MSA 1 – Financial Reporting Assurance Professional Competence

YEAR WISE FINANCIAL REPORTING AREAS TESTED

June 2017
Q.1
Equity settled share based payment transaction with both market based condition (share
IFRS 2 price) as well as non-market based condition (employment term)
IAS 36 Impairment testing with currency exchange rate implications
IFRIC 1 Recognition and measurement of dismantling obligation
Accounting for compound instrument (convertible bonds) (Equity and liability component
IFRS 9 determination)
Q.2
Consol Control lost, mid year structure changes, subsidiary to associate transfer
Consol Foreign consolidation exchange translations impacts, Goodwill calculations
Q.3
IFRS 16 Sale and lease back area
Hedge accounting application in case of derivate (Principles / criteria to fullfill for hedge
IFRS 9 accounting)

December 2017
Q.1
IAS 40 Portion application, transfer of PPE measured under revaluation model to IAS 40 IP
Hedge accounting application in case of derivate (Principles / criteria to fullfill for hedge
IFRS 9 accounting) + calculation at reporting date
Identifying need to perform impairment calculations, GW allocation to CGU, allocation of
IAS 36 impairment to items scoped with IAS 36
IAS 37 Provision recognition for restructuring
IFRS 16 Sale and lease back transaction
Q.2
IAS 38 Internally generated Intangible recognition
IAS 19 defined benefit and contribution plan
IFRS 9 Financial asset - equity instrument being FVTOCI
IFRS 8 Operating segment a reportable segment or not
IAS 33 Basic and diluted EPS
Q.3

Consol Goodwill computation in case of deferred consideration including impairment of goodwill

IFRS 2 Cancellation of scheme

June 2018
Q.1
Identification of performance obligation and allocation of the transaction price. Bill and
IFRS 15 hold arrangement consideration
IFRS 9 Financial asset - equity instrument being FVTOCI
IAS 38 / SIC 32 Website development cost - criteria for capitalisation
IFRS 16 Identification of a lease contract along with exemption conditions
IAS 10 Adjusting vs non-adjusting event
Determination of type of interest in other entities (Considerations regarding basis of
Consol subsidiary, associate and investment under IFRS 9)

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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MSA 1 – Financial Reporting Assurance Professional Competence

Q.2
1. Loss of control. Conversion of subsidiary into an associate. 2. Equity accounting 3.
Consol Goodwill computation 4. Intra group transaction
Q.3
Initial assessmentGoing
risk concern, Basis of revaluation, Restructuring and redundancy
Consol Joint arrangement basis and identification
IAS 24 Related party identification
IAS 2 Inventory NRV testing with reference to foreign currency (IAS 21)

December 2018
Q.1
Group audit Changes in group structure, component auditors
IFRS 15 Identification of PO, allocation of transaction price and recognition on satisfaction
Consol Contingent consideration treatment
Consol Sale no control lost treatment
IFRS 9 Derivative accounting
IAS 19 Pension (treatment of loss arising on transfer to the defined contribution scheme)

Q.3
IFRS 2 Market based condition
IAS 16 Useful life review
IAS 37 Provision vs contingent liability
IAS 12 Deferred tax treatment in case of share option scheme

June 2019
Q.1
IFRS 15 Identification of performance obligation
IAS 40 IFRS 13 (Highest and best use valuation concept)
IAS 37 Provision for restoration
Consol Subsidiary to associate conversion
IFRS 9 Trade receivable ECL consideration
IFRS 9 FVTOCI Equity instrument
IAS 19 Curtailment of pension benefit (restruturing)

Q.2
IFRS 9 Decrecognition consideration of financial assets in case of debt factoring
IFRS 16 Sale and lease back
IFRS 9 OCI investment treatment for exchange translation

Q.3
IAS 21 currency translation consideration
Consol Acq of control and recognition of goodwill
IAS 8 Prior period error

December 2019
Q.1
Group audit Changes in group structure, component auditors
Consol Measurement of NCI, contingent consideration, identifiable assets and liabilities

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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MSA 1 – Financial Reporting Assurance Professional Competence

