F8 & P7 Tips for the DEC 2010

P7 Tips from Kaplan for DEC 2010 ACCA Exams

• Engagement planning and risk assessment (Do not spot the type of risk question be prepared for all the 3 types that examiner may want to ask)
• Ethics and professional issues
• Auditing in a Computer Based Environment
• Discontinued operations
• Due diligence
• Forensic audit

P7 Tips from BPP for DEC 2010 ACCA Exams

• A risk-based and/or planning scenario in the compulsory section
• Questions based on articles published in Student Accountant in the past six months
• A number of requirements asking for audit procedures and required evidence in respect of specific financial reporting issues
• A practice-based scenario looking at professional, ethical and quality control issues
• A reporting scenario of some sort – probably testing either emphasis of matter or other matter paragraphs

F8 tips from Kaplan for DEC 2010 ACCA Exams

• Regulation of audit, governance; (IAASB, ISA, Tela)

• Small/not for profit organisations; (EukaRe)

• Systems: purchases, sales, payroll (Rhapsody, KLE, Blake)

• Specific standards, e.g. ISA 210, ISA 260, ISA 530

• Completion and auditor’s reports. (All reports - ISA 705)

F8 Tips from BPP for DEC 2010 ACCA Exams

Audit planning (analytical procedures)
The assessment of audit risk
Audit procedures (both substantive and tests of control) relevant to key audit assertions
Not for profit organisations (EukaRe)
Subsequent events - ISA 560
Audit reporting and materiality

Always include the standard question on audit risk/report for 10 marks referring to either IAS 1, 2, 8, 16, 18, 36, 37, 38

You should also cover the following areas - NCA, Payables, Receivables audit

Good luck in preparing for the coming exam

Answers for objective questions

Materials relevant for F8 ACCA

The following materials are likely to help you get a better pass in the paper. It would appear that technology is making it easier for the self-studying students to actually spend less and actually pass the paper. This means that if you are disciplined you can actually study from the net for almost free.

Resources available for F8 online include in the following materials

1. ONLINE LECTURES FOR FREE

2. ONLINE E-BOOK FOR ACCA F8

3. RE-CAP NOTES FOR F8 ACCA - JUST GO TO YOUTUBE AND TYPE F8 ACCA (YOU CAN ALSO TYPE F9 FOR F9 ONLINE LECTURE NOTES)

This materials have been prepared by the colleges, I suppose to help them do marketing for their colleges but at the same time I belief they are also doing the profession and "lower income brackets" a much needed break to study the subjects without too much money.

This is true CSR by the colleges - BRAVO FOR THEM AND GOOD FOR THE STUDENTS THAT CAN BENEFIT FROM THIS.

I SUPPOSE THE MATERIAL IS AVAILABLE FOR A LIMITED PERIOD OF TIME [ WINDOW OF OPPORTUNITY ]

Must review for F8 ACCA and P7 ACCA

The following links are relevant for students attempting the current P7 Advance audit and assurance paper as well as F8 paper Audit and assurance

Paper P7 ACCA

Paper F8 ACCA

Business risk answer for RT

Risks
Old planes
– Older planes will cost more to run due to higher repair costs
– They may fail causing disruption to business and possible injury to passengers. This could lead to fines and loss of licences.
– Customers want new planes and will not fly with RT.
 Lease airplanes rather than buy secondhand planes.
– The old planes do not comply with new environmental regulations. This could damage RT's image. The company will also incur large cost to update system and potential fines and loss of flight slots if they fail to comply. Potentially prevent RT from servicing routes.
 Lease new planes.
 Investigate alternative methods of compliance, better or new fuels to reduce pollution.
Airport locations
– Neither of the airports are in the city, reducing tourist and business travel. Not convenient for users.
– All airports are north of London. Not good for customers in the south. Very poor national coverage.
 Strategic alliance with bus/train operator.
 Offer discounted or free tickets on purchase of flight.
 Open new f m,.k,,acilities in other parts of the country to improve national coverage.
Public relations
– RT operates in the airline industry which is very competitive. Bad press would be very damaging. RT would incur large switching costs as customers move to the
competition.
– Seating policy alienates passengers. Fear they will not get a seat and use alternative carrier.
– Role of LR, she may be a fantastic business woman but she is not good at customer relations.
 Appoint PR managers to give all press releases.
 Advertising campaign to move focus away from LR.
 Change ticket policy. Only sell one ticket per seat, combine with new marketing campaign.
 Ensure L’oR takes a back seat. Use the new PR manager for all press contact.
New booking system
– The system may put off users who like to talk to sales staff. Some customers may not have Internet access.
– Failure to pay tax may be illegal. At the least could force RT to pay tax after a test case. As RT reduced price there may not be the money to pay the tax, causing going concern problems.
 Maintain a parallel phone system. Use discounts for all Internet bookings to encourage its use.
 Test system with tax authorities. Take legal advice.
 Do not pass on full discount to customers.
 Ensure liquid resources are available to pay tax in the future.

