F8 Quick Revision Q&A Exams

[Hamdy Hafez]

Ok, without any introduction, let us go through
The first step, we need to know that, the entire answers regarding F8 exams are depending on two things;
The main points & the explaining of those main points
So, if we want to start our mentioned subject (F8 quick revision Q&A exams) we will just need to;
1)Select the important subjects on F8 syllabus (such as audit procedures) and give the mean related concepts.
2)Select the important questions regarding this subjects (from last exams)
3)Put just, the main related points
So, I think on this way, it will be actually a (F8 quick revision Q&A exams)

[Hamdy Hafez]

Let us go,
The first three subjects that we will start with are;
(Internal control, tests of controls & audit evidences)

* Internal controlThe IAS states that internal control has five elements:
1) control environment (governance , management,….etc)
2) the entity's information system
3) the entity's risk assessments process
4) control activities (polices & procedures – segregation of duties )
5) monitoring of controls

* Tests of controls & audit evidence The auditor needs to understand the entity accounting systems & its control environment, and then he will plan the tests of controls to obtain the audit evidence, so now we will give the main examples;
1) Tests of controls
2) Audit procedures (substantive testing = testing of details & analytical procedures when it used as a substantive tests)

Now take a break & it will be clearer in the next post

[Hamdy Hafez]

Now, the main problems (according to the related comments of F8 examiner) are the wide variety of errors such as;
1) The differentiating between the tests of controls & the audit procedures.
2) The differentiating (on the answers) between the system objectives & the errors that may occur if the system are not properly controlled (Dec 2001 exam – Question Cosmo)
So, firstly we need to know the difference between the tests of controls & the audit procedures
1) according to the pilot paper Q 1
Which refer that, the auditors must obtain sufficient, appropriate audit evidence, which can be in the form of tests of controls or substantive procedures.
So please you need to carefully read again the related answers of the first question of the pilot paper 2007 (very important)
2) The second points relating to the difference between the tests of controls & the audit procedures will be clearer in the following paragraphs;
•Tests of controls (related to; system design + internal control operation) auditor can rely on priority years' tests of controls, if there is no risk found.
Which such as; check authorization of (recording the data, access to data, amendments,….etc) + inquiry procedures + inspection + re-performance by the auditor)

•Substantive procedures (related to; detect material misstatements in the F.S) should be carried every year
Which such as; agree the F.S to the related lead-schedules & records + examine some Journal entries,…etc. + the financial statements assertions (Accuracy, cut off, Occurrence,…etc)
Again we can also say that;
Test of controls are tests performed which help to see the effectiveness of internal control system i.e. how are they implemented and if the strategies implemented are running effectively.

Substantive testing has a component known as test of details. It really means checking details, the underlying accounts in financial statements and everything which would be necessary to get enough documented audit evidence on which to form an appropriate audit opinion.
How would you differentiate between test of detail and test of control?
Test of control as I said above relate only to the testing of internal controls while test of detail test every, and everything from procurement policy to the marketing dept and accounts underlying the financial statements.

[Hamdy Hafez]

3)Now we need to linked the mentioned paragraphs above to real practice, which will be Q&A exams

Dec 2007 Question No. 1
(d) (i) State the aim of a test of control and the aim of a substantive procedure.
(ii) In respect of your attendance at DinZee Co’s inventory count, state one test of control and one substantive procedure that you should perform. (4 marks)
Answer:
(d) (i) The aim of a test of control is to check that an audit client’s internal control systems are operating effectively.
The aim of a substantive procedure is to ensure that there are no material errors at the assertion level in the client’s financial statements.

(ii) Regarding the inventory count:
Test of control
Observe the count teams ensuring that they are counting in accordance with the client’s inventory count instructions.
Substantive procedure
Record the condition of items of inventory to ensure that the valuation of those items is correct on the final inventory summaries.


wait again, it will be more clear in the next post

[Hamdy Hafez]

again just one more practice

Dec 2006 Question No. 3
(b) Jayne Co has a significant number of cash transactions and recent non-current asset purchases have been financed by a bank loan. This loan is repayable in equal annual instalments for the next five years.
Required:
(i) Explain the procedures to obtain a bank report for audit purposes from Jayne Co’s bank and the substantive procedures that should be carried out on that report. (5 marks)
(ii) List the further substantive procedures that should be carried out on the bank balances in Jayne Co’s financial statements. (5 marks)

Answer:
(b) (i) Procedure for obtaining a bank letter
The auditor should consider if a bank letter is required. For the audit of Jayne Co the letter is required as the company has significant cash transactions and a loan from the bank.
The auditor will produce a confirmation letter in accordance with local audit regulations and practices.
The letter will be sent to the client to sign and authorize disclosure and then it will be forwarded on to Jayne’s bank.
Alternatively, the client may already have provided a standard authority for the bank to respond to a bank letter each year. In this case separate authority would not be required.
Ideally the letter should be sent before the end of the accounting period to enable the bank to complete it on a timely basis e.g. at the year-end.
The bank will complete the letter and send it back directly to the auditor.
Audit procedures on the bank letter include:
– Agree the balances for each bank account to the relevant bank reconciliation and the year end balance in the financial statements.
– Agree total interest charges on the letter to the interest expense account in the general ledger.
– For any details of loans, ensure repayment terms are correctly disclosed in the financial statements between current and non-current liabilities.
(ii) Substantive procedures for the audit of bank balances.
(1) Obtain a copy of the year end trial balance.
Agree the bank balance on the trial balance to
– The year end bank balance on the computer system, and
– The balance on the financial statements.

[Hamdy Hafez]

Now we can get through the related more practices, specially as Mr. ViVi recommend



""That we need a lot of practice on question 1 type of questions. For example the audit procedures that would be performed on the following
Inventory
Receivables
Non current assets
Sales
Purchases
Payroll
Procurement system
Payables and many more

[Acid]

Ahlan Hamdy !

You have done a wonderful job ! Just to ask you that do you think bullet points are gonna work in exams ? I heard it wont !

And yea its Mrs./Miss Vivie and not Mr. ;)

Cheers

Assad

[Hamdy Hafez]

And yea its Mrs./Miss Vivie and not Mr. ;)



ops, I'm so sorry Miss Vivie
& excuse me what do you mean by



... Just to ask you that do you think bullet points are gonna work in exams ? I heard it wont !

