FAE 2016

colint104 · 12-07-2016 05:59AM

Anyone got any tips for audit elective?

Particularly with other engagements and audit reports?
Anything else would be greatly appreciated.

Thanks in advance

CAstudent · 15-07-2016 08:04AM

Anyone have any guidance on the best way to prepare for audit? One of my highlighted weaknesses from the mocks... feel like I have a pretty good plan for the other subjects but worried audit will be lost in the shuffle!

TG860 · 15-07-2016 11:07AM

I find with the audit elective that the lecturer's notes are quite good in an exam environment.
They hit all the key points and thought process you need to do for a question on each area, and they have the paragraph references for the standards you need to then go and apply.

For the mocks I just printed off the notes for all of the elective sessions.
Once you're in the exam, just identify what area the indicator is about and go to the slides for that particular area.
You can very quickly plan your answer then and apply the relevant standard paragraphs to the question.

In terms of learning the material, I found reading through the standard in full before watching the lectures worked best for me. Do the questions for that session listed in the planning and delivery schedule afterwards.
It does take time to go through all of the sessions, but it is worthwhile.
You don't really need to remember anything in detail, it's just getting that rough idea of everything so you understand what the indicator is looking for. Then you can refer to slides & standard for the nitty gritty detail on the day.

dm1992 · 15-07-2016 12:03PM

Any chance somebody could upload them Audit elective notes, don't fancy watching 3 days worth of sean murray lectures and audit core is a disaster!
Thanks in advance!

y0ssar1an22 · 16-07-2016 05:10PM

Hope everyone's study is going well. lovely day, pity to be stuck inside!

Have a question hoping someone may be able to clarify:

Self Study case: Lowland Bank Ireland Limited, pg 52.

the 2nd indicator revolves around making a recommendation for a customer phone-in service, considering financial and non-financial factors.

In the case, the Irish call center staff will be paid €7 per proposal completed, with 12000 sales expected. ie: €84,000. It also says that 12000 sales is based upon 60000 calls with a 20% hit rate.

The solution presents this cost as 420,000 (60000 calls @ 7 per call), but should it not be 84,000 as only 12000 proposals are completed?

You could probably argue it either way in the exam, but would like to hear what other people think. Or maybe I'm reading it wrong?

Thanks

Garrigai · 17-07-2016 09:24AM

The call center would be paid per call not paid per successful proposal, in reality you would probably expect 7 per call and then some commission or top up per successful proposal.

kolbasin88 · 18-07-2016 04:05PM

Hi everyone,

I have posted this earlier but I l give it another try. Most of you heard PM mentioning study groups. I looked to set one up but no luck. Just putting a word out there that if there is a lone sole like me in the UCD library, send me a PM and we can see if can meet occasionaly and discuss cases.

Take care all

CAstudent · 18-07-2016 04:25PM

y0ssar1an22 wrote: »

Hope everyone's study is going well. lovely day, pity to be stuck inside!

Have a question hoping someone may be able to clarify:

Self Study case: Lowland Bank Ireland Limited, pg 52.

the 2nd indicator revolves around making a recommendation for a customer phone-in service, considering financial and non-financial factors.

In the case, the Irish call center staff will be paid €7 per proposal completed, with 12000 sales expected. ie: €84,000. It also says that 12000 sales is based upon 60000 calls with a 20% hit rate.

The solution presents this cost as 420,000 (60000 calls @ 7 per call), but should it not be 84,000 as only 12000 proposals are completed?

You could probably argue it either way in the exam, but would like to hear what other people think. Or maybe I'm reading it wrong?

Thanks

I read it as when a call is made a proposal is filled out which may or may not lead to a vehicle being purchased. Don't really see a way to include the effect of the proposals coming directly through the website since this would reduce the cost of outsourcing even further but I suppose an assumption could be made.

krumykris · 19-07-2016 11:40AM

Hi. Im just wondering if anybody understands hedging using the money market? I am looking at the Finance theory and practice book by Anne Marie Ward and can't seem to work out how the hedge in example 18.4 equals $15m... Anybody got any idea?
Thanks

CAstudent · 19-07-2016 02:59PM

krumykris wrote: »

Hi. Im just wondering if anybody understands hedging using the money market? I am looking at the Finance theory and practice book by Anne Marie Ward and can't seem to work out how the hedge in example 18.4 equals $15m... Anybody got any idea?
Thanks

They are receiving 15M Usd in 3 months time so they borrow an amount now that will give them a matching 15M liability in 3 months at 4.5%. They convert the cash received when the loan is taken out into Euro to lock in an effective exchange rate.

CAstudent · 19-07-2016 04:53PM

Has anyone looked at the plastic products MA case? Having issues with some of the figures in the NPV, particularly the working capital requirements in year 0 and the capital allowances throughout, solution just gives the figures.

FAEs2016 · 19-07-2016 06:15PM

The working capital requirements are detailed in Appendix 3 of the solution.

The capital allowances for Years 2006 - 2010 are equal to the €400k cost of the machine * 20% capital allowance * 40% CT rate.

