[12:11:34] --------------------------Paper P7-------------------------[12:11:35] geeta: {werty} lol
[12:11:48] werty: There's going to be risk, int / ext auds, governance (?)
[12:11:55] werty: ethics, reports
[12:12:01] ditam: isn't it to make clear what are the auditor's responsibilities, i.e. what procedures they
have to do and making it more clear in the redrafted standards?
[12:12:12] Esther: yes my folks
[12:12:33] Esther: {werty} hiiiiii
[12:12:39] werty: {ditam} That's in there as well - setting out in a clearer way the work / approach to be
adopted
[12:12:54] Esther: hi all sorry to interupt i have to make my pressence known lol
[12:12:57] werty: {Esther} Hey esther - so you escaped from P4!!!
[12:13:14] hamza.bhoy: sir cn u xplain the change in emphasis of matter paragraph
[12:13:19] werty: {ditam} please change your font colour away from black
[12:13:22] Esther: {werty} oh yes i had too just to be with you for the rest of an hour
[12:13:42] werty: {hamza.bhoy} Wow - is there one?
[12:13:54] werty: {Esther} :)
[12:13:56] hamza.bhoy: isa 705
[12:14:00] Esther: {hamza.bhoy} this is what you use to bring anything that is of use to the user and not
nessary a bad prt its a good one
[12:14:02] hamza.bhoy: ?
[12:14:14] Esther: {werty} lol
[12:14:30] ditam: is red ok?
[12:14:58] werty: Please don't quote these numbers at me1. Emphasis of matter is now surely just the
subject of its own ISA
[12:15:13] werty: But the principle of EoM paragraphs has not changed
[12:15:25] werty: {ditam} Red is wonderful, thanks
[12:15:35] hamza.bhoy: okk
[12:15:41] harmony23: wat is the difference between a disclaimer opinion and a qualified opinion? isnt
a disclaimer of opinion a qualified one?
[12:16:03] werty: yes - it's an example of a modified, qualified opinion
[12:16:10] jmaesjack: Emphasis of Matter paragraph is to highlight inconsistency to the financial users
rite?
[12:16:10] werty: And a BIG one at that
[12:16:21] Esther: {harmony23} yes but where you do not have no evidence to substantiate your
opinion
[12:16:33] Esther: {jmaesjack} right
[12:16:40] werty: Where we are unable to find sufficient appropriate audit evidence affecting the fin
stats in a pervasive way
[12:17:22] Esther: {jmaesjack} but if that is inconsistency is material we need to ask mang't to change
and if they don't we give them a qualifed exceppt for"
[12:17:34] Esther: {werty} right
[12:17:36] werty: {jmaesjack} that's an example of when it could be used. To generalise, it's where the
auditor is aware of something which is already relected in the fin stats and the matter is so major for ...
[12:18:01] pixel: {werty} i havent read the study text but have a good grip over all commonly tested
topics
[12:18:02] werty: ...a proper understanding of the fin stats that aud feels it necessary to draw the
reader's attention to that matter
[12:18:03] geeta: {werty} if a question comes on topics on going concern and environmental issues, can
we use BP as an example even though the questions i'm sure was printed earlier in the year?
[12:18:21] werty: {pixel} could you please change your font colour?
[12:18:30] pixel: what do u suggest should i have a look at the BPP text now or leav it all alone
[12:18:54] pixel: {werty} sure it wwas a bit bluish though not black
[12:18:58] pixel: :s
[12:19:10] jmaesjack: clarity project changed the term of "limitation of Scope" to Unable to obtain
sufficient evidence of something rithe.. am i there?
