ACCA F8 BPP Rkit www - Lecture notes 1-10 PDF

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Audit and Assurance...

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P R A C T I C

PAPER F8 AUDIT AND ASSURANCE

E

&

R E V BPP Learning Media is an ACCA Approved Content Provider for the ACCA qualification. This means we work closely with ACCA to ensure our products fully prepare you for your ACCA exams.

I S

In this Practice & Revision Kit, which has been reviewed by the ACCA examination team, we:



Discuss the best strategies for revising and taking your ACCA exams



Ensure you are well prepared for your exam



Provide you with lots of great guida uidance nce on tackling questions



Provide you with three mock exams

I O N

Our Passcard product also supports this paper.

K I T

FOR EXAMS IN SEPTEMBER 2017, DECEMBER 2017, MARCH 2018 AND JUNE 2018

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First edition 2007

A note about copyright

Tenth edition February 2017

ISBN 9781 5097 0859 8 (previous ISBN 9781 4727 4440 1)

e-ISBN 9781 5097 0997 7 (previous e-ISBN 9781 4727 4655 9)

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ii

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About this Practice & Revision Kit ACCA have commenced the transition of F5–F9 to computer-based examination (CBE), beginning with a pilot in limited markets in September 2016. Students will initially have the choice of CBE or paper exams and as a result, changes will be made to BPP's learning materials to ensure that we fully support students through this transition.

This Practice & Revision Kit is valid for exams from the September 2017 sitting through to the June 2018 sitting and in this Practice & Revision Kit you will find questions in both multiple choice question (MCQ) and objective testing question (OTQ) format. OTQs include a wider variety of questions types including MCQ as well as number entry, multiple response and drag and drop. More information on these question types will be available on the ACCA website.

OTQs will only appear in computer-based exams but these questions will still provide valuable practice for all students whichever version of the exam is taken. These are clearly marked on the contents page as either CBE style OTQ bank or CBE style OTQ case.

More information on the exam formats can be found on page xv.

All timings given throughout this Practice & Revision Kit are based on the paper-based exam which is 3 hours and 15 minutes long. Time management is a key skill for success in this exam and so we recommend you use these indicative timings when attempting questions to time on paper.

ACCA are recommending that all students consult the ACCA website on a regular basis for updates on the launch of the new CBEs.

About this Practice & Revision Kit

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Contents

Page

Finding questions Question index .................................................................................................................................................................. v Topic index.....................................................................................................................................................................viii

Helping you with your revision ......................................................................................................................ix

Revising F8 Topics to revise ................................................................................................................................................................. x Question practice...............................................................................................................................................................x Passing the F8 exam ........................................................................................................................................................ xi Exam information ............................................................................................................................................................ xv Useful websites ............................................................................................................................................................ xvii

Questions and answers Questions ..........................................................................................................................................................................3 Answers...........................................................................................................................................................................89

Exam practice Mock exam 1 (Specimen exam)

  

Questions.............................................................................................................................................................241 Plan of attack .......................................................................................................................................................253 Answers ...............................................................................................................................................................254

Mock exam 2 CBE style (September 2016 exam)

  

Questions.............................................................................................................................................................269 Plan of attack .......................................................................................................................................................279 Answers ...............................................................................................................................................................280

Mock exam 3 (December 2016 exam)

  

Questions.............................................................................................................................................................297 Plan of attack .......................................................................................................................................................309 Answers ...............................................................................................................................................................310

Review form

iv

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Question index The headings in this checklist/index indicate the main topics of questions, but questions are expected to cover several different topics.

Questions set under the old syllabus Audit and Internal Review (AIR) paper are included because their style and content are similar to those which appear in the F8 exam. The questions have been amended to reflect the current exam format. Time

Page number

allocation Marks

Mins

Question

Answer

1–5 BJM Co

10

20

3

89

6–10 CBE style OT case – Conoy

10

20

4

89

11–15 Stark

10

20

6

90

16–20 Tangerine Tech Co (Mar/Jun 16) (amended)

10

20

8

91

21–25 CBE style OT case – LV Fones (6/10) (amended)

10

20

9

92

26–30 CBE style OT case – Orange

10

20

11

93

31–35 CBE style OT case – SGCC

10

20

13

94

36–40 CBE style OT case – Bridgford

10

20

15

95

41–45 CBE style OT case – EuKaRe (12/08) (amended)

10

20

17

96

46–50 South

10

20

18

97

51–55 Mason

10

20

20

97

56–60 Severn

10

20

22

97

61–65 Goofy Co

10

20

24

98

66–70 CBE style OT case – Carlise

10

20

25

99

71 Sleeptight

30

59

27

100

72 Raisin

20

39

28

103

73 Abrahams (12/11)

20

39

29

106

74 Recorder (12/14)

20

39

30

111

75 Walters (2014 Specimen Paper)

20

39

31

114

76 Sycamore (6/15)

20

39

31

117

77 Smoothbrush (6/10)

30

59

32

120

78 Aquamarine Co (Mar/Jun 16)

20

39

33

125

79 Kangaroo Construction Co

20

39

34

129

80 Sunflower Stores Co

20

39

35

132

Part A: Audit framework and regulation

Section A Questions

Part B: Planning and risk assessment

Section A Questions

Section B Questions

Finding questions

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v

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Page number

allocation Marks

Mins

Question

Answer

81–85 Flowers Anytime (AIR 12/02) (amended)

10

20

36

136

86–90 KLE Co

10

20

37

136

(amended)

10

20

39

137

96–100 Cherry (6/15) (amended)

10

20

41

137

101–105 Swan

10

20

42

138

106 Chuck (12/11)

30

59

44

139

107 Greystone (12/10)

30

59

45

144

108 Blake (12/08) (amended)

20

39

46

150

109 Tinkerbell (6/11)

30

59

47

152

110 Trombone (6/14)

30

59

48

157

111 Fox Industries Co

30

59

49

162

112 Bluesberry (12/10)

20

39

50

167

113 Bronze Industries Co (Sep/Dec 15)

20

39

51

170

114 Lemon Quartz Co (Mar/Jun 16)

20

39

51

173

115 Shesha Co

20

39

52

176

116 Oregano Co

20

39

53

179

117–121 Expert (12/08) (amended)

10

20

54

183

122–126 CBE style OT case – Newthorpe

10

20

55

183

127–131 CBE style OT case – Tirrol (6/09) (amended)

10

20

57

184

132–136 Wright

10

20

59

185

137–141 Lodestar

10

20

61

186

142–146 Porthos

10

20

62

187

147 Redburn (12/09)

30

59

64

187

148 Lily (12/12)

30

59

65

193

149 Springfield Nurseries (AIR Pilot Paper) (amended)

30

59

66

198

150 Westra Co

30

59

67

201

151 Panda

20

39

68

205

152 Rose (12/12)

20

39

68

207

Part C: Internal control

Section A Questions

91–95 CBE style OT case – SouthLea (2007 Pilot Paper)

Section B Questions

Part D: Audit evidence

Section A Questions

Section B Questions

vi

Finding questions

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Page number

allocation Marks

Mins

Question

Answer

153 Donald (6/11)

20

39

69

210

154 Rocks Forever (AIR 12/05) (amended)

20

39

70

213

155 Andromeda Industries Co (Sep/Dec 15)

20

39

70

216

156 Squash Co

20

39

71

220

157 Traffic Lights

20

39

71

223

158 Hawthorn Enterprises Co

20

39

72

227

159–163 CBE style OT case – Chestnut (6/15) (amended)

10

20

74