~~~~~~~~~~~~~~~Motivation Quote~~~~~~~~~~~~~~~~ ~~~~~~~~~~Sometimes it takes a lot of rain before you get your rainbow!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~Just FOcus On The Key Topics That You Know And Ignore What You Don't!!!!!!~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~The glory is not in never failing but in rising again everytime you fall!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~YOU MAKE THE FAILURE COMPLETE WHEN YOU STOP TRYING!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~
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Saturday, May 12, 2007

ACCA Exam Tips June 07 Part 3(b) collected from help of Coolly

ACCA 3.5 Exam Tips

FTC

Key Areas:
A fundamental appreciation of the key activities associated with strategic analysis, choice and implementation will always be required in interpreting the scenario.
The relevance of ethics and corporate governance to strategic decision making
Issues related to globalization and international business management
Marketing and how it may be influenced by ethics and globalisation
Be able to comment in general on how things like HR and IT can help underpin a strategic plan

BPP

Section A

Always difficult to predict the subject matter of the case scenario. Therefore this time it might be something simple in structure and based on the Manufacturing environment.

Areas that could be included within the requirements could include

* A discussion of the relative merits of different ways of making strategy
* Stakeholder analysis and objective setting
* Application of strategic analysis models
* Evaluation of strategic objectives, using the numbers included
* Marketing issues
* Change management

Section B

Marketing, including new product development. In part suggested by the recent article, and still has not been examined. – Refer to Dec 2003 Q1d as a good review.

Information Technology. This is feasible this time because it is an important subject and will be very present within the new ACCA syllabus.

Globalisation strategy. The strategic development of global businesses was very popular when the paper was first introduced. It remains relevant and could be due another appearance.

Change management. A favourite topic of the examiner and due to be reappear in either section A or B.

Ethics and corporate social responsibility. With all of the talk (and recent cases) of corporate scandal ethical behaviour is a very topical area of the syllabus

China Website

• Strategic analysis – likely to be analysis of competition using porter’s 5 forces analysis
• Strategic choice and evaluation – competitive strategy, market product strategy and method of development
• Marketing and globalisation
• Sustainable strategic position & competitive advantages
• Quality issues & TQM
• Application of IT (internet)
• Corporate social responsibility & Ethical issues

Article
Strategy challenge: the internet (Student Accountant March 2007)

By Niu Niu (Prepared By Mr Philip Woo.....)

June 2007 suggestions

1. Models of strategic management

• Kenichi Ohmae – Strategic triangle (three c’s)
• Michael Porter – Competitive advantage and generic strategies
• Strategic development – Deliberate, emergent and incremental
strategies ( Mintzberg, Linblom and Quinn)
• Henry Mintzberg – 5 P’s (Plan, ploy, pattern, position, perspective)
• Strategic Intelligence – Donald Marchand

2. External environmental scanning

• Analysis of customers and markets – Market segmentation
targeting and positioning
- Market research
(Desk and field research Retail audit and test marketing)
• Benchmarking – Internal, Competitive, Process/Activity, Customer and Generic
• Industry Analysis - Michael Porter’s 5 competitive forces

3. Internal Assessment
• Product Market Portfolio (BCG)
• Product Life Cycle (PLC)
• McKinsey 7s

4. The nature of strategic analysis and choice
• Corporate Appraisal – SWOT, PESTEL, 6M, Value Chain
• Ansoff’s - Product market matrix
• Stakeholder expectations – Mendelow matrix
• Strategic direction – Mission statement, objectives and strategic
Intent (Hamel and Prahalad)

5. The nature of strategy implementation

• Marketing strategies – strategies of market leader, follower, nicher
and challenger
- promotion mix (advertising, sales promotion,
public relations, personal selling)
- marketing mix (4P’s/6P’s)
• Service marketing – Intangibility, inseparability, variability, ownership
• IT and strategic advantage – Strategic importance of IT (McFarlan
and McKenny strategic grid)
- Michael Earl awareness, opportunity and position framework
- Michael Earl system audit grid
• Management and control of quality – TQM and Quality Circles