Can you write it again

[Hamdy Hafez]

Ok, let us commencing with;

Sales systems & Receivables
1)Documents & Records; which we can summarize as ( customers' order / Customer files / invoice / GDN / Returns note / Credit notes / inventory record / Sales day book / General & Sales ledger / Receivables statements / customer correspondence / Bad debt statement)
2)Objectives of the control system; we can summarize as follow (we need to confirm that)
• All dispatches are only to the customers with no credit problems
• All orders / & all dispatches are recorded correctly
• All dispatches correctly invoiced
• All (Invoices / & Credit notes ) are recorded in the GL & Sales ledger
• Bad debits was determined

3)Vocabulary to learn: (Scrutinize / Verify / Test / Check / Agree / re-perform & inquiry by the auditor )
4)Tests of controls;
•Customers files check the (recording authorization / completeness / credit limits)
•Agree the invoices with the GDN & customers orders ( Quantity / Prices / Discounts / Calculations)
•Verify the trade sales with the inventories records.
•Verify & check the credits notes data regarding (approvals / calculation / recording in the day book / posting to the GL / correspondence).
•Test numerical sequence of (invoices / dispatch notes / customer orders) to enquire into missing numbers.
•Agree the invoices with sales day book & GL (and vies versa )
•Inspect reconciliation
•Check the authorization of write-off the bad debt
•Re-perform additions & cross casts.

5)Audit procedures of Receivables;
•Substantive procedures; Which related to the financial statement assertions (Accuracy / Valuation / Existence / Rights & obligations …..) such as
Existence + rights & obligations; by confirmation of receivables (Positive confirmation ; to confirm the accuracy of the balance that disagree with) + (Negative confirmation; reply only if the amount stated is disputed)
Completeness & Accuracy; 1) Review the unmatched (GRN files & invoice file) + 2) agree the receivables' list with the invoices / receivables ledger (and vis versa) + 3) Agree receivables' list with the bank statement (and vis versa)
Cut-off; check receipt of cash after date
•Analytical procedures; (Ratios / Examine accounts / Trend analysis / reasonableness tests)

[Hamdy Hafez]

Now we need to do more practices;
Dec 2007 – Q4
(a) Explain the audit procedures that should be carried out using audit software on the receivables balance at Delphic Co. For each procedure, explain the reason for that procedure. (9 marks)

4 answer (a) Up to 2 marks for each procedure and explanation. 1 for the procedure and 1 for the explanation. Limit procedure to 0•5 if cannot be sustained from Delphic’s systems.
– Cast receivables ledger
– Compare ledger balance to credit limit
– Review balances ensure not excessive
– Calculation of receivables days
– Stratification of balances/audit sample selection
– Verify items in ledger
– Aged receivables analysis
– Other valid tests
–––
Maximum marks 9
––––––
Note to markers – no distinction is made between test of control and substantive procedures for this question. Marks can be obtained from either type of test or other relevant uses of audit software e.g. sample selection.

[Hamdy Hafez]

June 2005 – Q 3 a)
3 Sales testing

(a) The question deliberately focuses on one part of the testing of sales income – namely completeness.
The system within TT is typical of many ‘modern’ sales systems in that there is a lack of input documentation, and then possible loss of audit trail through the computer. Use of test data may assist the auditor, but this does not overcome the issue of initial loss of telephone order.
The e-mail system is provided to show that audit evidence can be made available, although the filing system for this is not appropriate. However, audit tests can be designed here.
Many other standard tests are not required because they do not relate to the completeness of sales income.
The candidate is therefore required to be discriminatory in their listing of audit tests.
Audit tests on completeness and accuracy of sales income
Watch for tests being combined – be generous where two tests are given in same point
Normally award 1 mark per point.
- Discussion with booking clerk
- Internal controls on hiring of staff (approve hire prices charged to the customers) uncompleted orders that not fulfilled
- Enter orders into VMS
- E-mail orders to VMS
- Customer complaints files (agree VMS details to the invoices – to ensure the information's are transferred correctly)
- LMS details to invoice files
- Invoice details agree to standard rental charges
- Casting invoices – agree to GL / GL posted (CR. Notes agree the supporting documentation & check authorization)
- Casting N/L and agree to FS (and Nominal ledger)
- Other relevant tests e.g. receivables for accuracy of sales –––
Maximum marks 10

[Hamdy Hafez]

See you next monday

[Hamdy Hafez]

And now let us see more practice in the other areas (payroll, purchases, payables, Non-current asset testing,…etc)

see you next post (I hope so)

[Hamdy Hafez]

1) The purchases system &
2) Capital & revenue expenditure

Firstly we need to know that, the controls objectives & tests are similar over the two systems;
1) Purchases systems;
Objectives of the control system
•Ordering / granting; to ensure that all goods are (authorization / owned / received) + get the low prices & discounts.
•Receipt / invoicing; all of those are (authorized / recorded / received & liabilities are according to the actual receipts).
•Recording / payments; to ensure that
Expenditures are (authorized / recorded / received)
Cr. Notes are recorded
Journal entries made & correctly posted
Tests of controls;
•Check that all purchases are related to & supported with an authorized (PO & invoices & GDN)
•Inspect; (invoices) to ensure that, it's (recorded / supported by GDN & PO & inspection notes / correct prices) + inspect entries in the purchase day book & posting to GL.
•Trace; Cr. Notes to the record of goods returned.
•Re-perform; calculations & additions regarding (invoices / purchase day book / cr. Notes)
•Numerical sequence; (Pr + PO + Invoices + GDN + Returned notes) & enquire into missing numbers.

[Hamdy Hafez]

2) Capital & revenue expenditure
The main objectives to ensure that all expenditures are (authorized + classified correctly)

And now we need to do more practice, so you should attempt Q1 pilot paper (very important) really you should remember every audit procedures on this question.

[Hamdy Hafez]

3) Payables & cash system
The main objectives to ensure that there are (authorization / restriction of access to cash & cheques / all cash are recorded & banked)
Tests of controls;
•Observe & check; that all cheques are (Recorded + Check the post opening procedures)
•Verify;
a sample of cash sales with (paying-in slip / till rolls….etc)
that goods (delivered / recorded)
•Agree & trace;
entries on the cash sheets with receipts' book / other collector records)
agree sample of payments to (suppliers' statements / other wages & petty cash & vouchers…etc)
•Inspect; collection records to confirm numerical sequence.

