[emmamoon]

Q1 a) business risk – wrote about gov grants, potential of planning consent not given and inability to improve service provided resulting in furtherticket sale reductions, impact of planning breaches, can’t remember the rest

b) ROMM – used materiality at higher end of the range due to being existing client, no obvious significant internal control risk.

Analysed operating profit margins, asset turnover and discussed other risks.

Concluded most significant risk was the risk of repaying debt finance back due to breaching operating profit target.

c)justifying goodwill being a significant risk – wrote about lack of final due diligenceand quick turnaround suggesting corner cut and valuation being inaccurate, management bias in calculations due to wanting to make the Co. Look attractive

d)audit responsibilities in non compliance – can’t remember what I wrote

2 Related party transactions – wrote how they should be disclosed and failure to do so questions the integrity of the manager, suggests hiding for a purpose, owning the company he was paying with lack of paperwork and the payment being for a car for £200k which is a high value for a company car, all suspicious

Suggested evidence expected to see on the file obtained during the audit

Critical appraisal of audit report extract – including basis explanation in the opinion section in error, shouldn’t have detailed in the basis section what evidence a particular person hasn’t provided or that they resign from the audit in the audit report as its unprofessional.

3 Sustainability – wrote about only being able to give limited assurance, auditors not being knowledgeable in the specific Sustainability areas due to being specialist areas, hard to test subjective areas, lack of data capturing processes available for recycling results, potentially not having resource available to carry out the assurance work

Have no clue if I’ve answered these correctly but hoping for a pass as its my last exam, fingers crossed.

[emmamoon]

Hi
Q1 NPV foreign investment in subsidiary, npv was negative. Advised that based on result the investment would be rejected. However other factors to consider such as cashflows after the project and sensitivity analysis. Used PPPT to calculate exchange rate.

Q2 2 proposals to consider to save a club, proposal 1 met all of the club requirements to prevent relegation, proposal 2 only met 2 of the 3 requirements and created a loss.

Q3 money market hedge, forward and otc currency option (couldn’t remember all of the calcs for the option), recommended the mmh as giving the largest receipt (could be totally wrong).
Also, currency swap but I’d hardly revised swaps and had to make most of it up!

Just praying I’ve picked up enough marks to pass.

[emmamoon]

My skills, style and shared values answer was pretty much the same as yours, I cant remember what I put for the staff bit.

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