The Mickey Mouse Worries 2

It is now exactly 9 days before the ACCA F8 examination. I still hear many student grumbling as they have yet to prepare themselves or they might be still worrying on lot of other thing; they might still comparing between A and B. Students You only have 9 days left! What should you do?

I really dunno what should you! Seriously speaking, I am not you therefore I dunno what you should do?

However If I am in your shoes, what I will concentrate now is Past Year Question.

I will now find as many PYQs as possible Well may be 1999-2008! (Email me of you need one)

Then from the PYQ analysis I will start to pick question and begin with my question practice.

What type of question I will begin with?

I will begin with 2 types of questions

1. Question on subjects area which I am not good at. For example if Substantive Testing is my weak area, I will start will Question related on substantive testing
   
2. Hot areas for exam. Definitely area like internal control is a hot area, I will definitely attempt those related question.
   

Do less question on area which you are strong at!

What else should I do? Ask if you don't understand! Get to your lecturer, get to your friend ask them on area which you don't understand. Ask Laymankt if no one entertain you!

What else should I do? Stop panicking and concentrate on your PYQs!

What else should I do? Stop discussing about those Mickey Mouse issue Concentrate on your studies

What else should I do? No more net surfing (except if you are surfing on http://www.laymankt.blogspot.com/)

What else should I do? Ask your boy friend and girl friend not to disturb you for the next 9 days!

What else should I do? Zero entertain for the next 9 days

What else should I do? Do what you need to do to pass exam!

Good Luck

p/s Consume this article together with my previous post on The Power of PYQ

The Mickey Mouse Worries

Question: As informed I need to remember the definition in Audit?

Layman say: How many Audit term are there in Audit syllabus, I can assure you there are more than 100 terms. So can you remember all 100 terms' definition?

Is ACCA an exam for memory test? I will not deny that some part of the syllabus you need to memorise especially when it come to "specific factor that affect audit" but not definition.

Question: if I do not memorise what should I write?

Layman say: Explain the definition with your own words and add on with example!

Question: How? Everyone that I know of the try to memorized

Layman say: I will not discourage you if you have very good memory skills. If yes go ahead and remember it but hard. But for other student like layman who is not so skillful, my recommendation are as follow?

Q: Define Audit Risk (4 marks)

You have 4 marks up there! In exam you only have 7 minutes to answer the above question!

Now when you are too tense in exam and forget about the "Official Definition that you are suppose to Remember" What should you do sit there and think hard, let your precious time fly away or you should do something with it?

Layman is not smart but I think I need to do something that I should get marks…………

Examiner Answer

Audit risk is the risk of giving an inappropriate opinion on the financial statements; for example failing to qualify when the financial statements contain a material error. Audit risk has three individual components in the formula:

Audit Risk = Inherent Risk x Control Risk x Detection Risk

Text book definition

Audit risk is defined as:

The risk of that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.'

Layman Answer

Audit risk is the risk that auditor might give a wrong audit opinion in their audit report. For example: When a Financial statement of a company is actually qualified but the Audit provided a wrong opinion by saying that the financial statement is unqualified.

Do you think the text book definition is wrong ? do you think layman definition is wrong ? What definition you have learned through "REMEMBER by HARD" Same version or different version

Is there only one way to define?
(Note there above is only part of the answer 1 mark)

Another example

Official definition that you should remember by Hard for Inherent risk is

Inherent risk" is the susceptibility of an assertion to a misstatement that could be material, either individually or when aggregated with other misstatements, assuming that there are no related controls'

Examiner Answer:

This is the risk that an account balance or class of transactions contains a material error.

(Note there above is only part of the answer 1 mark)

So do you think that examiner needs you to remember by hard? Do you think that definition of Audit term need to be REMEMBER BY HARD?

You have the wisdom to judge!

Good Luck

A chance of having Higher Education

Can you imagine how costly can your higher education bills be? Hmmmmmmmmmmm, well RM100K? RM 1 million? Or RM 15K?

Seriously this was the topic after dinner with my uncle who is thinking about it and regards himself over-planned for his Child education.

My boss use to discuss with other bosses how expensive can the higher education bill be when your children study oversea as they are trying to send their kids to a more "Famous Universities" in the World.

This will definitely cause a big bomb as it will reach between RM 500K to RM 1 millions. Well as far as one can afford why not!

However how about those who can't afford but still hope to get a good qualification at an affordable price to earn a living in the future. High education bill has been a key problem for those who wish to pursue higher education.

That was my choice and still my choice! The Professional Qualification. I never have a degree, never, only professional qualification.

I am a LCCI and ACCA Graduate and proud to be one. Of course there are other good professional qualifications out there which the holder should be proud of it too.