[Hamdy Hafez]

So, now we need to do more practice, so again you should attempt Q1 pilot paper , & then you need to attempt another important question (look hereunder)

Dec 2002 / Q 3
(a) Company A has a number of long and short-term payables, accruals and provisions in its balance sheet.
Required:
Describe the audit procedures you would apply to each of the three items listed below, including those relating to disclosure.
(i) A 10-year bank loan with a variable interest rate and an overdraft (a bank account with a debit balance on the bank statement), both from the same bank. (5 marks)
(ii) Expense accruals. (4 marks)
(iii) Trade payables and purchase accruals. (6 marks)

(b) Company B has a provision in its balance sheet for claims made by customers for product defects under 1-year company warranties.
Required:
Describe the matters you would consider and the audit evidence you would require for the provision.
(5 marks)
(20 marks)

Answers
3) Audit of payables, accruals and provisions
(a) Company A
(i) 10-year bank loan and bank overdraft
1. Authorization for the loan and overdraft should be checked to the minutes of a board or other relevant meeting.
2. The details of contracts with the bank and any relevant correspondence should be examined. Any covenants restricting the use of securities held against the loans should be examined and the client’s compliance with the covenant checked. If covenants have not been complied with, the implications for the company and the financial statements should be considered.
3. The response to the year-end bank confirmation should be examined. It should provide details of the amounts outstanding and the amounts paid and payable during the year in terms of both interest (loan and overdraft) and capital (loan only). In both cases, details of any security held for the loan and overdraft should be requested.
4. Analytical procedures should be applied to the interest paid in the income statement, and to the interest and capital paid and outstanding at the period-end for the loan.
5. The bank reconciliation should be checked to ensure that the overdraft has been properly reconciled to the records, and that there are no old or significant outstanding amounts that need to be adjusted for.
6. The amount payable at the year-end should include amounts payable in one year, which should be included in current payables, and amounts payable in over one year. The notes to the financial statements should also disclose amounts payable in over five years.
7. The auditors should ensure that appropriate disclosures are made in the notes to the accounts in accordance with legislation and International Financial Reporting Standards. In particular, where assets are held as security, this should be disclosed in the notes relating to the assets.



(ii) Expense accruals
1. If accruals are material to the financial statements, more evidence will be required than if they are not. If accruals are not material, analytical procedures may be sufficient audit evidence.
2. A schedule of accruals should be obtained and checked for arithmetical accuracy. Individual accruals should be reviewed by comparison with prior periods and budgets and any significant variations investigated, particularly if accruals have been made in previous periods but have not been made in the current period.
3. The amounts paid after the period-end should be checked to the bank statement and the calculation of a sample of amounts payable should be checked for accuracy, by reference to subsequent invoices.
4. If any accruals are payable more than one year after the balance sheet date, an appropriate split should be made in the balance sheet.

(iii) Trade payables and purchase accruals
1. The nature and extent of testing will depend on the quality of controls over trade payables, as evidenced by interim testing of internal controls. Evidence in relation to the completeness of trade payables and accruals is important, but not always easy to obtain.
2. The auditors should form an opinion as to whether direct confirmation of trade payables is likely to provide valuable audit evidence by discussion with the client.
3. It is sometimes possible to rely on supplier statement reconciliations instead of direct confirmation, but this depends on the availability of supplier statements. Where supplier statement reconciliations are performed, it is important to be aware of the possibility of forged or altered statements – originals rather than copies should be examined. Some combination of supplier statement reconciliations and direct confirmation is often used.

4. If a decision to obtain direct confirmation of trade payables is taken, the client’s co-operation is required in authorising the requests and in helping the auditors sort out any differences between the balances recorded by thecompany and those recorded by suppliers.

5. Particular care should be taken if there are material balances for which there are no supplier statements or no response to a request for confirmation. Consideration should be given to telephoning the supplier in this case.

6. Analytical procedures should be applied to the ageing and level of trade payables by comparison with prior periods.
Variations should be investigated and substantiated, with particular attention being paid to old outstanding amounts.

7. A representative sample of individual trade payables should be traced back through the system from the schedules supporting the financial statements to the ledgers, daybooks and source documentation to ensure that the amounts recorded are accurate. The size of the sample will depend on the auditor’s assessment of risk in this area.

8. A schedule of purchase accruals should be obtained and checked for arithmetical accuracy and completeness by comparison with prior periods and invoices received after the period-end. As with trade payables generally, there is a risk of unrecorded items.
9. Both trade payables and purchase accruals should be tested for the accuracy of cut-off by reference to invoices and inventory records for an appropriate period each side of the period-end.
10. A review of correspondence with trade creditors should be performed and any legal department should be requested to provide details of disputes with creditors.
11. If any trade payables are payable more than one year after the balance sheet date, an appropriate split should be made in the balance sheet.

(b) Company B
(i) Provisions for manufacturing warranty claims are heavily dependent on the judgment of directors. The auditors should establish how the directors have arrived at the provision and assess it for reasonableness in the light of previous provisions and claims. More work will be required if there has been a significant discrepancy between provisions and claims in the past and more work will be required if the company does not have significant experience in dealing with this type of warranty claim.

(ii) IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ states that a provision is a liability of uncertain timing or amount which should only be recognized when there is a present obligation, as a result of a past event, and where it is probable that an outflow of resources will be required to settle the obligation, the amount of which can be reliably estimated. It would appear that the warranty claim fits this description.

(iii) Such warranties are often underwritten by insurance and any arrangements with the insurance company should be checked in detail so that the substance of the transaction can be reflected in the financial statements.
(iv) Auditors should check the calculation of the provision for arithmetical accuracy and to ensure that it is calculated in accordance with the method determined by directors. This can be achieved by reviewing the level of claims and payments both before and after the period-end.
(v) If there has been a change in the method of calculating the provision, the auditors should ensure that it is reasonable in the light of evidence available and that it is properly disclosed, if material. If there has been a change in the product mix to which the warranty applies, this should also be considered, particularly if there are new, relatively untried products which carry a higher risk of claims in the first few years.
(vi) If any previous provisions have been released in the current period because of over-provisions in previous periods, the auditors should ensure that the amount released is reasonable, and is properly disclosed in the income statement as appropriate. ‘Soft’ provisions such as these can be manipulated by the client and particular care therefore needs to be taken.
(vii) A review of correspondence with customers should be performed and any legal department should be requested to provide details of disputes with customers relating to claims.

[Hamdy Hafez]

sorry I'll be very busy next days at my office , see you soon

[Hamdy Hafez]

4) Payroll & wages system
The supported documentation;
Time sheets + personnel records + engagement & discharges + pay slips + clock cards…..etc
Controls objectives;
To ensure that employees only paid for work done / the amount recorded / deductions correctly calculated & paid to the tax authorities.
Tests of controls;
inspect wages & salaries summary list / authorization of all changes (joiner & leaver employees) / engagement discharges / all calculations are correct / check that the unclaimed wages are (recorded & banked) / observe whether any employee received more than one wage packet)
And finally the total of salaries should be reconciled with the standard payroll.
And now it's the time for more practices. So you need to attempt the following question, & then you may need to just read Q4 Dec 2004.

