concerns (if subs. was foreign based), Intercompany balances, Non-coterminous accounting periods, Administrative matters (staff,visits etc.), Changes in group structure, Goodwill accounting. So much to write in the first part.

@faheyc2 said:
talk about co-terminus, materiality of canary, accounting standards of canary, reliance to be placed on compnent auditors, goodwill valuation, group share of post acquisitions profits, NCI....

The principal auditor was the component auditor...

@nurgul said:
There was no NCI because subs were 100% owned. I left easy marks on Internaly generated brand name plus the part b od Q1 :(

I think it was not mentioned for Canary that it was 100% acquired...

@satesh said:
I think it was not mentioned for Canary that it was 100% acquired...

It mentioned. ;) 100% owned

@satesh said:
The principal auditor was the component auditor...

now this wasn't mentioned as far as im aware

Guys, I've done section B qns first then section A so remember Q1 quite well. It was meantioned that your firm was goingto be auditor for Canary thus no component auditor plus it was mentioned it was wholy owed sub. No panic though, you are not goingto be penalised if you mentioned those points.

@satesh said:
The principal auditor was the component auditor...

yes but reliance on opening balances. the reputation, expierence, independance and qualifications of the previous auditors.

What did people write for 2a the engagement terms fo business plan this questione was sooooooo rushed :o

assumptions, period covered, who the users were, written representation from management....

fee, timeframe, scope

also agree type of the review, whether limited or reasoble required with th eclient as fee and work load will depend on it, agree if any other users then the bank, sign seperate engagement letter.

In Q1 the auditor was doing audits for all companies so I threw in some ethical threats of having same staff or teams working on all three and self review to try grab some quick marks.

Glad to see most other have answered along the same lines as me for most of the questions. Or should we all be worried lol

yes, good to have some assurance ; ) will leave the forum and talk to you when results are out, apparently on week commencing 8th of August, do you know if that is the date because noramally they announce on Mondays and 8th is Wedns.

What did you guys say for audit procedures in the forecasts?

Is there any business risk question? or FS risk ?

Exam results are definately Wednesday August 8th.....confirmed on the acca website.

@leonardl said:
Is there any business risk question? or FS risk ?

there was a question on risk of material misstatement....

@leonardl said:
Is there any business risk question? or FS risk ?

Q1 had FS risk

Is it fine if i wrote about Know your client and Integrity of clients directors and managers in question 2(A)?

I know you'd need to write about the attitude of management, over optimisic.

@faheyc2 said:
I know you'd need to write about the attitude of management, over optimisic.

Over optimistic?

As far as i remember it was mentioned 100% acquired for Starling but nothing was written for Canary ? And we did not know who was owner of Canary ( between Starling and Crow) :)

gudluck said 2 hours, 39 minutes ago:
Is it fine if i wrote about Know your client and Integrity of clients directors and managers in question 2(A)?


it's non-audit service...no need to mention integrity

omg the paper has already been published on ACCA's website...