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

Does anybody know the breakdown of marks allocation for Q2,,, in my view the question was for 20 marks,, matters to consider 6,,, procedures 6,, stages of money laundering 4,, and 4 marks for quality control procedures over money laundering in a firm,,, Plzz reply

Q2 – a) i) PFI engagement accept – 6 ii) PFI audit procedures – 8 b) i) money laundering stages– 5 ii) elements to encounter money laundering– 6

Question for this June 2014 session is quite easy. So, I expect tight checking at least for this paper.

I did not put the question numbers on front paper as we'll as in the top of paper I couldn't fill the blob..because of time pressure!! What will markers think?? Pls reply !! I did my last paper p7..

Anyone knows if we had to do preliminary analytical review in Q1a? It was not asked but there were a lot of marks for only risks and the f/s were given I didn't do them i thing that i may have lost 8 marks or more! What do you think?

I did analytical review in q1a, althought the question ask for audit risk.there must be a reason for examiner to include the FS there..

exactly, this gave me trouble

I wrote question 1,2,3,4 fingers crossed

I also identified the same audit risks.

PFI examination procedures include -Casting all the figures for accuracy -Comparing past forecast to latest FS to determine reasonableness of forecast. -review seasonal variation considering productive and non productive periods to identify significant anomalies. -comparing accouting policies to those used in forecast to determine if correctly applied. -review timing....eg some expenditure for the cinema won't have been done by the time they were accounted for in the forecast. -review the assumptions used for reasonableness -review loan agreements to determine if the loan will be received - discuss with senior management to determine if the forecast is only for limited use(bank loan) or general use (website or publication) -calculate ratios and agree to past FS to identify any significant differences and discuss with management - compare sales revenue growth to industry growth and market expectations in publication or cinema industry magazines to assess reasonbleneas of assumptionswOTHER general enquiries include... -Period covered by the forecast...4 years too long..less acceptable and reliable No tax in the forecast....enquire from management. Interest payments, dividend payments...etc. These were the procedures I wrote..hope it helps.

PFI examination procedures include -Casting all the figures for accuracy -Comparing past forecast to latest FS to determine reasonableness of forecast. -review seasonal variation considering productive and non productive periods to identify significant anomalies. -comparing accouting policies to those used in forecast to determine if correctly applied. -review timing….eg some expenditure for the cinema won’t have been done by the time they were accounted for in the forecast. -review the assumptions used for reasonableness -review loan agreements to determine if the loan will be received - discuss with senior management to determine if the forecast is only for limited use(bank loan) or general use (website or publication) -calculate ratios and agree to past FS to identify any significant differences and discuss with management - compare sales revenue growth to industry growth and market expectations in publication or cinema industry magazines to assess reasonbleneas of assumptionswOTHER general enquiries include… -Period covered by the forecast…4 years too long..less acceptable and reliable No tax in the forecast….enquire from management. Interest payments, dividend payments… etc. These were the procedures I wrote..hope it helps.

Relatively the exam was good but still there is time pressure reflected on completing the exam on time .

did anyone noticed the WIP on the silk that was taken to the other sub after 12months, is it lytto or the other one.Risk that WIP is not properly accounted for

based on the materiality level of items included in the the trade receivable & provision requirement which was UN provided & hence causes to understate payable & overstate profit, b/s of materiality of the items disagreement qualified opinion using through except for may be suffice. basis of disclaimer opinion has not properly outlined , it is not also adequately explained the quantification of the qualification the non provision of of the probable out flow of resources for the provision also not mentioned not fairly presented can not be the sufficient evidence for disclaimer audit opinion rather the material & pervasiveness of non available adequate evidence would have been the cause opinion paragraph should have been outlined as disclaimer audit opinion below the basis of opinion paragraph, while it is merged with the bases of opinion it said the f/s materially misstated & hence qualified opinion was appropriate, since the f/s as a whole was not misleading in the emphasis of matter paragraph it is inappropriately mentioning the non provision of the legal claim , which should have been disused in the basis of qualified opinion

Q1- I have not seen no one write about the audit risk of, understatement of deferred tax payable which is emanates from revaluation of properties & have not shown in the SOFP & corresponding overstatement of retained earnings which could results from by passing of the required entry.