Most important I have recovered all my cost incurred for studying the course which RM 15K about 10 years back.

I remembered when I study LCCI I was only paying RM 90 per month as installment payment and together with the Exam fees for both LCCI and ACCA, really I don't think I have spent much for the higher education cost. It will be at RM15K or if I miss calculated I am sure it is not beyond the RM 20K mark.

Wow this really affordable! Yes and at the same time the qualification is well recognized in the world.

I have worked in several countries in this world and all of them accept ACCA. I have friend whom also graduate from ACCA is now working in Vietnam Singapore China Australia UK (united Kingdom not Ulu Klang) and other countries. It proves that you can really earn a living with your ACCA qualification.

However to me, it started from the very basic point. The Chance of having good quality higher education at an affordable price.

I used to study in colleges which many people regard as "Tuition Center" why? Because there is no campus. It was situated in an old shop lots in a very busy street down town.

Further, one thing that make everyone confuse is I always study in different colleges. For Me I have studied in 3 colleges for the same qualification. So which college I am actually from.

Tell you what my parent don't even know which college I have studied in, they just knew that I graduated from ACCA.

When I went interview, what do I put down when it come to college/university? I always fill in this way:

College/University: The Association of Chartered Certified Accountant (ACCA); Degree: ACCA Professional Exam. Done!

No interviewer will question me on that as ACCA has been a brand name!

So who cares! More important is to complete the course and earn your living in the future.

Really during my time of study, I have lot of class mates whom is self support and they might have a full time job or part time job.

I salute most of them! Why? It is not easy for them. I have seen many of them, save and trying to pay their exam fees and subscription fees. One of them (actually many) cut the food bill by having Bread only (three meal a day). White and pure they have their bread for 3 meals a day. I really salute them.

They will be in the library from 8am in the morning until 8pm at night. This will usually happen one month before exam as they will start to have unpaid leave trying to prepare for their exam. Their determination and persistency is what we should learn!

Yet they passed exam. They always say this to me Thanks ACCA and their colleges who offered the courses to them at a very affordable price. They really appreciate that.

Where can you study a subject for RM 500 that last for four months? You might not have campus life, you might not have good facilities like those big colleges but this places which some others regard as low grade place provide good higher education to those who can't afford to go to those posh colleges; but still they need a qualification for their future career.

How could this possible. It is the combination of those professional course and those "low grade colleges" that provide those people like me a chance for higher education.

So where is my college/university it is The Association of Chartered Certified Accountant (ACCA) and The London Chamber and Commerce and Industry (LCCI). What are the course that I studied- ACCA Professional Exam and LCCI Higher Diploma in Accounting. At the same time appreciation to colleges that provide those courses to me at very affordable fees

Without them, I cannot be who I am now. It start with a very affordable course combining with one of the hardest exam in the world, it make a stronger me to face my career.

If you are a graduate from Harvard or Cambridge well, you will be up for grab even before you graduated. That is the true facts!

Studying ACCA might not have the same effect but I am sure that it is not difficult to find jobs if you are an ACCA graduate!

What the employer really wants to see is your ACCA certificate, they don't usually ask for what grade you are in, why ACCA got no grading. If you get above 50 you pass if you get below 50 you failed. If you fail retake until you pass. The theory is simple. As far as you pass ACCA you are qualified as an ACCA Affiliate.

Your CV will definitely be enhanced when your potential employer see the word "ACCA".

However there are 2 areas for a student to improve when you study ACCA (This is my own opinion) as compared to a degree based student

Well ACCA student lack of research skill as compared to a degree student. Another point is that generally the presentation skill of ACCA students is weaker as compared to a degree student.

Therefore when they go for an interview in a larger organization, they might face problem when it come to the evaluation of a candidate soft skills especially when they need to present themselves to the interviewer for 5minutes, sometime they go blank. Why? Because for a degree students presentation and research is part of the degree life unlike ACCA students. So ACCA students do lack of some exposure in this areas.

However this is of course not the critical part but when interviewers make comparison to the two type of candidate, they might select the one with a more balance skill. So how could an ACCA student improve on this area? Well do your Oxford Brook degree and at the same time join a toastmaster club! This will definitely enhance your soft skill to make you to become more competitive in the job market.

So Bravo ACCA Bravo to those of you who study ACCA and Bravo to my three colleges……………………..Bravo Good night!