• Management of change – strategies for managing change
(Johnson and Scholes, Lewin, Gemini 4R’s, Huczynski and Buchanan
Pettigrew and Whipp), System intervention Strategy
• Goold and Campbell – Strategic management styles (strategic planning
strategic control and financial control)

6. Matching structure with strategy
• Matrix structures, SBU, transitional/adaptive structures (virtual organization
• Burns and Stalker – organic and mechanistic structures
• Henry Mintzberg – organizational configurations

7. The nature of global competition

• Global strategies – product positioning
- development of global brands
- Standardization vs Customization

• Managing global company – Ethnocentric, Polycentric, Geocentric
- Kenichi Ohmae 5C’s

• Development of global business
- market convergence, cost advantages, government pressures, currency, trade barriers and global competition

• Entry to foreign market – Jacoby’s six stages

8. Outcomes of the strategic management process

• Corporate decline / Strategic failure – causes, failing to adapt and
strategic drift (Miller)
• Learning Organisation – Peter Senge and David Galvin

9. Ethical considerations

• Corporate ethics and managerial ethics – Carroll’s moral, immoral and amoral management (ethical norms, motives, goals, legal orientations and strategy)
• Corporate governance – features of poor corporate governance
- code of best practices and combined code
• Social responsibility


ACCA 3.6 Exam Tips

FTC

Section A
This compulsory question will be on the preparation of consolidated accounts and the twist that is due is that it will have a foreign subsidiary.

Section B
Mixed scenario based questions involving some of the following standards
Impairment
Share based payments
Deferred tax
Financial instruments.
Reirement benfits
Discussion question on accounting theory in repect of recognition and measurement issues

BPP

Section A

* Compulsory question on group accounting topics such as complex group structures, consolidation of a foreign subsidiary or group disposals

Section B

* 'Mixed' questions where a range of standards are covered such as related parties, pensions, recognition and impairment of tangible and intangible assets, leases, revenue recognition, changes in accounting policies, effects on EPS or deferred tax.
* 'Events' questions such as shutdown of an operation, switch to IFRS, natural or deliberate disaster, bringing in areas such as: impairments, provisions, events after the balance sheet date, non-current assets held for sale, discontinued operations, pension scheme curtailment effects, government grants etc
* 'Specialist industry' questions, where a range of standards are also tested, but in the context of a specific industry (NB: no specific knowledge of the industry required)
* Questions on topical areas, such as the continuing attempts to bring about international harmonisation and the effect on a company's accounts of applying IFRS, financial instruments or share-based payment, or standards inconsistent with the framework (eg leases)
* A discussion question looking at current developments in corporate reporting such as success/issues on implementation of IFRS, approach to segment reporting, mineral resources, comprehensive income, social and environmental reporting or business ethics

By Niu Niu (Prepared by Navzar FTMS)

1)Group-Overseas,indirect subsi and reverse acquisition
2)Operating lease esp those related to genuine sales and leaseback in OL form
3)EPS? Im not sure coz he said didnt examined quite some time. From what i see from his dec 06 tips, he also spotted this. But unfortunately, this EPS didnt came out...
4)International harmonisation and FRS 1/IFRS 1, possible reconciliation Qs
5)As in examiner's article, FRS 119 on pension accounts, familiarize yourself with treatment on actuarial losses/gain and its theories as frs 119 provide 3 choices! So, argue its benefits and drawbacks.
6)Again, examiner's article FRS 2 and other other articles on FRS 6....




ACCA 3.7 Exam Tips

FTC

Section A:

1) Overseas NPV: This topic was last examined in December 2003 and therefore will be on everybody’s tip list. The specific items that you need to be familiar with are: the application of double tax agreements, remittances from subsidiaries, use of purchasing power parity theory and the overall structure of an Overseas NPV. Excellent questions are Axmine(Pilot94) andAVTO(Dec03). He has also written as lightly different style of question Wickern(Dec01) where he gives you all the PV calculations in the question and asks you to analysis the numbers. This is worth reviewing. Basic awareness of political and economic risk is essential.

