P1, P2, P3 CLASSES & TIME TABLE

UPDATED INFO: In July 2010, I have moved to Kasturi School of Accountancy in Petaling Jaya, Selangor. Thank you for your support and working so hard together in order to achieve your graduation goal.

- relevant to Professional Students (ACCA) at Essential level

INFORMATION IS POWER. The following are classes that will be held in INTI Subang Jaya branch. The commencement date is 5th January, 2009.


Pic 01: Classroom and time table


Pic 02: Education begins at infancy. You are reaching the finish line - ACCA graduation

P1 (Porfessional Accountant) FULL TIME classes:
* Tuesday 2.00pm to 5.00pm (every week)
* Monday 2.00pm to 5.00pm (once every 2 weeks)

P1 (Professional Accountant) PART TIME classes:* Monday 6.30pm to 9.30pm (every week)
* Wednesday 6.30pm to 9.30pm ( once every 2 weeks)

P2 (Corporate Reporting) FULL TIME and PART TIME
* Thursday 6.30p.m to 9.30 pm (every week)
* Saturdays 9.45a.m to 12.45pm and 2.00p.m. to 5.00 p.m. (once every 2 weeks)

P3 (Business Analysis) FULL TIME classes:
* Friday 2.00pm to 5.00pm (every week)
* Monday 2.00pm to 5.00pm ( once every 2 weeks)

P3 (Business Analysis) PART TIME classes:* Friday 6.30p.m to 9.30 pm (every week)
* Monday 6.30p.m to 9.30 pm ( once every 2 weeks)

GOOD ENROLMENT RESPONSE-OXFORD-BROOKES UNIVERSITY COLLABORATION ACCA BSc. Degree

UPDATED INFO: In July 2010, I have moved to Kasturi School of Accountancy in Petaling Jaya, Selangor. Thank you for your support and working so hard together in order to achieve your graduation goal. 



Pic 01: Hungry Lion looking for lunch

Story of relativity

If you are with your friend strolling in a African savannah, and suddenly you are confronted with a hungry lion, what would you do? Well, don't run as fast as you can. But run a little faster than your friend.

Pic 02: Run a little faster.

Application: when you are applying for a job, no doubt you are competing with hundreds of ACCA graduates, how can you improve your chances? Well, be a little better, relatively speaking, by showing to prospective employers you have an ACCA qualification and a BSc. degree in Applied Accounting.

Pic 03: Move ahead armed with DOUBLE qualification!

Certainly its heartening to see encouraging response to the Oxford-Brookes University-ACCA mentoring enrolment. There are ACCA candidates who wasted no time but started the research project with me right away. I must say that I am nearing my full capacity to take in new students. So do hurry!

Pic 04: Graduation! Armed with a University Degree? [please see below]


Pic 05: Qualified professionals who are also degree holders. Are you one?

OXFORD-BROOKES UNIVERSITY COLLABORATION ACCA BSc. Degree in Applied Accounting

The primary advantage of obtaining an additional degree qualification is that it places you ahead of other ACCA graduates with your, well, additional qualification. Bear in mind that the Oxford Brookes-ACCA Degree is recognised in the private sector and interestingly in Australia, Singapore, America(s) and of course United Kingdom.
Gives you an extra edge when applying for jobs and promotion prospects are enhanced.

We have a team of competent and experienced mentors that will provide insightful guide to developing a well researched project. The fees are competitively priced at RM3,500 per candidate (excluding Submission Fees to Oxford Brookes University fees of £75 per research project).

Pic 06: Powerful tool

A BPP manual recognized and endorsed by ACCA as an approved textbook is provided. I am committed to enhancing your qualification and your success.

Venue:

BPP BOOKS DISTRIBUTION CENTRE

No. 82-2 & 84-2 (second floor)
Jalan SS15/4D
47500 Subang Jaya

Marcus Ong's profile : Experience: assisted in excess of 200 candidates with the above mentioned research project over 7 years, ie since the collaboration of OBU with ACCA). Have strong reseach skills deriving from Post-graduate degree a MSc in International Business (Nottingham, U.K.). Personally did a 20,000 word limit dissertation on "Is Air Asia strategy sustainable?"

If you have any enquiries, please contact Kasturi of PJ Campus at 03-5630 0722 between 9a.m. to 6 p.m.

P3: ACCOUNTING AND ORGANISATIONAL CULTURES – (Graham Morgan, 2008)

- Relevant to all P3 (ACCA) candidates

ACCOUNTING AND ORGANISATIONAL CULTURES – (Graham Morgan, 2008)

Pic 01: Graham, why are you messing me up?

Pic 02: I have already studied well enough.


First and foremost, I personally feel that Graham Morgan has unnecessarily ruffled and mess up students brains, causing low confidence, by incorporating a mix-mashed article and still not tell you clearly what is his emphasis in relations to P3 exam applications. So to neutralize this unsettling feeling among my students, a systematic approach is outline with no new stuff inserted. You don’t need this in view of perilously close exam date.

The entire article is summarized to “parenting styles” in which Headquarters should be INVOLVED or DEVOLVED. In exams, I have consistently emphasise the usefulness of “Organisation Configurations”. So here is the answer structural plan:

TYPE A CASE STUDY :
Mass manufacturing of homogenous products (bottled water, generic drug making, assembling electronics products like handphones, DVDs, food packaging) Headquarters believe that success depends on achieving efficiency by having a well- managed/administered organisation in which good management information systems support cost planning and control systems. In this kind of culture, an accounting view of activities is dominant, with a centralised accounting system based on the annual budgeting process. The managerial structure in these organisations is hierarchical, with an emphasis on departmental performance where vertical patterns of communication dominate. There is an annual cycle of budget preparation, negotiation, and implementation, with review against monthly management accounts. The fundamental objective of the organisation is to deliver the budgeted outcome. Departments are viewed as responsibility centres – principally cost centres with control focused on budget headings such as salaries and other expenses.

