(Last Updated On: November 6, 2017)
Reasons of Failure of ACCA P7 Paper
Dear students, soon after recent result so many students contact me and asked me to help them to pass their P7 exam, I suggest them to read study text because one of the main reason of failure is lack of knowledge, so here is knowledge test for P7 students. Answer the questions then submit me, I will help me to suggest you next step to pass your exam, Below is a test containing 25 questions. Reasons of Failure of ACCA P7 Paper.
Credit of This article Goes to ACCA Guidance
P7 – Advance Audit
Q 1) What is an Audit?
Q 2) What is Integrity? (Topic – Ethics)
Q 3) What is maximum fee limit that an audit firm can charge from its client? What is the basis of fee? What is the contingent fee and is it allowed or not, and if not then what ethical threats can arise and what are safeguards against these threats?
Q 4) When an audit firm issue new engagement letter to its existing client?
Q 5) What is low balling, and what is ACCA’s/IFAC’s guidance about it?
Q 6) What is the difference between rule-based and principle-based approach, give examples, what is ACCA’s/IFAC’s priority regarding this?
Q 7) What are non-assurance services, and can an audit firm provide non-assurance services to its audit clients, if yes then what are safeguards?
Q8 ) You are the manager in a firm of Chartered Certified Accountants and currently auditing Gaboon Ltd., You are told that Gaboon’s Internal auditor resigned recently, HR Manager asked you to suggest/refer a suitable person for this post as you are from Audit field so you can suggest the better person. What should be your reaction as an auditor?
Q 9) You are audit senior in a firm of Chartered Certified Accountants and currently auditing Unix Group. Unix is importing major material from China, During the discussion with GM of Unix group you got to know that Unix is involved in Under Invoicing. On further discussion, GM told that its industry practice and without Under Invoicing it is difficult to survive in such competitive industry. You went to take advice from your firm, you met with another senior/colleague to take his opinion about this matter. What type of ethical threat can arise due to this discussion with your senior who is not on the same client and what are its safeguards?
Q 10) What is Quality Control, and if there is no quality control reviewer partner in a firm then what are regulations for it? And when a quality control partner appoint?
Q 11) How a business risk can lead to the material misstatement in financial statements?
Q 12) What is materiality, how many types does it have and how to make sure if an item is material or not? And if an item is not material then what should be your response as an auditor?
P7 – Advance Audit
Q 13) Why Performance materiality’s percentage remains high than overall materiality?
Q 14) What audit procedures you will use for assertions of ‘’Completeness and Existence’’ of account balances?
Q 15) If management representation is a weak audit procedure then what would be alternative audit procedures for a balance of CASH in account balances?
Q 16) For a trade receivable balance write down five assertions and against each assertion write down at least two audit procedures
Q 17) At which stage of audit it is compulsory to apply analytical procedures and why analytical procedures is a good tool for substantive testing?
Q 18) What is internal control system and what are its components, What are flaws an internal control system can have?
Q 19) What is integrated reporting and why ACCA prefer it?
Q 20) What are your views about insurance of audits by audit firms, explain briefly
Q 21) What is expectation gap? How many types does it have and how to overcome it?
Q 22) When an Entity is not going concern or in going concern issue then accounts should be prepared under break up basis, what is ‘’Break up’’?
Q 23) When the passive duty of an auditor start and what power and rights an auditor have during his passive duty?
Q 24) What are key audit matters? And which type of organization’s audit report these matters should be included? What is your opinion about the inclusion of ‘’directors’ remuneration’’ as part of audit report?
Q 25) You are audit manager in a firm of Chartered Certified Accountants. Abex Ltd is an old client of your firm, before sending the team on current year audit you were reviewing previous year’s audit file, you noticed that assets acquired under Musharka lease (Islamic lease) were wrongly classified as finance lease lead to overstated assets. What will be your response on this issue as an auditor?