[12:19:19] werty: {geeta} I can think of no good answer which would miss it off! It's got to be the
biggest thing to hit USA since 9/11, and before that, the Pilgrim fathers
[12:19:48] werty: {pixel} leave it now - now's the time to be practising past exam questions
[12:19:53] pixel: changed it :D now i need ur suggestion
[12:20:07] werty: {jmaesjack} I think that that is what I said higher up1
[12:20:16] hamza.bhoy: is notes on opentution alongside the past papers and mock exams relevant
enuff 2 sum up the knowledge of the subject and exam technique
[12:20:26] jmaesjack: oops missed tat part
[12:20:26] pixel: {werty} i have been upto them since morning did 2 papers considering i was so lazy
[12:21:28] pixel: {werty} any important areas you would suggest that i must cover apart from the main
areas of risks, audit procedures, ethics, reporting
[12:21:35] werty: {hamza.bhoy} i sincerely hope so. I find that, when I'm trying past questions, I always
seem to remember at least something in the OT notes. Beware when reading rev kit answers! they are
MUCH TOO LONG and much more than you can be thinking of writing
[12:21:39] pixel: i hope will be able to handle these
[12:22:21] hamza.bhoy: yep i understand tht part
[12:22:26] Esther: {werty} true
[12:22:27] werty: {pixel} What about just planning answers, then checking your plan against the rev kit
answers
[12:22:33] hamza.bhoy: thnx
[12:22:51] geeta: {werty} i have used opentuition and bpp alone for f8 and was successfull, same for
p1,p2 and p3. i would still put all my trust in opentuition
[12:22:51] danidott4e: {werty} whats the differencve between audit risk and financial statement risk?
[12:23:11] pixel: {werty} i have been reading the full answers by examiners.. i dont trust kits now
[12:23:18] hamza.bhoy: this is my first reliance at OT
[12:23:19] geeta: {pixel} lol
[12:23:23] werty: {geeta} That's a girl! Let's hope it works for P7 too
[12:23:23] Esther: {geeta} thanks to werty
[12:23:27] hamza.bhoy: lets hope it pays off
[12:23:58] Esther: {hamza.bhoy} you need to put out as well ok
[12:24:00] werty: {danidott4e} audit risk is the risk of issuing an inappropriate opinion. fin stat risk is
the fin stats could be wrong
[12:24:02] geeta: {werty} did u create the notes for f8 as well?
[12:24:42] pixel: {werty} {Esther} i still remeber when i took f7 i had no prep at all till the final session..
and then i just practised kit as advised
[12:24:43] werty: {pixel} I hear you, but the kits are the official version authorised by ACCA, so I
wouldn't dismiss them entirely!
[12:24:50] pixel: in the end i passed f7 :D
[12:24:52] hamza.bhoy: cud u explain forensic audit and PFI
[12:25:28] werty: {geeta} yes, but they have been re-done by gromit, so my originals are used now only
on my courses
[12:25:43] pixel: {werty} i am not doing the question in kit now. did some during the semester. will it be
good
[12:26:04] werty: {hamza.bhoy} forensic looks backwards as well as forwards. PFI looks only forwards
[12:26:17] danidott4e: could u explain the difference between professional issues vs ethical issues in a
given scenario? the ethics question asks to identify this......
[12:26:35] vwhite: Just for a further distinction from the two above, please clarify business risk in the
context of auditing
[12:26:48] werty: {pixel} keep practising - remember, for many of you, this is the exam which will make
you ACCA. It's got to be worth that extra effort
[12:27:21] Esther: oh yes 4am in the morning
[12:27:28] pixel: {werty} i sense it coming... m bound to anything you say now
[12:27:29] pixel: :D
[12:27:51] Esther: {pixel} :)
[12:28:41] thalia1: Do you think a question on Group audits have a high possibility for this sitting
[12:28:42] geeta: {danidott4e} {werty} i thaught the ethical issues is designed to give you a professional
judgement on issues in a scenario, tutor please clarify if different
[12:28:43] werty: {danidott4e} Professional issues incorporates ethical ones - all elephants are animals,
but not all animals are elephants. Professional ones would include things like competence, skill and
care, courtesy and consideration, confidentiality as well as the ethical ones of independence and
objectivity
[12:29:44] pixel: {werty} As you said that do not write too much.. in the accounting standard question
we normally have quite a lengthy answer to present the full treatment.. how should that be tackled like
should we intentioanllu skip on few points to save time?
[12:30:05] werty: {vwhite} business risk is the risks faced by a business ) sorry 0 and good examples are
included within the question Ferry. So far as auditing is concerned, if auds adopt a top-down approach,
they will focus there audit effort on those areas which they perceive as being of greatest risk.