Question Type A : Evaluate the Headquarter’s approach on managing its SBUs. Your answer should include as to how the Headquarters communicate, coordinate and controls its SBUs’ performance. Marks will be awarded for demonstration to link your arguments in the context of case study. [ 20 marks]

ANSWER PLAN FOR TYPE A

Fixed Performance Contract (Financial Control Culture)

I) PARENTING STYLE: Financial Controls
Targets : imposed strict financial returns expectations such as (sales/profit) target is fixed at ($x million).

Rewards: Your rewards for reaching this target are (y%) of profits. No bonus.

You trust us to assess your rewards by a peer review panel based on is payable unless 80% of targets are met with a cap at 120%. your performance ‘with hindsight’ at the end of each year.
II) PROCESS CONTROLSPRIMARY TOOL: DIRECT CONTROLS (administrative controls)
Plans: Your agreed-upon action plans are attached to this contract.

Resources : The agreed resources to support the capital and operating budgets

Coordination: Your activities will be coordinated with other budget holders

Controls: Your performance will be monitored monthly. Any variations will be reviewed, and executives reserve the right to take further action.
Apply ‘gaps-analysis’ to determine bonus performance based on employment contract.

III) STRUCTURES
SBU heads adopts a standalone centralized management at SBU level.
Facilitates close compliance with Headquarters expectations.

IV) CONFIGURATIONS
Mintzberg stereotypes is Divisionalisation with key component being “Middle Line” who will standardize output expectations. Tendency to have short termism view to hit a short term financial target instead of long term sustainability through customer loyalty.

CONCLUSION
Weaknesses:
- short term planning horizon
- unsuitable to growth industry as likely customers trend change over time
- unsuitable for changing dynamics of PESTEL
- Inefficient structure with little support from Headquarters
Pic 03: No sweat! You can do it!
TYPE B CASE STUDY :PESTEL has changed without warning and unexpectedly. Example recently ‘discovered’ that customers willing to pay bottled water with designer shape and colours. Or in drugs making industry, customers demand greater information content on drugs side effects and demand to know what alternatives health care methods like physiotherapy, holistics medicines. All of this means customers are dictating to company management. Thus mere budgetary control is ‘less relevant’ as it merely puts a tight leash on costing without considering value added activities that should be imposed.

Headquarter wants to enhance organisation’s core competences by developing collective expertise which is directed to the provision of ‘solutions’ for customers. Considerations for a looser management structure, the emphasis being on the creation of customer-orientated teams that are accountable for customer profitability, which is the key measure of performance. The management of intangible assets, knowledge systems, and brands are key to long-term success. Performance is evaluated and rewarded by comparing teams against benchmarks, peers, and prior years, and rewards are based on the performance of teams rather than individuals. The intention is to foster a philosophy of enterprise and learning.

QUESTION TYPE B: Assume the company proceeded to adopt a differentiation strategy from cost leadership strategy by investing heavily on marketing research and human talents retention and innovative culture, write a report detailing the proposal incorporating case study fats. (20 marks)


ANSWER PLAN FOR TYPE B
Relative Improvement Contract (Excellence/Service Culture)

I) PARENTING STYLES: Strategic Planning – close cooperation between Headquarters and SBUs
Targets SBU to maximise your profit potential to continuously improve against the agreed-upon benchmarked KPIs and to remain in the top (quartile) of your peer group.

Rewards: HQ to assess your rewards by a peer review panel your performance ‘with hindsight’ at the end of each year.
.
II) PROCESS CONTROLS
PRIMARY TOOL: SOCIAL CONTROLS (culture controls)
Plans - SBU to take whatever action is required to meet your medium‑term goals within agreed upon governance principles and strategic boundaries.

Resources - HQ to provide the resources you need when you need them are set out in the attached budget statements. SBU to keep within agreed KPI boundaries.

Coordination - HQ and SBU to coordinate activities with other SBU according to according to the agreed plan or as redirected by your superior. periodic agreements and customer requirements.

Controls - SBU to provide forecasts based on the most likely outcome.
Apply Balance Scorecard and link to individual SBU manager’s performance evaluation.
HQ to monitor performance and interfere only when indicators/ Forecasts in the form of revised budgets will be required on a trends move out of bounds.
III) STRUCTURESSBU heads adopts a matrix or Project teams structure at SBU level. HQ has close involvement in ‘mentoring’ each project teams as to supportive roles of resources allocation
Facilitates close cooperation with Headquarters leveraging on group’s core competencies.
Application to case study: Have a team comprising of HQ’s appointed R&D personnel and marketing Director to jointly develop new products according to identified recent customers trends. If necessary, HQ will consider injecting resource allocation (as opposed to budgetary controls) so as to “strategically fit” on customers needs.
IV) CONFIGURATIONSMintzberg stereotypes is Adhocracy with key components being “Operating Core” and “Support Staff” who will have “mutual adjustments” according to customers and PESTEL trends.

CONCLUSION
Advantage
Tendency to have long term “evolutionary” changes according to external pressures. Customers dictate to management’s decision, hence avoiding the paradox of

“it is the customers, not managers, who supply all important intelligence about market changes. Thus, paradoxically the more budget minders try to enforce control through numbers and budgets, the more they make real control, in the sense of rapid adoption to a changing market, impossible.” (Caulkin and Alec Reed)

P1 DEC 2008 Pitfalls Warning and Exam Tips

DISCLAIMER OF LIABILITY: while it is good to focus on Hot Topics but to rely on them exclusively is both detrimental to your mental + emotional health & performance in exam.