[Hamdy Hafez]

Q 2 Dec 2003Q2)
ISA 400 Risk Assessments and Internal Control deals with internal control objectives and internal controls. ISA 500 Audit Evidence deals with audit objectives and audit procedures. A proper understanding of internal controls is essential to auditors in order that they understand the business and are able to effectively plan and execute tests of controls and an appropriate level of substantive procedures.
You are the auditor of a small manufacturing company, Dinko, that pays its staff in cash and by bank transfer and maintains its payroll on a small stand-alone computer.
Required:
(a) For the payroll department at Dinko, describe the:
(i) Internal control objectives that should be in place; (4 marks)
(ii) Internal control environment and internal control procedures that should be in place to achieve the internal control objectives. (6 marks)
(b) For the payroll charges and payroll balances (including cash) in the financial statements of Dinko:
(i) Describe the external auditor audit objectives; (4 marks)
(ii) List the tests of control and substantive procedures that will be applied in order to achieve the audit objectives identified in (b) (i) above. (6 marks)
(20 marks)
Answers
2 (a) (i) internal control objectives
Control objectives include policies and procedures designed by management to:
1. Achieve the orderly and efficient running of the business including adherence to internal policies – this would include the regular, accurate processing and recording of payroll payments.
2. Safeguard assets – this would include the physical safeguarding of cash and safeguarding money held in bank accounts by means of other controls.
3. Prevent and detect fraud and error – fraud and error would include incorrect payments or deductions from the payroll and payments of incorrect amounts for tax and social insurance, payments for work not performed and payments to dummy employees, for example.
4. Achieve accuracy and completeness of the accounting records and timely preparation of reliable financial information; this would include making correct payments and deductions from the payroll, correct payments for tax and social insurance, and making payments for work performed only (not to dummy employees, for example), in order that quarterly or half-yearly accounts can be prepared (possibly), but in any case in order that annual accounts can be prepared within the time limits for small companies.

(ii) Internal control environment and control procedures
The control environment relates to:
1. Management’s overall style in encouraging awareness of the need for good controls, for example.
2. The existence of organizational controls such as review of the payroll by an independent person such as the managing director, and the rotation of payroll duties amongst staff responsible for processing it – this helps achieve all of the objectives set out above.
3. Segregation of duties and supervisory controls to avoid the misappropriation of cash (or allegations thereof) and to avoid fraudulent collusion to create, for example, dummy employees or to make inflated payments – this prevents the loss of assets and/or inaccurate records.
Internal control procedures include:
4. Limiting direct physical access to the cash, such as the use of a security firm to deliver cash, locking doors to areas where cash is held, keeping cash in a fire-proof safe and the protection of the computer by password controls – this will help safeguard assets and ensure the completeness and accuracy of the records and financial statements.
5. Controls over computerized applications, checking the arithmetical accuracy of documents and the maintenance of control accounts – this can be achieved by, for example, the use of timesheets or clock cards, the use of reliable software with programmed controls for the calculation of deductions, and the use of batch and hash totals for information that is input into the computer system – this helps achieve the orderly and efficient running of the business and the accuracy and completeness of records and financial statements.
6. Approval and control of documents, such as the authorization of the payroll itself, and authorization for the bank to make transfers and to deliver cash.
You can download the complete Answer from the ACCA website
http://www.accaglobal.com/students/study_exams/qualifications/acca_choose/acca/professional_scheme/part2/paper2_6/exam_papers_professional/int

[Hamdy Hafez]

5) Non current assets
You need to deal with the following issues;
•Additions (new assets acquired); check (certificates / invoices / authorizations / record / valuation)
•Disposals; check (valuation / occurrence / accuracy)
•Self constructed; (ensure that no profit recorded / finance cost included)
•All disclosures & classification are according to IAS 16

And now let us finalized this area with 3 important questions (Q Receivables Dec 2001 + the following questions

[Hamdy Hafez]

Q 3 June 2005
You can download the complete question from the ACCA website
http://www.accaglobal.com/students/study_exams/qualifications/acca_choose/acca/professional_scheme/part2/paper2_6/exam_papers_professional/int

Answers
June 2005 – Q 3 (b)
Non-current asset testing
This question is designed to test candidate’s knowledge of the audit of non-current assets, as well as to provide a balance to the more difficult part (a). Candidates are informed of the key details of non-current assets in the scenario (non-current asset register, material balance etc.) and from this should be able to provide a clear list of tests.
The audit testing assertions are mentioned in the answer as candidates are likely to structure their answer around these headings.
List of tests at 1 mark per relevant test
Cast non-current asset register
Board minute – evidence of authority to purchase
Physical existence
Repairs expenditure check
Evidence of ownership
Check depreciation calculation
Check on depreciation – profit / loss on sale
Check on depreciation – similar vehicles
Disposals testing
Agree to Purchase Day Book
Agree non-current asset register to financial statements
Financial statements disclosure
Allow other relevant points
–––
Maximum marks 10

[Hamdy Hafez]

Q1 Dec 2005
1. You are the audit manager in the firm of DeCe & Co, an audit firm with ten national offices.
One of your clients, Rocks Forever, purchases diamond jewellery from three manufacturers. The jewellery is then sold from Rocks Forever’s four shops. This is the only client your firm has in the diamond industry.
You are planning to attend the physical inventory count for Rocks Forever. Inventory is the largest account on the balance sheet with each of the four shops holding material amounts. Due to the high value of the inventory, all shops will be visited and test counts performed.
With the permission of the directors of Rocks Forever, you have employed UJ, a firm of specialist diamond valuers who will also be in attendance. UJ will verify that the jewellery is, in fact, made from diamonds and that the jewellery is saleable with respect to current trends in fashion. UJ will also suggest, on a sample basis, the value of specific items of jewellery.
Counting will be carried out by shop staff in teams of two using pre-numbered count sheets.
Required:
(a) List and explain the reason for the audit procedures used in obtaining evidence in relation to the inventory count of inventory held in the shops. (10 marks)
(b) Explain the factors you should consider when placing reliance on the work of UJ. (5 marks)
(c) Describe the audit procedures you should perform to ensure that jewellery inventory is valued correctly.
(5 marks)
(c) Audit evidence
The jewellery inventory should be valued at the lower of cost and net realisable value.
For a sample of jewellery on the final inventory sheets, trace the cost of those items to the original purchase invoice, ensuring that the description of goods on the invoice matches the jewellery.
For jewellery sold after the end of the year, check a sample of sales invoices back to the final inventory sheets ensuring that the sales value exceeds the cost. Where sales value is less than cost, ensure that the jewellery is stated at the realizable value on the inventory sheet.
Review the report of the professional valuer. Ensure that the inventory is genuine. For the items checked by the valuer, agree the valuation to the items of jewellery on the inventory statements. Where there is a difference, for example due to age of the inventory or where it is unlikely to be sold due to changes in fashion, discuss with the client and agree a realistic valuation.

In these situations, the value should be that provided by the professional valuer.
Where an item has been in inventory for a long period of time (perhaps over one year), check the valuer’s report to find out whether any allowance is required.

