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Hi,
In the risk questions you get half mark for pointing out the situation. I mostly copy and paste from the question. I was told before this is perfectly ok as long as the situation you copy paste does not relate to two answers so in this instance in mar/jun 22 risk question I copy pasted this for half mark:
“Esk Co purchased a patent for $2.6m,with a four year life .The purchase cost capitalised comprises the cost of the patent and other costs such as legal fees and administrative costs incurred in negotiating the contract”
The answer for this in the acca answer book was:
Esk Co purchased a patent in the year and has capitalised all costs associated with the purchase
Would you get half a mark for my answer too in your opinion??
Short answer – I think not as it is not “perfectly ok”.
From the examiner’s reports:
“Candidates often use the copy and paste function when identifying risks. When doing this, care should be taken to ensure that the risk is actually identified. Simply stating a fact from the scenario is not always the same as identifying an audit risk.”I would go further and caution that mere repetition of anything from the scenario does not “add value” and is therefore not worthy of marks.
Looking at what you copied, a marker may think … “so what?” “tell me something I don’t know”, “are you expecting ME to identify the risk”?
You should expect to make at least some “tweak” to the wording to convey what the risk is – here it is having capitalised ALL costs, when, as you would have to go on and explain, not all costs meet the asset recognition criteria.
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