Paper P1 ‘The Professional Accountant’ DECEMBER 2008 Exam Tips and Pitfalls Warning. Avoid David Campbell's traps.

- RELEVANT TO ALL P1 candidates
A. QUESTION VERBS USED
It is very important to correctly interpret the verb in the question and use that as the basis for their answers.
Question Type A: 0.5 mark per point
‘explain’ or ‘describe’ and the answer just contained (say) a list of points, few marks were awarded.

Question Type B: 1.0-1.5 marks per point
a higher level skill such as ‘evaluate’, ‘assess’,’ construct’ or ‘criticise’, answers that did not address the content at the level required were poorly rewarded.
Candidates must not ‘explain’ when they are meant to ‘construct’ or ‘criticise’, and they must not ‘identify’ when they are meant to ‘describe’.
ü Question . and identify from the case...
ü Question .using information from the case...
ü Question .and describe three threats to auditor independence in the case(Other types of wording are used to mean the same thing).

When Question insert “evaluate”, please remember that it is asking for BOTH advantages and disadvantages. Example: Evaluate the usefulness of forming committee comprising of iNEDs as majority.

B. IMPORTANCE OF QUESITON INTERPRETATIONS
It is very important that the verb used in the question is used as the basis for the answer.
some candidates failing to interpret the evidence in the case scenario correctly.

A description of roles is DIFFERENT from explaining the impact or tensions of say what a NED might bring to the Board. Avoid mere rote text book leaning but apply in the case study context.

C. DON’T SQUANDER OFF YOUR 4 PROFESSIONAL MARKS
• ensure the answer reads like a letter or a memo
• ensure if its a formal letter to shareholders - have an explanatory introduction and a conclusion with a logical flow of content in the ‘middle’.
• ensure its addressed to the right audience (Dear Ms Wang)
• ensure no abstract bullet points and short, unconnected paragraphs with no sense of ‘flow’ between them.

Marks allocation,
1 mark for the basic form of a letter meaning it was correctly headed, finished, addressed and physically laid out.
1 mark for composition,
1 mark for flow of arguments like segregate FOR PROPOSAL and AGAINST PROPOSAL headings
1 mark for persuasiveness of the narrative itself.

In other words: The letter was from a company chairman to the company’s shareholders and those gaining all four professional marks were those that read most like a letter of its type would read in ‘real life’.

P1 papers will ask candidates to ‘draft’ or ‘write’ content in the form of various types of written communication. You are advised to pay attention to the professional marks as the four marks available could make the difference between a pass and a fail. Four marks are worth approximately seven minutes in time (4% of 180 minutes), which should give candidates some idea of how much investment to make in the professional marks.

D. BOOBY TRAPS – AVOID AT ALL COSTS!
Pic 01: Should've listened to my lecturer. Now I am trapped.
COMMON PITFALL 01:
“explain the imporatance of corporate governance adopting the Anglo-Saxon model.”

Please note it DIDN’T ask you what is the corporate governance components? But instead the “IMPORTANCE” of corporate governance!



Pic 02: Don't follow the crowd falling for the same mistake
COMMON PITFALL 02:
Explain the meaning of Stephanie’s comment: ‘I would like to get risk awareness embedded in the culture at the factory.’

How do you interpret the question?
a) You make recommendations of how to manage its risk with phrases such as ‘factory should…’ or ‘perhaps SCC might consider…’.
b) You explain ‘risk awareness’ what it meant.
c) You explain the policies and process on trying to embed risk to culture
d) You explain what embedding risk in culture meant (and nothing else).

Correct answer is (d). the above illustrates that you may know what is risk awareness, but you may errorneously prefer to write explain and even suggests ways to embed risk awareness to culture. [For further illustation, please see P1 December 2007 Question 2(b) answers]



Pic 03: I gotcha...
COMMON PITFALL 03:
A question may require you explain the roles of a chairman in corporate governance. Please pay special attention to the cognitive level of the verb in the question. The question specifically asked candidates to ‘explain’ the roles that it offers some evidence of understanding of the role over and above a mere identification.. Accordingly, answers that merely ‘identified’ the roles did not receive good marks. Short bullet lists of ‘identified’ roles will fail. An ‘explanation’ differs from an ‘identification’.

Which of the following answer is an “explain” type question?

TYPE X ANSWER: Chairman’s role is to set an effective board unit.

TYPE Y ANSWER: Chariman’s role is to set an effective board unit where he sets the agenda and ensure a regular Board meeting. This enables a communication to Baord if they are meeting the shareholders’ objectives.

ANSWER : TYPE Y



Pic 04: Hi, I work for David Campbell. Catching victims alive is my job.
COMMON PITFALL 04:

Question ask to ‘explain the importance of identifying stakeholders…’.

What should you NOT DO?
a) Identify the stakeholders (so lists of stakeholders did not attract marks)
b) Describe the Mendelow framework
c) Describe each stakeholder’s position on the Mendelow matrix
d) Explain each stakeholder’s interests and powers on company
e) state main purposes of identifying all stakeholders

ANSWERS: DON’T TRY a,b,c and d.

The correct approach to question requires candidates to ‘take a step back’ and place themselves in the position of the board, considering all the benefits of knowing who the stakeholders and their different claims were.

Example :
IMPORTANCE :
Surveying stakeholders powers assist Board of Directors as to who are most likely will disrupt or object to company’s proposal to build a hospital next to the grave yard. [Notice you don’t need to prioritise which stakeholders are more powerful than another]



Pic 05: Who will save me now? Why did I fall asleep in class? Why did I miss classes?
COMMON PITFALL 05:
Time pressure of spending lenghty time on lower level questions like “List” , “briefly explain”
Insufficient time spent to develop coherent argument and logical order to earn 4 professional marks.