2) Risk management:
Currency Risk: Scott wrote a wonderful question called Lammer(Q2Jun06) which you should review in detail as it includes his main tricks on all the major techniques to hedge transaction risk. It is also worth reviewing Vertid(Jun95) in which Scott takes a more theoretical approach to currency risk.

Interest rate risk: This topic appeared as a case study in the last exam. However,be aware you’re your examiner has already written a case study that combined Currency Risk and Interest rate risk (Autocrat-December2002).Play it sate and review this topic. Excellent questions are HYK Communications Dec (99) and Interest Rate Hedge (Jun 05).

3) Hunting down the discount rate:WACC – Risk adjusted WACC –APV calculations within the context of a standard investment appraisal question.However risk adjusted WACC could also be examined within the context of traditiona lgearing. WACC-Jetter© (Jun02) and Semer(a)(Dec05). Risk Adjusted WACC–Romage Jun(00). Traditional Gearing-Bentras(Dec01). APV–Strayer(Jun 02).

4) Merger and Acquisitions: A FCF calculation possibly within the context of Going Private. Also review the share for share exchange style questions Raywood( Dec 92).

Section B:
1) Economic Value Added – EVA This is a topically area and you should review Toutplut (Jun 02) and Remuneration (Dec 04).

2)Portfolio Theory and CAPM Hasder(Jun03) is an excellent question as it covers both Portfolio Theory and CAPM calculations and the topic of international diversification. The Portfolio Theory section is technically demanding as you are given the covariance as opposed to the normal correlation coefficient. It is also interesting to note that in Scott’s answer he calculated the coefficient of variation for the first time. This will now be a standard requirement in all portfolio theory questions.

3) Term Structure of Interest rate - review Bond Prices (Jun 03) and BNG (Dec 00)

4) International economics– I.M.F-(Dec96), Current account deficit(Pilot01), Foreign
trade risks (Jun01) and Political risk (Dec01).


BPP

The December 2006 exam awarded very few marks for cost of capital, NPV, and currency hedging which are major areas of the syllabus that are regularly examined. It is reasonable to expect these areas to feature more strongly in June, but the examiner deliberately tries not to be too predictable and just because a question featured last time, doesn’t mean it won’t feature this time.

The following is a guide to areas that you should include as part of your revision:

Section A:

Global financial management: NPV – of an overseas project, leading into a discussion of financing issues. Adjusted Present Value is a possible angle that could be taken by the examiner; don’t neglect this area just because it was tested in the December 2006 exam.

Investment decisions: If not tested in an overseas context as above, NPV can be tested in a domestic context. Cost of capital is generally the main focus of domestic NPV questions and can easily lead into a discussion of gearing strategy.

Risk analysis: Currency hedging is a core topic that can be expected to arise somewhere on the paper especially because this did not feature significantly in the December 2006 exam. A likely area for the examiner to focus is currency futures and options.

Section B:

Risk analysis: Black-Scholes is due to be tested; it is a regularly examined area that has not been tested in the last 2 exam sittings. Strategy formulation: Economic Value Added is a regularly examined area that has not been tested since December 2004.

Investment decisions: Portfolio theory is a regularly examined area, it has also come up as a compulsory question so make sure you don’t neglect it.

Other: Question 6 is always discursive. Recently it has featured questions on the Global Economic Environment. Corporate Governance or financing overseas investments are areas that are likely to be tested.

From Niu Niu

Spotted topic for 3.7 June 2007 final sitting
1)Overseas investment
2)Forex
3)Demerger
4)Black & Scholes/Option pricing
5)Portfolio Theory

ACCA Exam Tips June 07 Part 3(a) collected from help of Coolly

ACCA 3.1 Exam Tips

FTC

Q1 Risk appraisal, risk management and audit strategy
Q2 Assurance services - reporting on narrative statements egg environmental reports
Q3 Matters and evidence when reviewing files before signing audit reports
Q4 Audit reporting - application of ISA 700
Q5 Professional conduct and ethics
Q6 Current issues

BPP

Questions 1 and 2

Scenario questions in the context of audit risk/business risk/financial statement risk. One of these is likely to have a non statutory audit theme.

