AAA*** P7 June 2014 Exam was.. Instant Poll and comments ***

tanx... remember there was a question 4 8 marks and 7 marks on accounting treatment and evidence cant remember wat da other 5marks were 4

Question 5a do u get marks for writing the other 5 recocommendations other than going concern? I remember the question specially state what to include for the going concern paragraph and benefits of doing so. 5b I wrote wrong heading used. Should be qualified - except for opinion or adverse if pervasive. For the basis of para, Never include the account balance. Never quantify the amount. Never write impact on asset/profits. Unprofessional words used, should not mention director in report. Wrong wordings used for the opinon paragraph, shoulf be " except for the effects of the matter described in the basis of paragraph". Should not use emphasis of matter para. Should include the provision in basis para

I thought question 2 (a) asked for Before acceptance procedures, such as Ethics issues, Risk, Fee and profitablitity, competences and resources etc..

Q1 about Detection Risk Control and Inherent i explain with ISA 600 ISA 315 Ratio and General Discussion and Very Little Ratio Analysis Do i use right Approach Must tell me Plzzzzzzzzzzzzzzzzz Admin???????????

Was a fair exam but time pressured. Keeping fingers crossed for a Pass

Completed about 80 to 85% of the paper. Does anyone think whether there is chance of passing without completing the exam? It was a fair exam though!!!

The worst thing about this paper is the time management and to understand under the huge pressure what the question exactly needs. it is really shame that the passing rate last 6 sittings is approx. 32% whilst for ACA the relevant rates are approx. 60%. I really regret i have chosen ACCA over ACA. For me this paper is not serious as it does not test your knowledge but tests whether you can read and write quickly and on top of this not to misunderstand the question under the pressure of time (for example some of the students Q1 did not notice that it was the first year of group audit and that all companies were operating in same currency but under normal pressure conditions they would - I am glad I noticed it!). For those that will argue that we are also examined on our speed to understand and write answers my reply is that I have a Masters Degree in International Economics and Public Policy of Cardiff Uni (Distiction) and 4 years experience in a big 4 (non-audit thoough) Re Q1 my comment is whether and to what extent we should calculate ratios and trends? If you have tried to do that then one hour was way not enough for the 31+4 marks. Surely it was a strange paper... especially Q1 and Q4.

I answered question 4 and then question 3 as my optional ones..... although now I'm racking my brains as to whether I filled in the '3' blob at the top of the page, or the '5' blob in my haste to get down as much as possible in the timeframe!!! I know I said Q3) in the margin at the start of my answer, and I would have filled in the '3' blob on the first page of my answer, BUT, what if I filled in the '5' blob at the top of the page for any of they other pages of my Q3 answer.... what would they do with regards to the marking!!??? Eeep. Other than the time pressure I thought it was a good paper. I didn't talk about first year audits, but I got plenty of marks down in Q1. On the UK variant you don't get the marking split between part 1a and part 1b, just the 31 mark as a total. Anyone care to enlighten me? Thanks

That was rough

Q3 Ppe n research n development a feasibiliy study bern carried out.ias38 (b) related party fd bought car not at an arm transaction ,c , brand not amortised as samd amount as per previous yr.impairment ias36 Thats all i can remember not sure whether its correct

Tricky exam!!!

I believe that your answers are correct.

I thought the exam was extremely time pressured. Q1 aii) like others have said was tough as once you calculated the ratios and realised most gave nothing away there wasn't much time to say anything. I felt the questions were reasonable-ish. Q5a) was a bit mean with its focus on going concern. I hope the markers are generous with the sympathy marks as I babbled. Maybe I should have been faster today, but I don't think it was just my slowness. How was q4) as I purposefully avoided the ethics question this time as apparently it's the hardest to score on?

did anyone spot intra group transaction and PURP in Q1

@swaggarv - I interpreted this question as a non-audit review engagement. I talked about risks of self-review etc, and mentioned that if the review brings total fees to above 15% etc etc. I then just mentioned about different proceedures that could be carried out and evidence that could be collected. Overall I think the paper was as expected, not easy at all, but I feel I was as prepared as I could have been for it. Nothing we can do now anyway!! Lol Best of luck to us all - my head is already back in the books for my P6 on Friday.

Q5 I understood there were only two modifications of opinion as qualified - except for on the basis of material misstatements, no pervasive. inappropriate use of eom para, if any eom was required it would have to be re-drafted in relation to the note on the accounts for the litigation, however this was in-material so perhaps no eom was required at all. other issue as mentioned in other posts.... time pressure and difficult paper

It was fair paper but very time pressure. Hope will work.

Question 1: Anybody noted that in Conso SoPL&OCI, Gain on revaluation of investment property recognised in other comprehensive income is a wrong treatment? According to IAS40 isn't it must be recognised directly in profit or loss?