EXAM TIPS P1:
Now, for the part that you are looking for - Exam Tips. Please note the verbs used in the question. Go through in your mind as to what and how you would intepret the question and relate to the common pitfalls mentioned above.

• Evaluate the weaknesses of current corporate governance system and recommend improvements
• Explain the importance of risk management clearly distinguisihing your answer between Strategic Risk and Operational Risk
• Evaluate the usefulness of committees comprising of iNEDs
• Advise and explain work ethics. (Note: you are required to explain AAA model and Tuckman’s 5 question model)
• Distinguish pragmatic and dogmatic approach that management could possibly take in the matter of labour redundancies
• Recommend ways to align directors’ interests with shareholders’interests. (Note: Apply fixed salaries, variable salaries like bonus, commissiions, share options, pension benefits so as to make the director think more for the benefit of shareholders)
• List out the recommendation of Turnbull’s Report on effective internal controls
• Advise management to risk management efforts in case study
• Marks & Spencer, a retail giant in UK, has its CEO who is also the chairman has refused to appoint any iNEDs. He said, “All I have to do is explain to shareholders my actions.” Critically explain the “principle-based” approach. Does “comply and explain” approach means that Marks & Spencer have freedom to not comply corporate governance best practice?
• SOX appraoch and impact on commercial flexibility balanced with corporate governance requirements

Other topics you shouldn’t neglect:

• Agency Theory, Transaction Theory, Bounded Rationality
• Cinderella Effect
• Corporate Social Responsibility

PS: My focus is “specific” to a sub-question instead of genrealisation. This way you will be better prepared and focus on how to do a particular question-problem.

CONCLUSION
You can spend time to systematically go through the topics and related questions. Just do what you can. If you feel a temporary ‘black-out’, well, go to the next question-topic. I strongly feel you shouldn’t be rote learning now but primarily focus on exam techniques paying attention to pitfalls avoidance.

DISCLAIMER OF LIABILITY: while it is good to focus on Hot Topics but to rely on them exclusively is both detrimental to your mental + emotional health & performance in exam.

The Power of Focus - Habits Determine Your Future (Part 2)

- relevant to all who want progress in life. I recommend and encourage you to spread this information to your juniors and friends.

Pic 01 : Highest paid athlete in USA. Was he simply taking a random swing with the golf stick that puts him top of the game?

Pic 02 & Pic 03: Can you do the stunts above on first try? Take a week? a month? Hmmm... I think it takes a lifetime of good discipline and successful habits.

CHANGING HABITS TAKE TIME
You will turn your negatives into positives by changing your habits now. Change takes an instant to occur and time to mature. Your change goes into effect the moment you choose to change. That very instant! But it will take some time to see your changes mature to where you can enjoy the fruit of your improvements. Your change will take time because developing success habits takes time.

Of course, with ongoing exams currently, you may say that its bit too late to change. While I agree with you but don't forget you need this quality to succeed in career, higher ACCA paper levels (Professional Stage) and life.

How much time does it actually take to change a habit? The most common response is 21 days. Studies have shown that if you practice a new habit for an average of 21 days or longer in some cases, it actually becomes easier to do the new habit then it is NOT to do the new habit. This is just a baseline. For any habit you want to change you must ask yourself how long you've owned that habit. Some habits will take longer to change depending on how long and how often they have been practiced. Give yourself reasonable time to adopt new belief systems and new success habits. If you have been dealing with low self esteem for 15 years, it may take you longer than 21 days to change that belief system (yes, belief systems are habits also). On the other hand you could break the bad habit of thinking poorly about yourself in an instant and create your brand new life overnight. There aren't any limits but you must be fair and objective about your rate of change.

NOT REGRESS

The important thing above all will be to remain committed to establishing new habits that build a better future and not falling back into old habits that will only produce the same unhappiness and failure that you may be trying to move away from. A powerful quote says: "If you keep on doing what you've always done, then you will keep on getting what you've always got." This is awesome! By systematically changing one behavior at time you can dramatically improve your overall lifestyle! Once your new habit becomes well developed, it becomes your new normal behavior.

HABITS FORMING STRATEGY

Identify Bad Habits and Replace Them , so if success is based on successful habits you be asking, "How do I identify bad habits?". Bad habits on those actions that cause you to be unproductive and hold you back from realizing your best life now. Examine yourself and ask others about bad habits you have. Only ask people you respect and admire and know you well. You need to hear from people that are for you and not against you.

Your habits and beliefs systems are a product of your environment. Birds of a feather, flock together as the saying goes. This is true! Ever heard of the saying, "Tell me who your friends are and I will tell you who you are." You will pick up and practice those habits and beliefs that are common to your environment. But when you decide to change there is no stopping you. Reach out for and study the successful habits of those who've attained the success you desire. Practice what they do and elevate yourself. Read inspirations stories, visit this blog often to remind yourself what is your purpose in College, watch documentaries on success and the successful.

PRACTICE AND REPEAT

Develop the habit of changing your habits. Change will be you always. Adapt and implement habits that will continually reward with the life you desire. If a habit no longer yields success motivation and positive change, replace with a new habit. Just with thoughts, habits cannot be dropped. Habits are displaced through replacement.

Pic 04: Do you think his culinery skills were developed overnight?