[12:30:29] werty: particularly important when doing consultancy or due diligence work
[12:30:52] danidott4e: ethics....understood....but the professional side is still a bit unclear
[12:30:53] werty: Did BP anticioate the disaster? did they risk- manage effectively?
[12:31:15] werty: their CEO said today that they didn't have the right tools oin their tool-kit
[12:31:18] geeta: {werty} nooooooooooo, i think BP failed
[12:31:22] jmaesjack: Do you mean Business risk which majorly affect the Operation Productivity is
Auditor's concern..
[12:31:41] geeta: {werty} yes and that the damage was 'modest'
[12:32:18] werty: {thalia1} It's the only place in the syllabus of the ACCA qualification where it could be
asked. As to whether it has a highr chance than any other topic, I really can't answer that
[12:32:19] geeta: lol
[12:33:00] werty: {geeta} Not sure I unddeerstand the point you're making at the top of my screen
[12:33:10] thalia1: thanks
[12:33:11] Esther: {werty} i think anything is possible just get ready for the worst
[12:33:24] werty: {pixel} no, write shorter sentences
[12:33:47] pixel: {werty} but write all u have
[12:33:50] pixel: :O
[12:33:52] Esther: {werty} ok point taken but state all the o0bvious
[12:34:30] werty: {geeta} wouldn't you expect to hear that their aud committee and internal auditors
and risk managers could possibly be preparing their cvs right now?
[12:34:41] ditam: (werty) you have mentioned at the start IFRS for SMEs. How much do we need to
know about that?
[12:35:03] werty: {jmaesjack} certainly when giving advice and potentially also in Letter of
recommendation
[12:35:03] Esther: {werty} i will not be surpise
[12:35:23] werty: {pixel} yes
[12:35:29] werty: and then some more
[12:36:22] talula33: hello. Are we expected to quote the FRS in question or can we just describe the
appropriate treatment that shouold be used?
[12:36:24] pixel: {werty} Okay !! can you suggest key questions to practice from BPP?
[12:36:36] werty: {ditam} article by Graham Holt in May stud Acc. Read that and it should be enough
for you to construct an answer - it's not a major issue for P7, I wouldn't have thought
[12:36:52] geeta: {werty} yes, instead of ensuring that these explosions never arise and ensuring that
the issue is contained and stopped, they are sayiing that the damage is modest. its like they have no
internal auditors and risk mgts.
[12:37:06] ditam: thank you, will read it.
[12:37:54] werty: {talula33} Can you give me a way of remembering all these numbers? I can't
remember them. No, you don't need them. Nice if you can put them in. maybe even could earn you
that extra half mark to get you over the finish line
[12:38:08] werty: {pixel} yes, the first 64!
[12:38:28] harmony23: how far is auditor responsibility wen preparing diligence report
[12:38:31] werty: :)
[12:38:37] jmaesjack: would examiner ask of SMe Audit compare to Normal? is just different in audit
methodology right?
[12:38:40] pixel: {werty} Oh God!! i have to take p4 too :S m not on a time machine
[12:38:40] pixel: :D
[12:39:07] Corettamc: {pixel} lol
[12:39:14] nfilko: {pixel} noone is ))
[12:39:17] werty: As far as they agree in the contract of service. I would imagine in practice ( no
persona experience of dd work 0 that there is a pretty strong disclaimer
[12:40:26] nfilko: {werty} hello .. will you give us some more tips for exam except for going concern and
SME?
[12:40:27] werty: {jmaesjack} I mentioned SMEs early on, because no-one was talking to me. It's
difficult to see a question on it - much easier to see one in P2
[12:40:29] nadie: can u explain
[12:41:01] werty: I also mentioned that you MAY be able to bring it into an answer. methodology
presumably must change
[12:41:21] nadie: can u explain 'matters' nornally found in Q2
[12:41:32] werty: But really strong arguments for scrapping any audit requirement for even the medium
cos
[12:41:48] mariefoolchand: {werty}th
[12:41:54] thalia1: when answering a question in P7 do I have to include a conclusion in every answer
[12:42:01] Esther: {mariefoolchand} change your font
[12:42:02] werty: {nfilko} hi1 they are already in the P7 page I think
[12:42:09] geeta: {Esther} lol
[12:42:27] werty: {mariefoolchand} can't read that - please change colour
[12:42:39] vwhite: Tutor, how do you assess materiality of a line item that (given the threshholds) it is
material to turnover but not to assets for example - esp if it a balance sheet item,
[12:42:41] werty: {nadie} Have I mentioned "matters"?
