[sirhanj]

NCC21382 wrote:vnetochukwu wrote:I answered same but then I realized that there was a not below specifying that the audit risk should only consider KPI in exhibit 4. Am I the only one that say it? It was the timber question too

thats true.
u had to take risks from all over the exhibits.

[sirhanj]

in timber anyone wrote about the revenue trend? that it increased by 5%, operating margin increase and that the profit increased by 30% this meant the finance costs could be understated?

[sirhanj]

exactly same paper and answers.
i had timber.

[sirhanj]

@ayushbham i got same questions u can add me fb to discuss
sirhan jawed.

[sirhanj]

@ranganaherath we had to pick 1 option because audit report can have only 1 opinion there were 4 different opinion how come 2 can be selected?

[sirhanj]

@nabya
i asked sir
https://opentuition.com/topic/materiality-42/#post-598548
have a look and correct me if wrong

[sirhanj]

@ranganaherath true but i still believe i read that they can annually appointed but re elected no more than 3 years later.

[sirhanj]

@nabya do u know performance materiality? it means we keep our materiality lower than usual if aggregated to a higher level of material mistatements here they didnt say the 13000 is isolated so it means they can be added up and be material to the financial statements.
if not read about performance materiality try having a read please.

[sirhanj]

@nabaya but we had to tick only one i guess? by one i mean option we had to tick 1 option?

[sirhanj]

it was said the assessment of the nomination committee was subject to re-election it was anually i guess because it was a random mcq not a scenario specific
they had 4 options.
Exec directors relection ; 1 or 3 i marked 3
nomination assessment : 1 or 3 i marked 1
internal audit function review ; 1 or 3 i said 1
last one i didnt remember it was abit obvious one i guess

@kim smith if u can please see did i wrote them right or wrong?

[sirhanj]

nyashadzashe5 wrote:My exam had audit assignments,substantive procedures for revaluation ,inventory ,provisions and sales tax liability …….also ask about the definition of materiality and performance materiality …..anyone who wrote that exam ????

[sirhanj]

rashard wrote:

rashard wrote:Guys, I got a question related to materiality in part A. Preliminary materiality was set at 25k. And also there was a misstatement of 12k which was uncorrected. The question asked was to select two correct statements in relation to a misstatement of 15k.
I can remember I picked<br> 1. This misstatement is not material therefore adjustment is not required<br> 2. Opinion will not be modified

uhm i think we had to pick only one option there and i ticked it as material because we already had 12k uncorrected and extra 13k would make it 25k the max limit. it would be material.

[sirhanj]

@rashard

i think there was only 1 option to tick.
and there were a total of 25K uncorrected (12k before) and 13k as suggested by the question in total it met 25K so isnt thats what our materiality was?

[sirhanj]

@ranganaherath
they said evaluation of the rumeration committee so its done on yearly basis how they are working for the firm and are same as directors should be annually assessed.
and for listed directors they are changed every 3 years by the shareholders (as far as i know in sbl its applied)

[sirhanj]

what u guys did for the corporate board? i choose remove her sister and get someone with industry knowledge?

and the only responsibility corporate governance had was to direct and governance?

and for written representation?
1. client generated evidence
2. auditor make its content?

[sirhanj]

sir materality was set at 25K while they already had a 12k error.
Even tho this issue was isolated but the issue was huge in total i.e double the basic materiality and they already had some uncorrected issues which the management wasnt intending to correct.
this in total have effect of 12+50 = 62 which is 2.38 times more than the material amount and if u look at standard materiality its simply 5-10 % of the profit and assuming this get around 10-20% material amount.

also check my other answers above do they match to yours?
and for the single 13k i guess they had only 1 option to tick b/c only one decision was relevant.

[sirhanj]

For me 2 were not was independent the sister of ceo.
Secondly the materiality question told us that the company already had 12K mistatements done now a further of 13K are uncorrected which means its materiality combined 25K and qualified due to material.

For 50000 assets that couldnt be located they needed disclaimer of opinion.

For audit software i got same as yours.

For director’s re election every 3 years other 3 options were every year.

For management dosent wants to give representation check their integrity

For the proceedures question i had it numbered ” 4 3 1 2″

The corporate question i answered 1 only. I.e its only responsibility was to direct and govern the company’s direction.

For representation functions.
1-4 were the only options relevant i.e its content is auditor based. And its client generated.

If anyone wants to ask more or discuss them reply here or my email : lixjwd@gmail.com.

[sirhanj]

Hello! The mcq you are talking about us assessment of NEDs.
Rumeration committee and re-election of directors.
Only directors were re-elected 3 years after other 3 were done after 1 year.

anyone who wants to discuss audit paper can reply here @me or just email me
at lixjwd@gmail.com

[sirhanj]

Hello! The mcq you are talking about us assessment of NEDs.
Rumeration committee and re-election of directors.
Only directors were re-elected 3 years after other 3 were done after 1 year.

[sirhanj]

no u wouldnt be marked down

[sirhanj]

yes you aint wrong either hopefully we all make it im not sure about myself tho 🙁

[sirhanj]

IR basic purpose is to give insights of how a business will create wealth for the owners using capitals and resources while giving info about future as well as past using APM too

[sirhanj]

its non current assets held for sale and that was all of their 6 shops in italy thats a geographical line of theirs thats closed my man.

[sirhanj]

certain conditions
1. readily available
2. management is determined and has a formal plan
3. buyer is actively located
4. done within 12 months of classifying
5. is closed or disposed

[sirhanj]

agreed man it was horrible experience i hope they consider it aswell

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