FTC Exam Tips June 2007 PArt 2 Papers (b)

FTC Exam Tips June 2007 PArt 2 Papers (b)

Paper 2.4 FMC
• Investment Appraisal; to include NPV, IRR, tax, relevant costs, risk & sensitivity and lease or buy
• Sources of Finance; to include gearing, ratios, rights issues and other methods of issue and the problems of SME’s
• Working Capital Management; to include cash and/or stock
• Budgeting; to include budgetary systems and cash budgets
• Variance calculations
• Organisational objectives

Paper 2.5
Group balance sheet with an associate undertaking and fair value adjustments.
Cash Flow
Key accounting standards include: impairment, leases, segmental reporting.
Accounting theory based on the information needs of users.


Paper 2.6

Regular Tips
ETHICS - Objectivity Threats, Conflict of Interest (see below)
PLANNING - Practical Audit Risk Scenarios
CONTROLS - Suggesting control objectives and procedures
SUBSTANTIVE TESTS - Inventory, Receivables
REVIEW/COMPLETION - Going Concern audit work
REPORTS - Practical Scenarios
INTERNAL AUDIT / CORPORATE GOVERNANCE - Business Risk, Comparison of External v Internal Audit, Audit Committees