IAS 40 Fair value measurement in case on non-financial asser (Highest and best use principle)
Consideration regarding variable payment in a lease. Component consideration in case of
IFRS 16 lease
IFRS 8 Reportable segment disclosure consideration
IFRS 15 Consideration regarding satisfaction of PO overtime and point in time
IFRS 9 Embeded derivative considerations
IFRS 9 Future contract (own use exemption)
IAS 37 Redundancy provision
IFRS 16 Sale and lease back arrangement
IFRS 9 Financial liability measurement / designation consideration

Q.2
Consol Impairment of subsidiary (GW)
IAS 40 Change of use consideration and reclassifications
IAS 37 Provision recognition (Basis of legal / constructive obligation)
IAS 21 Currency translations

Q.3
Covenant breach consequences (adjusting or not adjusting event). Disclosure of breach as
IAS 1 / IFRS 7 per IFRS 7
IAS 1 Disclosure required if material uncertainty relating to going concern exist
IAS 2 Considerations regarding NRV

December 2020
Q.1
IFRS 2 Share based payment recognition on estimate of instruments expected to vest

IAS 38 Development cost for regulatory approval (Capex vs Revex), Exchange of intangible assets
IFRS 15 Variable consideration implications
IFRS 9 ECL measurement
IFRS 8 Segment Reporting
Amount receivable in 3 years on revenue contract (Significant financing component
IFRS 15 considerations)

Q.2
Consol Intra group transaction with unsold inventory in hand

Consol Goodwill recognition on the basis of provisional value. Actualisation when info available
Consol Foreign subsidiary translation considerations
Consol Joint arrangement vs joint venture

June 2021
Q.1
IFRS 16 Sale and lease back transaction
IAS 40 Change in use IAS 40 to PPE
Consol IFRS 3 (Acquisition of biz. Vs acq of assets)

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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MSA 1 – Financial Reporting Assurance Professional Competence

Q.2
Goodwill recognition on the basis of provisional value. Actualisation when info available.
Consol Consolidation process
IFRS 2 Cash settled SBP modified to equity settled including deferred tax impact
IAS 33 EPS in case of share based payment transaction

Q.3
IAS 8 Change in accounting estimate application
IFRS 16 Modification
IFRS 15 Identification of PO
IAS 37 Contingent liability disclosure

December 2021

Q.1
Consol Foreign subsidiary goodwill determination and impairment consideration
Consol Disposal control not lost treatment
IAS 19 Recognition of defined benefit pension obligation
IFRS 9 Hedge of recognised asset or liability
SBP transaction with counterparty having choice of settlement. Compound financial
IFRS 2 instrument
IFRS 2 Equity settled SBP transaction

Q.3
Identification of performance obligation (Distinct). Deferred payment implications. ECL
IFRS 15 implications
Consol Joint venture classification and treatment
Consol IFRS 3 (Intangibles in a business combination)

June 2022

Q.1
IAS 2 Inventory valuation / obsolescence
IAS 16 Useful life / impairment
IFRS 15 Satisfaction of PO or not / contract cost
IAS 38 Intangible asset recognition
IFRS 2 Share option scheme with performance and market condition
IAS 32 Irredemable capital - Debt vs Equity
IFRS 9 Hedge accounting (Cash flow hedge)

Q.2
Consol Disposal control not lost
Consol Goodwill impairment
Consol Foreign subsidiary translation

Q.3
IAS 40 Portion application
IFRS 16 Identify whether an arrangement is a lease or not

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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MSA 1 – Financial Reporting Assurance Professional Competence

December 2022

Q.1
IAS 21 Considerations related to translation of monetary FX liability (Loan)
IFRS 2 Share option scheme
IAS 8 / IAS 16 Change of policy to revaluation model implications (FV determination - IFRS 13)
IAS 12 Deferred tax implications on Loan, PPE revaluation model, Share option
Consol Analysis of control and requirement for consolidation at less than 50% stake
Consol Recognition of intangibles not recorded in separate books (consol)
Consol Uniform accounting policies to be used

Q.2
Consol Goodwill computation consideration in the form of share for share exchange
Consol NCI measurement method to be considered on acquisition by acquisiton basis
Consol Analysis of investment in associate vs JV