Your Questions, my answers

1. How to answer the questions for "audit work","audit procedure"?
   

   Audit work and procedure generally refers to the Audit testing, therefore the principles of "AEIOU" applied. You will need to refer to the scenario and answer the Question
   

2. I realise that most of the examiner answers in column form (i.e test of cltr),should we follow or otherwise?
   

   Definitely you can.answer in column form. However student always face a problem when they answer in column form. Student always didn't write enough fact as they thought that in column form it can be as simple as possible which is a issue that student need to overcome. However sometime the question do encourage you to do so. You have your own judgment to see whether it is suitable for you
   

3. How to answer for Audit Report
   

   When it comes to Audit report the following are the exam areas:
   

   1. Describe and analyse the format and content of unmodified audit reports.[2]
      
   2. Describe and analyse the format and content of modified audit reports.

Therefore when it comes to this area u need to know the fact about modified and modified report at the same time cover the question of cremore and Dec 2007 Q 5 past year question

Hope this answer your qesries

Meet the Students

I will be in the collge to meet students on

Sunday 23rd November 2008
Time 2pm till 5pm
Kasturi College

Please check with the College on the room allocation


All are welcome !

Hit Songs

I learned this from a family uncle and after some modification; I would like to share this with you

Everyone in this world can sing depending on how good you are in singing!

You could be Karaoke singer sing for fun! Dun care whether the tune or even the lyric is right. You just want to sing-your way

You could be a Pub singer. Good in singing but limited to the pub only. Small Avenue for you to perform!

You could be a normal singer, have your own album but none of them become a hit song. You will slowly being eliminate from the recording industry.

You could be a pop star where you have your own album and hit song which hit the top of the pop chart. You become famous.

You could also be a super star where you have your own album, hit song and the everlasting pieces which will be remember forever.

Karaoke Singer, pub singer, normal singer, pop star super star are all singer the different is whether you have a hits song?

What is the moral of the story?

This is about what you want in life? Hit song refer to your achievement in life.

Certain people choose to be karaoke singer, cause they just want to live happily and without any pressure

Certain people choose to be a pub singer , cause they just hope to live slightly better than the others

Certain people choose to be a singer, cause they hope to achieve something in life. But you have to keep up with the pace and work your wat to become a pop star.

However if you want be a pop star you really need to sacrifise work hard and have to face the up and down in life, once you have the hit song you become famous and more financial reward. You need to keep up with the pace

Lastly if you want to be superstar stop dreaming now and act fast

So what you want to be? Any hit song from you? What to have hit song in your life?

Joke from friend-share with you

I was barely sitting down when I heard a voice from the other stall saying:
'Hi, how are you?'

I'm not the type to start a conversation in the restroom and I don't know what got into me, but I answered, somewhat embarrassed,
'Doin' just fine!'

And the other person says:
'So what are you up to?'

What kind of question is that? At that point, I'm thinking this is too bizarre so I say:
'Uhhh, I'm like you, just traveling!' 

At this point I am just trying to get out as fast as I can when I hear another question.
'Can I come over?'

Ok, this question is just too weird for me but I figured I could just be polite and end the conversation. I tell them 
'No..I'm a little busy right now!!!' 

Then I hear the
person say nervously...
'Listen, I'll have to call you back.  There's an idiot in the next stall who keeps answering all my questions 


Cell phones, don't you just love them

小哲理

你开着一辆车。在一个暴风雨的晚上。 你经过一个车站。 有三个人正在焦急的等公共汽车。 一个是快要临死的老人，他需要马上去医院。 一个是医生，他曾救过你的命，你做梦都想报答他。还有一个女人/男人，她/他是你做梦都想嫁/娶的人，也许错过就没有了。但你的车只能在坐下一个人，你会如何选择？我不知道这是不是一个对你性格的测试, 因为每一个回答都有他自己的原因。 老人快要死了，你首先应该先救他。你也想让那个医生上车，因为他救过你，这是个好机会报答他。还有就是你的梦中情人。错过了这个机会。你可能永远不能遇到一个让你这么心动的人了。在200个应征者中，只有一个人被雇佣了，他并没有解释他的理由，他只是说了以下的话：'给医生车钥匙，让他带着老人去医院，而我则留下来陪我的梦中情人一起等公车!'每个人我认识的人都认为以上的回答是最好的，但没有一个人（包括我在内）一开始就想到。

小哲理：是否是因为我们从未想过要放弃我们手中已经拥有的优势（车钥匙）? 有时，如果我们能放弃一些我们的固执，狭隘，和一些优势的话，我们可能会得到更多。

学生门学学“默默耕耘，不问收获”

http://pilow.bokee.com/viewdiary.41103969.html

Subsequent Event/Post Balance Sheet Event

What is this event? A party that you are going to? Nono, this is the exam that you are going to!

What is this event referring to? Event = Business Transaction!

This is the business transaction that is related to a certain period which is the Balance sheet dat.

So there is two very important thing that you should take note here. Balance sheet date and Event.

