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AAA*** P7 June 2013 Exam was.. Post your comments ***
13y ago#91Paper setting was good.....not much complicated but lengthy one.....
Q.5 (i)Group Audit Completion implications and adjustments effects on Cons.F/S
-(Unfair Dismissal claim by ex-employee.still in court..having probable outflow of cash...legal adviser said this was not certain to be paid,-IAS37
(Trade receivable -other company liquidated only 10% to be received -possible subsequent event ISA560
-chairman's Statement materially inconsistent information-ISA720
(ii)Impact on Group Audit Report
Q5. Attempt was fine........
Q2(a). Group audit....Audit manager with newly qualified Junior Staff......and junior giving recommendations and doing audit of Trade Receivables, Going Concern issues, trade payable, Director' Emoluments and share capital, helping in tax planning
(Asked-Quality Control, Ethical and professional issues)
(b). Inventory Stolen from warehouse and CCTV has captured the scene....giving physical count activity 2 month before the theft. (asked Forensic Accounting Services and procedure to quantify the claim as inventory is covered under insurance)
Q2.(a) attempt was fine but in (b) cant discuss implications of Forensic Accounting but discussed the procedures to quantified the claim.......hope will get max
Q3. Matters and Audit Evidences
-Held for sale properties (CV with FV) management plan to sell disposal group
-Sales and Leaseback Arrangements(CV and FV with life of the asset)
-License renewal fee for brand of soft drink
Q3....attempt was fine and discussed with Accounting Treatment with Materiality
Q1.(a)Client with Projected Financial Statements, -Preliminary Analytical Procedures, and Audit Risk and additional information
(b) ethical issues in the scenario....
Q1.....question was so easy...attempted but left with concluding remarks....
IN Q1.. IN FINDING OUT ANAYLITICAL PROCEDURES I ALSO WROTE WHY THE TREND COULD INCREASE OR DECREASE. THE POSSIBILITIES OF INHERENT RISKS WITH ANAYLITICAL PROCEDURES?? and wrote other audit risks as well.. is it fine ?
I pray for 50 marks! Last time I had only 49 marks. But lack of knowledge in forensic services can kill me once again :(((
Regarding subsequent events on trade receivable: it was adjusted SE. Please find below the extracrt from IAS 10 (point 9b)
the bankruptcy of a customer that occurs after the reporting
period usually confirms that a loss existed at the end of the
reporting period on a trade receivable and that the entity needs
to adjust the carrying amount of the trade receivable
Good luck to all!
If question 5 WAS to consider all three scenarios as one effect on the audit report, I hope the markers will be lenient if dealt with as three separate issues. That was very unclear by having A, B, C with mark allocations against each.
I discussed each in turn, talking about the materiality and the adjustments required to the accounts and effect on audit opinion. Then a part ii to discuss impact if each were left unadjusted.
13y ago#96Was A Resit Again Answer Q1 Takes So Much Time Just A blundeR N tht Q2 ABt Planning Of Forensic Investigitaion Was Just Shit....
Can ANy Tell ME The Answer OF Planning Of Forensic Investigation....
HI laura...
in a bit of rush... as p7 is damn time consuming... i didnt even thought of Subsequent event....
All i did for trade debts was that it is material... it should be written-off as per IFRS-9 and - and audit report impact....
and for other information... auditor is not responsible for the other information. and should include the matter in other matter para, or may consider to withhold the report or withdraw from the engagement
13y ago#98Question 1, did not have any requirement which involved PFI. It is normal to use information which is not finalised for planning procedures. The areas to concentrate was audit risk etc.
I am just entrusting this exam attempt to God. I have snippets of everything you all discussed. The question I really messed up was Q4. Somehow the financial instrument wasnt coming to me at all. Sigh. And the part in Q3 about forensic accounting services....hmmm....Lord help.
We'll see how it goes.
I attempted Q1 - Q4
This was my first attempt and I found this exam to be quite difficult!!
Very time pressured especially for that first question......
Oh well!!!!!
13y ago#102Hi, does any one know if our question papers are submitted with our answer scripts for marking. I made the analytical procedure calculations on my question papers during the fifteen minutes review period. Unfortunately, I could not write them on my answer scripts completely. So I am thinking the examiner would see my calculations on the question paper and give me credits for it. Anyone with an opinion on this?
<cite>@umair85 said:</cite> @kuddus No it wasn't first. I failed it at 47 last time thats why I was more conscious about it this time and ended up spending more time on the core parts.I also failed with 48 last time! but couldn't attempt 100% of the paper! so this time I concentrated on touching every questions and was barely able to do that. I hope I demonstrated enough to let them know I deserve a pass
13y ago#104IN QSTN 1 WHEN ASKED TO EVALUATE ADDTIONAL INFORMATION OTHEN PRE ANA PROC AND AUDIT RISK ..IN THIS ADDITIONAL INFORMATION I TALKED ABOUT RELYANCE ON PROFESSIONAL ACCOUNTANT AND THAT CONTROL WEAKNESS.ANY1 TELL ME AM I RIGHT ON ADDITIONAL INFORMATION?
A very very time pressured exam!!!....questions were simple..but ran out of time
Did anyone notice that in Q1 the 2013 statements were projections, and not actual results? I don't know the impact it could have on the answer
And for those who attempted Q4, i think it really was not about subsequent adjusting/non adjusting events. I think it was just a trick, the question was really about auditors responsibilities in relation to fraud. Am i right?
13y ago#107Questions were quite ok but time pressured giving standard answer..Hope examiner will consider the matter..Missed some important points as those were not coming in exam hall...
All depends on luck and sympathy of the examiner now..