Here is the three step successful habits formula :
1. Clearly identify your bad or unproductive habits.
You at your behavior for now and in the future to get a realistic and objective understanding of how a habit may be unproductive or bad for you. Some habits have a slow burn effect and the results aren't realized until years later. Smoking is a classic example. If you looking at a smoking habit one day at a time, it may not seem as damaging as it actually is. If you view this habit over a lifetime then you can begin to appreciate the the consequences for choosing to change this habit or not change this habit.
2. Define your new successful habit.
Identify your new habits and describe in vivid detail the "benetifs" of acquiring this new habit. You will boost your success motivation when you can clear envision the rewards for successful change. Remember that to obtain the success you desire you must be will to do things today that will create your desire changed for tomorrow. The clearer a vision you have of your rewards and benefits for change, the more likely you are to take action.

Pic 05: KPMG Tower in Sao Paolo, Brazil. Do you have successful habit to be there at the top (CAREER)?

3. Create a 3 Part Action Plan. Decide on 3 immediate actions that you will take to replace your old habit and establish your new successful habit. Start with one habit and take action. You must know exactly what actions you will take to create your new success. It could be reading a book, establishing an accountability partner, going to a support group, or joining a coaching club.

CONCLUSION
The bottom line is that nothing will change in your life until you do. To learn more about the how you obtain successful habits that will create a successful future for your life I recommend reading The Power of Focus by Jack Canfield, Mark Victor Hansen and Les Hewitt and Seven Highly Effective Habits by Steven Covey

Useful links:

The Power of Focus - Habits Determine Your Future (Part 1), http://marcusong88.blogspot.com/2008/11/power-of-focus-habits-determine-your_19.html
http://marcusong88.blogspot.com/2008/10/how-to-cope-with-stress.html
http://marcusong88.blogspot.com/2008/09/bill-gates-bad-role-model.html
http://marcusong88.blogspot.com/2008/08/life-as-student.html

F8: TARGET HIGH RISKS QUESTIONS for DEC 08

- Relevant to F8 candidates. Call this F8 exam tips if you like, but they are important reminders i.e. avoiding pitfalls common to candidates of F8 Audit and Assurance paper in exam. I have incorporated Alan Lewin, 2008, article in Student Accountant journal of October issue.
- Relevant to all who want success but feel its eluding them. Well! Don't give up!

Earl Nightingale said 'You become what you think about'...

Napoleon Hill said ' What ever the mind of man can conceive and believe it can achieve'

C W Longenecker “… get our thinking processes working for us rather than against us.”


Pic 01: Every step you take, you are closer to your to victory.


Pic 02: You are your own worst enemy, if you let it.


Pic 03: Focus on the goal, you will achieve it.


Pic 04: Can you see yourself succeed? YES, YOU CAN!!

ARE YOU LIKE THIS? LIKE WHAT, YOU MAY ASK? READ ON:

If you think you are beaten, you are.
If you think you dare not, you don't.
If you like to win but think you cant,
It's almost a cinch you wont.

If you think you'll lose, you're lost.
For out in the world we find
Success begins with a fellow's will.
It's all in the state of mind.

If you think you're outclassed, you are.
You've got to think high to rise.
You've got to be sure of yourself before
You ever can win the prize.

Life's battles don't always go
To the stronger or faster man,
But sooner or later, the man who wins
Is the man who thinks he can!

So much for encouraging and motivating you, lets focus on technicals of F8. The following are carefully prepared in anticipation of upcoming exams. Helps you to focus, prioritise and same time I have inserted common pitfalls HIGHLIGHTED BY ALAN LEWIN in October 2008 newsletter. Apply and heed the warnings as this will distinguish you between getting a pass or otherwise.

Question 1
a) Substantive test – provisions for bad debts (company's management policy) and specific bad debts (clients actually unable or refused to pay - gone bankrupt or court disputes).
b) “AT THE COMPLETION OF AUDIT” – advise what further Audit procedures on Non current assets in view of not complying with ISA and lack evidence on valuation and provision for depreciations.
- REQUIRED to obtain management representation letter, considering issuing a modified report if items are of materiality matter. Concerned with what is management’s stand on the accounting policies
- NOT REQUIRED to perform further audit test such as to obtain Sales & Puchase agreement to verify the valuation of Non-Current assets and compare the depreciation policy to similar rivals in the industry. You ALREADY have done that during audit work. The question is at the end or completion of audit work.
c) Control procedures – sales systems
d) Distinguishing tests data & CAAT
– tests data using dummy input on "client" computer system and
– obtaining data using "auditors" CAAT software to extract from client’s computer system

Question 2
a) What is Letter of weakness that auditors issue?
b) What is ISA 500 – valuation, allocation and completeness works as assertions.
c) Subsequent events, adjusting and non-adjusting events
Please see exam techniques below.

Question 3
a) Auditors’ independence and inserting safeguards. Case study : Engagement partner is twice divorced and has re-married for the 3rd time. His new wife receive a dowry prize of US$5million worth of shares in Pfizer Pharmaceutical Limited.
i. What is the ethical issue? Wife ownership is deemed as partner’s interests in client-Pfizer
ii. Why is this an ethical issue? Partner’s independence and professional due care is undermined as he has indirect personal interests in the client via his new wife.
iii. How to insert audit safeguards? Well, divorcing a third time is certainly out of question! Recommend to switch to other engagement partner for the job.
iv. IMPORTANT NOTE : candidates, you need to specifically mention to the case study! There are other ethics principles acronym as POCIP IOI. Review questions done in my tutorials.
b) Corporate governance and the benefits of iNEDs committee