Balance sheet date mean the reporting period that the Company is referring to: for example your reporting period is between 1 January 2008 to 31^st December 2008.

Subsequent event mean transaction that happen after the reporting period, namely after 31^st December 2008.

So as an auditor what should you look for?

The primary responsibility to deal with Subsequent event is not the responsibility of Auditor but Director. However auditor will always carry out their audit after reporting period therefore during their audit the will need to take it into the audit program.

There are 2 types of subsequent event namely adjusting event and non adjusting event.

Adjusting event is the event that is related to the reporting period; Non adjusting event is the event that not related to the reporting period

Generally, for adjusting event you need to adjust to the reporting period and non adjusting event you will need to disclose if it is material.

Auditor need to aware of 2 main aspects

First what are the audit procedures for Subsequent event?

Secondly what are the auditor responsibilities at different stages?

Summary of Procedures:

Procedure normally integrated as part of verification of year end balance

1. Inquiries of management
   
2. Correspondence with solicitor
   
3. Review internal statement prepared subsequent to balance sheet date
   
4. Review records prepared subsequent to the balance sheet date
   
5. Examine minutes subsequent to balance sheet date
   
6. Obtain a letter of representation
   

Auditor will not have the primary responsibility however since this will b e part of their Audit work therefore they would have to report on what they have gathered during their audit procedures

Therefore before issuing of audit report auditor will have the responsibilities to select sample and test for material subsequent events

Subsequent to that, and before issuance of audit report, they will only take a passive move which they will have to depend on the Director to report/inform them on any subsequent events.

If it is before the issuance of Finacial statement, Auditor will still have the chance to reissue their Audit report should there be any changes in the Financial Statements.

If it is before the AGM and after issuance of FS then Auditor will only be able to report the impact during the AGM

Note: the above is just a brief explanation and the objective is to help you to understand the basic concept of the topic. Please refer to the handout for more details. Should you required further information, please do not hesitate to contact me by leaving your comment or email me.

My contact for students

If you need my MSN please email me !

List 6 audit procedures and reason for taking each procedure-ACCAF8

The above seem to be the favorite for you examiner in Q1.

Let do more detail on this area by looking at December 2007 Q1

"Parts inventory is monitored by the stores manager. When the quantity of a particular part falls below re-order level,

an e-mail is sent to the procurement department detailing the part required and the quantity to order. A copy of the

e-mail is filed on the store manager's computer:

The copy of email serve as the purchase requisition and all purchase system start with purchase requisition!

Staff in the procurement department check the e-mail, allocate the order to an authorised supplier and send the order

to that supplier using Electronic Data Interchange (EDI). A copy of the EDI order is filed in the order database by the

computer system. The order is identified by a unique order number

The order here refers to the purchase order as it has sent to the Supplier via EDI

When goods are received at DinZee, the stores clerk confirms that the inventory agrees to the delivery note and checks

the order database to ensure that the inventory were in fact ordered by DinZee. (Delivery is refused where goods do

not have a delivery note.)

This is when good are received and arranging to go into the warehouse

The order in the order database is updated to confirm receipt of goods, and the perpetual inventory system updated

to show the receipt of inventory. The physical goods are added to the parts store and the paper delivery note is

stamped with the order number and is filed in the goods inwards department

This enter the recording part which will decide whether your inventory will be accurate at day end

The supplier sends a purchase invoice to DinZee using EDI; invoices are automatically routed to the accounts

department. On receipt of the invoice, the accounts clerk checks the order database, matches the invoice details with

the database and updates the database to confirm receipt of invoice. The invoice is added to the purchases database,

where the purchase day book (PDB) and suppliers individual account in the payables ledger are automatically

updated.

This focus on the quantitative part on the final part of the purchase system which you need to handle with care

Dear and dearest look at the requirement properly. They need a test on the system therefore it is test of control!

So you should start with the sequence and take into some general areas which you can whack (standard area)

Purchase requisition

Select sample and trace the Email order (purchase requisition) to your order database (purchase order) to check for accuracy

This is to ensure that there is no arithmetical error in the error database

Purchase order

Select sample from order database and check to authorized supplier list to ensure only authorized supplier received the order

This is to ensure that only authorized supplier is recorded in the database and no fraud or negligence occur

From the order database also, check to the physical good received and the records to ensure the right inventory has been received

This is to ensure that the right inventory with the right quality is being received (physical security)

Good received in warehouse

Order database will then be selected to match with paper delivery note (or the other way round)

This is to ensure that all good order have been received (physical security)

In the financial system

In this part you need to look at the whole financial system example

From Purchase invoice matching to purchase ledger, purchase ledger matching to the ledger account and also towards the Payable listing.

