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Anyone else had issues with the check-in process? I still haven’t been able to re-book as I’m getting the “ currently has an open registration for this exam” error.
Which question did you get? Mine was Crown group that acquired two subsidiaries, was not able to identify a lot regarding risks as mostly everything was related to the intangibles brand and goodwill
Also got the Crown Group Question
Some of the risks I found:
Risk of 75% subsidiary consolidation not pro rated
Risk of one subsidiary with a different year end from the Group being incorrectly consolidated
Risk of intangible assets being revalued by $20m
Risk of 25% NCI not being recognised
Risk of goodwill not being tested for impairment
Risks of incorrect fair value of consideration for calculation of goodwill
Risks of misstatement due to 1st time adoption for subsidiary
Risks related to component auditor
Management bias riskyes same qs i wrote risk of
owner manages business riks of manipulation plus not listedgoodwill pe risk for pierre co not including contingent consideration
risk on intangible revaluation kiye but no impairment test also management involved so bias
ferry co deals in capital expense risk of mis classification and revenu expense capitalised
two subsidiaries not previously audited openeing balanxes inherit risk
two subsidiaries not in same county risk of not knowing laws and regulations detection risk
group involved acquisition during year risk of all balances being included pre acq aswel
intra group transactions risk of not removing this
borrowing cost risk of ifrs 9 premium might not be included not used in finance cost calculations
I got a business risk 10 marker! Typical as I pretty much only focused on audit risks
I got:
Grocery store. Can’t remember the business name. Business risks, then ROMMs. Auditor’s responsibility regarding NOCLAR. Procedures on joint venture acquisition. I thought of a lot more risks than I had time to write down unfortunately, so my marks are limited there. I think quite a lot was already materially misstated so it wasn’t too difficult to find ROMMs.
Geller Co… lots about going concern and auditor’s responsibilities, evaluating management’s assumptions on a forecast cash flow (whoever prepared it was kinda delusional). 10 marks then 2x 5 marks – went ok but I left it until last and didn’t 100% understand what i was being asked for. I should’ve studied PFI more.
Forsythia Co… quality management 25 marker – went terribly tbh. Also should have studied quality management more.
I think this is the first exam I’ve really messed up, it somehow brought up everything I wasn’t strong in. But you never know, I wrote SO much that it might get me enough marks. I definitely have the professional marks at least.
Question related to going concern and forecast was overloaded with data and numbers. Was my last question, too time pressured one.
First question was about business risks and Romm, not bad, too many risks but needed to concentrated on significant ones
Quality and other prof issued, not bad in general.what did u guys wrote about going concern paper works asked to be done by group auditor by the component audtor was in ethics qs sec a of crown group
Question 1 was it ROMM or audit risks? I thought I was audit risks.
And do you remember how was question 2 stated?audit risks inlcudes Romm and detection riks its the same thing all risks were to be included i guess
Hi, i have had the same question and could not figure out what we as group auditor supposed to do.
It was very strange question to me, have not really understood what they were asking for ?WYrealmusic wrote:What on earth is the question 1 asking, weirdest Q1 ive ever seen!
Indeed. The question restrict us to the audit risks relating to the 2 new subsidiaries acquired during the year only. It also tells us not to state audit risks relating to disclosures.To top it all up, the exhibits was full of audit risks relating to the existing subsidiaries which we are not allowed to state.
The question 1 about Crown Co Group is having so less info in the exhibit, for the RMM and even the ethics
akileshsookun I had the same question and I agree with you. The second was matters to discuss with management and an audit opinion about shirts of a player who was found guilty for fixed matches
The third if I remember correct was again some ias’s and ethics. I am not very sure but these were my questions.
Q1
– RMM for acquisition with less information
– Ethic question short exhibit tooQ2 – specific enquiries and procedures for due diligence for internally generated client list and new acquired directory
Q3 – correction of misstatement
– ethics & professional issues given by numbers of bills amountRiDICS
Yep thats the question I had too! It was such an odd exam…barely any info relating to what they were asking us to answer! I dont have high hopes of a pass ?
1.
Online grocery store with joint venture, annual subscription element, warehouse fire, international expansion financed by new loan.Business risk (10 marks)
Audit risk (16 marks)
Procedures relating to determining if joint venture or subsidiary (7marks)
Auditors responsibility with non compliance of laws and regs (7 marks)2.
Completion stage of audit. Subsidiary acquired after date, use of another firm for audit work. Some other bits I can’t remember nowEngagement quality review – Quality management and professional issues and actions to take (20 marks)
3.
PFI – cash flow – going concern issues relating to a book company. Acquisition, sale of range of books, new contract with promising author. So much other stuff here I ran out of timeCash flow assumptions that should be challenged (10 marks)
Procedures relating to cash receipts (5 marks)
Matters relating to going concern on audit report (5 marks)one of the matters to be discussed question is about vacant property which the owner intends to earn rental income from but not getting legal permission. They reclassified from PPE to IP.
Not too sure about the treatment but I wrote since it is not legal permissible, highest and best use should not be considered. The warehouse should be remained as PPE and gain from revaluation should be recorded in OCI instead of P/L.
Still confused, hope can gain enough marks to pass. Crown group risks info is like here a bit, there a bit. After exam only can connect all the info given lol
I thought the reclassification should be agreed with IAS 40s conditions of land capital appreciation, operating lease to 3rd party and last one i forget. It means that the reclassification from warehouse to IP would be possible but the needs of derecognitions from PPE is necessary.
But the question does not mention except for the intention of the company to lease for rental income.
In determining the the IP, it should be measured at FV at initial recognition and subsequent measurement should be measured either revaluation model or cost model. If the cost model is used, IAS 16 will be used while revaluation model will remain as IAS40.
If it fulfills the conditions of IP, then it is possible to be reclassified to IP and the gain from the uncorrected misstatement of $9 million as adjustments is correct. I cant remember the question.
If the company decided to remain it as PPE as the warehouse does not fulfill the conditions, then the recognitions should be based on historical amount and continue for depreciation in arriving for carrying amount.
I think soo.. Hahaha nvermnind exam ended.
should we have commented on the materiality of $30,000 was not correct
should not we have commented on the no impairment in previous year
Q2 – specific enquiries and procedures for due diligence for internally generated client list and new acquired directory
what should we have write for this question
what did you mention for audit procedures on internally generated assetsJean96 wrote:should we have commented on the materiality of $30,000 was not correct
should not we have commented on the no impairment in previous year<br>Q2 – specific enquiries and procedures for due diligence for internally generated client list and new acquired directory<br>what should we have write for this question<br>what did you mention for audit procedures on internally generated assetsThis one i wrote about their expertise, nature of internally generated IT system, reliability of the system, competition, defence strategy, strategic direction and fit, synergies benefit, employees, environment, future economic benefit of the maintenance client list and i include certain identification of assets and liabilities. All of this must be in line with the purchase price to ensure before acquisitions is made, it can be negotiable.
Any potential for issues that might potentially affect the company must be clear and my outcome will be the importance to lower the purchase price.
This one i use pre and post acquisitions impact
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