TARC ACCA 2005

ACCA Exam Tips June 07 Part 2 collected from help of Coolly

ACCA 2.1 Exam Tips

FTC

Managing Information Systems
* Accounting for IS/IT costs
* Staff roles and responsibilities
* Flat project based structure
* Project management and control
* Centralisation/decentralization

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

BPP

The key issue about the exam format is that each section will have just one question on each major section of the syllabus.
The three key areas are: -
1. Managing information systems,
2. Designing information systems,
3. Evaluating information systems.

Overall there will therefore be 2 questions on each key area; one compulsory (section A) and one chosen (section B).

The section A questions are often in two parts, with the marks split evenly across the two parts:
- Part 1 - State the theory
- Part 2 - Apply the theory to the scenario

It therefore follows that unless students learn the scenario approach of extracting information from the scenario and applying this to their answers they will have difficulty in gaining a pass mark from section A.

Managing information systems
Business Strategy and IS/IT alignment
Delivering information systems – accounting issues
Project planning – Gantt charts
Organising IS – End user computing

Designing information systems
The information systems development process – Waterfall and Spiral models
Modelling user requirements – data flow diagrams
Developing solutions – Bespoke systems
Evaluating information systems
Implementing security – physical security
Implementation issues – training
Computer Misuse Act
Time/Cost/Quality Triangle

China Website

Managing Information Systems
• Data capturing technologies – Barcoding, OCR, OMR
• Business Strategy and IS Strategy
• Centralised and decentralised IS departmentS, Flat structureS
• Legacy System#
• Accounting issues – cost centre and profit centre
• Feasibility study – purpose*, issues on TOSE
• Project management – project sponsor and project manager, critical path analysis, Gantt chart, Terms of Reference, project planning stages

Designing Information Systems
• Methodology, Waterfall model, spiral model
• Functional and Non-functional requirements
• Models – process model, Structure model (ERD) and event modelS (ELH) (construction and notation)
• Tasks of external design*
• Supplier selection* – measures and metrics
• Bespoke solution and package solution
• ITT

Evaluating Information Systems
• Systems changeover
• Systems Maintenance and change control proceduresS
• Quality issues – QM, QA and QC
• Security issuesS
• Testing – unit testing, systems testing, user acceptance testingS, performance, usability testing (explanation & measures and metrics)
• Functional correctness and reliability (metrics)
• Decision table

# - in the pilot paper but has not appeared as real examination question.
* - in the syllabus but has not appeared as real examination question.
S - Spare topic



ACCA 2.4 Exam Tips

FTC

• 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

BPP

Section A
Section A is a compulsory 50-mark question based on a case scenario of about 1½ - 2 pages. It tends to contain questions on investment appraisal and sources of finance.

* Investment appraisal
* Sources of finance
* Working capital (probably stock management but possibly debtor management)

Section B

In section B of the exam there will be two questions on Financial Management – if investment appraisal does not appear in section A then it will definitely appear in section B, the examiner has never set a 2.4 exam which does not have an investment appraisal question. The other two questions will be on areas from the Management Accounting section of the syllabus.

* Modern costing techniques
* Variance analysis
* Responsibility and investment centers
* Sensitivity analysis, risk and uncertainty


ACCA 2.5 Exam Tips

FTC

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.

BPP

Section A

* Consolidated income statement (P&L) and/or balance sheet with one subsidiary plus associate (including adjustments for fair values, unrealised profit, intragroup trading, goods/cash in transit. Discursive part (b) on fair values or other group topic.

Section B

* Accounts preparation/restatement with adjustments e.g. current/deferred tax, depreciation, interest, substance over form issue, financial/capital instruments (amortised cost), revaluations, share issues, inventory (stock) valuation, government grants, deferred tax. May include disclosure of discontinued operations, movement in reserves/ statement of recognised income & expense (gains & losses) or EPS calculation.
* Theoretical/Conceptual question – possibly on provisions, inflation, tangible/intangible assets, impairment, accounting policies, leases or substance over form issues, with reference to the conceptual framework
* Interpretation and/or cash flow statement
* Mixed bag question (e.g. deferred tax, segment reporting, events after the balance sheet date, construction/long-term contracts, government grants, financial/capital instruments, substance over form issues or EPS)

