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Showing posts from August, 2008

EXAM TIPS : AUDIT EVIDENCE & GOING CONCERN

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- Relevant to Paper 8 (CAT) and F8 (ACCA)




PIC 01: AUDIT EVIDENCE EXPERIMENTED


AUDIT EVIDENCE & GOING CONCERN
The primary objective of an audit of financial statements is to enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework. The audit evidence he has gathered, which enables the auditor to express his opinion.
Auditors obtain sufficient, appropriate audit evidence. Evidence can be in the form of tests of controls or substantive procedures.

ISA 500 AUDIT EVIDENCE
The reliability of audit evidence is influenced by its source and by its nature.
ISA 500 Audit evidence requires auditors to 'obtain sufficient, appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion'.
· Sufficiency is the measure of the quantity of audit evidence.
· Appropriateness is the measure of the quality or reliability of the audit evidence.
T…

Business Journal added : The Economist

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CHARTERED ACCOUNTANTS [CA] LET LOOSE TO THE CORPORATE BUSINESS WORLD. CAN YOU BE THERE?
[From left to right]
PIC 01 : SINGAPORE SKYLINE - every company needs accountants
PIC 02 : CONFERENCE HOTEL - every business meeting needs business savvy accountants
PIC 03 : CA in Board meeting : hmmm... debit or credit? Where is Ms Menon?
PIC 04 : CA in Board meeting : (**smile** I think she passes the Porter's ABC tests [P3]) What's your telephone number again?

As professional students, especially at the final P-Level, it is imperative that you are in touch and aware of the LE PEST environment. Ethics, CSR, Strategies and accounting development are just some of them. You are encouraged periodically to go to the links I've posted on the side left bar under heading "International Business". The more you read, the better you are familiarising the terminologies common in business and professional world. Remember, you are coming out as Chartered Accountant which require that you provi…

General Annoucement : Deputy PM annoyed that citizens unappreciative of fuel price cuts

August 24, 2008 at 2:02 pm · Filed under Local News, Malaysian Fuel Prices
According to The Star, Deputy Prime Minister Datuk Seri Najib Tun Razak appeared annoyed that people did not appreciate the recent reduction of price in fuel of between 8 to 22 sen per liter. The RON97 fuel that everyone pumps only received a 15 sen reduction from RM2.70 per liter to RM2.55 per liter.

He asked people to take into account the RM625 rebate given earlier this year as it meant a 35 to 40 sen per liter discount on current petrol prices. Based on what he says, the government is effectively reducing fuel prices to RM2.20 per liter (based on RM0.35) for the first 1786 liters of fuel every year. That’s about 148 liters per month, only enough for 3 full tanks a month. How many full tanks of petrol do you pump a month, thanks to our pathetic public transport system?
It’s worth remembering that originally the RM625 subsidy was explained by the government as being a RM0.78 sen subsidy for 800 liters of fuel a …

Life As a Student

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Life as a student is really challenging. The long hours, frustration of trying to remember countless IAS, loneliness and even the pressure from all people around us – parents, lecturers (I know, I’m guilty as charged), friends with high fever of kia-su syndrome. I share your pain as it is reminiscence of my youthful past. There is always silver lining in dark clouds or after dusk is dawn of bright morning sunshine. Imagine over 180,000 ACCA graduates passed that road of difficulty only to succeed and enjoy the fruitages of their hard labour. You too can have the same path. Why not study hard which means working hours in office kind of schedule i.e. 0800 to 1800 hours from Mondays to Saturdays? If you want this nightmare to end, will the sad news is this life is - it will not go away. However, you can ‘expedite’ the process by passing as quickly exams as you can. I know quite of few students took the express road of studying/working hard and passed fabulously.

A road without destination…

ANSWERS RELEASED! - DIAMOND MODEL (MICHAEL PORTER)

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PLEASE NOTE : ANSWERS ARE ALREADY GIVEN. PLEASE CHECK WITH YOUR REPRESENTATIVES.
Entertainment Industry : Sustainable Comparative Advantage of Hollywood
- Relevant to P3 Business Analysis (ACCA)




“You jump, I’ll jump!” One of the most memorable romantic phrase ever used in moviedom. An unemployed young man characterized with zeal for survival plus zest for life saved a woman from an attempted suicide i.e. to jump into the deep watery grave from the infamous Titanic ship. The movie Titanic is the highest grossing box-office in American history collecting US$600,788,188 (see Table 1 below). Worldwide sales was a colossal US$1.8 billion. - Warning: The following video has an especially addictive effect on ladies. Also, please do not imitate the stunts you see in the video at home.



