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

@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.

Time always kills me in this paper – always waste too much on Q1 and then rush the others. May need to try another option, I work in management accounts so auditing isn’t really compulsory for me to have, plus I have zero practical experience of it – I think you need some to pass this.

Okay,, wait.. did any one notice that Question no. 1 had Projections of June 2013. Not forecasts, Projections.. any point any one made regarding that?

exam was good, but lack of time

I thought the overall the question was relatively okay! The only criticism I could possibly make would probably be question 1. Found little bit ambiguous and vague ! Could have been asked same question slightly clearer way! Perform preliminary analytical procedure to do what? Understanding the business facing the audit risks, or identify the audit risks or what ? forensic accounting relatively vague too! I can’t really say but let’s hope for the best!

Anyone have any idea how much marks was the “identify and evaluate additional information” worth in question 1 part a?

I really had to ask a question…in Q.1 I didn’t have enough time left so I did part b involving ethical issues and I managed to mention the risks in part a and discussed them in 3 to lines each matter. There were 4 issues in total, I was not able to do preliminary analytical procedure and other matters, any idea how much marks I lost in sec a ???

Made a major blunder in question 1 – wrote analytical proceudres for reviewing PFI (instead of prelim procedures as asked) and then wrote audit risks facing the business. For other information I wrote a bit on materiality, audit strategy and approach.

Q2 was okay with the quailty control, ethics and forensic accounting. Hopeful of a decent mark here.
Q3 was okay also and Q5 on the group audit report – I wrote the effects of each on the opinion. Maybe passed both questions here.

Doubtful I will pass after the Q1 blunder.

Paper 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….

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

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.

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

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.