Joe Fang's tips for Paper 2.5 (By roy_pck)

Q1- consol balance sheet
Q4- ratios or combined cash flow & ratio analysis
FRS 138, 116, 112, 117, 137, 132, 136




ACCA 2.6 Exam Tips

FTC

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

BPP

* Internal audit/ Internal review – Following the current examiner’s article on how the internal audit department can assist in corporate governance and risk management, this area has been frequently tested. (In all papers, December 2006, June 2006, December 2005 and June 2005). Note that in addition to a specific question on internal audit or reviews conducted by internal or external staff, questions could be in the form of a report to management on control weaknesses with recommendations, very similar in substance to that produced by an external auditor

* Substantive testing – This will be in the exam, but what will be tested? The December 2006 question covered external confirmations and audit of bank balances (Q3). In June 2006 Non current (Fixed) assets were tested. December 2005 covered inventories (stock). In June 2005 sales and tangible assets were tested. In December 2004 substantive testing of payroll balances was tested (Q4). In June 2004 inventories (stock) (Q3) and payables (creditors) and accruals (Q4) came up. In December 2003 payroll audit was tested (Q2). In June 2003, Inventories (stock) (Q2) and provisions were tested (Q3). In the December 2002 exam, payables (creditors) (Q3) and inventories (stock) were tested (Q5). In June 2002 cash was tested (Q2) and in December 2001 receivables (debtors) were tested (Q4). That would appear to leave receivables (debtors) and possibly another appearance of inventories or provisions as likely candidates for examination this time round.

*Systems and controls – Again this topic will be included in the exam in some format. In December 2006 the question dealt with weaknesses in a purchases system. In June 2006, the question covered the objectives of internal controls. In June 2005 Q3 was centred around a complex computer system. The examiner has warned that computers will be expected to feature in scenarios. In December 2004 Q3 risks from a scenario had to be spotted, and controls recommended. In June 2004, they came up in the context of outsourced catering and payroll (Q5). In December 2003 controls over payroll were tested in Q2 and Q1 included controls over business risks in the areas of human resources, procurement and marketing. In June 2003, controls over non-current (fixed) assets were tested (Q6). In the December 2002 exam the sales system was tested (Q2). In June 2002 the cash system was tested (Q2) and in December 2001 Purchases/ capital expenditure were tested (Q3). Any of these could come up again: the payroll and sales/receivables systems looking the most likely.

* Planning and risk assessment (from a scenario) – risk in one form or another comes up at most sittings. It is one of the key stages of the audit, but can also be examined in the context of a company's business risk as it was in June 2004. In December 2006 Q1 focused on the purpose of risk assessment procedures and issues to be considered when providing services to a given client. In December 2005, an audit planning memorandum, or audit strategy, was required. In June 2005 Q1 was a straightforward question looking for risks from a simple scenario. In December 2004, Q2 was centred around planning and the information you require, and Q1 was about spotting the risks of fraud and error.

* Professional ethics – This is a core area examined in June 2006 (confidentiality) after a period away from the exam in the previous 4 sittings. It is still a topical issue with all of the recent corporate collapses bringing the independence and professionalism of their advisors into question. Confidentiality came up again in December 2003 (Q6), conflicts of interest in June 2003 (Q3) and objectivity in December 2002 (Q1). Independence issues are still important and could to be examined again at this sitting.

* Audit/Assurance Reports – This is a very important area of the syllabus, it is deliverable from the end of all assurance engagements. You also need to be aware of the differences between internal audit reports/ external audit reports and other assurance reports such as review reports. It was tested in June 2005 as an unpopular optional question asking for errors in a given audit report. It has been tested in December 2003 (Q3 b and c), June 2003 (Q3c and Q5), June 2002 (Q3b) and December 2001 (Q5), but not in the last few sittings.

* Parts of questions – The following topics could form discrete parts of questions at this sitting: fraud, management representations, audit regulation, subsequent events and e-technology (see article below) so make sure you are up to speed on these areas.

posted by Unknown @ 12:22 AM