Generally this is to ensure that no arithmetical occur and most important proper recording in the financial system.

Note:(Financial system is the process of financial recording form your source document to financial statement)

General area

Since it is IT environment testing of the control is essential

Reliability and accuracy of the processing is also important

With the above you surely have more than 12 points to write

Note: the above is just a brief explanation and the objective is to help you to understand the basic concept of the PYQ. Please refer to the Answer for more details. Should you required further information, please do not hesitate to contact me by leaving your comment or email me.

At a cross road

Well late evening sitting alone in the café great music around me and the piggy chatting with me.

For 30 years I have been living this way! Should I change? I have never really thought of that? I have been very adventurous for the past years and should I stay on to be adventurous or it is time that I really think of stability.

I have had very challenging life, often getting hit songs during the past 30 years and really making wonders which shock many many of you out there!

I seldom do it according to the book (no worry nothing illegal). Yet it pay dividend! Fruitful and exciting!

But often what you get is far less than what you give. Maybe should use this time to really think about it.

It is time to make a comeback and have more hit song in life. It is a tough decision to make. Maybe I am too comfortable with what I have now.

Yet they told me those who should shoulder the burden should not stay behind the scene, come out and make it happen again

Or should I just do what I wanted to do?????

What say u?

 

Computer Audit

Well usually when it comes to the Computer Audit the following will be the hot topics

1. Audit around computer and audit through computer
   
2. Advantage and disadvantage of using It in Audit
   
3. Discuss the use of computers in relation to the administration of the audit
   
4. Explain the use of computer assisted audit techniques in the context of an audit.
   
5. Discuss and provide relevant examples of the use of test data and audit software for the transaction cycles and balances mentioned in sub capability
   
6. Control that exist in the IT environment

Item 1-3 I would consider as easy to handle however for item 4-6, you need further understanding as it might require you to relate to a scenario especially the Control that exist in IT environment.

Item 2 and three I believe you can find it in the lecturer notes therefore I am not going to touch on it. Let's look at the remaining areas:

Bear in mind when it involve IT system, usually you will have three key process, namely input, process and output. Therefore the control and audit for IT environment will also be focus on the 3 principles.

It simple, Audit around computer mean audit on the input and output on the IT environment and skip the audit on the processing function, whereas audit through the computer will involve audit of the Input, process and output of the IT environment.(Please refer to the notes for further details)

You examiner seem to like CAAT and focus on audit software and Test data.
Now in layman term how to define them. Audit software is like any other software and its purpose is to help auditor to audit, it is a tool that auditor use to audit. For example computerized audit working paper can consider as audit software too. Test data is date that auditor used to test the reliability of the IT system of the client it can live or dummy data.

Don't think that it is complicated. It is not

For example Audit software is just software, the main function included:

1. Reading files
   
2. Select information
   
3. Performing calculation
   
4. Creating data files
   
5. Printing reports

Test data in layman term mean data used by auditor to test the Client IT system. The auditor will prepare separate data and have it loaded into the client IT system. Then the system will have to process those data. The end objective is that the system must reject those data as those data are fictitious data. If the system process those data at the end of the day the system is consider not reliable.

As far as I am concern there are 2 type of control that you should put in place for IT environment, namely: Application control and General control

Application control aim to control at the 3 key elements of IT system namely:-

1. Control over input
   
2. Control over process and
   
3. Control over output

This is more specific type of control aiming at the three key areas

General control is more towards administrative control; it can be segregated into 2 key areas:

1. General control on system development
   
2. General control on administration

The above are the type of control and the control element will be listed under the Program and manual control

Note: the above is just a brief explanation and the objective is to help you to understand the basic concept of the topic. Please refer to the handout for more details. Should you required further information, please do not hesitate to contact me by leaving your comment or email me.

ACCA PYQ

I used to keep somewhere between 1994 till recent but the 90s question is not with me now

God bless let see what i can do

Further if you know of any of my previous students they might have a complete set

Cheers

Your Request

Dear Sir,

The questions in the F8 revision notes are good. Was wondering if you got the answers to those questions? It feels better to have a set of the answers to fall back on, after practising the questions. Also, i've left a comment on your blog. Not so sure if it's really posted in. I'll ask here anyways. Was wondering if you could do a write up in your blog about the computerised auditing system that you mentioned during the 18 hours of your lecture? i think that'll be good as it may help us (or me, at least) to better understand and appreciate the topic (and hopefully it comes out in the exam!). just a suggestion :)

also, would like to thank you for the execellent (and not to mention 'gruelling') 18 hours. The knowledge gained is incredible (and keeping my fingers crossed, help me to score a pass in F8). It was great to finally have learned from you after hearing so much about you before actually meeting you in person!