Q.3
IFRS 16 Sale and lease back
IAS 37 Provision for restructuring

June 2023

Q.1
IAS 23 Capitalisation criteria of borrowing cost on qualifying assets
IAS 10 Identification of adjusting vs non-adjusting event
IAS 40 Change in use of property
IAS 8 Voluntary change in accounting policy. Application and justifications / reasons

IFRS 15 / IFRS 16 Lease and non-lease components

IFRS 9 Debt instrument accounting under IFRS 9

Q.2
Consol Disposal where control lost and conversion into associate
Consol Associate investment accounting

Q.3
IAS 19 Defined benefit gratuity scheme accounting
IFRS 15 Customer loyaty scheme

December 2023

Q.1
IAS 32 Convertible loan financial reporting treatment
Consol Computation of goodwill (different types of considerations)
IAS 36 Impairment
IAS 40 Transfer of owner occupied property into investment property

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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MSA 1 – Financial Reporting Assurance Professional Competence

Q.2
Consol Investment in foreign subsidiary

Q.3
IAS 8 Accounting for change in policy

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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MSA 1 – Financial Reporting Assurance Professional Competence

AREA COVERAGE IN PAST PAPERS

Area Sub-topic
Consol Control lost, mid year structure changes, subsidiary to associate transfer
Consol Foreign consolidation exchange translations impacts, Goodwill calculations

Consol Goodwill computation in case of deferred consideration including impairment of goodwill

Determination of type of interest in other entities (Considerations regarding basis of
Consol subsidiary, associate and investment under IFRS 9)
1. Loss of control. Conversion of subsidiary into an associate. 2. Equity accounting 3.
Consol Goodwill computation 4. Intra group transaction
Consol Joint arrangement basis and identification
Consol Contingent consideration treatment
Consol Sale no control lost treatment
Consol Subsidiary to associate conversion
Consol Acq of control and recognition of goodwill
Consol Measurement of NCI, contingent consideration, identifiable assets and liabilities
Consol Impairment of subsidiary (GW)
Consol Intra group transaction with unsold inventory in hand

Consol Goodwill recognition on the basis of provisional value. Actualisation when info available
Consol Foreign subsidiary translation considerations
Consol Joint arrangement vs joint venture
Consol IFRS 3 (Acquisition of biz. Vs acq of assets)
Goodwill recognition on the basis of provisional value. Actualisation when info available.
Consol Consolidation process
Consol Foreign subsidiary goodwill determination and impairment consideration
Consol Disposal control not lost treatment
Consol Joint venture classification and treatment
Consol IFRS 3 (Intangibles in a business combination)
Consol Disposal control not lost
Consol Goodwill impairment
Consol Foreign subsidiary translation
Consol Analysis of control and requirement for consolidation at less than 50% stake
Consol Recognition of intangibles not recorded in separate books (consol)
Consol Uniform accounting policies to be used
Consol Goodwill computation consideration in the form of share for share exchange
Consol NCI measurement method to be considered on acquisition by acquisiton basis
Consol Analysis of investment in associate vs JV
Group audit Changes in group structure, component auditors
Group audit Changes in group structure, component auditors
IAS 1 Disclosure required if material uncertainty relating to going concern exist
Covenant breach consequences (adjusting or not adjusting event). Disclosure of breach as
IAS 1 / IFRS 7 per IFRS 7
IAS 10 Adjusting vs non-adjusting event
IAS 12 Deferred tax treatment in case of share option scheme
IAS 16 Useful life review
IAS 16 Useful life / impairment
IAS 19 defined benefit and contribution plan

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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MSA 1 – Financial Reporting Assurance Professional Competence

IAS 19 Defined benefit gratuity scheme accounting

IAS 19 Pension (treatment of loss arising on transfer to the defined contribution scheme)
IAS 19 Curtailment of pension benefit (restruturing)
IAS 19 Recognition of defined benefit pension obligation
IAS 2 Inventory NRV testing with reference to foreign currency (IAS 21)
IAS 2 Considerations regarding NRV
IAS 2 Inventory valuation / obsolescence
IAS 21 currency translation consideration
IAS 21 Currency translations
IAS 23 Capitalisation criteria of borrowing cost on qualifying assets
IAS 24 Related party identification
IAS 32 Irredemable capital - Debt vs Equity
IAS 33 Basic and diluted EPS
IAS 33 EPS in case of share based payment transaction
IAS 36 Impairment testing with currency exchange rate implications
Identifying need to perform impairment calculations, GW allocation to CGU, allocation of
IAS 36 impairment to items scoped with IAS 36
IAS 37 Provision recognition for restructuring
IAS 37 Provision vs contingent liability
IAS 37 Provision for restoration
IAS 37 Redundancy provision
IAS 37 Provision recognition (Basis of legal / constructive obligation)
IAS 37 Contingent liability disclosure
IAS 38 Internally generated Intangible recognition

IAS 38 Development cost for regulatory approval (Capex vs Revex), Exchange of intangible assets
IAS 38 Intangible asset recognition
IAS 38 / SIC 32 Website development cost - criteria for capitalisation
IAS 40 Portion application, transfer of PPE measured under revaluation model to IAS 40 IP
IAS 40 IFRS 13 (Highest and best use valuation concept)

IAS 40 Fair value measurement in case on non-financial asser (Highest and best use principle)
IAS 40 Change of use consideration and reclassifications
IAS 40 Change in use IAS 40 to PPE
IAS 40 Portion application
IAS 8 Prior period error
IAS 8 Voluntary change in accounting policy. Application and justifications / reasons
IAS 8 Change in accounting estimate application
IFRIC 1 Recognition and measurement of dismantling obligation
Identification of performance obligation and allocation of the transaction price. Bill and
IFRS 15 hold arrangement consideration
IFRS 15 Identification of PO, allocation of transaction price and recognition on satisfaction
IFRS 15 Identification of performance obligation
IFRS 15 Consideration regarding satisfaction of PO overtime and point in time
IFRS 15 Variable consideration implications
Amount receivable in 3 years on revenue contract (Significant financing component
IFRS 15 considerations)
IFRS 15 Identification of PO
IFRS 15 Customer loyaty scheme

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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MSA 1 – Financial Reporting Assurance Professional Competence

Identification of performance obligation (Distinct). Deferred payment implications. ECL

IFRS 15 implications
IFRS 15 Satisfaction of PO or not / contract cost
IFRS 16 Sale and lease back area
IFRS 16 Sale and lease back transaction
IFRS 16 Identification of a lease contract along with exemption conditions
IFRS 16 Sale and lease back
Consideration regarding variable payment in a lease. Component consideration in case of
IFRS 16 lease
IFRS 16 Sale and lease back arrangement

IFRS 15 / IFRS 16 Lease and non-lease components

IFRS 16 Sale and lease back transaction
IFRS 16 Modification
IFRS 16 Identify whether an arrangement is a lease or not
Equity settled share based payment transaction with both market based condition (share
IFRS 2 price) as well as non-market based condition (employment term)
IFRS 2 Cancellation of scheme
IFRS 2 Market based condition
IFRS 2 Share based payment recognition on estimate of instruments expected to vest
IFRS 2 Cash settled SBP modified to equity settled including deferred tax impact
SBP transaction with counterparty having choice of settlement. Compound financial
IFRS 2 instrument
IFRS 2 Equity settled SBP transaction
IFRS 2 Share option scheme with performance and market condition
IFRS 8 Reportable segment disclosure consideration
IFRS 8 Segment Reporting
IFRS 8 Operating segment a reportable segment or not
Hedge accounting application in case of derivate (Principles / criteria to fullfill for hedge
IFRS 9 accounting) + calculation at reporting date
IFRS 9 Financial asset - equity instrument being FVTOCI
IFRS 9 Financial asset - equity instrument being FVTOCI
IFRS 9 Derivative accounting
IFRS 9 Trade receivable ECL consideration
IFRS 9 FVTOCI Equity instrument
IFRS 9 Decrecognition consideration of financial assets in case of debt factoring
IFRS 9 OCI investment treatment for exchange translation
IFRS 9 Embeded derivative considerations
IFRS 9 Future contract (own use exemption)
IFRS 9 Financial liability measurement / designation consideration
IFRS 9 ECL measurement
IFRS 9 Hedge of recognised asset or liability
IFRS 9 Hedge accounting (Cash flow hedge)
Accounting for compound instrument (convertible bonds) (Equity and liability component
IFRS 9 determination)
Hedge accounting application in case of derivate (Principles / criteria to fullfill for hedge
IFRS 9 accounting)

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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1.0 Past paper analysis
MSA 1 – Financial Reporting Assurance Professional Competence
Q.1
Summer 2017
1. Review FS and identify key audit risks (10)
2. Identify key audit risks and explain correct acconting
treatment + journals (20)
3. Key audit procedures (10)
4. Ethical issues (5)
5. Key procedures for forecast FS prepared. (5)
Winter 2017
1. Financial reporting issues during audit and adjusting
entries (16)
2. Evaluation of audit tesing already performed and
explain O/s audit issues (8)
3. List Key audit procedures (11)
4.Corporate Governance requirements of a listed
companies (5)
5.Professional and ethical issues (5)
6. Explain Financial reporting implicaitons (5)
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Q.2 Q.3
1. Explain impact of transactions in group FS (15) 1. Key weakness in procedures already performed,
additional procedures req. (14)
2. Redrafted FS (6) 2. Financial reporting issues (5)
3. Accounting and ethical issues arising (4) 3. Summarise the audit issues and impact on the report
(3)
4. Financial reporting implication (3)
1.Potential impact on the draft FS of any issues identified 1.Perform analytical procedures to assess the financial
in reviewing work papers. performance with regard to revenue, profits and working
capital of SP. (5)
2. Calculate adjusted profit. 2.Identify the key group audit risks arising due to the
acquisition of SP and explain the correct financial
reporting treatment of any issues identified. Recalculate
any figures where relevant. (11)
3. Calculate basic and diluted earnings per share. (20) 3. Prepare the note as requested in Appendix
(Cancellation of share based payment accounting
treatment. (4)
4. Ethical issues (5) 4.Consider whether KL is in breach of the bank covenants
and consider the implications for our audit of the KL
group. (5)
Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)
1 Sir Hafeez Areeb Khan ACA (MSA 1, CFAP 3 SPM)
1.0 Past paper analysis
MSA 1 – Financial Reporting Assurance Professional Competence

Q.1 Q.2 Q.3

Summer 2018
1. assess the key audit risks and ensure you consider the
materiality of the issues on the group FS, explain where
additional audit procedures that need to be completed
on these matters. Explain the correct accounting
treatment. (30)
2. explaining the impact, if any, that the incident of fire
will have on the completion of the group audit (10)
1. Prepare a report for the Board of Rahma Media that
explains the financial reporting implications of the
changes in group shareholdings (Appendix 2) and
intragroup transactions (Appendix 3) that have occurred
in the year ended 30 April 2018 (14)
2. Prepare a summarised statement of financial position
for the Rahma Media group as on 30 April 2018. (6)
1. briefing note to support our acceptance decisions,
further info required to consider acceptance decision,
ethical considerations and adjusted management
accounts for Financial reporting issues. (22)
2. An explanation of any financial reporting impacts (8)

3. Assess the audit risks arising from the audit juniors

work (Appendix 5) and outline key issues on the
associate acquired during the year on the group financial
statements. (10)
Winter 2018
1. Evaluate key audit risks (12)
2. Explain any financial reporting issues (18)
1. Prepare the projected consolidated statement of profit
or loss and projected consolidated statement of financial
position under the following situations: (i) Contract with
MS Manufacturing for supply of microchips; (ii)
Acquisition of AK Engineering which manufactures such
microchips. (10)
1. Explain any additional financial reporting issues that
have not been identified by the audit team. Include
journals where relevant. (13)
Explain how you would resolve the outstanding issues
related to the audit for the year (12)

3. Explain the impact of the issues on our audit approach. 2. Analyse and explain the possible impact of each of the
Audit procedures are not required. (15) two options on the financial position and financial
performance of MHG for the year ending 30 November
2019. (10)
4. drafting response relating to our responsibiity on other 3. Ethical dilemma (5)
info. (5)

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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1.0 Past paper analysis
MSA 1 – Financial Reporting Assurance Professional Competence

Q.1 Q.2 Q.3

Summer 2019
1. Explain the financial reporting issues arising and
recommend adjustments (20)
2. Explain the group audit issues which need to be
addressed before the audit report can be signed +
relevant actions required. (20)
3. Professional and ethical issues (10)
Winter 2019
1. Identify and explain key audit risk + how risk would
impact financial statements of Group and individual
entities (36)
2. Financial reporting treatment of proposed financing
arrangement (8)
3. Professional and ethical issues (6)
Winter 2020
1. Explain any financial reporting issues that have not
been correctly accounted for in the group financial
statements (20)
2.Explain any audit issues that need to be resolved
before the completion of the group audit (22)
3. Prepare a response to the request for assistance on
the appointment of a non-executive director at SL. (5)
4. Prepare a summary that explains any quality control
issues identified in the group audit of SL. (3)
1. Prepare, providing relevant explanations, the
adjustments required to the financial statements (10)
2. Prepare the revised financial statements of EMP (5)
3. Analyse the performance and financial position +
additional info required to complete analysis. (15)
1. Explain the financial treatment in interim financial
statements (18)
2. Prepare / redraft financial statements incorporating
adjustments (5)
3. Ethical / other professional issue arising from the
review (7)
1.Explain the financial reporting implications of the
transactions (13)
2. Prepare the draft summarised consolidated statement 2. For the audit risks identified, outline any additional
of financial position (12)
3. Explain any ethical issues arising from the preparation the risks. (5)
of the financial statements (5)
1. explain the financial reporting issues arising from
transactions (8)
2. identify and explain the audit risks arising from the
financial reporting issues and discuss the impact of the
issues on our audit strategy, including resources and
budget implications. (12)
1. explain the financial reporting implications of
identified issues + Actions required prior to signing +
Impact on audit report (18)
2. Evaluate completeness of director's report in
accordance with Co. Act. (2)
1. Perform analytical procedures to identify the audit
risks for the audit (15)
information required to have a better understanding of

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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1.0 Past paper analysis
MSA 1 – Financial Reporting Assurance Professional Competence

Q.1 Q.2 Q.3

Summer 2021
1. Explains financial reporting implications of the 1.Explain the impact of the outstanding issues + prepare 1. Explains any financial reporting issues that the audit
transactions + potential adjustments (12) journal (calc) (17) team have not identified (15)
2.Reviews and analyses the draft financial statements. 2. Prepare the revised consolidated statement of profit 2. Identifies and explains any areas where there is a lack
(12) or loss and other comprehensive income (5) of sufficient and appropriate audit evidence. (5)
3. Identifies and explains the audit risks for Lahore 3. Calculate earnings per share (EPS) for the year ended
Builders (11) 31 May 2021 and discuss whether any of the outstanding 3. Outline the potential impact of the issues in Appendix
issues will impact on diluted EPS. (3) 3 on the audit report (5)
4. Explains the financial reporting implications of Lahore Discuss any ethical issues that arise in the scenario and
Builders’ potential purchase + explains the ethical issues, describe any required actions (5)
and any potential safeguards (10)
5. Discuss the other professional and ethical issues
arising from the information (5)
Winter 2021
1. Explain the financial reporting issues arising from the 1.Prepare analysis of the financial information as 1.Identify and explain the key audit risks for the audit of
review of the audit evidence (16) requested by the finance director. (12) the Paktech Group for the year ended 30 November
2021. (10)
2.Prepare, a summary of the uncorrected misstatements 2. Explain any areas of concern that will require further 2. Explain financial reporting issues. Show all relevant
and assess their impact on the group’s assets, liabilities investigation (11) calculations (10)
(7)
3. Explain the actions that the auditors need to take in 3. Explain whether the external auditors may review the
the light of any misstatements identified. (17) loan application. You should reflect on any ethical
concerns that may arise. (7)
4. Explain the financial reporting implications of the
proposed changes to the share-based remuneration
scheme in the first year. (10)

