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I know I messed up the audit risk question no. 16 but hopefully done enough still to pass.
Hi! The exam did not seem very difficult. However, while I was studying, everything was clear for me, but I’m worried on the exam and all my thoughts fly away.
Hi! Do you guys remember any questions from section A other than the ones on ethics? I think something came up on materiality by nature, audit opinion but forgot what the rest of them were. Hope I’ve done enough to pass…
This is my 3rd attempt and every time I found it easy but FAILED!
This time the multiple choice questions were difficult. There were many confusing tricky questions.
Theoretical questions were on the easier side but from my experience I realized that getting mark is difficult.
I had questions related to Audit risk components, Identify 8 audit risk, 3 test of control where the control is affective. 5 deficiency where the control is weak. 5 marks on audit opinion where the finance director rejected to amend the FS. Rest of them are usual substantive procedures.
Anyone get a section A question asking what sort of report should be issued regarding the service organisations use?
Options were Auditor’s report, report to management, type 1 report, and type 2 report.
(my third attempt also, failed twice by 49 – but not giving up!)
I’m in the same boat. I had a weird question on the type of report required with regards to outsourced inventory expert the client was using- might have confused that bit, but remember the question asked what report would the auditor be requesting- there was ‘audit report’/ type 1 or type 2 report and the fourth option I cannot remember. I don’t recall covering type 1 and type 2 reports? I put type 2 as a stab in the dark
Agree a lot of the MCQS were pretty tricky.Me too! last time by 47% – I just commented on this question too! was very surprised
All seems like a such a blur, such a fast exam. I will say, I was particularly unhappy with our invigilation as I feel it impacted my exam quality and ability to answer questions with full attention. Not sure if anything can be done about that though….
Part B I got three questions on substantive procedures in relation to the company mentioned for additions and disposals, Bank cash balances and payroll I think? each were 4 to 6 marks. Not going to lie, struggled to maximise points on these- assuming one mark per point.
Had a 4 mark on engagement letter- give the overview of what it is and then list four parts included in it- guessing half mark for each part?
There was a question on where the auditors found 994,500 that was capitalised but should have been expensed. The year end was May 20×5 but the error was found aug 20×5 so I think it wanted mention of adjusting event- It queried what the auditors should with regards to the report if management refused to amend the financial statements- it was a material balance against PBIT and total assets- Again these are rough memory details. I think it was going for the Qualified ‘except for’ response though???
Audit risk question was juicy- Ratios were included which you don’t often get, wish I had gotten to this question earlier. Pity I didn’t give it much time but just about scraped a full answer- seven audit risks and responses. I was just about to get to the cashflow issues and got kicked out.
In the hands of the ACCA gods now I guess!
I answered type 2 report too! I’m the same, the time all went so fast.
I think you can comment on your exam experience somewhere in their login page.
Yeh, part b was okay… engagement letter, control explanations, ratios. I think I messed up on some of the substantive procedures though… just hoping I’ve picked up some sort of marks.
What did you say for the last question? I said it was materially misstated if management didn’t amend, so they should give a qualified except for opinion.
haha good luck to us both!
Yeah I got the same question too!
I wrote as many substantive and analytical procedures as possible to gain as much marks haha!
I had the same questions mentioned here. Also, I remember the questions on safeguards when three people had interest in the entity (because someone had shares and another one was a close family member or something like that and it was also a self-review risk).
On the service organisation: Type 1 report =report on description and design of controls at a service org) and type 2 report = report on the description, design and operating effectiveness of controls at a service organisation). I have chosen type 2, I still don’t know if that is correct.
The descriptions of components of internal control system gave me a bit of a trouble.
Substantive procedures, controls, risks and auditor’s response, those were fine. Multiple choice questions I found difficult.
Last question I wrote qualified except for, with a paragraph Basis for qualified opinion because the amount is material but not pervasive.
Ratios were simple.
Good luck everyone!Which ratios were ask for?
And what substantive procedures and audit risk they ask for can you please give more detailsRatios for me:
operating profit
payables payment periodOnly 2 marks for both years (I rounded my answers is that correct?)
Did anyone get the question on corporate governance and it said the CEO had chosen their friend to be on the board of director and then the finance director had decided a bonus of £10,000 for all directors and what recommendations we can make? I was a little stuck on this one!
I also got a question on the self-review and familiarity question and now thinking I put the wrong answer as only the lady who worked for the company has both?
I also got operating profit and payables. OP I put with one decimal I think, but payables days I rounded, and I remember that there were fewer days (they were paying quicker).
Yes on the corporate governance questions. For the remuneration I suggested to implement a remuneration committee formed of non-executives so they can decide on the remuneration of executives. Remuneration of non-executives is determined by the board, but this I forgot to mention as I was not sure.
For having a friend on the board – I don’t remember 🙂Substantive procedures I remember: non-current assets, purchases.
For the audit risks and auditor’s response I identified that capital expenditure might not have been classified correctly, if someone remembers the scenario it would help me remember more :))i got that too operating profit declined on X5 and they were certainly paying quicker i guess around 64 days previously it was 80 days.
Substantive procedures for purchases and expenses which i could hardly answer 3 points.
Rest were Intangible assets, receivables and restructuring provision.
Purpose of audit engagements and the usual controls in place, deficiency and recommendation.
Could not attempt the opinion question which i thought was an adjusting event and half of the risk related questions due to the bloody time limit.
Section A was tough. Hoping for 40% marks on Sec A. Hopefully i have done enough to get over the line.
PS: This was my 3rd attempt in a row.This is my 2nd attempt.
I got the type 1 and 2 report qs too, but I was so dumb that I changed my answer from type 1 report to report to management, which is not making sense lol.
For section B, I got key control and TOC, deficiencies and recommendations, audit risk with ratios, substantive procedures on NCA, TP, intangible assets, purchases and restructuring provision, auditor’s opinion on capitalisation of training cost, audit engagement letter, elements of internal control system and corporate governance.
I found myself lucky as these questions are quite common and questions mentioned by jayhelena seems harder than the questions I got.
The exam was okay. Just dont have enough time to write better points, i could think of better answer if the time is more hahaha . If i fail I honestly do not know which part to work on because i studied like crazy. Tho its still possible for me to fail. Wish all of us good luck
Ah yes that seems correct about the improvements to corporate governance – seems like we got similar questions as payable days definitely did decline. There was a part in the audit risks section about the supplier statements showing higher balances than the companies trade payables hence the decline in days as their system was not accurate and understated.
I remember them being a new client so I had that as one of my audit risks, the contaminated soil and the NRV being lower than cost but I can’t remember much more… the exam was tough time wise as everyone has said.
Fingers crossed for everyone this is my second attempt!
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