[12:42:50] werty: where is your question coming from?
[12:42:51] nfilko: {werty) I haven't found any, but no worries, i will ask admin
[12:43:32] werty: {thalia1} No, not unless it's asked for "You have been asked to advise ..." , "disuss and
reach a conclusion ..."
[12:43:45] thalia1: great
[12:43:55] jmaesjack: is nadie saying about "matters to consider " when plannign or engagements?
[12:44:02] mariefoolchand: the article you is on which topic
[12:44:19] pixel: {nfilko} http://opentuition.com/acca/p7/
[12:44:23] pixel: visit this page
[12:44:31] pixel: they ARE there
[12:44:38] mariefoolchand: thanks
[12:45:04] jmaesjack: can we not waste time.
[12:45:45] ditam: What are comparratives and corresponding figures?
[12:46:16] nfilko: {pixel} that;'s true, thanks! I missed them, can't get used to new profile of the web
[12:46:24] werty: {vwhite} I seem to remember having different materialities for I/S and B/s when I was
a student. how it works in practice - I don't know. Threshold / performance materiality must surely be
lower than Fin stat materiality. Perf mat is suely there to give indication of problems
[12:46:33] geeta: {jmaesjack} helping someone is not wasting time- we are all in the hell together
[12:46:48] werty: How can something be material for turnover an dnot material for B/S
[12:47:18] thalia1: what are your suggestions for topics in this exam sitting? What do you think will
come?
[12:47:34] werty: {jmaesjack} Ah, thanks! Look at many questions which say "comment on the matters
above and state the audit evidence you should expect to find"
[12:47:43] pixel: {thalia1} visit the link i put a few lines up
[12:48:50] jmaesjack: {werty} common question, i sapouse lisa and other examiners likes this taglines
[12:48:56] thalia1: ok Pixel
[12:49:11] pixel: damn out of battery :S
[12:49:14] pixel: got to go
[12:49:29] pixel: pray for me guys hope we all pass
[12:49:39] thalia1: good luck
[12:49:40] ababio: i have not got it, could you please explain performance materiality again?
[12:49:40] ditam: (jmaesjack) matters to consider are typically materiality, accounting treatment, risk,
presentation and disclosure
[12:50:05] geeta: {pixel} will do, good luck
[12:50:22] nfilko: {pixel} ) gud luck, hugs
[12:50:35] nadie: {ditam} thanks
[12:51:06] jmaesjack: do we consider risk appitite of auditors as part of matters to consider? or is just
clients engagements matters
[12:51:17] werty: {ditam}struggling with that distinction. see BPP page 327 - I'm still struggling with it!
[12:52:18] thalia1: if i'm running out of time, is it acceptable to use bulletpoints for my answer
[12:52:19] nfilko: {werty} werty, could you give please the plan on how to answer the etics questions?
have to state the matter, than why it is not ethical. I mean when u open the question it is so easy to
explain but at the end never can get enough marks to pas
[12:52:20] werty: {jmaesjack} Heaven alone knows! lisa is probably dreaming up questions to ask in
december 2011
[12:52:26] nfilko: any tips may be?
[12:52:38] geeta: {jmaesjack} i would believe so,
[12:53:05] ditam: (werty) yes, it's bit confusing. I'll give it anothor go when I'm fresher :-)
[12:53:19] jmaesjack: o ya.. will she try to use the new format that she indicate in the new article?
[12:53:33] geeta: {jmaesjack} i also believe that the examiner would ask that
[12:53:46] margro: when the question asked for the audit risks, do you list them under the different
types of risk?