Of course, there are many other memorable movies such as the Batman (speculated to surpass Titanic Box Office's record) , Spider-man, Shrek, Star Wars and big money spinners.
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Titanic
Paramount Pictures
$600,788…

EXTERNAL STRATEGIC ANALYSIS (WITH FINANCIAL INDICATORS)

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ARE YOU REALLY AN ACCOUNTANT?
- Relevant to P3 (ACCA) but not P4 (ACCA)

TABLE 1: TSM GLOBAL BERHAD

SHARE PRICE AS AT 4 AUGUST 2008 : RM 1.27

NET TANGIBLE ASSETS : RM 2.05


MARKET DISCOUNT TO NET ASSETS : 60%


NET CASH POSITION PER SHARE : RM 1.35

PRICE/EARNINGS RATIO : 3.5 times




WORLD'S RICHEST MAN



Would you purchase a used car for RM20,000? You may ask: what is the mileage, condition and car make. Granted, these are factors that determines the market value of a car. But will your perception change, if you found inside the car boot a stack of cash amounting to RM21,200! Of course, as an honest person as I know you are, you will inquire of the seller, if the car comes with “everything” that is in it! The answer is affirmative yes. In fact, the seller said it includes the cash in the boot. So he knows!

In other words, you pay for RM20,000 and in return you get cash back RM21,200, a 6% above the purchase price. What about the car? Sure it will worth much more. So you estimate the car and cash i…

MISSION ANALYSIS : A CULTURAL PERSPECTIVE

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GM incurs record losses – Why It Couldn’t Revive Itself?
- Relevant to P3 Business Analysis (ACCA)








For all of 2007, GM lost $38.7 billion, the biggest loss ever for an automaker. The loss, equal to $68.45 a share, is about the same amount as a non-cash charge of $38.3 billion that the company took to write down deferred tax assets, meaning that GM almost broke even otherwise after losing $2 billion in 2006.
Uncomfortably high cash position
Wagoner, CEO of General Motors have to force a radical restructuring on his workers and the rest of the entrenched GM system, or have it forced on him by outsiders or a bankruptcy court. The only question is whether that reckoning comes in the next year, if models developed by Vice-Chairman Robert A. Lutz fall flat; in 2007, when the union contract comes up for negotiation; or perhaps in five years, when GM may have burned through its substantial cash cushion.Why isit so hard for those inside GM to see the inevitable? Take a step into the Detroit min…

ANSWERS RELEASED! Auditors Appointment & Professional Ethics

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Oilcorp Berhad : Auditors professional ethics in practice.
- Relevant to F8(ACCA) and P1 (ACCA)
- PLEASE CAREFULLY CHECK THE ANSWERS "AFTER" YOU ATTEMPTED THEM



BTMH (Baker Tilly Monteiro Heng) asserts that Oilcorp client is overestimating its valuation of biofuel plant by RM10million to RM110million. The client insisted that was the fair valuation. However, BTMH replied that there was insufficient audit evidence and the sum in dispute of RM10 million is material that will impact on Oilcorp Berhad’s earnings.


Picture : Oilcorp's EGM to remove BTMH auditors

Oilcorp resorted to take another auditor, Horwath, to make an independent report on the findings. The latter gave a report consistent with company’s directors valuation of the asset. This pits both accounting firms against each other. BTMH countered that Horwath didn’t explain the inconsistencies it discovered.

Criticism from analysts is that Horwath has self-interest as it is given the offer to take the appointment as new au…

PARADOX : WHO AM I?

A saying goes, "Tell me your who your friends are, and I will tell you who you are". We are defined by our sorroundings. If you live in a war torn country where hate is rife, killing another human in name of defense and mere fun is really alright. If you are born to a small village with a Dad as a dentist, you may genetically be adverse to Biology, possibly inherited from non-medic mom, still you will grow to have inkling for medic field. A case in point, a dentist dad influenced his 2 older childeren on career choice. Now Son is pursuing his father's dream in Russia while the 2nd child finishing pre-uni is intending to do dentistry.

SO Who am I? lies largely what surroundings you are in. The Beautiful thing is you CAN choose your surroundings. Have set of friends/pals that have common goals, values and aspirations such as yours.

But before that it begs the question as to who am i? We need to discover who we are inside which unfortunately is molded by surroundings outside.…

DEBUT INTO VIRTUAL REALITY

What ease! TO set up this blog is easier than tying my shoe lace! Of course this technology doesn't come cheap. We know a successful creator that sells his/her idea makes an unimaginable fortune. Case was Mark Zuckerberg - the face book creator, sold his idea for a staggering US$4.1 billion! How it come to that valuation boggles and staggers me. That must be 7 digit PE Ratio valuation for a company that has yet to generate profits. Sure beats the theory we learn in Finance Strategy papers! that is a phenomenal sum. We are talking about selling ENTIRE Petronas Dagangan (Main services in oil & gas distribution in Malaysia) "AND" Gamuda (the richest tol collector in Malaysia) to raise the fianance to buy an intangible blog such as Facebook. I mean you would have a Balance Sheet or rather a Statement of Financial Position (sigghhh... ACCA P2 paper never ceases to amaze me with never ending IAS [I Am Stupid ha ha]) you have ONE solitary item called Intangible Asset valued…