Staff
– High staff turnover very costly, recruitment cost and loss of knowledge.
– Temporary staff who don't speak English well will not provide a good face of RT to the passengers, leading to loss of customer goodwill.
– Staff may not be trained sufficiently to safeguard passengers in the event of a crash or terrorist attack.
– Terrorists may breach security and hijack planes.
– Low wages to foreign staff potentially illegal and demotivational to staff.
 Introduce staff incentive schemes. Free flights or bonuses.
 Steward and check-in staff given English classes.
 Always have an English speaking supervisor on hand.
 Use more full-time staff where possible.
 Increase staff training.
 Liaise more closely with airport operator over security arrangements.
 Ensure pay minimum wage. Review wage, ensure they are fair.
New long haul routes
– The long haul market, different business to short haul. RT has no experience of long haul market. What is the strategy? -price, differentiation etc.
– Large cost already incurred on licences. Must still find new funding for planes.
– Long haul, increased risk of terrorism.
– Very competitive market.
 Strategic link with tour operator or hotels to generate business.
 Continue using same economy strategy.
 New funding rights issue.
Military airbases
– Customers may not want to fly to remote bases with poor facilities.
– Difficult for transfers to hotels etc as mentioned above.
 Undertake market research.
 Advertising/marketing campaign.
 Provide courtesy bus.Solution

Business risk answer for RT

Risks
Old planes
– Older planes will cost more to run due to higher repair costs
– They may fail causing disruption to business and possible injury to passengers. This could lead to fines and loss of licences.
– Customers want new planes and will not fly with RT.
 Lease airplanes rather than buy secondhand planes.
– The old planes do not comply with new environmental regulations. This could damage RT's image. The company will also incur large cost to update system and potential fines and loss of flight slots if they fail to comply. Potentially prevent RT from servicing routes.
 Lease new planes.
 Investigate alternative methods of compliance, better or new fuels to reduce pollution.
Airport locations
– Neither of the airports are in the city, reducing tourist and business travel. Not convenient for users.
– All airports are north of London. Not good for customers in the south. Very poor national coverage.
 Strategic alliance with bus/train operator.
 Offer discounted or free tickets on purchase of flight.
 Open new f m,.k,,acilities in other parts of the country to improve national coverage.
Public relations
– RT operates in the airline industry which is very competitive. Bad press would be very damaging. RT would incur large switching costs as customers move to the
competition.
– Seating policy alienates passengers. Fear they will not get a seat and use alternative carrier.
– Role of LR, she may be a fantastic business woman but she is not good at customer relations.
 Appoint PR managers to give all press releases.
 Advertising campaign to move focus away from LR.
 Change ticket policy. Only sell one ticket per seat, combine with new marketing campaign.
 Ensure L’oR takes a back seat. Use the new PR manager for all press contact.
New booking system
– The system may put off users who like to talk to sales staff. Some customers may not have Internet access.
– Failure to pay tax may be illegal. At the least could force RT to pay tax after a test case. As RT reduced price there may not be the money to pay the tax, causing going concern problems.
 Maintain a parallel phone system. Use discounts for all Internet bookings to encourage its use.
 Test system with tax authorities. Take legal advice.
 Do not pass on full discount to customers.
 Ensure liquid resources are available to pay tax in the future.

