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Please help me with techniques of passing P7 and P4. I have struggled with these two papers. its my last papers and have failed both twice.
Thanks
I took P5 and P7, passed P5, P7 is giving me real issues (failed more than twice!).
As such I can only answer your question from the P7 perspective.
The real problem that I find with P7 is that you go into the exam hall knowing the subject matter but still fail.
Unless one has taken p7 (which of course we both have) its difficult to convey quite how time pressured that it is.
Sometimes with that one it seems more a test of speed writing than knowledge and I know that when speed writing my writing for one becomes more difficult to read so is not going to win any brownie points with the markers.
Basically, they don’t know what you know and if they can’t read the script then you won’t get the points even if the perfect answer is buried in there
As such my only suggestion would be to follow the same path as myself and practice, practice, practice old papers under exam conditions not so much to improve knowledge but to improve the legibility of writing (I know that I for one write almost everything on computer so not really prepared for three hours solid writing in exams… But determined that I will be this time. Its two past papers per week (F8 and P7) for the next 13 weeks for me!. (mmm, decisions. All the F8’s then the P7’s or alternate?)
On the knowledge front P7 is testing not just audit knowledge but also the application of P2 knowledge plus a bit of P1.
so its also important to brush up on those papers, espechally keeping abreast of financial reporting standards.
Good luck with them in the December sitting.
Just P7 sitting between me and membership so I’ll also be doing that one at the same time.
Shaun.Hi Guys,
Just wanted to give you a little bit of advice for P7. I passed this paper first time and found it in the main relatively easy. The thing to remember with this paper is risk , accounting standards and ethics. If you go into this paper with no understanding of risk, accounting standards or ethics you increase your chance of failing ( 70% of the paper in one way or another involves understanding risk and accounting treatment).
For example if there is an scenario in the exam which centers around ‘inventory’ … think has management valued inventory per IAS 2 lower of cost and net realisable value. Has management intentional increased inventory to mislead shareholders ? what evidence is available to account for managements valuation ( invoices , materials etc) ?From a risk point of view think ‘ audit risk’…. There is a risk that inventory is materially misstated – ‘ impact’ inventory is overstated which may present an unfair view of the accounts ( materality dependent). ‘significance’ for the audit more work will be needed to recalculate inventory !!! … if management refuse then issue a qualified opinion if the rest of the accounts are fine
I hope this helps
Actually that really helps a lot thanks.
it is very easy to get so tied up in the detail that sometimes it takes a prod from someone else to tell you to step back and look at the bigger picture.
I spend all of my time reviewing and memorising the intricate details of standards (accounting, audit and ethics) but the reality is that approach is more skills than professional level which needs to be approached with a broader brush.
I think that you are right and in my answers I give technical responses almost quoting chapter and verse but thats not at all what the markers are looking for and probably gains no points.
From now forwards I’ll be adopting your suggestion of attempting to structure responses around a framework of Risk / Impact / Consequences.
Many thanks again,
Shaun.Just wanted to give you a little bit of advice for P7. I passed this paper first time and found it in the main relatively easy. The thing to remember with this paper is risk , accounting standards and ethics. If you go into this paper with no understanding of risk, accounting standards or ethics you increase your chance of failing ( 70% of the paper in one way or another involves understanding risk and accounting treatment).
For example if there is an scenario in the exam which centers around ‘inventory’ … think has management valued inventory per IAS 2 lower of cost and net realisable value. Has management intentional increased inventory to mislead shareholders ? what evidence is available to account for managements valuation ( invoices , materials etc) ?
From a risk point of view think ‘ audit risk’…. There is a risk that inventory is materially misstated – ‘ impact’ inventory is overstated which may present an unfair view of the accounts ( materality dependent). ‘significance’ for the audit more work will be needed to recalculate inventory !!! … if management refuse then issue a qualified opinion if the rest of the accounts are fine
I hope this helps
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