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[19:01:30] balbina: hi guys :)

[19:01:54] balbina: r u ready to start study session?

[19:01:56] geoklean: hello

[19:02:25] clearstock: :d

[19:02:55] balbina: more people :)

[19:02:57] geoklean: there is noone here yet...

[19:03:03] balbina: just 4 of us

[19:03:16] mohammedalee: hello

[19:03:22] balbina: {mohammedalee} hi

[19:03:34] mohammedalee: how are you folks

[19:03:43] balbina: Monday :)

[19:03:44] mohammedalee: all p7 guys?

[19:03:52] balbina: 4 days left to the weekend :)

[19:03:56] mohammedalee: lol

[19:04:06] mohammedalee: funny

[19:04:12] balbina: its my first attempt

[19:04:14] mohammedalee: thats like saying after 2 hours, 5 hours will elft

[19:04:15] mohammedalee: :D

[19:04:20] mohammedalee: left*

[19:04:24] balbina: did you try to pass p7 before?

[19:04:29] mohammedalee: oh great, lovely, high hopes then

[19:04:40] mohammedalee: im affiliate, im just here to support you guys

[19:04:45] balbina: great

[19:05:12] brithel1: thanks for being here with us mohamedalee

[19:05:17] balbina: so whats the secret of passing p7 in your opinion?

[19:05:25] mohammedalee: i used to be a big fan of p5

[19:05:40] mohammedalee: well umm

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[19:05:45] balbina: i m waiting for p5...

[19:05:48] mohammedalee: just work smart

[19:05:56] balbina: and hard :)

[19:06:05] mohammedalee: like read around, technical articles, examiner reports

[19:06:14] mohammedalee: exam kit, just do everything in your capacity

[19:06:19] geoklean: balbina you are the one who arrange this session?

[19:06:26] balbina: {geoklean} yes

[19:06:27] mohammedalee: and most importantly, write out answers in full

[19:06:29] brithel1: just keep answers as short and straight to the point as possible

[19:06:34] mohammedalee: thats the best technique i can give you

[19:06:53] mohammedalee: when practising

[19:06:54] brithel1: thanks mohamed

[19:06:57] balbina: {mohammedalee} and give your mock exam to check, right?

[19:07:05] mohammedalee: keeping them short isnt a good idea

[19:07:09] brithel1: i ended up with a 47% last session

[19:07:15] mohammedalee: check yourself, or give your friend to check

[19:07:41] brithel1: because i wrote and wrote and wrote

[19:08:07] brithel1: thinking i was writing the right things

[19:08:16] mohammedalee: lol

[19:08:21] mohammedalee: heres what u shud do

[19:08:27] mohammedalee: take a past paper

[19:08:40] mohammedalee: write out answers in full, then mark it using the marking scheme at the

end of past paper

[19:08:47] mohammedalee: compare it with ideal answer, see where u are lakcing

[19:08:48] mohammedalee: lacking

[19:09:26] brithel1: why the quietness in the room?

[19:09:48] balbina: mohamed is giving us best practice

[19:09:54] brithel1: ok

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[19:09:55] mohammedalee: :D

[19:10:05] balbina: shall we start the study session?

[19:10:05] mohammedalee: so

[19:10:11] mohammedalee: you guys should be starting by now

[19:10:23] brithel1: yes

[19:10:31] agodirin: Hi everyone

[19:10:33] brithel1: we should start now

[19:10:42] brithel1: hi agodrin

[19:10:42] balbina: i arranged the study session because of the lack of it

[19:11:00] balbina: i m not moderator but i tried to push you to start it

[19:11:16] balbina: so i suggesed to follow the syllabus

[19:11:21] agodirin: is it 6pm now. I thot we said 6pm

[19:12:01] balbina: so for today it is

[19:12:05] balbina: A Regulatory Environment

1. International regulatory frameworks for audit and assurance services

2. Money laundering

3. Laws and regulations

[19:12:07] sarmadgul: HI all..

[19:12:12] balbina: hi bubblygirl :)

[19:12:33] agodirin: Hi sarmadgul

[19:12:33] balbina: {sarmadgul} hi

[19:12:36] bubblygirl: {balbina} hellooo

[19:13:07] balbina: we just started

[19:13:14] sarmadgul: great

[19:13:16] sarmadgul: so yeah lets starts then

[19:13:27] bubblygirl: sorry was bzy wid packing

[19:13:27] balbina: 1. International regulatory frameworks for audit and assurance services

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[19:19:10] bubblygirl: IAASB


[19:19:15] bubblygirl: write ISAs

[19:19:38] balbina: ISA international audit standards

[19:19:55] balbina: our new favorite standards in p7 paper :)

[19:20:10] sarmadgul: hmmm

[19:20:24] balbina: lots of isa in our paper

[19:20:31] brithel1: favorite standards?

[19:20:43] brithel1: are there any that are favorite?

[19:20:58] brithel1: all are traumatising

[19:20:58] balbina: in this paper brithel1 :)

[19:21:09] brithel1: aspecially that on employee benefits

[19:21:11] mohammedalee: gota love them if u have to pass :D

[19:21:11] balbina: we need to love them to pass p7

[19:21:19] balbina: {mohammedalee} right :)

[19:21:25] geoklean: lol

[19:21:28] sarmadgul: Do we have to quote the reference of Isa's in exams?

[19:21:29] mohammedalee: stole my words!

[19:21:31] brithel1: right

[19:21:34] brithel1: i agree

[19:21:36] mohammedalee: no

[19:21:42] brithel1: we need to love them

[19:21:52] agodirin: most IAS are relevant here

[19:21:53] fgassita: {mohammedalee} are u dead serious??

[19:21:53] brithel1: i will try to love them

[19:21:54] mohammedalee: {sarmadgul} but you can use them for a strong technical answer

[19:22:08] sarmadgul: ok

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[19:22:11] mohammedalee: like, according to IAS 17, bla bla, this will your answer more presentable

[19:22:39] sarmadgul: Good with IAS not with the ISA's

[19:22:44] bubblygirl: hey hilarious

[19:22:56] mohammedalee: and there are usually some marks for only stating what the standard

says, so lets say if there is a quesiton on borrowing cost and you dont know the treatment, just write

out what borrowing cost's criteria is

[19:23:00] mohammedalee: alright guys carry on.

[19:23:29] Zlip792: {sarmadgul} Yes, we need to quote IAS relevant applicable in question as well as

ISA also

[19:23:37] balbina: what pther international standars can IAASB can set?

[19:24:04] balbina: anyone knows?

[19:24:23] hilariousastal: {bubblygirl} hey i hope no session is in progress is it?

[19:24:23] sarmadgul: Not me

[19:24:53] balbina: ISA, ISRE ISAE ISRS IAPS

[19:25:06] bubblygirl: {hilariousastal} u r in session;p

[19:25:15] hellohowlowlo: can u plz all calm down

[19:25:23] hellohowlowlo: stop writing and start session

[19:25:32] hilariousastal: {bubblygirl} :o

[19:25:45] hellohowlowlo: geoklean, get on blackboard, u're the teacher for today

[19:25:46] fgassita: who is the leader here??

[19:25:51] sarmadgul: which session? hellohowlowlo:

[19:25:53] balbina: {sarmadgul} me

[19:26:06] mohammedalee: work as team

[19:26:19] balbina: can anyone explain me what it means?

[19:26:25] balbina: ISA, ISRE ISAE ISRS IAPS

[19:26:36] hellohowlowlo: {balbina} we're not interested in all that

[19:26:45] hellohowlowlo: ISA is enough

[19:26:47] agodirin: Are we not in a session already?

[19:26:49] mohammedalee: {hellohowlowlo} then sit quiet plz

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[19:27:08] balbina: isnt good to know?

[19:27:14] mohammedalee: let the lady follow her plan

[19:27:30] agodirin: U also need to know ur Accounting Standard very well

[19:27:31] aarsh: {balbina} u need to pick topic on which u can discuss

[19:27:56] hilariousastal: yes i agree .. otherwise it will be a 'fish market' ... lol

[19:28:02] fgassita: {balbina} section one chapter one......start

[19:28:06] balbina: our topic is

[19:28:07] balbina: A Regulatory Environment

1. International regulatory frameworks for audit and assurance services

[19:28:09] sarmadgul: aarsh: scroll back please, we have already slected a topic

[19:28:21] balbina: its our topic now

[19:28:33] fgassita: {balbina} ok leader ask your questions

[19:28:34] balbina: so we are about to set our organisations

[19:28:35] aarsh: {balbina} i didnt study this chapter to pass

[19:28:52] balbina: so we know what IFAC and IAASB are

[19:29:04] mohammedalee: {aarsh} either let the lady lead or you get in the lead.

[19:29:15] balbina: and the main info is IAASB set up ISAs which we need to cover in details in P7

[19:29:37] sarmadgul: hmm right

[19:29:59] balbina: so what other standards IAASB set up?

[19:30:14] balbina: I better use red :)

[19:30:43] balbina: ISA, ISRE, ISAE, ISRS, IAPS

[19:31:14] geoklean: {balbina} sorry..but u already cover that...i think u have to move on please..

[19:31:22] hilariousastal: well there are various standards set by them like on sampling and intitial

understadning of the entity and risk assessment etc

[19:31:25] balbina: ISA international standards od auditing

[19:31:50] hilariousastal: and some on audit evidence

[19:31:58] balbina: ISRE International Standards on Review Engagements

[19:32:03] sarmadgul: Babliba: And I guess this was something covered in shapter 2 of F8 BPP text

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[19:32:13] sarmadgul: Balbina*

[19:32:45] hellohowlowlo: can u plz erase the board

[19:32:50] balbina: {sarmadgul} well if we all knew f8 perfect we could skip half of our study sessions

[19:33:28] sarmadgul: Go a head Balbina :)

[19:33:33] balbina: so ISRE is used in engagements

[19:33:54] balbina: ISAE - int standards on assurance engagements

[19:34:15] balbina: ISRS international standards on related services

[19:34:16] hilariousastal: {balbina} thts is right to some extent bt since i am attempting it second i

can assure you that this wont help much cuz the type of questions are quite detailed at p7 level

[19:34:38] aarsh: {hilariousastal} u r right

[19:34:41] aarsh: :)

[19:34:50] Zlip792: {balbina} I barely managed to pass F8

[19:34:59] Zlip792: {balbina} So don't expect we know... LOL!

[19:35:00] hilariousastal: {aarsh} :)

[19:35:25] balbina: so i see we better cover all topics

[19:35:32] balbina: so everyone have the same basic

[19:35:34] Zlip792: {balbina} Review Engagement is another kind of Assurance Engagement, am I

right?

[19:35:44] brithel1: yes

[19:35:55] Zlip792: {Zlip792} You answering to my question?

[19:36:00] balbina: kind of assurance

[19:36:08] Zlip792: {balbina} Thanks

[19:36:29] balbina: ok somethin what all should know from f8

[19:36:40] balbina: what is audit committee?

[19:36:43] agodirin: I think what we should be talking abt at this stage is what each standards

contain. We all know the standards exist.

[19:36:43] hilariousastal: {Zlip792} bt its not covered at F8 level so dont worry it wil be in detail at p7

[19:37:23] balbina: its also part of p1 as i remember

[19:37:27] Zlip792: {hilariousastal} I am attempting P7

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[19:41:20] Zlip792: {Zlip792} So not restriction on their independence thingy, like there used to be

some points for independence in P1

[19:41:21] balbina: NED are independent

[19:41:33] agodirin: executive and non executive directors.

[19:41:45] geoklean: *is typically made up only independent NEDs

[19:41:47] agodirin: at least 3 non-executive directors

[19:42:10] balbina: ok so what are the main roles of audit committee?

[19:42:16] Zlip792: {agodirin} In Public Listed Company, for Private Limited 2 works

[19:42:20] balbina: you wrote some of them already

[19:42:28] Zlip792: {balbina} Listening to Internal Audit Dept complains

[19:42:31] Zlip792: regarding system

[19:42:33] agodirin: 1. elect the auditor

[19:42:36] balbina: 1

[19:42:44] balbina: 2

[19:42:46] agodirin: review the work of auditor

[19:42:51] Zlip792: {Zlip792} 1. Short list External Auditor and suggest

[19:43:04] Zlip792: {agodirin} External Auditors are elected by "Shareholders"

[19:43:09] agodirin: fixing the renumeration of the auditor

[19:43:20] Zlip792: {balbina} 2. Create liasion between External and Internal Auditors

[19:43:21] hilariousastal: reviewing the work planes of auditor for the year

[19:43:27] balbina: {Zlip792} yes AC only helps to appoint auditors

[19:43:29] fgassita: {agodirin} which auditor????internal or external?

[19:43:32] balbina: {hilariousastal} yes

[19:43:35] geoklean: AC is not electing the auditor..is suggesting an auditor

[19:43:50] hilariousastal: to create independent channel of communication with board for external

and internal auditors

[19:44:00] agodirin: external

[19:44:03] balbina: {hilariousastal} yep

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[19:44:10] Zlip792: Why others are not coming up and answering

[19:44:47] balbina: {Zlip792} its ok, maybe they are not feeling comfortable yet, i hope they finally

speak up

[19:44:58] balbina: ok i think we mentioned all roles of AC

[19:45:02] sarmadgul: Zlip792: Beause we know you are smart enough to answer these :)

[19:45:10] agodirin: some people learn by reading what other write. its ok

[19:45:22] Zlip792: {sarmadgul} Flattering... LOL!

[19:45:43] Zlip792: {balbina} Yeah, now move on to next thing...

[19:46:11] ratimrigs: {fgassita} hey

[19:46:11] balbina: can AC have any infulence on risk msnsgement proces of company?

[19:46:34] sarmadgul: Yes they do

[19:46:38] balbina: or financial reporting?

[19:46:40] Zlip792: {balbina} I think Yes... They ask Internal Audit dept to design Control System to

overcome risk

[19:46:44] sarmadgul: Both!

[19:46:45] agodirin: yes

[19:46:55] balbina: ok great :)

[19:47:08] hilariousastal: yes by means of internal audit staff it could exert its infuence and

espeically if there isnt a separate risk managment committe

[19:47:09] Zlip792: {balbina} Not much on Financial Reporting I think, management prepare them,

audit team can't influence, if they can you explain please

[19:47:30] hilariousastal: cuz auditors have the function of risk managment and internal control

[19:47:33] sarmadgul: They are resposible to submit a report to share holders for the risk

managemnt process undertaken

[19:47:35] balbina: {Zlip792} AC may oversee it

[19:47:39] Zlip792: {Zlip792} I mean audit committe

[19:47:46] Zlip792: {balbina} Yeah, sorry I forget that

[19:48:07] Zlip792: {balbina} Just clicked my mind after reading your comment, thanks

[19:48:10] balbina: {Zlip792} management need to prepare fin stats as you wrote

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[19:48:12] hilariousastal: and also it can resolve issues in Financial reporting if there are any raised

by external auditors

[19:48:29] balbina: ok great guys

[19:48:30] balbina: :)

[19:48:36] balbina: we are all warmed up :)

[19:48:39] balbina: next topic

[19:48:42] balbina: 2. Money laundering

[19:48:47] balbina: what is that?

[19:48:58] sarmadgul: dealing with criminal proceeds

[19:49:02] Zlip792: Black money to white money

[19:49:06] Zlip792: In layman terms

[19:49:26] Zlip792: {balbina} Covering up your criminal proceeds in layers of transaction

[19:49:26] sarmadgul: E.g. tax evasion

[19:49:28] balbina: lets try to write deffinition

[19:49:38] Zlip792: So original source cannot be easy to locate

[19:49:42] brithel1: revenue without a clear source

[19:49:45] agodirin: Using the proceed of crime in a legitimate business

[19:49:46] balbina: examinator can ask us about that

[19:50:05] balbina: it is a process

[19:50:12] hilariousastal: hiding the true source of money and as well as possessing and transferring

the proceeds of any crime is money laundering

[19:50:23] balbina: {hilariousastal} great

[19:50:33] funshine99: dont forget to write the stages

[19:50:37] funshine99: in ML

[19:50:41] agodirin: {hilariousastal} love that

[19:51:16] balbina: ok

[19:51:25] balbina: what are auditors responsibilities?

[19:51:38] balbina: can auditor do money laundering?

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[19:51:40] balbina: :)

[19:51:58] agodirin: To report it when they see one

[19:52:07] balbina: should look for it?

[19:52:14] hilariousastal: yes by means of possessing the proceeds of crime which is given by the

client in the form of fees of doing audit

[19:52:16] sarmadgul: Important to note is that if an auditor deal in criminal proceeds then its a

criminal liaibility

[19:52:21] funshine99: money laundering involves three stages: placement, layering and integration

[19:52:21] agodirin: And to report without tipping off

[19:52:25] balbina: or report when he/she notice that?

[19:52:33] sarmadgul: which I guess is not covered by PII

[19:52:43] brithel1: auditors report cases of suspected money laundering activities to the money

laundering officer

[19:52:55] balbina: {brithel1} yep

[19:52:59] brithel1: who then takes the matter to the competent authority

[19:53:09] hilariousastal: MLRO

[19:53:09] Zlip792: MLRO in Audit Firm or some other

[19:53:21] hilariousastal: usually somene at a partner level

[19:53:57] balbina: what about tipping off a client?

[19:54:34] kitt: {funshine99} explain 3 stages in detail

[19:54:35] hilariousastal: an audit firm should not give indications to the client if it has any suspicious

abt it being involved in money laundering is tipping off

[19:54:39] Zlip792: {balbina} Making them aware that we know you are doing money laundering

[19:54:41] bubblygirl: never tip off a client when u have suspicious

[19:54:46] balbina: {hilariousastal} perfect

[19:54:48] Zlip792: {balbina} Means make them know how

[19:54:50] funshine99: {hilariousastal} I can

[19:54:55] balbina: {Zlip792} yes

[19:54:58] hilariousastal: {bubblygirl} yes

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[19:55:01] funshine99: {kitt} i can

[19:55:05] balbina: {bubblygirl} yes


[19:55:23] Zlip792: Great going folks, get involve and bang this session and learn on each step

[19:55:31] balbina: and we should make sure who is our client,

[19:55:38] bubblygirl: also KYC know your client

[19:55:47] Zlip792: {balbina} Yes

[19:55:51] balbina: so what about pratcial things

[19:55:51] sarmadgul: Thats covered in pre conditions of an audit

[19:55:54] sarmadgul: ISA 210

[19:55:57] agodirin: Yes, know your client procedure

[19:56:05] balbina: what audit firms can do

[19:56:06] funshine99: KYC is a must these days

[19:56:12] balbina: {funshine99} yes

[19:56:27] balbina: {agodirin} yes

[19:56:47] balbina: know your clients procedures,

[19:56:50] hilariousastal: a firm would need to see who is the owner of company its shareholders

their source of income and whether if the business logic of company makes sense etc

[19:57:03] balbina: train your staff in money laundring process

[19:57:21] bubblygirl: train all staff in ML processes

[19:57:23] bubblygirl: lol

[19:57:28] bubblygirl: me nd balbina

[19:57:35] bubblygirl: :d

[19:57:47] hilariousastal: ditto

[19:57:53] bubblygirl: hehehe

[19:58:02] bubblygirl: sorry guy me also bzy wid shifting flat

[19:58:16] bubblygirl: nt much involve

[19:58:32] balbina: what about appoinitng MLRO?

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[19:58:44] balbina: money laundering reporting officer?

[19:59:04] balbina: it seems to be very expensive option in my opinion

[19:59:23] bubblygirl: audit firm should appint MLRO

[19:59:45] jaweria_saleem: hi

[19:59:52] jaweria_saleem: how much did i miss?

[20:00:01] bubblygirl: {jaweria_saleem} nt much

[20:00:02] funshine99: {bubblygirl} MLRO can be anyone no need to appoint it is usually the partner

[20:00:08] bubblygirl: yeah

[20:00:16] bubblygirl: likely to b partner

[20:00:38] hilariousastal: yes it is expensive but not much if weighed against the prison of partners

of firm its not an LLP

[20:00:39] Zlip792: {bubblygirl} key engagement partner??

[20:00:49] balbina: ok so how can auditor find the fact of money laundering?

[20:00:50] agodirin: The person must be trainned on ML issues

[20:00:57] Zlip792: {hilariousastal} and company like KPMG

[20:01:24] Zlip792: {balbina} Business practice of client make sense

[20:01:30] Zlip792: {balbina} ambigious source of money

[20:01:46] agodirin: that is wher KYK is very important

[20:01:55] balbina: {Zlip792} yes, for example the business which may be easy for money laudering

[20:02:12] agodirin: Politically incline people

[20:02:24] hilariousastal: cash businesses money laundeeres love to deal in

[20:02:34] agodirin: Casinos

[20:02:38] balbina: for example night club :)

[20:03:01] balbina: lots of income but when we enter there are no clients

[20:03:18] balbina: or when it is new created company with high incomes

[20:03:20] Zlip792: {balbina} Banned here in our country if there are some it will be illegal

[20:03:34] balbina: {Zlip792} oh ok

[20:03:52] balbina: other examples maybe?

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[20:03:59] Zlip792: Money laundering usually happens in cash proceeds so tracking from banking

channel will be difficult

[20:04:07] balbina: {Zlip792} {Zlip792} yesssss

[20:04:21] balbina: where are cash sales


[20:05:00] balbina: also auditor may look at many simillar small transactions

[20:05:08] balbina: its may be suspicious

[20:05:23] balbina: why so many transactions when can be one big

[20:05:28] kitt: should the audit firm resign, if they find out that the client is invoved in ML?

[20:05:55] Zlip792: {kitt} If there is no reasonable escape then they should

[20:06:02] sarmadgul: It an auditor suspects before the start of the audit that the client is involved in

the monney laundering, insider dealing etc, he should not accept the engagement

[20:06:09] balbina: or when transactions goes through many companies, its complicates and difficult

rather than simply solution

[20:06:14] Zlip792: {kitt} Usually quiting is last option, how wants to forgo his/her revenue

[20:06:17] sarmadgul: Yes Kit tehy should resign

[20:06:27] jaweria_saleem: if the firm resigns won't it have to provide explanation for resignation?

[20:06:36] balbina: {kitt} auditor should report it

[20:06:56] Zlip792: {jaweria_saleem} Yeah, they do but to appropriate person and through

appropriate channels otherwise it will be tipping off

[20:06:59] sarmadgul: jaweria_saleem: auditor has to report to appropriate authorities at the same

time

[20:07:02] jaweria_saleem: can't lie and can't tip off

[20:07:22] balbina: can always report to acca for example

[20:07:23] Zlip792: {jaweria_saleem} Ethics govern us.. Objectivity and Integrity

[20:07:38] kitt: what would consitutue a resignation in absolute terms

[20:07:39] Zlip792: {balbina} I think ask anonymousely ACCA as well? Am I right?

[20:07:42] hilariousastal: {jaweria_saleem} it creates suspicions on intergrity of client and which may

lead to or end up firm being sued in the court for limited liablity thingy

[20:07:56] balbina: it depends on country

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[20:08:05] hilariousastal: as audit opinon could be wrong

[20:08:08] balbina: there are rather local organisations

[20:08:27] sarmadgul: Can enron case be a perfect example for this? where auditor and client were

both held liable

[20:08:47] balbina: in UK it id serious organised crime agency

[20:08:52] jaweria_saleem: well in case of enron audit firm destroyed the evidence

[20:08:57] balbina: {sarmadgul} yep

[20:08:58] hilariousastal: {sarmadgul} that was an example of auditors libility we will see later

[20:09:02] funshine99: SOCA

[20:09:09] sarmadgul: But still they were held liable

[20:09:23] sarmadgul: hilariousastal: Ok

[20:09:25] jaweria_saleem: and didn't report

[20:09:32] balbina: there is ACCA guidance

[20:09:48] balbina: ACCA issued two technical factsheets

[20:09:53] balbina: do you know then?

[20:10:02] jaweria_saleem: nope

[20:10:05] Zlip792: Nope

[20:10:17] balbina: 94 and 131

[20:10:57] balbina: there will be more about that in ethical section

[20:11:15] balbina: just remember there are, maybe we will need to know it on exam

[20:11:30] jaweria_saleem: wasn't discussed in kaplan so didn't think it'll be asked in paper

[20:11:57] jaweria_saleem: they just mentioned that there was a guidance

[20:12:05] hilariousastal: {jaweria_saleem} yes

[20:12:11] Zlip792: {balbina} Which Study Text your prefer? - offtopic question

[20:12:19] balbina: bpp

[20:12:33] balbina: but i like to verify kaplan as well

[20:13:09] balbina: ok then

[20:13:27] sarmadgul: whats next?

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[20:13:28] balbina: i think we should go to next topic

[20:13:41] balbina: 3. Laws and regulations

[20:14:00] balbina: which ISA covers that?

[20:14:43] balbina: number?

[20:14:47] sarmadgul: I guess 250

[20:14:51] balbina: yessssss

[20:14:55] sarmadgul: can anyone confirm?

[20:15:00] Zlip792: {sarmadgul} Yes, I can

[20:15:01] geoklean: yeap

[20:15:16] balbina: what 250 says?

[20:15:24] balbina: what is it about?

[20:15:27] Zlip792: {balbina} I also studied from BPP but I failed at 42

[20:15:43] Zlip792: {balbina} Laws and Regulations which governs Audit

[20:15:48] sarmadgul: consideration of laws and regulations in the audit

[20:15:53] balbina: :)

[20:16:09] Zlip792: {balbina} Like International, National, Regulatory Body etc all

[20:16:19] balbina: ok

[20:16:26] balbina: what are management responsibilities?

[20:16:37] sarmadgul: To disclose

[20:16:49] balbina: {sarmadgul} to disclose what?

[20:17:10] Zlip792: {balbina} prepare f/s in considerations of all laws and regulations

[20:17:17] sarmadgul: Forgot :P

[20:17:18] balbina: {Zlip792} yes

[20:17:25] balbina: {sarmadgul} heh

[20:17:27] balbina: it ok

[20:17:35] balbina: from f8

[20:17:47] balbina: whats the responsibility in general

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[20:18:07] Zlip792: {balbina} - full disclosure to vouchers and source documents to auditors

[20:18:08] sarmadgul: Too much of suspence Balbina :P.. please tell us

[20:18:09] balbina: the management responsibility is to ....... key word

[20:18:20] balbina: ENSURE THAT....

[20:18:42] Zlip792: Financial statements are free from material misstatement???

[20:18:48] balbina: entity;s operations

[20:19:05] Zlip792: {balbina} presenting company's current state or value?

[20:19:14] jaweria_saleem: reflect accounting performance and position accurately inf/s and

prepare

[20:19:27] jaweria_saleem: them in accordance with framework

[20:19:31] balbina: are perforimng in accordance with laws and regulations

[20:19:37] jaweria_saleem: comply with laws and regulations

[20:19:40] sarmadgul: are in accordance with aws and reg

[20:19:42] Zlip792: {balbina} Boooo. to us all.. LOL!

[20:19:47] balbina: lol

[20:19:51] sarmadgul: Lol

[20:19:57] balbina: and they are also responsible for

[20:20:12] sarmadgul: It is the primary responsibility of the management

[20:20:19] balbina: prevention and detection of non compliance

[20:20:30] sarmadgul: Right..

[20:20:53] balbina: so they are responsible for company operations

[20:21:17] Zlip792: {balbina} are in accordance with laws and regulations

[20:21:22] balbina: yes :)

[20:21:29] sarmadgul: move on :)

[20:21:31] balbina: so what can they do?

[20:21:38] balbina: actions

[20:21:45] Zlip792: {balbina} guess game is very bad, it make us do blunders...

[20:22:00] balbina: one of them

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[20:22:08] balbina: they can appoint internal audit

[20:22:15] Zlip792: {balbina} rectify laws changing if they can't then disclose reason for deviation

[20:22:40] balbina: so they can ensure the company has sufficient internal controls

[20:22:48] Zlip792: {balbina} consider prospective laws changing and account for them?

[20:22:58] Zlip792: {balbina} Once again booo to me

[20:23:20] balbina: can they engage legal advisers?

[20:23:35] balbina: can they publich code of conduct?

[20:23:44] Zlip792: {balbina} Obviously legal terms can't be easily interpretated by normal layman

accountants

[20:23:47] sarmadgul: I guess they can

[20:24:07] balbina: can they monitor if the procedures are operating effecively?

[20:24:09] Zlip792: {balbina} Law log book = code of conduct - you mean

[20:24:22] Zlip792: {balbina} Yeah, they need to otherwise penalty from Govt

[20:24:45] Zlip792: {balbina} You are asking in prospect of "Company" "management"? am I right?

[20:25:06] Zlip792: {balbina} or I need to cover in auditor hat

[20:25:12] balbina: i m writitng in general

[20:25:18] Zlip792: {balbina} OK

[20:25:31] balbina: just to give brief idea about management responsibilities

[20:25:54] balbina: i think we need to cover it at home once again

[20:26:09] balbina: so we all understand it correctly

[20:26:17] balbina: at the end

[20:26:20] Zlip792: {balbina} Agree.. Home side learning matters a lot

[20:26:27] balbina: Auditors responsibilities

[20:27:04] Zlip792: {balbina} Ensure laws are being followed

[20:27:13] balbina: yes

[20:27:17] Zlip792: {balbina} Some unknown penalty cost is not included

[20:27:18] sarmadgul: To perform specific procedures to ensure law are being followed

[20:27:27] balbina: {sarmadgul} yes

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[20:27:31] Zlip792: {balbina} IAS-37 "Contingenet Liability"

[20:27:53] sarmadgul: Like.. meeting with the internal and external legal counselor of the client

[20:27:57] Zlip792: {balbina} Check if some deviation caused penalty and whether its legal

proceeding fine is added in F/S properly

[20:27:58] balbina: what about auditor find breach?

[20:28:08] sarmadgul: verifying for any pending litigation

[20:28:08] tmaker: {balbina} It's simple

[20:28:11] Zlip792: {balbina} Inform management


[20:28:24] Zlip792: {Zlip792} then directors

[20:28:28] balbina: what if this involves management?

[20:28:34] sarmadgul: He should report!

[20:28:45] balbina: {sarmadgul} report to who?

[20:28:45] Zlip792: {balbina} if management involves then director in the end to regulatory authority

[20:28:56] jaweria_saleem: then those charged with gov.

[20:28:59] sarmadgul: and he should check how adversely it will effect his audit opinion

[20:29:00] balbina: yes, always higher level we report

[20:29:24] Zlip792: {balbina} ultimate level is govt aka regulatory authority, concerned dept in govt

[20:29:31] sarmadgul: for most sever case he should withdarw the engagement

[20:29:32] balbina: when it is the highest level we may take legal advice

[20:29:36] sarmadgul: severe*

[20:29:52] balbina: {sarmadgul} and what between it?

[20:30:02] Zlip792: {balbina} What about disclosing in public if its is related to some foods thingy?

[20:30:04] balbina: what about our report?

[20:30:09] sarmadgul: material and pervasive opinion

[20:30:21] sarmadgul: or material but not pervasive

[20:30:28] sarmadgul: depending on the materiality

[20:30:33] sarmadgul: however

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[20:35:08] Zlip792: LOL!

[20:35:12] sarmadgul: Lol!

[20:35:16] Zlip792: {Zlip792} Twice failed in F8

[20:35:23] Zlip792: I hate audit

[20:35:35] sarmadgul: I love audit !

[20:35:35] balbina: so for the next session code of ethics

[20:35:46] balbina: {Zlip792} i used to hate it too :P

[20:35:59] Zlip792: {balbina} I still use to... :p

[20:36:05] jaweria_saleem: anyway i wanna know if i prepare from kaplan only, will it be sufficient?

[20:36:13] balbina: you will change your mind :)

[20:36:15] geoklean: {balbina} when is the next ssession?

[20:36:24] balbina: next MOnday

[20:36:30] balbina: 6pm uk time

[20:36:42] jaweria_saleem: only code of ethics

[20:36:42] fgassita: {balbina} why not tomorrow?

[20:36:59] sarmadgul: We are attempting other papers also :)

[20:37:05] balbina: B Professional and Ethical Considerations

1. Code of Ethics for Professional Accountants

2. Fraud and error

3. Professional liability

[20:37:11] Zlip792: {balbina} Its late night for me, can't you make it little early

[20:37:12] balbina: isnt too much for next session?

[20:37:23] sarmadgul: Will see!

[20:37:29] Zlip792: {jaweria_saleem} I prefer BPP but Kaplan is more than enough

[20:38:04] Zlip792: {balbina} No, next time I will come with revision.. LOL!! So I don't make blunders

in your guess game.. LOL!

[20:38:07] balbina: {Zlip792} well i was thinking about doing it Sunday starting 15th Sept

[20:38:25] Zlip792: {balbina} Sunday is easy going for me in online job less work to do

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[20:38:26] balbina: {Zlip792} i will prepare tricky questions for you :)

[20:38:39] Zlip792: {balbina} don't make me sad by saying this...

[20:38:59] balbina: {Zlip792} just its summer time and people go countryside during weekends

[20:39:00] Zlip792: {balbina} You will expose me pretty bad here

[20:39:24] Zlip792: {balbina} Actually there is 5 hours difference in your and our time zone

[20:39:27] balbina: i will help you to pass p7 :)

[20:39:33] balbina: and you help me too :)

[20:39:48] balbina: its almost 9pm my time

[20:39:49] Zlip792: {balbina} Here we are 11:39 PM, I try my best to help others as much as I can

[20:40:00] Zlip792: {balbina} Are you from UK?

[20:40:04] balbina: nope

[20:40:07] balbina: from poland

[20:40:13] Zlip792: {balbina} Oh I thought you are.. LOL!

[20:40:36] balbina: :)

[20:40:47] balbina: uk time is easy to remember

[20:40:55] jaweria_saleem: thanks for the revision

[20:40:58] balbina: + i m afraid of traffic jams

[20:41:03] balbina: thank you guys

[20:41:08] balbina: i hope you liked it

[20:41:16] balbina: and it will help us to pass p7 :)

[20:41:21] balbina: fingers crossed

[20:41:29] balbina: we will try for the next time

[20:41:33] balbina: B Professional and Ethical Considerations

1. Code of Ethics for Professional Accountants

2. Fraud and error

3. Professional liability

[20:41:42] balbina: we will see how much we can cover

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[20:41:48] Zlip792: This year P7 examiner wait for us, I am gonna bang this paper like hell, you dare

to fail me... Hohahahaha!!! LOL!!!

[20:41:59] balbina: thank you guys for your participation

[20:42:17] sarmadgul: Yea Thank you all!

[20:42:22] Zlip792: Thanks every guy or gal, who came and make this session better

[20:42:33] Zlip792: and forgive if I said something absurd or which hurt anyone

[20:42:52] balbina: i m glad in peak time there were 13 people!

[20:42:54] balbina: yeah

p7_study_session_1_26082013

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