THANKS !

Sincerely,


Will get back to you soon

The Letter that bothers you

Well if it is about love letters I believe it is easier to handle.

However what we need to face now is not love letter but letter in relation to Audit.

Commonly you will have engagement letter, management letter and letter of representation (management representation) in the audit environment.

Engagement letter (EL)

This letter is between the Auditor and the Audit client. It made me worried when student is not able to understand some basic fact about EL

EL is a letter sent by Auditor to the Board of Directors(BOD). This is a contract between the Audit firm and the Audit client. Since BOD manage the Company, it should be address to the BOD.

EL should be sent out prior to commencement of the Audit process (prior to Audit Planning)

The purpose is to

1. Define clearly the extent of the auditors and directors' responsibilities
   
2. Reduce the possibility of any misunderstanding between the client and the auditor
   
3. Provide written confirmation of the auditor acceptance of the appointment
   

Al though it is a best practice to sent out EL on yearly basis however this practice has its disadvantages too. It will be costly and impracticable for Auditor to do so and Audit client might not like such practice too.

It will be good if A EL is re-sent based on the following situation:-

1. Any indication that the client misunderstand the objectives and the scope of audit
   
2. A recent change of management, board of director and audit committee
   
3. A significant change in ownership such as a new holding company
   
4. A significance change in the nature or size of the client business
   
5. Any relevant change in legal or professional requirement
   

Management Letter (ML)

This is the "love Letter" sent from Auditor to the BOD after they have completed their audit work (Audit Review) and before the issuance of the Audit report

Do remember that it is the Director responsibilities to detect fraud and improve weaknesses of the Company. However Auditor needs to highlight to the Company if they come across any of the fraud and weaknesses. So how will Auditor communicate with Director on this subject? They issue Management Letter.

Therefore in simple, ML highlights the weakness or possible fraud in the Company which auditor identified during their normal course of audit.

Remember by issuing the ML, Auditor will reduce the Audit risk and discharge their responsibilities as their responsibilities is to highlight and report any subsequent action taken will be the responsibilities of the Director.

In the content of the ML there are four major contents namely; the weakness highlighted, the impact to the Company, suggestion by auditor to resolve the weakness and Management Action (reply by management on what they will do to mitigate risk).

Letter of representation/Management representation (LOR)

Well this is the letter Auditor should receive prior to issuance of Audit report. Without the letter of representation Auditor should not issue audit report as this generally increased the Audit risk should such letter is not in the hand of the auditor.

LOR is a letter sent by the BOD to the Auditor. The purposes of the letter is to Confirm director judgement on various issue especially area involved estimation. This is also to ensure that auditor have been informed of all facts that are relevant to the company.

If the management refuses to provide written confirmation of a representation that the auditor consider necessary, the auditor should consider the implication of this scope of limitation on the report

Note: the above is just a brief explanation and the objective is to help you to understand the basic concept of the topic. Please refer to the handout for more details. Should you required further information, please do not hesitate to contact me by leaving your comment or email me.

Yes you are welcome

Yes of course! Even you are not my students do ask any question and I shall reply as soon as I can!

Thank You, my fellow students

Finally I have completed the 18 hours session of IRC. I really hope that I have given my best to help you in the past 18hrs.

It was my pleasure to be with all you in the past 18 hrs and I hope we can meet again of course in other occasion.

It was the initiative by KSA to have a special revision class aiming to provide an alternative lecturer to students who repeated many time on this killing papers.

Or the idea with KSA is fairly simple: to help student to pass exam in whatever way we can. Personally I don't like having big class. This merely a personal preference and with that way I am more relax and be closer to students. I can devote more time talking to student, listen to their problem and help them in whatever way I can.

I believe for I have slim down quite a lot for the past few days as there was no time for break and meals. But I am fine with that at least I can utilize those times to help students in the preparation for their examination.

A more personal touch with student will generally help them to better understand their problem. I hope everyone will pass for this examination as I can see how hard you have tried and how serious you are in your preparation. My salute towards your determination at courage especially those who will need to take several tasks at the same time.

Don't worry, I will be with you even though I am not in KL but let communicate through this blog. Be tough and I believe the door of success is waiting for you

It was merely passion to be involved in the process rather than any other agenda. There were many rumours around but our objective is simple, that is for you my fellow students!

May ACCA be a sweet dream to you instead of a night mare!

Sincerely

Layman

ACCA F8

For All F8 students these are good articles to read

Good luck

http://www.accaglobal.com/pubs/students/publications/student_accountant/archive/sa_apr08_lewin.pdf
http://www.accaglobal.com/pubs/students/publications/student_accountant/archive/sa_oct08_lewin.pdf

Dunno Why?