May also include:

* Control suggestion and/or evaluation
* Audit evidence on Paper 2.5 accounting areas (see also Q3 suggestions)
* Group audit issues (including audit work on fair values)
* Planning/practice management/quality control issues
* Assurance services, e.g. performance measurement or prospective financial information

Question 3

Audit evidence. Comment on the matters you would consider and the audit evidence you would expect to find as audit manager conducting a review of audit files.

Likely to be several scenarios covering various Paper 2.5 level accounting standards, e.g:

* Events after the balance sheet date
* Provisions
* Impairments
* Earnings per share
* Segment information
* Related party disclosures
* Deferred tax
* Discontinued operations
* Standard costing
* Intangible assets
* Revenue recognition
* Borrowing costs

Section B

Question 4

Part (a): Any syllabus area. Part (b): A related question on reporting.

Question 5

Ethics, professional and quality control issues scenario question.

Question 6

Discussion question on current issues, e.g:

* Fraud and auditor liability
* International convergence
* Audit exemption for small companies
* Risk-based auditing
* Related parties
* Corporate governance
* Laws and regulations

The discussion question often covers a scenario on a topic where the examiner has written an article in your Student Accountant magazine in the months prior to the exam. You should check the magazine/ACCA website for new articles in the months leading up to your exam.



ACCA 3.3 Exam Tips

FTC

* Contribution based decision-making – possibly involving expected values, maximax, maximin & minimax regret.
* Practical aspects of pricing policy
* Performance evaluation - NFPIs
* The strategic framework – specifically a question based around the examiner’s article on “Business Strategy and Performance Models” (Student Accountant – April 2006). This is likely to focus on Porter’s 5 Forces

BPP

There were some be new areas in the syllabus from June 2006 which the examiner has already included in the latest paper;

Ansoff's growth vector matrix
BCG matrix
Porter's five forces model

Section A

To date the large question in this section has contained some elements of budgeting (short term planning) and recently it has also examined return on investment. This will be heavily numerical with a small written element.

The shorter question has often tackled some element of performance measurement with the majority of the marks being for numerical analysis.

Section B

There is usually a high discursive element in this section with 2 questions being wholly or heavily discursive. If it has not made an appearance in Section A performance measurement will make an appearance here it may even appear if it has already been seen in Section A.

Many of the modern management and management accounting techniques have been examined here;

Numerical topics do still appear in this area, topics that such as transfer pricing (which can also include qualitative issues) can be complexand confusing on first read, as can questions relating to and uncertainty in decision-making.




ACCA 3.4 Exam Tips

FTC

• Value of information systems
• Groupware
• Data warehousing and data mining
• Outsourcing
• SWOT
• Earls three legs
• Earls Grid
• Information strategy
• Virtual company
• Business and IT strategies

BPP

Section A
This is the last sitting so expect no great surprises here – again expect the scenario will be a business with significant system issues linked to a business plan or some strategic view. The following are some outstanding topic areas that are either so core to the syllabus or were not covered in recent exams.

The requirement areas could include

There will always be an I.T link to the business strategy maybe with a specific reference to Earl’s 3 legs.

A SWOT analysis on the scenario.

Impact of I.T on the organisation once implemented – i:e: the organisational and social impact.

E- commerce with reference to the internet in a specific system / business opportunity.

The academic framework could be McFarlan’s / Peppards grid suggesting development priorities.

Section B

Soft Systems methodology. Unusually this popular topic has been absent for a little time so this may be its final bow. Probably with the emphasis on the root definition and conceptual model elements.