Question 4
a) Explain importance of Audit Strategy. Further Audit Plan and Work required to manage audit risk deriving from Inherent Risk, Detection Risk and Control Risk. Don’t forget to insert Business Risk
b) Payroll tests of controls – authorization of payment to employees wages
c) Payroll substantive tests
i. SAY trace and calculate amount banked in to employee Mr. Smith account are reflected as deduction from bank statements.
ii. SAY sight Mr Smith’s contract to determine his total wages and then calculate net pay after employees’ deductions. Trace the figure if its input to the employees payroll account. Perform total pay made in a week/month and trace the figure to the management’s monthly income statement. This substantiate that the employees figure are actually recorded in the monthly income statement which is totaled up together with other 11 months in the year to make the final employees wages item in CIS.
iii. DON’T SAY check Mr. Smith pay if its in the final accounts. [vague and generalized statement -Alan will kill you, and so would I!]
d) External auditors rely on internal auditors
i. Benefits on reliance – efficiency, economical and effective
ii. Possible reliance – internal auditors have wide powers + could report to Audit Committees + well qualified + experienced + objectives are similar to external auditors
iii. Impossible for reliance – material items must be independently verified + narrow internal audit scope of work + poor corporate governance like having internal auditors to report only to Chief Accountant

Question 5
a) Adjusting and non-adjusting events
b) Auditors responsibilities and audit work needed following the post audit events
c) Different types of Auditors’ Report and its effectiveness toward shareholders-members modified report

Other critical topics
-Going concern – audit procedures that involves the future prospects of company
-Audit sampling
-Analytical procedures embedded in Substantive tests
-Fraud and negligence – External Auditors’ responsibilities
-Not for profit organizations – completeness, accuracy, cut-off tests on income/donations -and expenditures. Adequacy of internal controls
-Small businesses – poor internal controls highlighted

Other critical exams techniques
TYPE I Question: Lists, Briefly outline auditors responsibilities.
- only have 1/2 mark per point. So your answers are:
ß ISA 240 requires auditrs to recognize fraud and errors that could materially affect financial statements
ß Apply professional skeptism
ß Seek legal advise if directors refuse to cooperate
ß Report primarily to shareholders-members
ß If suspects fraud, highlight in report to Board of Directors
ß Reasonable assurance that financial statement is true and fair.

TYPE II Question: identify weaknesses giving reasons for your concern over the internal controls over the inventory management. Justify pertaining to the case study by recommending solutions to overcome the weaknesses.
- 1 mark for identifying weaknesses
- 1 mark fro recommending improvements

IMPORTANT EXAM TECHNIQUE : Type II is FOUR TIMES more marks than Type I. Don’t waste your time being "safe" and give lengthy explanation to Type I Questions – which are normally found in F8 Paper Question Number 2.

In other words…
You are better off spending 36 minutes writing for a 20 mark Type II question than spending the same amount of time for a 5 mark Type I question.

Disclaimer of liabilities: While its advantageous to focus on high risk questions i.e. its likelihood that its examined in the coming exam, but a total reliance on them is detrimental to users' mental and emotional health. Discretion is required.

REFERENCE:
Alan Lewin, 2008, Ready to sit Paper F8?, Student Accountant, http://www.accaglobal.com/students/publications/student_accountant/archive/2008/90/3150174, October 2008

ANNOUNCEMENT: ANSWERS PT 2 RELEASED

- relevant to P3 candidates

Dear all candidates,

Exam is coming, tension is buiding but whatever the case may be, you all do what is humanly possible. If you are in worse case scenario of not able to cover the entire syllabus, the only thing you can do now is prioritise topics based on the IRC question bank and Closed Book Exercise that was given. I have given out complete answers for both.

I have already sent out the Progress test 2 answers on Question 2 [case study on plant closures and redundancies in UK and the effect of managing change] and Question 3 [case study on investment strategy in South East Asia]

Sincere best wishes.

Announcement F8: Answers to Westra (pilot paper)

In view of approaching exam I certainly hope that now you are only doing 3 things with your time - Practice! Practice! Practice!

The above answers are duly sent to you all via e-mail. Please note the simple structure of segregating Audit Principles, Audit Procedures and Audit Reasons which gives a clear appraoch on using substantive tests are in a table format.

A diagram which I use in lectures are also posted to show linkage as to where the audit work is perform. Then in exam you will have a systematic approach.

Please practice Alan Lewin's latest article on avoiding Top 10 most common mistakes published in October 2008. Please note that he said "independence" is not a fundamental ethics principle but still is a concern for auditors. Thus the need to insert audit safeguards.

Announcement P3: Answers on Lockheed-Martin

The answers on Lockheed-Martin are duly sent to you all via mail. Please analyse carefully the linkage between theories and application in what ACCA terms it as "synthesisation".

Strategic Intent: "Practice makes perfect"

Best regards.

The Power of Focus - Habits Determine Your Future (Part 1)

- Discover your natural brilliance! Strategy on the power of focus is habits determine your future.

Pic 02: I'm privilege have pictures with International Students (China) : Future Successful Chartered Accountants (Graduating soon)

Pic 02 : I'm privilege have pictures with International Students (Pakistan, India)- Future Finance Ministers, IMF Finance Director, Chief Executives (Graduating soon)

Its my pleasure to have you all as my students. We work so hard together attempting to encapsulate the many complex theories in simpler formats surely are winning strategies in ACCA exam. What a wonderful sight, if the above pictures are a regular, habitual activity. If you have good studying habits which of course include quantity of hours invested in a study room daily, surely success is within your reach.

Your Habits will Determine Your Future.

If your automatic behaviors or repetitive actions involve eating unhealthy food than your future will include struggling with staying in shape and staying healthy. If you regularly study, practice questions and even put mind maps to understand your syllabus, that has a high corelelations to success in ACCA.

No such thing as “Accidentally succeed”

What we see in movies, hear stories of get rich quick schemes and fantasizing about them are mere fiction. The truth is life doesn't just happen and success is not an accident. Your life and success is a result of your daily habits. Successful people have successful habits. That is why your success is waiting right there for you! There isn't a mystery to it. You don't have to admire the success of others with the result of disappointment in your lack of ability to create success. No. You can admire others to be inspired!