I think this is always a learning curve. Learning to cope with changes in life and learning to cope with unexpected issues in life.

Different people would have different faith in life and no matter how you need to face it. How to face it, I believe the first thing you should learn is ignore other people opinions and their gossip.

You need to stand firm and get yourself going. Although I am not as old as lot of people but I believe I have my fair share of faith in life.

You can forecast those faith the only thing you can do is to adjust yourself and face it.

What I always do is to pray. I don't regard myself as a holy person but I think that help. Allow yourself sometime each morning and night pray for peace in you, pray for wisdom that will grant to you and pray that you have a good day and good sleep.

That is important for you to face your daily challenges and it will give you more spirits. Well what else?

Motivate yourself, find a way to release your tension, of course in a legal way and do not disturb the other. I use to listen to music and watch movie when I am down but I believe now I can release it through my blog here. Don't get into the business of scolding people or throwing thing it will make others look down on you.

I believe one of the reasons that my staff like about me is that I have never release my tension on them. We do have argument but it is always constructive and handle in clam, they wonder why I have never release on them and one day one of them did asked me why?

My reply to him is simple: "You want to try". We end that conversation in a loud laugh!

Now keep standing up and face the challenges ahead. If you do not face one do help those who are facing it. God bless you!

One night in Bangkok

Part 2 Food – Chinese Food in Thailand

Ok now let's talk about my favorite "Chinese Food in Thailand".

Actually when visit Thailand I believe "Tom Yam Kung" is the first thing that you should try, no doubt! Other Thai food as mentioned by my previous post should not be missed out too. However my favorite is still "Chinese Food in Thailand"

Now why did I keep mentioning this "Chinese Food in Thailand". Because you will find those Chinese Food there very different from what we have here. Maybe the Thai Chinese have had after long years create their own ingredient and cooking style hence this created a new range which I regard as "Chinese Food in Thailand".

However you might also be surprise that some of the cook is actually from the PRC and Hong Kong. Now let me start off with those within the Ratchadapisek area since I have recommended for all of you to put up there.

Kwong Seafood 光海鲜

Walk out from the Palazzo Hotel right opposite your Hotel there is a restaurant that open till midnight. The name of the restaurant is "Kwong Seafood". You will see fresh seafood displayed in front of the shop and for you to choose. Now your next question is what is GOOD? Well generally your focus here should be on those fresh seafood and probably some crabs. Try their fried rice it is great however I will not recommend you to try their shark fins soup. There is a better place to go.

Hing Restaurant 兴酒家

This restaurant is situated in the inner Soi(small lane/lorong) area which is not far from the hotel too. Now get back to the Pallazo Hotel as the center point again. Now walk out from the Hotel to the Main Road turn right. You right hand side is the Emerald Hotel. Walk straight till you reach the Dental Hospital (white colour building-hope they have yet to change to any colours) immediately after the dental hospital turn right walk straight you will then see the Hing restaurant on your left hand side. So what is good there?

This time you should try their shark fins soup or for those who think having shark fins soup is a sin then try their fish maw soup. Now don't be stingy get the best as they have different price category. They serve one of the best try it. Then what else? There is one special dish here which is the fish maw fried with prawn. The best fish maw I have ever tried before. Still other you should order other type of sea food and before I forget tries those Oyster fried with egg. This is similar to our Penang friend Oyster but Thai Fried oyster with egg is much much better. Trust me after a bowl of sharks fins or the fish maw soup it is enough to keep your stomach at work. It is real quality.

Shan Dong Restaurant @ Robinson

After the Dental Hospital walk straight you will then see Carrefour then after Carrefour you will see Robinson. There are many restaurants in front of the Robinson. There is one Chinese restaurant beside Swensens. Try it. Try their mutton, mushroom, chicken soup and eggplant.

Open Air porridge stall

Now this is the best place for supper, well they serve dinner too. But this is always the place to go for supper light supper. Well in Bangkok, if you are back to the hotel b4 12 you are wasting your time in Bangkok. Now where to find the place? Remember the Dental Hospital that lead your way to Hing ? Instead of turning right to Hing cross over to the other side of the road you will see the open air place which I am sure there are lot of people enjoying the mail there. For those TeoChew porridge lovers you will certainly know what to do order.

Generally everything there is good and prices are affordable. You can ask them for the menu and try those foods that you have not seen in other places. Explore while you are there you will not regret.

Well the next post I shall introduce you to places outside Ratchadapisek. It is too bored to talk about Ratchadapisek. Stay tune

40 Tips for A Better Life

A friend sent this; share with you!