Change management. This could be a section A topic as well . Maybe a question based on the 3C's and /or another model such as Davis and Olsen.

Parsons IS Strategies and Nolan’s Stage Hypothesis. Still tipping these two. A possible section B academic discussion could appear on either or both of these models.

Knowledge management and databases. A topic again that has been absent for a little time, that could appear in a mini scenario requiring a suitable technical explanation.

Porter's value chain. An outside bet, but maybe the examiner will finish with this model, just as he started the exams with it.

China Website

• TPS, MIS, DSS, EIS and Expert system
• Knowledge management & data management#
• SWOT analysis and its application
• IS, IT and IM strategies
• Earl’s 3-Leg analysis, Reasons for IS Strategy, Systems Audit Grids#
• Parson’s 6 generic IS strategies#
• Nolan’s 6-stage growth model#
• Ws framework
• McFarlan Strategic Grid# and Peppard application portfolio
• Project risk
• Gap Analysis and 3Cs
• SSM – SSM stages, Root Definition (CATWOE) and Rich Picture
• Application package solution & bespoke solution (strategic issues)
• Outsourcing#
• Systems changeover
• Impact of IS

# - spare topics

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.

ACCA Exam Tips June 07 Part 1 collected from help of Coolly

ACCA 1.1 Exam Tips

FTC

(i) Company accounts
(ii) Consolidated balance sheet
(iii) Interpretation of accounts
(iv) Cash flow statements
(v) Accounting Standards and theory
(vi) Incomplete records
(vii) Partnership accounts

BPP

Section A - 25 compulsory MCQs (50 marks)
Each question is allocated 3.6 minutes
The examiner sets MCQs that intentionally have wide syllabus coverage but often have a similar style. Therefore lots of question practice is the best way to approach this part of the exam.

Common areas examined are year end adjustments, including calculation of accruals and prepayments, amendment of errors, bad and doubtful debts, inventory valuation and non-current assets (including depreciation). The examiner usually sets questions on reconciliations – both bank and control accounts – often by getting students to correct an existing reconciliation that has been performed by a trainee accountant. Expect to see a question on the accounting equation either in section A or B.

It would be worthwhile reviewing past MCQs on partnerships to become familiar with the examiner’s style for these questions.

A significant number of the questions will be written rather than computational. Topics examined in this way include accounting policies & estimates, regulatory framework and application of standards. However students with a good basic understanding should be able to eliminate incorrect answers and should not struggle too much with these.

Certain key areas will be examined via a number of MCQs if they are not examined in section B. Therefore students should be well prepared on the following areas: interpretation of financial statements, cash flow statements, group accounts. Based on past exams it seems to be more likely that cash flow statements will be examined this way in June.

Section B - 5 compulsory questions (8-12 marks each to a total of 50 marks)

Expect there to be a mix of computational and discursive (written) questions, normally with two written questions per paper.

Common topics for computational questions

* Consolidated Balance Sheet. - This has not been tested since Dec 05. It is always good for students to be well prepared for such a question as they have a strong chance of gaining high marks. This has been examined in December every year for the past 5 years and therefore has a good chance of coming up again this year.
* Preparation of a Balance Sheet or Income Statement - however this could be for a sole trader, partnership or limited company so students must ensure they are familiar with all the proforma formats.

* Incomplete records – Balance Sheet or Income Statement. The examiner has not tested since Dec 05 but always possible to come up as it incorporates lots of the key elements of bookkeeping such as error correction, T-accounts and journals.

* Suspense accounts - error correction and profit adjustments have been tested in the last four out of six sittings.

Topics for written questions

* Interpretation of Accounts - likely to be a discussion question with computational elements. Be prepared for a fairly open requirement: eg “calculate some profitability ratios” “Assess the company’s liquidity using ratios” which means you need to know which ratios fall under these headings and also their formulae. A large proportion of the marks will be for commenting on the ratios so students should practice questions from the P&R kit so they have a wide range of comments on ratios at their disposal.