The past papers answers provided by ACCA are so detailed. Do our answers have to be at that level of detail as well? I did as many as I could and but there just doesn't seem to be enough time to put so much down. I thought overall the exam was fair..tricky..but fair. Good luck to everyone!

@swaggarv - in my opinion the procedures to be carried out on the projected profit forecast was to analyse each one of the item and make a comment, e.g. Revenue - the forecast for 2015 showed a 22% increase from 2014; however the 2015 to 2016 only showed a mere 2%; we need to ensure that the expected patrons reconcile with the price @$10.00 etc etc......that is my opinion

What a stinker of a paper, yet again, my wrist trembling after 3 hours of non stop writing! ......to the examiner, what are you testing here? My knowledge ? Or whether I can fill an answer book in 3 hours??

Generally it was a good paper, questions meet professional expectation for someone aspiring to be a member of ACCA. However, the time runs so fast. I wonder if its a speed work they are testing or the knowledge you possess. But on a whole it was a good paper.

No it wasn't intra group.... The clothes are sent to Lynott Co for recycling. That's my thoughts anyway... I LCD be wrong

I was tempted to write about Forex change fluctuation as an Audit Risk ..But in the Question it was clearly stated that both the Group n Foreign Sub use same currency. So i didn't write that point :S

anyone knw wat to write in Q5 first part.. going concern iaasb? disclosures

Impossible to complete the paper in 3hrs... Attempt only 80% :(.

@favx14 I wrote that there is a ROMM if the going concern status is incorrect and the matter should be disclosed by the auditor in an EOM. I then defined EOM and its benefits to users of the F/S's

For q 1, the foreign currency point is genuine cause this is the first audit we are doing so we dont know if they have been retranslated properly even if they have we dont know if they used the correct exchange rate and this sub is not Audited by us...

Do anyone remember mark allocations? pls comment if anything not right: Q1 - a) i) audit risk - 18 ii) other matters - 5 b) component auditor - 8 professional marks - 4 Q2 - a) i) PFI engagement accept - 5 ii) PFI audit procedures - 6 b) i) money laundering - 6 ii) money laundering stages - 8 Q3 - a) i) Chemicals, PPE 60 mln, R&D - ? ii) Car sold to Related party - ? b) ????? - ? Q5 - a) Current issue - goind concern - 8 b) Appraise the opinion - 12 Thank you in advance

My answer: Q1(a) risk -Nature of business - tons of transaction as manufacturer ,increase risk -complex group structure -3 subs+1 associate increase audit risk -intra group balance - 800k accrual payment, related party transaction disclosure in individual acc -unrealized profit in inventories- transfer between co in same group -brand - impairment review -goodwill - impairment review since many years never chg structure -bonus scheme - performance based , vesting purpose must satisfied -revenue - analytical review, maybe fraudulent reporting to gain bonus scheme -associate- classification (20% but may not be significant influence) -investment properties - very material , FV based on estimate/judgement , risk Q1(c) matter to be considered -ISA 600 technical competence / unmodified for many years /small firm / independent issue/ member Q2(a) matter to be considered PFI intended user/ assumption whether hypothetical / fee / technical competence / understanding of entity / limited assurance Q2(b) procedures -discuss why tax is not included -obtain breakdown of finance cost , check in line with loan -if not , ask whether any other loan has settled -discuss price elasticity - increase from 7 to 10 , affect volume -obtain breakdown of operating cost -confirm whether depreciation has increased since purchase capital asset -confirm whether staff cost has increased Q2(c) stages Define placement, layering and intergration - link to the case Q2(d) elements to counter money laundering -clear reporting procedure -good internal control system -money laundering report officer -maintain record 5 years ,facilitate forensic auditing for proactive purpose -audit committee - facilitate reporting and internal control Q3(a)(i) matters to be consider PPE / going concern / emphasis of matter paragraph / accounting treatment for research /materiality / risk /provision of legal liability Q3(a)(i) evidence Asset registered listing confirm existence PPE / obtain expert to confirm impact of regulatory compliace/ dissusion note / minutes of board meeting Q3 (a)(ii) matters to be consider materiality - nt material to company but may material to manager/ risk do nt disclose /not at arm length / nt yet pay-fraud / loan Q3 (a)(ii) evidence Sales agreement of the car / invoice / disclosure note in finacial statement / minutes of board meeting Q3(b) action to be taken(prior year mistake- unaudited account) seek legal advice / discuss with partner (no more idea from me =( ) Q4 (a) business risk and risk of material misstatement Define and link Q4 (b) planning ( service organisation on payroll) -execute transaction and maintain accountability , hence must planning to audit -obtain understanding of service orginasation(nature,financial strength, relationship of the service,etc ) -CAAT may assist - if internal control good ,test system -if internal control bad, test operation and system Q4(c) matter to be consider before giving advice on tender fee / conflict of interest since audit client /safeguard/ obtain understanding of entity / technical competence Q4(d) joint venture with audit client independence / safeguard / limited knowledge in business field