ACCA F8 - Audit and Assurance Revision Kit 2016

68 Blake
Text references. Chapters 8, 9, 10, and 11.
Top tips. This question is worth 30 marks and there is a lot of information to take in so it's easy to feel bogged
down and start panicking when you come to answer it. However, take a step back and tackle each part in turn,
treating it as a mini question. Using this approach makes the question seem less daunting and more manageable.
Part (a) should be straightforward on the control objectives of a wages system. This is worth two marks so assume
that it is ½ mark per objective so you need to state four objectives. Don't confuse control objectives with controls or
tests of controls – this is a common area of misunderstanding for F8 students.
Part (b) is for 14 marks and note that there are two marks going for presentation. Therefore assume the remaining
12 marks are for the content of your answer so make sure you state four deficiencies, consequences and
recommendations as required by the question. You could use a tabular format for your answer so that each
deficiency is correctly linked to its consequence and recommendation.
Part (c) is on substantive analytical procedures you could perform on the salary system – think about this before
you start writing. There are six marks available here so you need to plan your answer to this part first.
Easy marks. There are easy marks available in part (a) for the control objectives of a wages system. Part (d) should
also be straightforward as long as you don't just provide a list of types of procedure – you need to explain each
procedure and how they can benefit the auditor.
Examination Team's comments. The majority of candidates answered part (a) well. Overall, the standard of
answers for part (b) was high. A minority of candidates did not obtain a pass standard either due to a lack of
knowledge of wages systems or because this question was answered last and insufficient time was allocated to
produce a full answer. The standard of answer for part (c) was inadequate. Many candidates did not distinguish
between substantive analytical procedures, or simply provided vague points. In part (d) most candidates appeared
to understand the question and provided an appropriate range of procedures. Inadequate answers tended only to
list procedures and then provide little or no detail on the procedure itself.
Marking scheme
Marks
(a)
(b)
0.5 mark for each valid objective
Maximum marks 2
Management letter – 1 mark for each deficiency, 1 for each possible
effect and 1 for each recommendation = 3 marks* 4 sets of points = 12 marks
Logging in process not monitored
Overtime not authorised
Poor password control (cat's name)
Transfer total wages not checked
Employees leaving details sent on e-mail
Other valid points
4 points *3 marks each = 12
Letter format 1
Introduction and conclusion to letter 1
Maximum marks 14
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