<cite>@adeyemi83 said:</cite> Hi, does any one know if our question papers are submitted with our answer scripts for marking. I made the analytical procedure calculations on my question papers during the fifteen minutes review period. Unfortunately, I could not write them on my answer scripts completely. So I am thinking the examiner would see my calculations on the question paper and give me credits for it. Anyone with an opinion on this?You get zero marks for annotating the question paper I'm afraid. Always start the question with a ratio appendix.
<cite>@alysyyed said:</cite> IN QSTN 1 WHEN ASKED TO EVALUATE ADDTIONAL INFORMATION OTHEN PRE ANA PROC AND AUDIT RISK ..IN THIS ADDITIONAL INFORMATION I TALKED ABOUT RELYANCE ON PROFESSIONAL ACCOUNTANT AND THAT CONTROL WEAKNESS.ANY1 TELL ME AM I RIGHT ON ADDITIONAL INFORMATION?For the other information I said that the lack of internal control potentially opens up to fraudulent overtime payments which would lead to overstated expenses in salary and understated tax payables balances.
13y ago#110Haahaah Disaster
<cite>@farooqrafay said:</cite> Did anyone notice that in Q1 the 2013 statements were projections, and not actual results? I don't know the impact it could have on the answer YES!!! Finally someone here making my point. These were Projections not even forcast. Thats why i did made a point about prohections are Hypothetical Assumptions..( forcasts are Best estimates) and as far as Q 4 was concerned, yes it was about Fraud and auditors liability. BUT i too touched a lil about subsequent event. though i mostly tried to explain about Fraud.. so lets see
<cite>@waqasazaz said:</cite>Analytical procedures normally take place before a year end and so projected draft statements are always required. The difference between forecast and projection as terms are negligible in under one year timeframe.
Hi
Its not bad at all, I expect the magic 50 marks,I did Q3,5 &2 Properly(with 5 marks missed in Q3), & did Q1 Poorly in just a time 35 minutes.
13y ago#114Q1 note 1) why was advertisement fine taken in cost of sales? And only 200k instead of the probable 400k?
<cite>@tdesai said:</cite> Q1 note 1) why was advertisement fine taken in cost of sales? And only 200k instead of the probable 400k?That was one of the risks. Incorrect application of ias37 using wrong estimate
13y ago#116I actually LOL when I read the examiner ALWAYS asking for 1) Quality answers 2) expects us to write everything 3) good hand writing and 4) enough points. its impossible!! Either way, hoping for an unmodified opinion by the marker this time.
Did anyone here sit the UK variant paper?
Basically, my paper for Q1 and Q5 wasn't broken down in marks per requirement? did everyone sitting the UK variant find this was the case? I only realised this wasn't how all the papers were because of what people have written here.
Q1 on my paper was in email format as expected and all the requirments were in the body of the email, as expected but there was no breakdown of marks againt it. It just said 'respond to the email' 31 marks. the email did not have any marks allocated to say audit risk was 24 marks.
reading above, it seems that the paper was broken down into each requirments and marks against it.
I am super worried now that my paper had printing errors or something.
Please let me know ASAP. Much appreciated.
13y ago#1181)a. analytical procedures - I compared figures of the current year to previous year (ratios are fine too I hear) and said its required by ISA 315...8 marks probably
-Audit Risks....plenty of them. Wasn't sure whether I should be writing about under and over value effect in the SOFP since its FS Risk but I ended up writing those as well. 12 marks probably
-Other Information asked for "other information was needed for evaluation" so i asked for more info on advertising fines, bank loan details etc 4 marks?
b) Ethics, confidentiality threat if co provides info to client A without communicating to client B, self interest threat. 7 marks permission from the client etc
Prof marks 4 ...#Luck
2) a) straight forward, manager messed it up, and juniors needed training...poor planning etc
b) i) I thought the question was rather confusing...so wrote random points on planning of the fraud
ii) I think it asked for "comment" on matters to consider so I wrote about whether the fraud actually took place etc
3) Assets held for sale, sale and leaseback and license...matters to consider and evidence. Since it didnt ask for Procedures I wrote on materiality, whether the appr standards were used and evidence
4) a. Management v Auditors...it was debatable. auditors didnt perform the duties but fraud could be by the client again it asked for "matters to consider" and not procedures so had to be careful with what i wrote
b. Financial instruments challenging...complex, subjective, market volantile etc and IAS 21 for foreign exchange risk...forgot what i wrote there
Didnt even have time read question 5 because i used 15mins reading time for question 1
Hoping for 50!! Please?
13y ago#119The question on development cost .....can't remember the question number?? But I knew they couldn't capitalized the cost because it didn't look like economic benefits would flow from it, as the company was encountering cash flow problems and it didn't look like they were in a position to continue the development of the product. I went blank after that....not sure if I did a good job!!!
<cite>@kk84 said:</cite> Did anyone here sit the UK variant paper? Basically, my paper for Q1 and Q5 wasn't broken down in marks per requirement? did everyone sitting the UK variant find this was the case? I only realised this wasn't how all the papers were because of what people have written here. Q1 on my paper was in email format as expected and all the requirments were in the body of the email, as expected but there was no breakdown of marks againt it. It just said 'respond to the email' 31 marks. the email did not have any marks allocated to say audit risk was 24 marks. reading above, it seems that the paper was broken down into each requirments and marks against it. I am super worried now that my paper had printing errors or something. Please let me know ASAP. Much appreciated.I am in exactly the same position as you. The UK variant did not show a breakdown of marks in the first question - which is why I was getting confused reading peoples answers above. Actually i don't recall it on the second question either!
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