* Accounting issues – maybe with some computations/disclosure notes – often related to accounting standards. Typical topics could be events after the balance sheet date, provisions and contingencies, intangibles. Alternatively could ask students to explain company specific items such as share capital and reserves.

* Accounting concepts and principles - a favourite of the examiner. In June 06 going concern was tested. Be aware this area may include a questions on the advantages and disadvantages of historic cost accounting – there are some good questions in the P&R kit to help practice this area.

REMEMBER TIME MANAGEMENT IS VERY IMPORTANT, 1.8 MINUTES PER MARK


ACCA 1.2 Exam Tips

FTC

The paper will consist of 25 MCQs of 2 marks each and 5 long questions of 8-12 marks each. The MCQs will vary in difficulty, but the variety will ensure that the paper reflects the syllabus. The five long questions will be a mix of (mostly) calculations and (a few) written marks. The vast majority of the marks in this paper will be for calculations.

The nine key areas of the syllabus will make up the bulk of the exam paper:
* Cost classification and behaviour.
* Material, Labour and Overhead costs.
* Absorption and Marginal Costing.
* Process Costing.
* Standard Costing (includes variances).
* CVP analysis (includes break-even).
* Pricing Methods.
* Relevant Costing
* Limiting Factors and Linear Programming

BPP

Section A – 25 MCQs (50 marks – 50%)

Expect Section A to have broad syllabus coverage. It is best to set yourself ‘multiple choice question (MCQ) tests’, to time, which include a selection of questions from different areas of the syllabus.

Section B – Five compulsory questions (Worth between 8-12 marks each – 50%)

Section B questions will be primarily computational; however, increasingly the tasks are broken down into 2-3 parts, with a written element for between 2-3 marks. Some areas we feel likely to come up are:

* Absorption Costing - Complete part of the absorption costing process (allocation / apportionment etc) or construct a P&L under either AC or MC (or both) and possibly reconcile the difference in profits. Be able to explain the different stages of absorption costing.
* Break-even - Calculate break-even or sketch a break-even chart.
* Variance Analysis - Construct an operating statement to reconcile budget profit to actual profit having calculated sales and cost variances, possibly with a slant towards overhead variances. Provide explanations for what may have caused the variances.
* Relevant Costs and Decision Making – Calculate the relevant cost of a scarce resource by applying the opportunity cost concept.
* Limiting Factor Analysis – Use linear programming to draw a graphical representation of a problem that has more than one limiting factor and interpret the result. Conclude on a contribution maximising or cost minimising solution.
* Pricing Policy - Discuss pricing policy including some calculations

REMEMBER, TIME MANAGEMENT IS VERY IMPORTANT, 1.8 MINUTES PER MARK!!


ACCA 1.3 Exam Tips

FTC

Primary Tips:
Structure – forms of Organisational Structure
Culture – Handy and comparative theories
Motivation – Herzberg and comparative theories
Role of Management
Effective Communication Practices
Management of Diversity/Equal Opportunities

Secondary Tips:
Management and Leadership
Management by Objectives
The Learning Process – Mumford and Kolb
Recruitment and Selection

BPP

In Section A there is a compulsory Scenario Question worth 40 marks, which is usually broken down into between 4-8 discrete parts. It is difficult to predict whether the examiner will remain in a mainstream core area of the syllabus or examine somewhere less obvious. However he has written an article in Student Accountant prior to most exam sittings, and often based Question 1 upon it, so it is important to keep a look out for articles right up until the exam.

In Section B there is a requirement to undertake 4 from 5 questions, each worth 15 marks. It is difficult to make tips of which areas he might examine, however, it would be worth reviewing the following topic areas:

1. Recruitment and Selection – a question in every exam to date
1. Training and development – as performance appraisal was examined in Dec. 2006
1. Effective Communication Practices – a favourite area
1. A number of topics have not been examined for a while: teams, culture, H&S

Each question is broken down into 2 -3 parts. Be careful to only answer what the examiner has asked for.