1 (a) One mark each for explaining the following. 0•5 for the audit procedure and 0•5 for explaining the relevance of the procedure.
the audit procedures
Overall review of count
Counting in pairs
Jewellery counted once only
Shop closed
Pre-numbered count sheets
Test sheets to inventory
Test inventory to sheets
Copy count sheets
Completeness of count sheets
Cut off – goods received
Cut off – goods dispatched
Condition of inventory – obsolescence
Overall opinion
Count team of 2 – minimize errors and avoid theft
Stock at third parties
Other relevant points
–––
Maximum marks 10
–––

(b) Key points 1 for each point

Confirm need for expert – auditor not have appropriate skill
Scope of work – relevant experience
Scope of work – professional body
No conflict with client
Obtained appropriate evidence – appears reasonable
Check independence from audit firm
Other good relevant points
–––
Maximum marks 5
–––

(c) Key points 1 for each point
Statement of accounting standard 1
Determination of cost 1
Determination of NRV 1
Professional valuers report – NRV evidence 1
Other obsolete inventory 1
Use of analytical procedures 1
Other good relevant points 1
–––
Maximum marks 5

[Hamdy Hafez]

see you soon with the remaining important topics (Audit planning / risks / corporate governance.....etc)
:o:eek:

[Hamdy Hafez]

Audit planning
please for this area we need to visit this link hereunder
http://getthroughguides.co.uk/forum/showthread.php?t=1148
see you next monday with the remaining topics;);)

[Hamdy Hafez]

hey everybody, I'm here again
I'm so sorry, I still facing the same problem (very bussy last weeks at my work for our company in Egypt:cry::cry:)
so that is the reason for the long absent
ok, let us go , but at first once again


Audit planning
please for this area we need to visit this link hereunder
http://getthroughguides.co.uk/forum/showthread.php?t=1148
see you next monday with the remaining topics;);)

[Hamdy Hafez]

Internal auditor, external & directors' responsibilities
Now we need to differentiate between the internal auditor, external auditor & directors' responsibilities, which regularly repeated in the past exams

Dec 2004 Q1
1. Fraud and error present risks to an entity. Both internal and external auditors are required to deal with risks to the entity. However, the responsibilities of internal and external auditors in relation to the risk of fraud and error differ.
Required:
(a) Explain how the internal audit function helps an entity deal with the risk of fraud and error. (7 marks)

Answer
Main concept: the Internal audit function in any entity is part of the overall corporate governance function of an entity

1)Carry out risk assessment
2)Identify and classify the specific fraud and error risks
3)Commenting on the appropriateness and effectiveness of actions taken by management
4)Making recommendations to address the risks of fraud & errors.
5)Control procedures (inventory count/ check variances)
6)Monitoring controls (understanding of major types) Routine & non- Routine internal controls

[Hamdy Hafez]

Dec 2004 Q1
Q1 (b) Explain the responsibilities of external auditors in respect of the risk of fraud and error in an audit of financial statements. (7 marks)
Answer
1)to consider the risks of material misstatements in the financial statements due to fraud
2)maintain an attitude of professional skepticism
3)enquires regarding management’s assessment of fraud risk
4)communications with those charged with governance
5)enquiries of suspected or actual instance of fraud
6)Consider fraud risk factors, unusual or unexpected relationships, and assess the risk of misstatements.
7)an overall response to the assessed risk of material misstatements due to fraud and develop appropriate audit procedures
8)Auditors are only concerned with risks that might cause material error in the F.S
9)Report to (management / external authorities / those charged with governance)
10)……..etc (refer back to the complete answer of the examiner)

[Hamdy Hafez]

And look at this question also
June 2005 Q 5
(a) Compare the responsibilities of the directors and auditors regarding the published financial statements of Hood Enterprises. (6 marks)

Answer of 5 (a) Duties regarding financial statements
This question allow candidates to show that they understand the difference between the responsibilities of director and auditors.
Allow 1 mark for director responsibilities, and 1 for auditor responsibilities.

1) Preparation of financial statements;
Directors; (legal responsibility to prepare F.S in accordance with IASs & IFRs).
Auditors: to check or audit that F.S in accordance with ISA (audit standard)

2) Fraud and error
Directors; preventing and detecting fraud and error
Auditors: ensuring that the F.S shows a true and fair view & are not required detecting immaterial fraud or error.

3) Disclosure
Directors; ensure that there is adequate disclosure of all matters required by statute or IASs in the F.S
Auditors: check that disclosure provisions have been complied with, and where certain disclosures have not been made provide this information in the audit report

4) Going concern
Directors;1) ensuring that the company will continue in operational existence for the foreseeable future & 2) report to the members in the published F.S if this is unlikely to be the case
Auditors: 1) check the accuracy of the directors’ workings and assumptions & 2) if these are considered incorrect or inappropriate (modified or qualified report)

–––
Maximum marks 6
–––

[Hamdy Hafez]

Now we need to focus in the hereunder points

* Management
A) First Issue
1) Identify and classify the specific fraud and error risks

B) Second Issue
2) Take actions to manage risks

* Internal auditor
A) First Issue
1)& 2) Commenting & develop , help in implementing procedures regarding the management risk assessments

B) Second Issue
Commenting on effectiveness & appropriateness of this action

* External auditors
A) First Issue
1) Enquiries regarding management’s assessment of fraud risk
2) evaluate internal control design
3) Consider risks of material misstatements on F.S due to fraud

B) Second Issue
1) Enquiries of the actions by management to manage risks
2) communications with (management / external authorities / those charged with governance

General concept : External auditors might pay less attention than internal auditors to small frauds (and errors)

[Hamdy Hafez]

see you soon

:wacko::wacko:

[Hamdy Hafez]

once again with a very imortant topic Audit risk which we exepect it will come in June 2008 exam
because that we haven't any time let us go through

June 2005 Q1
1 (a) Explain the term ‘audit risk’. (4 marks)

Answer

Audit risk
giving an inappropriate opinion on the F.S
Audit risk has three individual components in the formula:
Audit Risk = Inherent Risk x Control Risk x Detection Risk
Inherent risk

Control risk
internal control system will fail to prevent or detect a material error.

Detection risk
the auditor will fail to detect a misstatement that exists in an assertion that could be material.

[Hamdy Hafez]

& please read the remaining question & answer
June 2005 Q1
Required:
(i) Identify and describe THE MATTERS that give rise to audit risks associated with Parker. (10 marks)
(ii) Explain the enquiries you will make, and the audit procedures you will perform to assist you in making
a decision regarding the going concern status of Parker in reaching your audit opinion on the financial
statements. (6 marks)
(20 marks)

Answer
Audit risks
Over-trading
The turnover of Parker is growing quite rapidly, although this growth is not matched in net profits.(suppliers may go unpaid and at the extreme the business will be forced into liquidation. Therefore the financial statements may not adequately disclose doubts about going concern).

Internet trading
expand the Internet business may cause other problems (
The overall ability of management to run the business given their apparent lack of knowledge of Internet trading.
– The need to setup and manage systems for the sales of many new products.
– The need to allow for a much larger volume of returns.
– The possibility of inventory obsolescence if Parker overstocks on clothes which go ‘out of fashion

Control environment
* errors in the systems
*The skills of the accountant may also be questioned
*The risk is that the financial statements may have material errors in them...etc

Bank loan
The directors require additional finance to expand the business.