You can study the habits of successful role models and emulate them. Did you know that 90% of normal behavior is based on habit? Wow. That is quite amazing when you think about it. You can reprogram any aspect of your life at anytime if you choose to do so. No one drifts to success. It is the result of clear choice and success habits today that create the tomorrow you desire.

But what is habit?

Anatomy of a Habit
A habit is repeated behavior. It is something that you do so often that it becomes easy. It is behavior that is repeated enough that it becomes "automatic" behavior. This is a powerful concept to understand. Your actions are product of how you think as all actions flow from your mind and from thought.

Habits are those automatic behaviors that have their roots in your thought processes somewhere. Understanding the habits are a result of repeated behavior is powerful for you because therein lies your greatest hope and victory for positive change: Reprogram those automatic habits!

Your Habits Determine Your Quality of Life
You habits will give you predictable results. If you want to improve the quality of your life you must embrace habits that product quality results. Quality is not an act, but a habit. Negative habits result in negative consequences, successful habits in your life will produce a steady stream of positive rewards.

The foundation of success motivation is positive actions and habits otherwise you cannot generate positive momentum for change. You will increase your power, positivity and pursuit as your build your series of wins in life. Your series of wins are those little victories that lead to bigger victories and success. This is the result of positive habits and actions.

PS: See you this Friday (21st Nov, 2008)

RELATED LINKS (PLEASE re-visit them):
http://marcusong88.blogspot.com/2008/10/how-to-cope-with-stress.html
http://marcusong88.blogspot.com/2008/09/bill-gates-bad-role-model.html
http://marcusong88.blogspot.com/2008/08/life-as-student.html

Jerry Yan Part B Answer

- 6 Sigma complemented by diagnostic tool - CMMI

Pic 01 : Infamous F4 - who couldn't afford RM7 hair cut

Pic 02: F4 with sure bad back ache due to poor posture

Pic 03: Barbie Doll of Taiwan

Pic 04: Guy- "I bet my hair is longer."

ANSWER B

1. 6 SIGMA is a statistical analytic system to ensure that defects remained only 3.4 defects per 1 million units. To improve the value added system, J Yan could use the DMAIC methodology.

2. Management tool to diagnose current capability is the use of CMMI technique. J Yan’s operation is in Level 2 of CMMI of a “managed process” in the distribution system where books delivery ranges from 48 hours to 4-5weeks according to book types ordered. Application on the web site processing of customers’ orders:

DEFINE CUSTOMERS’ NEEDS

3. allowing customers access to the information they require about the books of interests to them. Contents of book, chapters, editor’s reviews, critiques and other readers can also be viewed.

4. faster delivery for the rarer books as 4 weeks deemed too long compared to normal books order of within 48 hours.

5. cheaper pricing for books will appeal to wider market.

MEASURE THE CURRENT SATISFACTION LEVEL

6. Calculate number of web site hits per week.

7. Ascertain amount of time spent surfing the page contents

8. record number of books returned within 30 days where refunds are given. This will measure number of dissatisfied customers

8a.{additional point} server capacity is limited result in deletion every 6 months of clients order patterns

ANALYSE THE CURRENT SYSTEM

9. for point [6] above: dissatisfaction on web contents due to poor and inconsistent book reviews. This relates to the high labour turnover, disruption as individuals resigned and replaced by editors and reviewers result in inconsistent benchmark reviews. Customers may feel and suspicious of book review integrity.

10. for point [7] above: contents of web page is insufficient to retain surfers attention. To click away from web page is easy. Indicates the contents are poorly researched and inconsistent.

11. for point [8] above: Customers compliants due to poor reviews and critiques that are inconsistent, Inpart due to high labour turnover and poor control to ensure certain standard of performance reviews are adhered to.

11a. for point [8a] above: Poor HR planning to hire and retain an I/Tech expert to maintain the servers capacity and manage its traffic

IMPROVE THE CURRENT SYSTEM

12. SOLUTIONS TO POINT [6] : - have a panel of reviewers/ judge to arrrrive at a more consensus conclusion about the book. - have a profile or experience/backgrouind/qualification of individual panel of book reviewers so that users on internet could place their estimate of trust on such individuals. - re-look to job design offering flexible hours and variable rewards of measuring amount of hits on their book reviews site.

13.SOLUTIONS TO POINT [7] :- standardize at CMMI Level 3 on all processes across J Yan’s uploading information on websites. Have a central editing committee before information are posted.

14. SOLUTIONS TO POINT [8] :- returned damaged books : have in contract with courier services that they compensate for damges caused on products delivered. - returned books due to disappointment: offer feedback to editors if they need to re-draft the web page reviews. -returned books due to non-delivery

– install ERP (Enterprise Resource Planning) which tracks all orders and books on hand for better inventory management. -books never collected by courier service provider. Appoint 3 courier service providers and embed in the contract of termination clause if negligence evidence of poor services arise.

-Play SIMULTANEOUS Game Theory as instilling discipline amongst suppliers who don’t wish to lose their contracts.

15. SOLUTIONS TO POINT 8A- expand capacity during peak period- back up files for CRM purposes to study customers order trends- share resources with rivals,if necessary, if overloaded server happens-alternative channels, install IT internet routers, use wireless, use satellites so that interntet can be permanently connected.

CONTROL

16 MEASURE customers satisfaction through:o web page hitso number of internet saleso number of new customers

17MEASURE learning & growth through: - innovative rates of change on web design- ideas that translates to commercial success

18MEASURE organization perspective through:- number of employees complaints- number of resignation per month as a total- number of conflicts and disciplinary actions.

19 MEASURE financial perspectives- profit and revenue growth, ROI, dividends yield ensuring that it meets with shareholders’ expectations.