Staff
– High staff turnover very costly, recruitment cost and loss of knowledge.
– Temporary staff who don't speak English well will not provide a good face of RT to the passengers, leading to loss of customer goodwill.
– Staff may not be trained sufficiently to safeguard passengers in the event of a crash or terrorist attack.
– Terrorists may breach security and hijack planes.
– Low wages to foreign staff potentially illegal and demotivational to staff.
 Introduce staff incentive schemes. Free flights or bonuses.
 Steward and check-in staff given English classes.
 Always have an English speaking supervisor on hand.
 Use more full-time staff where possible.
 Increase staff training.
 Liaise more closely with airport operator over security arrangements.
 Ensure pay minimum wage. Review wage, ensure they are fair.
New long haul routes
– The long haul market, different business to short haul. RT has no experience of long haul market. What is the strategy? -price, differentiation etc.
– Large cost already incurred on licences. Must still find new funding for planes.
– Long haul, increased risk of terrorism.
– Very competitive market.
 Strategic link with tour operator or hotels to generate business.
 Continue using same economy strategy.
 New funding rights issue.
Military airbases
– Customers may not want to fly to remote bases with poor facilities.
– Difficult for transfers to hotels etc as mentioned above.
 Undertake market research.
 Advertising/marketing campaign.
 Provide courtesy bus.Solution

Business risk answer for RT

Risks
Old planes
– Older planes will cost more to run due to higher repair costs
– They may fail causing disruption to business and possible injury to passengers. This could lead to fines and loss of licences.
– Customers want new planes and will not fly with RT.
 Lease airplanes rather than buy secondhand planes.
– The old planes do not comply with new environmental regulations. This could damage RT's image. The company will also incur large cost to update system and potential fines and loss of flight slots if they fail to comply. Potentially prevent RT from servicing routes.
 Lease new planes.
 Investigate alternative methods of compliance, better or new fuels to reduce pollution.
Airport locations
– Neither of the airports are in the city, reducing tourist and business travel. Not convenient for users.
– All airports are north of London. Not good for customers in the south. Very poor national coverage.
 Strategic alliance with bus/train operator.
 Offer discounted or free tickets on purchase of flight.
 Open new f m,.k,,acilities in other parts of the country to improve national coverage.
Public relations
– RT operates in the airline industry which is very competitive. Bad press would be very damaging. RT would incur large switching costs as customers move to the
competition.
– Seating policy alienates passengers. Fear they will not get a seat and use alternative carrier.
– Role of LR, she may be a fantastic business woman but she is not good at customer relations.
 Appoint PR managers to give all press releases.
 Advertising campaign to move focus away from LR.
 Change ticket policy. Only sell one ticket per seat, combine with new marketing campaign.
 Ensure L’oR takes a back seat. Use the new PR manager for all press contact.
New booking system
– The system may put off users who like to talk to sales staff. Some customers may not have Internet access.
– Failure to pay tax may be illegal. At the least could force RT to pay tax after a test case. As RT reduced price there may not be the money to pay the tax, causing going concern problems.
 Maintain a parallel phone system. Use discounts for all Internet bookings to encourage its use.
 Test system with tax authorities. Take legal advice.
 Do not pass on full discount to customers.
 Ensure liquid resources are available to pay tax in the future.

Staff
– High staff turnover very costly, recruitment cost and loss of knowledge.
– Temporary staff who don't speak English well will not provide a good face of RT to the passengers, leading to loss of customer goodwill.
– Staff may not be trained sufficiently to safeguard passengers in the event of a crash or terrorist attack.
– Terrorists may breach security and hijack planes.
– Low wages to foreign staff potentially illegal and demotivational to staff.
 Introduce staff incentive schemes. Free flights or bonuses.
 Steward and check-in staff given English classes.
 Always have an English speaking supervisor on hand.
 Use more full-time staff where possible.
 Increase staff training.
 Liaise more closely with airport operator over security arrangements.
 Ensure pay minimum wage. Review wage, ensure they are fair.
New long haul routes
– The long haul market, different business to short haul. RT has no experience of long haul market. What is the strategy? -price, differentiation etc.
– Large cost already incurred on licences. Must still find new funding for planes.
– Long haul, increased risk of terrorism.
– Very competitive market.
 Strategic link with tour operator or hotels to generate business.
 Continue using same economy strategy.
 New funding rights issue.
Military airbases
– Customers may not want to fly to remote bases with poor facilities.
– Difficult for transfers to hotels etc as mentioned above.
 Undertake market research.
 Advertising/marketing campaign.
 Provide courtesy bus.Solution