First year of audit
The audit is also risky for the audit firm because it is the first year of an audit and the client has expectations about the type of auditor’s report to be produced.

[Hamdy Hafez]

& that is a berief answer to the remaining

(ii) Allows candidates to show their knowledge of going concern reviews. However, the focus of the answer should still be on Parker where possible so issues such as possible lack of forecasts (lack of director control) can be mentioned in the answer.
Key points 1 for each point
Financial position of company – budgets etc.
Bank letter
Bank correspondence
Enquiries with directors
Management accounts
Letter of representation
Final decision going concern
Board minutes – review after year end
Other good relevant points
–––
Maximum marks 6
–––

[Acid]

Hi there,

I would like to add that the External auditor is only worried about internal controls system because If they are being inefficent and then the external auditor rely on the audit work of the internal auditors which may contain inaccurate or farudulent information then there is a high risk of material misstatment which can affect the financial statements.

The work of external auditor is to provide assurance that the financial statements are free from MATERIAL MISSTATMENTS and provide a true and fair view. Hence that is the reason he looks at the internal control systems.

While the internal auditor which is the part of the management have a job to give recommnedation on the internal control systems and design them.

So the duties are quite distinch from one angle and similar from another . That means that they are overriding but not SAME.

Hope that sums it up.

:cool:

[Hamdy Hafez]

thanks , Acid
And now you need to attempt also this very important question
Dec 2003 Q5
5 Ajio is a charity whose constitution requires that it raises funds for educational projects. These projects seek to educate children and support teachers in certain countries. Charities in the country from which Ajio operates have recently become subject to new audit and accounting regulations. Charity income consists of cash collections at fund raising events, telephone appeals, and bequests (money left to the charity by deceased persons). The charity is small and the trustees do not consider that the charity can afford to employ a qualified accountant. The charity employs a part-time bookkeeper and relies on volunteers for fund raising. Your firm has been appointed as accountants and auditors to this charity because of the new regulations. Accounts have been prepared (but not audited) in the past by a volunteer who is a recently retired Chartered Certified Accountant.
Required:
(a) Describe the risks associated with the audit of Ajio under the headings inherent risk, control risk and detection risk and explain the implications of these risks for overall audit risk. (10 marks)
NB: In part (a) you may deal with inherent risk and control risk together. You are not required to deal with the detail of accounting for charities in either part of the question.

Answer 5 (a) Risks and implications for audit risk
Inherent and control risks
(i) Charities can be viewed as inherently risky because they are often managed by non-professionals and are susceptible to fraud, although many charities and the volunteers that run them are people of the highest integrity who take a great deal of care over their work. The assessment of this aspect of inherent risk depends on each individual charity and the areas in which it operates.

(ii) Charities are also at risk of being in violation of their constitutions which is important where funds are raised from public or private donors who may well object strongly if funds are not applied in the manner expected. Other charities and regulatory bodies supervising charities may also object. Again, the auditors will assess the level of risk. The involvement of a recently retired Chartered Certified Accountant in the preparation of accounts in the past may lower the auditor’s assessed inherent risk to an extent.

(iii) Most small charities have a high level of control risk because formal internal controls are expensive and are not often in place. This means that donations are susceptible to misappropriation. Charities rely on the trustworthiness of volunteers. The auditors will assess the level of risk.

Detection risk
(iv) Detection risk comprises sampling risk and non-sampling risk. It is possible in this case that all transactions will be tested and therefore sampling risk (the risk that samples are unrepresentative of the populations from which they are drawn) is not present.

(v) Non-sampling risk is the risk that auditors will draw incorrect conclusions because, for example, mistakes are made, or errors of judgement are made in interpreting results, or because the auditors are unfamiliar with the client, as is the case here.

Audit risk
(vi) Audit risk is the product of inherent risk, control risk and detection risk and is the risk that the auditors will issue an inappropriate audit opinion. This risk can be managed by decreasing detection risk by altering the nature, timing and extent of audit procedures applied. Where inherent risk is high and controls are weak (as may be the case here) more audit work will be performed in appropriate areas in order to reduce audit risk to an acceptable level.


(b) List and explain the audit tests to be performed on income and expenditure from fund raising events. (10 marks)
Answer (b) Audit tests – fund raising events
(i) Attend fund raising events and observe the procedures employed in collecting, counting, banking and recording the cash.
(ii) Perform cash counts at the events (counted correctly)
(iii) Examine bank paying in slips, bank statements and bank reconciliations (agree with records)
(iv) Examine the records of expenditure for fund raising events (properly authorized - completeness and accuracy of expenditure).
(v) Review the income and expenditure of fund raising events against any budgets that have been prepared and investigate any significant discrepancies.
(vi) Ensure that all necessary licences have been obtained by the trustees for such events
(vii) Obtain representations from the trustees (no outstanding unrecorded liabilities) completeness

[Hamdy Hafez]

And this one also
Dec 2002 Q 2 (very very important)
2 (a) ISA 400 ‘Risk Assessments and Internal Control’ identifies a number of key procedures which auditors should perform if they wish to rely on internal controls and reduce the level of substantive testing they perform. These include:
(i) Documentation of accounting and internal control systems;
(ii) Walk-through tests;
(iii) Audit sampling;
(iv) Testing internal controls;
(v) Dealing with deviations from the application of control procedures.
Required:
Briefly explain each of the procedures listed above. (10 marks) (إحفظ رأس السؤال)
NB: (i) – (v) above carry equal marks.

Answer 2 Internal controls
(a) Key procedures
(i) Documentation of accounting and internal control systems
Auditors document accounting and internal control systems in order to evaluate them for their adequacy as a basis for the preparation of the financial statements and to make a preliminary risk assessment of internal controls. In very simple systems with few internal controls where auditors do not intend to perform tests of internal controls, it is not necessary to document the internal control system in detail. It is always necessary, however, to have sufficient knowledge of the business to perform an effective audit.
For large entities, where the client has already documented the system, it is not necessary for the auditors to repeat the process if they can satisfy themselves that the client’s documentation is adequate.

(ii) Walk through tests
The purpose of walk-through tests is for the auditors to establish that their recording of the accounting and internal control system is adequate. Auditors trace a number of transactions from source to destination in the system, and vice versa. For example, customer orders can be traced from the initial documentation recording the order, through to the related entries in the daybooks and ledgers.
It is common for walk-through tests to be performed at the same time as tests of controls, where auditors are reasonably confident that systems are recorded adequately.

(iii) Audit sampling
Auditors perform tests of controls and substantive testing on a sample basis in order to form conclusions on the populations from which the samples are drawn. It is not possible in anything but the very smallest of entities to take any other approach, as testing 100% of a population may be impractical, not cost effective and not accurate because populations are too large and because of human error.
Samples can be selected in a number of ways – either statistically or on the basis of auditor judgment. In all cases, the sample selected must be representative of the population as a whole.