1. Take a 10-30 minutes' walk every day. And while you walk, smile.

2. Sit in silence for at least 10 minutes each day...

3. Sleep for 7 hours.

4. Live with the 3 E's -- Energy, Enthusiasm, and Empathy.

5. Play more games.

6. Read more books than you did in 2007.

7. Make time to practice meditation, yoga, and prayer. They provide us with daily fuel for our busy lives.

8. Spend time with people over the age of 70 & under the age of 6.

9. Dream more while you are awake.

10. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants.

11. Drink plenty of water.

12. Try to make at least three people smile each day.

13. Don't waste your precious energy on gossip.

14. Forget issues of the past. Don't remind your partner with his/her mistakes of the past. That will ruin your present happiness.

15. Don't have negative thoughts or things you cannot control. Instead invest your energy in the positive present moment.

16. Realize that life is a school and you are here to learn. Problems are simply part of the curriculum that appear and fade away like algebra class but the lessons you learn will last a lifetime.

17. Eat breakfast like a king, lunch like a prince and dinner like a beggar.

18. Smile and laugh more.

19. Life is too short to waste time hating anyone. Don't hate others.

20. Don't take yourself so seriously. No one else does.

21. You don't have to win every argument. Agree to disagree.

22. Make peace with your past so it won't spoil the present.

23. Don't compare your life to others'. You have no idea what their journey is all about. Don't compare your partner with others.

24. No one is in charge of your happiness except you.

25. Forgive everyone for everything.

26. What other people think of you is none of your business.

27. GOD heals everything.

28. However good or bad a situation is, it will change.

29. Your job won't take care of you when you are sick. Your friends will. Stay in touch.

30. Get rid of anything that isn't useful, beautiful or joyful.

31. Envy is a waste of time. You already have all you need.

32. The best is yet to come.

33. No matter how you feel, get up, dress up and show up.

34. Do the right thing!

35. Call your family often.

36. Your Inner most is always happy. So, be happy.

37. Each day give something good to others.

38. Don't overdo. Keep your limits.

39. When you awake alive in the morning, thank GOD for it.

40. Please Forward this to everyone you care about.

The power of Past Year Questions (PYQ)

This is my personal experience on ACCA Examination

If you ask whether it is proven? Well at least one me! I have also share this with student during my lecture or when I conduct those seminars on Study and Exam Techniques

Today I shall share this with you too.

I always begin my own intensive revision on either May (for June Examination) or November (for December examination).

The first thing I will do is actually to revise the subject once then the lecturer note and the text book will then on the "Supporting Role".

Before I start this process I will always do an important step, which is collecting all relevant PYQ. Do up a PYQ analysis and stick it on the wall. (If you need any past year analysis do email me)

Then I will start practicing the Past Year Question. Usually I will do it based on each sitting instead of select those question that I "want " to do only. This is wrong.

Very important is that I will time myself according to exam condition. How to determine how long I should spend on each question?

Every mark you should spend 1.8 minutes. For example if the question is 5 marks the "maximum time spend is (1.8minsX5 marks) 9 minutes.

The first few time will always be painful and tough.

You will definitely face question that you don't know what to do. Never mind face it. Force yourself to write something that you think is relevant.

Now remember this, during exam if you write NOTHING, you gain no marks, if you write something there are chances that you might get it right, so try it during practice at least you try your best.

Ok them times up look at your A4 paper how much can you write? Now actually no of pages you wrote is not really that important but it is an indication.

If you wrote only a few lines then you have lots of do in the next 1 month. If you have 1 page as a result then you also have lots to do in the next few weeks

However if manage to write 2 pages or more then you are good (this is based on a question of 20 marks –average)

Now if you write 2 pages and below go back to your notes or text book do your revision again on the relevant topics

If you write 2 pages and above congratulation you can now proceed to read the Past Year answer!

Why? Less than 2 pages mean that you don't understand that subject so go back to revise again instead of reading the answer which will confuse you more.

More than 2 pages don't mean your answer is right but at least you can write and reward yourself by reading the answer as the short cut. However it doesn't end there!

When you read the notes or answer take a red pen with you. Whenever you read something which is not include in your practice answer write it down on your A4 paper the more the merrier.

Why do you do that? Answer is simple, the next time you do your revision read your Answer together with all the reddish part you will then know your mistakes and learn from there. This is the most effective short cut.

Practice this again and again on the PYQ, you will find that PYQ become easier each time you practice especially on similar topic which you have attempted before.

Make sure you keep all these practice answer then revise from time to time. You can do that when you travel, while you are waiting for something, when you are taking a break. These become your self-create notes for your exam. This will also be the best material/resources you have and revise it a day before exam. As you will read all the mistakes you make and never repeat it again.

Good Luck, any questions leave a comment or email me.