[12:54:03] werty: {thalia1} There was a webinar on P1 last Monday. the presenter said "In the event
that you don't reach the end of your answer, themarker will look at your plan to give you some credit for
the bits you couldn't write in the time
[12:54:04] thalia1: is the new format for all streams or just IRL
[12:54:07] Corettamc: for IRL variant
[12:54:16] harmony23: {jmaesjack} {geeta} wat is the difference with the new format and the previous
one?
[12:54:19] jmaesjack: email to responds or something.. so we need to type e-mail format to get tat
professional marks... rigth
[12:54:37] werty: Perf mat is the amount or amounts set by the aud at a figure lass than materialty for
the fin stats as a whole
[12:54:43] harmony23: {jmaesjack} is there a format for proffesional email?compared to a report?
[12:55:15] werty: to reduce to an approp low level the probab that the aggregated uncorrected errors
exceeds materiality for the fin stats as a whole
[12:55:50] werty: {jmaesjack} not yet
[12:56:23] werty: {margro} That wiould certainly help the marker - and use headings for your subclassifications
[12:57:07] werty: {harmony23} you don't need to know
[12:57:26] werty: 2 minutes
[12:58:01] nfilko: {werty} any tips for eiscs questions?
[12:58:06] geeta: {werty} thank you very much tutor!!!!
[12:58:12] nfilko: {werty} ethics
[12:58:17] werty: {nfilko} sorry, missed your earlier post.
[12:58:27] nfilko: {werty} no worries )
[12:58:46] jmaesjack: So basically .. Major q.. is to understand the senario and apply step by step ..
[12:58:50] nfilko: {werty} not the most important question, abt techniques but never the less
[12:59:03] werty: no, not really - just the usual ones - but I'm pretty sure ethics is going to be in there. i
think the "tip" would be to pretent that youa re a saint, polish your halo, and then answer
[12:59:04] Esther: thanks to all for coming and sharing especially Werty
[12:59:13] werty: {jmaesjack} yes
[12:59:28] geeta: {werty} lol
[12:59:32] Esther: lol
[12:59:37] ditam: (werty) thank you for your time and tips
[12:59:42] jmaesjack: do we focus major q. or other q first
[12:59:43] thalia1: thanks so much werty for your help and tips
[12:59:44] nfilko: {werty} haha
[12:59:44] werty: {nfilko} was that a question?
[12:59:55] Corettamc: {werty} Thanks!
[13:00:04] nfilko: {werty} no , you have already answered, i am fine with that )
[13:00:10] harmony23: {werty} yep..thnx :)
[13:00:12] nfilko: {werty} thanks )
[13:00:15] delfia: All the best
[13:00:18] werty: You're all welcome and i hope I never have to see any of you ever again!
[13:00:28] Esther: i was going to say that
[13:00:28] geeta: {werty} hahhhhha
[13:00:31] harmony23: {werty} we all hope so too :D
[13:00:35] nfilko: {werty} may be only in the other papers forums )
[13:00:36] werty: I mean, that I hope you all pas and will not need OT's help!
[13:00:43] thalia1: lol
[13:00:46] ditam: yes, indeed
[13:00:46] geeta: {werty} remember i depended on u, so lets see how effective u are for p7
[13:00:47] geeta: lol
[13:00:49] nfilko: {werty} P2 is comming )
[13:00:52] Esther: i know i never want to hear you again I will think an=bout you in exams
[13:00:57] werty: {nfilko} P1 and P2 are my others at this level
[13:01:25] nfilko: {werty} that;s what I say ) see you there, thanks a lot
[13:01:27] werty: {Esther} and I'll think about you all - I'll be in that room with you - mentally at least
[13:01:35] ditam: my last exam, so hope to pass
[13:01:37] werty: {nfilko} ciao
[13:01:42] ditam: good luck to all
[13:01:52] Esther: I hope so!! :) for our sake and yours too
[13:02:09] Esther: good luck folks make sure to do your part ok
[13:02:36] werty: Bye all, if I don't hear from you again before next tuesday, good luck, stay calm,
allocate your time and stick to it, plan your answers, and answer every part of every question tyiou
choose to attempt
[13:02:39] Esther: {werty} talk to you after Exams
[13:02:40] nfilko: GOOD LUCK ALL GUYES
[13:02:53] werty: I'm gone