(iv) Testing internal controls
Auditors test internal controls in order to establish whether they are operating effectively throughout the period under review. If controls are operating effectively, auditors can reduce the level of substantive testing on transactions and balances that would otherwise be required. In testing internal controls, auditors are checking to ensure that the stated control has been applied. For example, auditors may check that there is a grid stamp on a sales invoice with various signatures inside it that show that the invoice has been approved by the credit controller, that it has been checked for arithmetical accuracy, that the price has been checked, and that it has been posted to the sales ledger. The signatures provide audit evidence that the control has been applied.
Auditors are not checking to ensure that the invoice is, in fact, correct. This would be a substantive test. Nevertheless, it is possible to perform tests of control and substantive tests on the same document at the same time.
(v) Dealing with deviations from the application of control procedures
Where it appears that an internal control procedure has not been applied, it is necessary to form an opinion as to whether the deviation from the application of the procedure is an isolated incident, or whether the deviation represents a systematic breakdown in the application of the control procedure. This is usually achieved by selecting a further sample for testing. If it cannot be shown that the non-application of the procedure is isolated (i.e. there are no further instances in which the control has failed), it is necessary either to find a compensating control that can be tested, or to abandon testing of controls and to take a wholly substantive approach. Where there is a breakdown in internal controls it is also necessary to reassess the auditor’s preliminary risk assessment. Abandoning tests of control may place strains on the budget for the audit and auditors should always consider the possibility of compensating controls before abandoning tests of controls

[Hamdy Hafez]

And if you have a time do this one also, question No. 2 /Dec 2004(but you can down load the complete question from acca website):eek:

[Hamdy Hafez]

Ok, now let's go through another important topic (Audit reporting)
This topic focus on some important issue such as (types of reports / types of audit opinions on the report such as unqualified, modified, adverse…etc)

* Question No. 4 /Dec 2005(but you can download the complete question from acca website)
* Question No. 3 /June 2006(also download it from acca website) very very important

[Acid]

Hi Hafez

Whats your typing speed man?

[Hamdy Hafez]

Hi Hafez

Whats your typing speed man?
there isn't any remainder time Acid (June exam is come):elvis:
I have prepared this summaries at my office (Microsoft word) then copy & paste dear Acid see you tomorrow (with the last posts – I swear that till now I still working at my office till 1/6/2008 then I'll take a rest at my house to prepare my self to the exams – thus if I find any time just go to summarize this topics):no:

لا تنسونا من صالح الدعاء

[Acid]

For your last phrase , Ofcourse I would!

Take care and Good luck

[Hamdy Hafez]

For your last phrase , Ofcourse I would!

Take care and Good luck

also for you good luck

[samtecks]

Hamdy, i cant find dece 20054 questions from the acca site. can i have the name of the question so i can find it on the exam kit?



And if you have a time do this one also, question No. 2 /Dec 2004(but you can down load the complete question from acca website):eek:

[Asif]

question of 20054 ??? did u just see the movie 'back to the future'

[Hamdy Hafez]

question of 20054 ??? did u just see the movie 'back to the future'

you are welcome Mr. Asif (good comments):wacko:

Q No. 4 / Dec 2005
4 (a) International Standard on Auditing 560 Subsequent Events explains the audit work required in connection with subsequent events.
Required:
List the audit procedures that can be used prior to the auditor’s report being signed to identify events that may require adjustment or disclosure in the financial statements. (5 marks)

4 (a) Audit procedures to be used prior to the audit report being signed include:
– Reviewing procedures established by management to try and ensure that subsequent events are identified.
– Reading minutes of the meetings of directors, the audit committee and shareholders and enquiring into unusual items.
– Obtaining and reading the company’s latest interim accounts as well as any budgets and cash flow forecasts.
– Obtaining additional evidence if possible from the company’s lawyers concerning litigation and claims.
– Asking management as to whether any subsequent events have occurred such as
– New borrowing commitments
– Significant sales of assets
– New shares or debentures issued
– Assets being destroyed by flood, fire etc or impounded by the government
– Unusual accounting adjustments made or being contemplated
– Checking whether any events have occurred that could call into question the validity of the going concern assumption.

(b) You are the auditor of OilRakers, a limited liability company which extracts, refines and sells oil and petroleum related products.
The audit of OilRakers for the year ended 30 June 2005 had the following events:
.........etc :tongue:


Answer
(b) 15 August 2005
(i) The bankruptcy of a major customer provides additional evidence of conditions existing at the balance sheet date. The customer will not be able to pay debts due, therefore receivables are overstated and the bad debt provision on the profit and loss account is understated. An adjustment for the amount of the receivable should be made in the financial statements.

(ii) The bankruptcy of the major customer takes place after the end of the year but before the financial statements and the auditor’s report are signed. As the auditor’s report has not been signed, the auditor is responsible for identifying material events that affect the financial statements. This means that audit procedures should be carried out which are designed to identify this event.

Specific procedures undertaken include:
– Confirming that the customer will not pay to a letter from the receiver or similar authorised person.
– Confirming the amount due from the customer to invoices raised prior to the year end, and if possible to a positive direct confirmation letter.
– Auditing the adjustment to the financial statements decreasing the receivable balance and increasing the bad debt write off in the profit and loss account.
– Including the amount in the management representation letter to confirm no other amounts are due from the customer.
1 November 2005
(i) The accidental release of toxic chemicals occurred after the balance sheet date. Assuming that the inventory was not on the balance sheet at the year end, then the spill is indicative of conditions that arose subsequent to the year end. No adjustment appears to be necessary. However, the event may be significant in terms of the operations of the company
(a large legal claim could arise) and so disclosure of the event would be expected.

(ii) The accidental release of toxic chemicals takes place after the auditor’s report has been signed but before the financial statements are sent to the members. At this stage of the audit, the auditor does not have any responsibility to perform procedures or make inquiries regarding the financial statements. The management of OilRaker are responsible for telling the auditor about any significant events, such as this one.
However, as the auditor is now aware of the event and this materially affects the financial statements in terms of disclosure being required, the auditor does have to discuss the event with management.

Specific procedures to be undertaken include:
– Obtain information concerning the chemical release from management, reading local press and if possible the company’s lawyers – the latter may be able to indicate whether there is any legal liability.
– Discuss the appropriate accounting treatment with the directors, confirming that disclosure is required in the circumstances.
– Read the disclosure note to confirm that the matter is adequately explained in the financial statements.
– Obtain an updated letter of representation from the directors confirming that there are no other events requiring disclosure.
– Amend the auditor’s report to include an emphasis of matter paragraph to draw attention to the full disclosure noted in the financial statements. Date the new auditor’s report no earlier than the date of the amended financial statements.