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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1.0 Past paper analysis
MSA 1 – Financial Reporting Assurance Professional Competence

Q.1 Q.2 Q.3

Summer 2022
1. Review the background information and the financial
reporting issues and identify the audit risks (15)
2.Explain the correct financial reporting treatment for
the issues identified (20)
3. Explain the impact of the proposed arrangement (9)
4. Discuss the professional and ethical issues raised and
recommend the appropriate action to take. (6)
1.Explain, with supporting calculations, the correct
accounting treatment to be applied to the outstanding
matters (15)
2. Redraft the Relay’s consolidated statement of financial
position (6)
3. Explain whether the auditor would accept the request
made in Appendix 4. You should reflect on any ethical
concerns that may arise. (4)
1. Explain the financial reporting issues arising from your
review of the audit team’s working papers (10)
2. Explain the impact on the auditor’s report if the
management of KF refuses to amend the draft financial
statements for any adjustments (5)
3. Discuss the appropriateness of KF’s accounting
treatment in response to the fire in respect of the
financial statements. Explain the audit evidence that
Rasool Gul & Co. should obtain in relation to the fire. (10)

Q.1 Q.2 Q.3

Winter 2022
1. identify the audit risks and the financial reporting
issues (17)
2.Explain how IFRS to be applied / defferred tax
implication determined including preparation of journals
(18)
3. Prepare notes for the audit partner ahead of his
meeting with the finance director of SAI,
as requested in the memo (9)
4. Discuss the professional and ethical issues raised and 4. Matters to be considered while accrpting the
recommend the appropriate action to take. (6)
1.Explain, with supporting calculations, how the goodwill 1. Explain the financial reporting issues arising from your
arising on the acquisition of IBC review of the audit team’s working papers (10)
would be determined (6)
2. Prepare consolidated PL and OCI (11) 2. Explain the impact on the auditor’s report (5)
3. Discus the nature of investment . (4)
engagement to examine prospective financial statements
3. Reliance on the work of expert / RP disclosure
(4)
requirement(10)

Q.1 Q.2 Q.3

Summer 2023

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

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1.0 Past paper analysis
MSA 1 – Financial Reporting Assurance Professional Competence

1. identify the audit risks and the financial reporting 1.Prepare a calculation of the gain or loss on the part 1. Prepare a reconciliation of the net defined benefit
issues (15) disposal of KFC together with the liability together with required journal
explanatory notes (9) entries and explanatory notes (9)
2.Explain correct reporting treatment for issues identified 2. Prepare the consolidated statement of financial 2. Explain how the customer loyalty scheme should have
along with journal entry. (20) position (11) been accounted for (6)
3. Diff between full IFRS vs IFRS for SME (5) 3. Discus the nature of investment . (4) 3. Ethical issue (7)
4. Understanding required in relation to service 4. Discuss the professional and ethical issues (5)
organisation as per auditing standards (service
organisation. (10) 4. Suggest changes in the draft group auditor's report (3)

Q.1 Q.2 Q.3

Winter 2023
1. Identify and explain the key audit risks arising from 1.Calculate the amounts to be presented in the 1. Prepare notes with supporting calculations for the
your review (13) consolidated FS in respect of the investment in foreign audit manager in response to her email (9)
subsidiary. (9)
2.Explain correct reporting treatment for issues identified 2. Prepare consolidated PL and OCI (11) 2. Prepare notes that explain how the change in
along with journal entry. (20) accounting policy should be accounted for (7)
3. Identification of related parties (5) 3. Discuss the professional and ethical issues . (5) 3. Discuss quality control issue and actions (5)
4. Audit procedures in relation to disposal of a Company
from consol perspective. (6) 4. Explain the matters that SBC needs to agree in relation
5. Ethical issue (6) to the terms of agreement (5)

Sir Hamid Yousuf ACA (MSA 1, CFAP 5 Tax)

Videos: sta.saudtariq.com/Course/Detail/5015 6 Sir Hafeez Areeb Khan ACA (MSA 1, CFAP 3 SPM)