The capital allowance in 2011 relates to a balancing allowance (Question notes a useful life of four years)

The TWDV is €400k - ( €80k X 4 years ) [80k is the capital allowance of 400k * 20%]
So the TWDV is €80k but we have a residual value of €50k per the question which leaves a balancing allowance of €30k. This at the CT rate of 40% gives the €12k figure per the solution.

y0ssar1an22 · 20-07-2016 08:43AM

kolbasin88 wrote: »

Hi everyone,

I have posted this earlier but I l give it another try. Most of you heard PM mentioning study groups. I looked to set one up but no luck. Just putting a word out there that if there is a lone sole like me in the UCD library, send me a PM and we can see if can meet occasionaly and discuss cases.

Take care all

I'm also a lone wolf, but am too far away to ever make it to UCD library. However if I ever make it out that way I will PM you to see if you're about.

Ryder_SM · 20-07-2016 12:10PM

I was wondering does anyone have a copy of the cheat sheets that are going around for FAE core? Thanks in advance

krumykris · 20-07-2016 09:21PM

CAstudent wrote: »

They are receiving 15M Usd in 3 months time so they borrow an amount now that will give them a matching 15M liability in 3 months at 4.5%. They convert the cash received when the loan is taken out into Euro to lock in an effective exchange rate.

Cheers for above.. I'm just not getting how €9,169,251.57 (loan + interest) translated at the 3 month forward rate 1.59 (1.6 - 2.1(as premium)) would equal the $15m?

It says it does soon the top of page 672, but I just can't for the life of me figure out how they're working it out???

Dublin Student1992 · 20-07-2016 11:07PM

Ryder_SM wrote: »

I was wondering does anyone have a copy of the cheat sheets that are going around for FAE core? Thanks in advance

Hey, I have the 2014 cheat sheet if that's any use to you? PM me your email address and I'll ping it on to you!

CAstudent · 21-07-2016 08:09AM

krumykris wrote: »

Cheers for above.. I'm just not getting how €9,169,251.57 (loan + interest) translated at the 3 month forward rate 1.59 (1.6 - 2.1(as premium)) would equal the $15m?

It says it does soon the top of page 672, but I just can't for the life of me figure out how they're working it out???

Are you looking at the same example throughout? No mention of premiums in 18.4 but there is in 18.5.

y0ssar1an22 · 21-07-2016 12:45PM

Dublin Student1992 wrote: »

Hey, I have the 2014 cheat sheet if that's any use to you? PM me your email address and I'll ping it on to you!

What are these cheat sheets? Never heard of them. Could you also send onto me please? Will PM you my email address.

Uncle Mclovin · 21-07-2016 02:11PM

Anyone have the old mock papers from 2014 back?

connect1988 · 21-07-2016 03:31PM

Hi folks

I just wanted to see if anyone had tried the coating and fabrications steps case yet?

I really struggled (and still struggling!) at understanding the valuation they placed on the acquisition of panel repairs limited? It uses the profitability of the acq company as a starting point then adds the additional contribution it would get for the acq. Does anyone understand this calculation?

Thanks for any feedback.

superb choice of username · 21-07-2016 06:12PM

Is anyone else losing the will to live at this stage? I feel like the deer staring into oncoming car with the full beam headlights on...

Uncle Mclovin · 21-07-2016 06:45PM

superb choice of username wrote: »

Is anyone else losing the will to live at this stage? I feel like the deer staring into oncoming car with the full beam headlights on...

Think everyone is in that boat. Just gotta keep on truckin'.

sarmurphy · 21-07-2016 08:26PM

Hi guys, does anyone know where to find the mock past papers on the student site?? I feel like my brain has finally given up on me as I cannot find them anywhere!
Ps: I am also losing the will to live.

CAstudent · 21-07-2016 09:45PM

sarmurphy wrote: »

Hi guys, does anyone know where to find the mock past papers on the student site?? I feel like my brain has finally given up on me as I cannot find them anywhere!
Ps: I am also losing the will to live.

I think it's just last year's up there under the updated past paper area.

Mccers16 · 22-07-2016 10:04AM

sarmurphy wrote: »

Hi guys, does anyone know where to find the mock past papers on the student site?? I feel like my brain has finally given up on me as I cannot find them anywhere!
Ps: I am also losing the will to live.

Not sure where they are located on the institutes site but I googled "FAE 2013 mock" and was able to get the 2013 one that way. Hope that helps you!

Risteard · 22-07-2016 09:16PM

superb choice of username wrote: »

Is anyone else losing the will to live at this stage? I feel like the deer staring into oncoming car with the full beam headlights on...

Had a bit of a mini meltdown yesterday alright. Took some time out yesterday afternoon to get away from it.

rarara06 · 23-07-2016 01:03PM

Has anyone done the 2015 Sim mock "Smart Case Ireland"? Having trouble understanding the TERP calc. Are there any notes about for TERP??

gilla93 · 27-07-2016 12:01PM

Sorry to spam your post would any one have any advice on wheather I should do the cap 2 exams all together or on a modular basis? Starting in November and have all my cap 1 exemptions

Niamhmon · 27-07-2016 05:09PM

Do them all together so when it comes to FAE, all the information is fresher in your head and you are used to dealing with the volume of work required.

Niamhmon · 27-07-2016 05:14PM

Does anyone know why the solution to Raven calculates ROCE using PAT instead of PBIT? How did they calculate Capital Employed as well?

Also, where are we supposed to find industry norms for P/E Ratios, ROCE, etc?

FAE 2016

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