30 November 2005
(i) The fire at an oil well means that OilRaker’s oil production and presumably profits, will fall in the next financial year.
The fire though does not provide additional evidence of conditions existing at the balance sheet date as at this time there was no indication that this would occur. The event is therefore non-adjusting in the financial statements. However, disclosure of the event should be made so that the financial statements do not give a misleading position.

(ii) The fire at an oil well takes place after the financial statements have been issued. At this time, the auditor has no obligation to make any inquiry at all regarding the financial statements.
If the auditor becomes aware of the event, then the potential effect on the auditor’s report must be considered.

Specific procedures undertaken include:
– Checking the board minutes, insurance claims and similar documents to ensure that the fire will be covered by insurance and there is no contingent liability for replacing non-current assets or clearing up any environmental damage.
– Inquiring of the directors how the members will be informed of the situation.
– If the directors plan to re-issue the financial statements, ensure that appropriate disclosure is made of the event.
– If the directors do not intend to amend the financial statements, and you consider the matter to be material to understanding the accounts, consider attempting to contact the members directly, depending on the methods available in your country.
– If necessary, contact the auditor’s lawyers to discuss what action can be taken regarding the lack of disclosure

[Hamdy Hafez]

Also let's go through another important topic (CAATs & Audit software)

* Question No. 6 /Dec 2005(also download it from acca website :tongue:) very very important

Answer
6 (a) Advantages of CAATS – 1 mark each.
Test program controls
Test more items quickly
Test actual records
Cost effective after initial setup
Supplement traditional testing
Other relevant points
–––
Maximum marks 4
–––
(b) Examples of test data 0.5 for test and 0.5 for explanation.
Negative quantities
High quantities
Lack of payment details
Invalid inventory code
Invalid credit card details
Invalid address
Other relevant points
–––
Maximum marks 6
–––

(c) (i) Difficulties of using audit software – 1 mark each.
Setup costs
Not available for bespoke systems
Too much output/program errors
Dangers of live testing
Other relevant points
–––
Maximum marks 4
–––
(ii) Tests using audit software – 1 mark each.
Cast SDB
Inventory aging
Sample inventory year end
Sales invoices sample
Completeness of recording – numeric sequence check
Invoices paid for – should be no receivables
Large credit notes
Other relevant points
–––
Maximum marks 6

[Hamdy Hafez]

Finally because there isn't any remainder time available please do those hereunder important questions;
• Corporate governance + Audit committee Question No. 4 /June 2005 ( ZX)
Required:
Write a memo to the board of ZX that:
(a) Explains how the internal audit department can assist the board of directors in fulfilling their obligations
under the principles of good corporate governance. (10 marks)
(b) Explains the advantages and disadvantages to ZX of an audit committee. (10 marks)

•External audit + interim & final audit Question No. 6 /Dec 2004

6 The purpose of an external audit and its role are not well understood. You have been asked to write some material for inclusion in your firm’s training materials dealing with these issues in the audit of large companies.
Required:
(a) Draft an explanation dealing with the purpose of an external audit and its role in the audit of large companies, for inclusion in your firm’s training materials. (10 marks)•


Good luck & see you after June 2008 examDon't forget
Trust in your god
Trust in your self (if you have properly prepared your self)
Forget any other issues

لا تنسونا من صالح الدعاء

[zeal]

Dear Hafiz,

You have done wonderful job. It is really appreciable.
All the best.

Its
ZEAL

[samtecks]

hi hamdy, i noticed you did not mentioned corporate governace in your notes.

[Isatou Sarr]

Can you please give me more examples on how to calculate convertible bonds for example using market value,floor value and Conversion premium......i have problems in this area....there is no similar question in the assessment kit about calculating convertibles.........this area was assessed in the December 07 exams
thank you,,,,please help me before the exams,,it might be assessed again..

[mohammedsobirul]

Now do guys think that for question 1 it will be sales area?
because sales has not been test for very long time last time was June 2006.

any comments?

thanks

[mohammedsobirul]

Now do guys think that for question 1 it will be sales area?
because sales has not been test for very long time last time was June 2006.

any comments?

[Acid]

I have a feeling that it would on sales this time.

[Hamdy Hafez]

Can you please give me more examples on how to calculate convertible bonds for example using market value,floor value and Conversion premium......i have problems in this area....there is no similar question in the assessment kit about calculating convertibles.........this area was assessed in the December 07 exams
thank you,,,,please help me before the exams,,it might be assessed again..

execuse me is related to F8 paper Or F7?:elvis:
I think it's related to F7

[Ash123]

Wonderful Effort AH!

n ACID...

Bullents r not 2 b writen in an ACCA paper
i.e., points of one line!

But if its in a form of complete sentence.. wid explanantion of wat u mean in dat sentence.. dat is Acceptable!

It was in one of the articles in Student Accountant...
B/w Aug 07 - May 08!

cant remember d exact date!:confused:
SORYY!

Regards
Ash

[Hamdy Hafez]

Wonderful Effort AH!

n ACID...

Bullents r not 2 b writen in an ACCA paper
i.e., points of one line!

But if its in a form of complete sentence.. wid explanantion of wat u mean in dat sentence.. dat is Acceptable!

It was in one of the articles in Student Accountant...
B/w Aug 07 - May 08!

cant remember d exact date!:confused:
SORYY!

Regards
Ash
you are right Ash, so in this thread (F8 quick revision Q&A exams) I did all my effort to be in the form of
1) Bulletins points (as a main points) to be quick revision
2) And at the same time I quote some Q&A from last exams with the perfect answers (according to the examiners answers on the ACCA web site)

so you should to remember the main points to build your answer on those point according to the examiner answers' way

thanks again , & welcome to you & to Kuwait

[Ash123]

Thank u Hamdy

I think this post is gona help a lot of those trying to have a last look at topics before their paper!

m gona recommend it to a frnd of mine going 2 sit F8 dis session!

Thanks again 4 such a useful post... Personaly m gona use it 4 REveison of F8 for my P7 ;)

Hope it benefits u aswell..!

Regards
Ash

[Hamdy Hafez]

Thank u Hamdy

I think this post is gona help a lot of those trying to have a last look at topics before their paper!

m gona recommend it to a frnd of mine going 2 sit F8 dis session!

Thanks again 4 such a useful post... Personaly m gona use it 4 REveison of F8 for my P7 ;)

Hope it benefits u aswell..!

Regards
Ash
thanks & please keep in touch:cry::cry:

[nazia]

whats the difference with Audit tests and audit procedures.I know Audit procedures are linked to the financial statement assertions

[Yasir]

thanx ! Hamdy ur F8 revision thread was very good & useful for exam preparation

[Hamdy Hafez]

thanx ! Hamdy ur F8 revision thread was very good & useful for exam preparation

Thanks Yasir
I hope to find it useful , & please to work hard because ACCA is not just reading , but also do more practices:radar: