AAPaper F8 Dec 2010 exam was

@yazeedi said:
I am still looking for the marital status of ISA ;)

Divorced ... from reality :)

F-8 (Int) is not too difficult.it's ok.

Too much writing in too little time....examiner should remove one question...good time management was critical here

I'm of the opinion that since most of the Entity is lacking good corporate governance which by itself reflect poor internal controls - Our examiner was hitting two birds with one stone - we should be grateful.

Preconditions - in my opinion and i do hope i;m not wrong here since its what i wrote around - Preconditions of what was agreed via the Engagement letter.

Pple it was a monster

what is the answer for last question for the audit report

what is the answer for last question for the audit report

@stieve said:
Preconditions - in my opinion and i do hope i;m not wrong here since its what i wrote around - Preconditions of what was agreed via the Engagement letter.

What i wrote is that precon are

1) that the directors know their duties..etc..
2)that the directors know the right of the auditors (to have access to all info etc)
3) that all legal and ethical aspects were met(independence etc)

not sure bout it though..:S

The paper was tricky..did not expect these things to get out..

no ethics, barely some questions on external auditors ..:S i hope the best!

Studying for June 2010 as we speak

For the precondition question....here's my two cents. The preconditions have to be present before the terms of the audit engagement are agreed on. So therefore before we even think of anything which belongs in the engagement letter,the conditions to be met are that the FS are prepared in accordance with acceptable GAAP, that mgmt acknowledges their responsibility for the control systems and agrees to provide the auditor with all records, info etc necessary that they'd need. Three main preconditions.

easy but lenthy

i also don't know what is the Q's precondition been defined. But i wrote as to "pre-check" before accepting any engagement, eg. any conflict of interest, staff ability, expertise required, experience in client's industry or gained in the past of similar industry..

@kiwitoby said:
For the precondition question....here's my two cents. The preconditions have to be present before the terms of the audit engagement are agreed on. So therefore before we even think of anything which belongs in the engagement letter,the conditions to be met are that the FS are prepared in accordance with acceptable GAAP, that mgmt acknowledges their responsibility for the control systems and agrees to provide the auditor with all records, info etc necessary that they'd need. Three main preconditions.

yeah, you make enough sense...i wrote the same...but listen, what about the 'status' of ISA? how vague?

If there's any student who fully understands what that status question really was asking for, I'd be surprised. I even went online searching for an answer and honestly got nowhere. Vague really doesn't even BEGIN to describe it, thank God it was only worth a few marks.

i thought perhaps it was referring to the importance of ISA's...not sure of course...but yeah, the paper was quite amusing. there was something about explanations of matters of this of that lmao. i think i need to brush up on my english skills...or not. don't they re-check the exam paper before deciding to torture students with their psychotic mind games?

I think you're right. That's what I scribbled down anyway....the importance of ISA's, level of authority etc. Question 1 (bad feeling) floored me with that explanation of significant matters jargon also.

yeah omg! i underestimated the time by a long shot...i spent around half an hour on 1.a before i realized what a complete moron i was being...i thought i should try and impress the examiner with my (irrelevant) knowledge...introduced internal controls...then went on to talk about control activities...then finally pinpointed a few (5?) control activities that should be mentioned to the mananagement...yeah, okay, i think i messed up there? what was it asking for? lol.

Yeah I also spent wayyyy too much time on question 1 because I wasn't sure how to answer 1a and the deficiencies in 1b were very difficult to spot. Read the scenario about a thousand times hoping that something...anything would jump out at me like they did in the past paper revision, but this one was really tricky. At the end of it all if you can logically explain how something is likely to be a problem, no matter how small, I believe they'll award a mark.

i believe i managed to find a few potential issues...and explained them and gave a few sensible audit procedures to fix them...but all that time question 1 took ate up my time for the rest of the paper...my mum was like 'you can only get 30 out of 30...not more!'...but i guess (wannabe) perfectionists generally suck with time management..i mean, i knew i was running out of time, but i just had to freaking complete the question before i could move on! yes. i'm ranting right now. I really tried to make the marker's day by being all neat and pretty and legible and writing in columnar format...but do you think it'll be a turn off for the marker if i didn't finish the paper? (attempted around 60-70%)..i do believe that what i did attempt, was generally correct?

for 1a...I did not refer to the scenario below..I simply mention about the importance/ existence of PARIS in the company. Explanation wise if pretty self-explanatory..without it or with it, what is the implications or benefits

what do you mean by 'PARIS'..? is that an acronym for something or did i miss out on some crucial audit concept?!

PARIS - Internal Control

P- Personnel, Physical Assets Control
A- Authorisation & Approval
R - Review & Recording
I - Information and Communication
S - Segregation of duties & Supervision

Wow 4 days on and you guys are still discussing it?

Try not to worry too much guys, there is nothing you can do.

Re the ISA question - i too cannot find anything concrete on the internet, however i mentioned IFAC , and that they develop, and maintain high quality standards such as ISA lol

Who knows if I am correct?!? However it seems as though not many people finished the paper....i didnt complete all of Q5 which was annoying.

Im hoping the examiner takes that into account !

Anyway those of you who have more exams then i wish you best of luck, those who are done try not to worry and enjoy the festive period cos you deserve it!

tzxsean, i knew (and used) that! just not the acronym! too romantic for me!

sb07, yeah we do sound quite obsessed...but as my next paper is f7...i am trying to pin all my hopes on clearing audit! already feel dismal with regards to reporting :(

razmataz - its out of your hands now...try not to worry about it

best of luck for F7!

thanks for the wishes! good luck to you too!

Regarding the status of an ISA, I did the same. I wrote about the ISA's being standards and guidelines that auditors should follow to allow and effective and efficient audit. Similar to the IFRS and conceptual framework for financial reporting, etc.

@sb07 said:
Wow 4 days on and you guys are still discussing it?

Try not to worry too much guys, there is nothing you can do.

Re the ISA question - i too cannot find anything concrete on the internet, however i mentioned IFAC , and that they develop, and maintain high quality standards such as ISA lol

Who knows if I am correct?!? However it seems as though not many people finished the paper....i didnt complete all of Q5 which was annoying.

Im hoping the examiner takes that into account !

Anyway those of you who have more exams then i wish you best of luck, those who are done try not to worry and enjoy the festive period cos you deserve it!

@05008967 said:
Regarding the status of an ISA, I did the same. I wrote about the ISA's being standards and guidelines that auditors should follow to allow and effective and efficient audit. Similar to the IFRS and conceptual framework for financial reporting, etc.

ditto!

The paper was fair but tricky.