Ftc Exam tips Part 2 Papers

Ftc Exam tips Part 2 Papers (a)

Paper 2.1
Managing Information Systems
* Accounting for IS/IT costs
* Staff roles and responsibilities
* Flat project based structure
* Project management and control
* Centralisation/decentralisation
Designing Information Systems
* Methodologies
* Modelling
* Invitation to tender
* Quality software characteristics
* Decision table
* Testing
Evaluating Information Systems
* Changeover techniques
* Documentation
* Training
* Maintenance
* Post implementation issues


Paper 2.2
Offer and acceptance.
Partnership
Agency
Director’s duties
Capital and financing of companies.


Paper 2.3
This is the 12th and last Paper 2.3 examination being set by the examiner. These may be the important areas this time in June 2007 examination
Section A
Q1 - Corporation Tax
CT Losses with adjustment of profits with capital allowances & industrial buildings allowance and some calculation of chargeable gain.
Q2 - Income Tax
Trading income assessment, Employment Income leading to income tax and possible gains tax payable.
Section B
Q3 - VAT
VAT return - calculation of VAT payable
Default surcharge
Cash accounting
Tax point
Q4 - CGT
Capital Gains Tax
Rollover and Gift Relief
Capital losses
As from June 2005 exam, the format of the exam has changed and questions 5 to 7 can now be set on any topic
Groups – losses or Gains group
Partnership with losses
Disposal of business with capital allowances, CGT and some planning
CT – Long period

Continued Growth and Success in 2006 for ACCA

Growth in student (14%)and membership (5%) numbers was impressive, with new totals of 296,056 and 115,345 respectively. Globally, the fastest member growth area for 2006 was in South East Asia and Africa, while Central and Eastern Europe saw particularly high student increases. Member retention was at a high of 97%.

Long-term working partnerships were also forged with leading global organisations including CGA Canada and other accountancy bodies in countries including Argentina, Botswana, Cyprus, and Egypt.

Commenting on the successes of 2006, Allen Blewitt, ACCA’s Chief Executive, said: “Extending our global reputation through partnerships has been a particular success in 2006. We now work with over 50 accountancy bodies around the world. With these partners, we are extending global recognition and increasing the range of services available to our members. ACCA’s qualifications are now taken in 140 countries – all under the same global syllabus and examination methodology.”

In 2006, ACCA won new significant consulting projects in Jamaica, Kosovo, Pakistan, Poland, the Slovak Republic, Sierra Leone and Trinidad & Tobago. ACCA also made significant contributions to regulatory policy around the world, including working with the Australian Tax Office on income tax assessments and on the liberalisation of services, offshore funds and companies regulation in Hong Kong.

ACCA also developed its influence in the public sector, notably in the healthcare field. A study tour was held in Beijing with senior financial managers from local hospitals. And ACCA also launched its healthcare manifesto called Accounting for the Nation’s Health, which received substantial exposure in the UK and US.
Another major development in 2006 was the development and launch of the Cambridge International Certificate in Financial English (Cambridge ICFE) developed through ACCA’s partnership with the University of Cambridge English Speakers of Other Languages (ESOL). The first examinations will be taken in May 2007.

During the year, ACCA launched its new qualification, the result of extensive consultation in 2005 amongst members. Putting ethics and professionalism at the heart of accounting, the new qualification includes a new Professional Accountant module examination and a compulsory ethics module. The first examinations will take place in December 2007.

Blewitt concluded: “The future goals set by ACCA’s Council are challenging - by 2010 we aim to be the leading global professional accountancy body by reputation, influence and size. We value the views of our stakeholders on how we should take ACCA forward and it is encouraging that through surveys, 97% of Approved Employers said they intended to remain with ACCA and 80% said they would recommend the qualification to other organisations.”

Key Challenges and Opportunities for CFOs

An international panel of distinguished speakers from ACCA, Government and business shared their views and expertise on a wide range of subjects, including: the impact of Basel II and global regulation on the banking sector; the adoption of XBRL and related standards development; narrative reporting; money laundering; and sustainability reporting.

In his key note address, Dennis Yeates, ACCA President, focused on professional ethics. With ethical decisions not as clear cut as choosing between right and wrong, Yeates contended that this is a significant challenge for CFOs. He argued that, in addition to maintaining their technical competence, professional accountants must attend to the development of appropriate attitudes and behaviours.

The last session of the conference addressed the need to recruit more women in to the accounting profession in Pakistan. Ms Kashmala Tariq, Member National Assembly, who has spearheaded legislative reform to promote gender balance, appreciated ACCA's role as a modern professional accounting body, committed to advocating a role for women in the accounting profession. With young girls in schools and colleges outperforming boys, the prospects for women in the profession in Pakistan are bright.

Paper 3.1 – Hot Topics for June 2007 exams

Audit and Assurance Services

Paper 3.1 – Hot Topics for June 2007 exams

For 3.1, the hot topics for this coming June 2007 exams include:

a) Business risk identification (see past exam papers from June 2003 to Dec

2005). Prepare for identification of business risks and how the company

should manage the risks or what internal controls will help to reduce those

risks. See June 2003 Q2 and Dec 2004 Q1. Also linking business risks to FS

risks like Dec 2003 Q1a.

b) Almost likely a question on identifying principal audit risks/financial

statement risks. See past papers (plenty of them esp. the ones in 2006). Would

expect maybe the same question for financial statement risk as in June 2006

Q1b)

c) Group audit and acquisition. Impact of an acquisition on the audit (see past

year exam like Pilot Q1, Dec 2001 Q1). Include audit strategies/approaches.

See June 2005 Q2 and June 2006 Q2 on due diligence and what factors to

consider before accepting the engagement. Though appeared recently, may

come back again!

d) Planning is important. Planning issues to consider – See June 2002 Q2a, Dec

2002 Q1a. Calculate planning materiality as in June 2006 Q1a)

e) Auditing prospective financial information, PFI (see Dec 2002 Q2), including

reporting on PFI. Take note!

f) Quality controls – practice management, setting of fees, paying commission

for referrals. See Dec 2001 Q2.

g) Working papers – See article in Feb 2007 student accountant magazine. Very

important. The article already stated the possible question she will ask. My

question is “Explain the reasons for preparing and keeping working papers and

the importance of reviewing them”. Read, understand and memorise!

h) Insurance (define PII and FGI, factors affecting the amount of cover, adv and

disadv of insurance).

i) Accounting problems/issues (the usual Q3) - Important areas include leases,

deferred tax, related parties, earnings per share, provision, government grants,

impairment, investment property, going concern.

j) Ethical issues facing the auditor – practice lots of Q5 and take note of

confidentiality. (Identify circumstances in which the disclosure is permitted or

required and discuss the factors, which may justify disclosure under public

interest)

k) Assurance and other services – review, agreed upon procedures. Explain why

agreed upon and compilation engagements do not (usually) meet the

requirements for an assurance engagement and illustrate the form and content

of a report of factual findings

l) Ownership of documents/books and working papers. Explain the general

principles governing the ownership of and right to access to documents and

papers. Explain the legal right of lien and describe the circumstances in which

it may exercised. The extent to which clients and third party may have access

to documents and papers.

m) Responsibility for summarized financial statements , financial reporting on the

internet (see Dec 2003 Q4bii)

n) Reporting – The usual Q4 audit report. But must also be prepared for

Review/Agreed upon procedures and reporting. (see item k above)

o) Outsourcing of accounting function to service organization and it’s impact on

the conduct of the audit (relying on service organization)

p) Identify circumstances in which auditor may have legal liability and explain

the other criteria for legal liability to be recognized. Distinguish between

liability to client and liability to third party. Lastly, discuss the advantages and

disadvantages of audit liability claims being settle out of court. (this section

never being examined, maybe a Q6 this June??)

q) Environment and the auditor (Pilot Q6). Small company audit exemption. Any

recent article by Kim? If yes, must study that. If no article, do not attempt Q6.

Do Q4 instead.

THE END

Paper 2.6 – Hot Topics for June 2007 exams

Paper 2.6 – Hot Topics for June 2007 exams

Professional ethics including conflict of interests (see June 2003 Q3a) and confidentiality (See

Dec 2003 Q6).

Factors to consider before accepting an engagement (a fairly standard question that every student

must prepare) plus appointment clearance procedures and engagement letter (content, must we

send it every year?) – See new Pilot Paper F8 Q2, June 2004 Q2.

Internal audit (IA) will be featured. The role of IA in risk management and organizational control

(See Dec 2001 exam qn). IA vs External Audit, scope and objectives of IA (See old Pilot Q3)

Probably one question on risk assessment, identify risks and what audit procedures will you

perform to address the risks. Could combine with analytical procedures (see below), given two

years of BS and P&L, use AP to comment on the company’s performance and identify the risks

and then what you will do in response to those risks. (Practice lots of risk questions). See

management of risk – See June 2004 Q1. (can combine with role of IA in risk mgt, Dec 2002 Q6)

The control objectives and internal control procedures you would expect to find in a purchase or

payroll systems. Recommendations for improving weaknesses found. Theory of IC important too!

The substantive tests used to gather audit evidence in respect of major assertions (completeness,

existence, valuation and allocation, accuracy, cutoff), especially in relation to accounts receivable

and creditors/accrual audit. See Pilot F8 Q1 (Important to note Alan’s style of procedures)

Prepare for contingent liability, provision audit. (see June 2003 Q3b)

Review stock audit – see perpetual inventory system, stocktake instruction (See June 2003 Q2

and June 2004 Q3).

Corporate governance (benefits, why the codes are not compulsory) audit committee (functions,

how it increase EA effectiveness).

Review vs Audit (See Dec 2001 Q5).

The use of analytical procedures during the planning, evidence gathering and review stages of the

audit process. (IMPORTANT TOPIC!) – do all past papers with this AP topic.

Working papers (types - permanent vs current file, content of WP, and what makes a good set of

WP, see the latest Feb 07 article on WP).

Responsibilities of auditors and directors over detection of fraud. Actions by auditors if fraud

discovered.

Never give up audit reporting. Must know the types of report and what report to give under

different situations. Link up fraud and audit report. (See June 2002 Q3)

Audit of small company (See Dec 2004 Q5)

Take a look at the entire new Pilot Paper for the new syllabus Paper F8 (it’s set by Alan!)

** LOOK OUT FOR ANY ARTICLES BY ALAN, maybe one more nearer the exam. This is the

fifth exam by Alan. The above topics are just my GUESSES. Use at own risk!

Best Of Luck For the Exams

ESRA to Drive European Sustainability Reporting

Helle Bank Jørgensen, chair of ESRA and Partner with PricewaterhouseCoopers explained: “The launch is very timely as more and more companies disclose how they comply with the growing demand from stakeholders to take responsibility and operate transparently, by issuing sustainability reports outlining their social and environmental policies and performance.”
The aim of this new, exciting ESRA project is to improve sustainability reporting in Europe. Each European participant (all committed sustainability experts) provides a summary of their respective country’s reporting developments. These reports, along with key regional statistics provided by Corporate Register, have today been launched on the new ESRA website – www.sustainabilityreporting.eu

Robert Strauss, head of unit in DG Employment at the European Commission says: “This is a particularly useful project as it acts as an information source for anyone wanting information on European sustainability reporting. It also drives performance improvements and enables countries and individual reporters to compare their performance with other reporting regions and potentially learn new best practice methods and trends that could be implemented in their own reporting.”

Participating countries in this pilot year are the UK, France, Portugal, Switzerland, Belgium, Russia Austria, Denmark, Finland, Ireland, Italy, Netherlands and Sweden, along with a contribution from Robert Strauss describing the overall situation in Europe. There are plans to invite other European countries to participate in the 2007 project.

Vicky McAllister, social and environmental project co-ordinator at ACCA and the UK’s participant in ESRA says “These reports will be useful for companies, governments and assurance providers to benchmark sustainability reporting practices against other countries, for example, there is a clear trend towards integrated financial and sustainability reporting, to varying degrees for each country. The UK is one of the countries who are moving towards this method of reporting, with many large listed companies including detailed sustainability information in their Annual Reports, some even integrating their entire report. SRI analysts can also consult the website to get an overall picture of which European countries are ahead in the field of sustainability reporting”

Triumvirate Join Forces for Indian Training

The diploma provides extensive knowledge about the concepts, principles and applications of international accounting standards in the marketplace. Starting April, the staff will be trained by specialist finance and management tuition providers from GTG.

ACCA is the largest and fastest-growing global professional accountancy body and has 296,000 students and 115,000 members in 170 countries.

Commenting on this initiative, Piyush Mehta, Senior Vice President & HR Leader, Genpact said, “Genpact is pleased to offer its employees in India access to an internationally recognised qualification, in partnership with ACCA and GTG. This programme provides our employees with the platform to further their domain knowledge and augment their understanding of international accounting standards. This alliance is yet another step in our quest to facilitate growth and excellence among Genpact professionals.”

Andrew Steele, Head of ACCA’s Strategic Business Unit - Middle East and South Asia, said: “Modern day accountants are aware that the profession’s focus is shifting from national to international standards. As the business world shrinks, this Diploma equips financial professionals with the necessary knowledge and skills to enable them to operate even more successfully on the international stage.

The benefits of the DipIFR are therefore clear for a company such as Genpact, which has a global outlook and reputation. By signing-up its staff to study for the DipIFR, Genpact is investing in its people. It is also ensuring that the company continues to play its important role in a competitive global marketplace.”

Get Through Guides’ CEO, Vandana Saxena Poria said, “It is wonderful to see global companies in India realising the importance of IFRS training. GTG’s training programme will ensure that Genpact staff will not only learn international accounting standards, but are able to competently and confidently apply the standards with the same skill level as a seasoned IFRS professional.”
ACCA has designed the programme to be flexible, so that the diploma can be completed in three to six months. The candidates enrolled in this programme are assessed by a single three hour examination. Any accounting practitioner or auditor, qualified in accordance with national accounting standards, is eligible to take the qualification.

For further detail of Genpact and GetThroughGuides, see:
http://www.imakenews.com/eletra/gow.cfm?z=accamember%2C174483%2Cb4pWgTbs%2C1404845%2Cb9kLq7P

Salaries Lift as Professional Shortages Bite

There is a consensus across the recruitment market that accountants need to develop additional skills to attract the highest possible salaries. Recent research from the UK's Association of Graduate Recruiters concluded that many job vacancies remain unfilled because employers look for stronger 'soft skills' from candidates, particularly in communications abilities.
Ian Graves, managing director for continental Europe of consultants Robert Half International, explained: “The traditional model of the accountant has changed. Today's accountants not only need financial acumen, but must also find a balance between leadership and managerial skills.”
A survey for Robert Half found that managers nominated communications skills (13%) and an open minded attitude (12%) as the most important attributes to develop. These were regarded as far more important than credit control management (named by 4%), risk management (2%) or corporate governance (1%).

Chris Cole, managing director of recruitment consultants Finance Professionals, said that several factors had driven up salaries. “There is a demographic shortage of candidates,” he argued, “with a shortage of candidates compared with peak years. There has been an increase in regulation – the Sarbanes-Oxley Act, MiFID, plus IFRS, and companies have become more aware of the need for stronger controls – and economic growth. That means a well qualified accountant with robust skills and who can work well with others can charge a premium.” Cole calculates that salaries have typically risen 10% to 20% in the last three years.

According to the annual survey of another consultancy, Robert Walters, “2006 [in London] has been characterised by a notable shortage of newly qualified accountants entering the job market.” Bonus packages have increased by 15% for newly qualifieds and by 50% for senior accountants. Employers have found the recruitment of internal auditors a particular problem, says Robert Walters.