The Power of Focus - Habits Determine Your Future (Part 2)

- relevant to all who wants progress in life. I recommend and encourage you to spread this information to your juniors and friends.

Pic 01 : Highest paid athlete in USA. Was he simply taking a swing with the golf stick that puts him top of the game?

Pic 02 & Pic 03: Can you do the stunts above on first try? Take a week? a month? Hmmm... I think it takes a lifetime of good discipline and successful habits.

CHANGING HABITS TAKE TIME

You will turn your negatives into positives by changing your habits now. Change takes an instant to occur and time to mature. Your change goes into effect the moment you choose to change. That very instant! But it will take some time to see your changes mature to where you can enjoy the fruit of your improvements. Your change will take time because developing success habits takes time.

Of course, with ongoing exams currently, you may say that its bit too late to change. While I agree with you but don't forget you need this quality to succeed in career, higher ACCA paper levels (Professional Stage) and life.

How much time does it actually take to change a habit? The most common response is 21 days. Studies have shown that if you practice a new habit for an average of 21 days or longer in some cases, it actually becomes easier to do the new habit then it is NOT to do the new habit.
This is just a baseline. For any habit you want to change you must ask yourself how long you've owned that habit. Some habits will take longer to change depending on how long and how often they have been practiced. Give yourself reasonable time to adopt new belief systems and new success habits. If you have been dealing with low self esteem for 15 years, it may take you longer than 21 days to change that belief system (yes, belief systems are habits also). On the other hand you could break the bad habit of thinking poorly about yourself in an instant and create your brand new life overnight. There aren't any limits but you must be fair and objective about your rate of change.

NOT REGRESS
The important thing above all will be to remain committed to establishing new habits that build a better future and not falling back into old habits that will only produce the same unhappiness and failure that you may be trying to move away from.

A powerful quote says:
"If you keep on doing what you've always done, then you will keep on getting what you've always got."

This is awesome! By systematically changing one behavior at time you can dramatically improve your overall lifestyle! Once your new habit becomes well developed, it becomes your new normal behavior.

HABITS FORMING STRATEGY
Identify Bad Habits and Replace Them , so if success is based on successful habits you be asking, "How do I identify bad habits?". Bad habits on those actions that cause you to be unproductive and hold you back from realizing your best life now. Examine yourself and ask others about bad habits you have. Only ask people you respect and admire and know you well. You need to hear from people that are for you and not against you.

Your habits and beliefs systems are a product of your environment. Birds of a feather, flock together as the saying goes. This is true! Ever heard of the saying, "Tell me who your friends are and I will tell you who you are." You will pick up and practice those habits and beliefs that are common to your environment. But when you decide to change there is no stopping you. Reach out for and study the successful habits of those who've attained the success you desire. Practice what they do and elevate yourself. Read inspirations stories, visit this blog often to remind yourself what is your purpose in College, watch documentaries on success and the successful.

PRACTICE AND REPEAT
Develop the habit of changing your habits. Change will be you always. Adapt and implement habits that will continually reward with the life you desire. If a habit no longer yields success motivation and positive change, replace with a new habit. Just with thoughts, habits cannot be dropped. Habits are displaced through replacement.

Pic 04: Do you think his culinery skills were developed overnight?

Here is the three step successful habits formula :

1. Clearly identify your bad or unproductive habits.

You at your behavior for now and in the future to get a realistic and objective understanding of how a habit may be unproductive or bad for you. Some habits have a slow burn effect and the results aren't realized until years later. Smoking is a classic example. If you looking at a smoking habit one day at a time, it may not seem as damaging as it actually is. If you view this habit over a lifetime then you can begin to appreciate the the consequences for choosing to change this habit or not change this habit.

2. Define your new successful habit.

Identify your new habits and describe in vivid detail the "benetifs" of acquiring this new habit. You will boost your success motivation when you can clear envision the rewards for successful change. Remember that to obtain the success you desire you must be will to do things today that will create your desire changed for tomorrow. The clearer a vision you have of your rewards and benefits for change, the more likely you are to take action.

Pic 05: KPMG Tower in Sao Paolo, Brazil. Do you have successful habit to be there at the top (CAREER)?

3. Create a 3 Part Action Plan. Decide on 3 immediate actions that you will take to replace your old habit and establish your new successful habit. Start with one habit and take action. You must know exactly what actions you will take to create your new success. It could be reading a book, establishing an accountability partner, going to a support group, or joining a coaching club.

Conclusion

The bottom line is that nothing will change in your life until you do. To learn more about the how you obtain successful habits that will create a successful future for your life I recommend reading The Power of Focus by Jack Canfield, Mark Victor Hansen and Les Hewitt and Seven Highly Effective Habits by Steven Covey

Useful links:

1. The Power of Focus - Habits Determine Your Future (Part 1), http://marcusong88.blogspot.com/2008/11/power-of-focus-habits-determine-your_19.html
2. http://marcusong88.blogspot.com/2008/10/how-to-cope-with-stress.html
3. http://marcusong88.blogspot.com/2008/09/bill-gates-bad-role-model.html
4. http://marcusong88.blogspot.com/2008/08/life-as-student.html

BPR Answers to Jerry Yan

- relevant to P3 IRC (ACCA)

(note: Steve Skidmore dislikes the practice of BPR as opposed to re-designing process, so please remember to criticise the tool's risk - radical and risk of spectacular failure if system(s) is unacceptable to market.)

CASE STUDY ON BOOKS SALE (10 marks)

ANSWER (a)

Business Process Reengineering is a change to organization which is
‘fundamental’, ‘radical’, ‘processes are new’ and ‘dramatic’. JY can change its main processes replaced by new processes.

BPR principles and applications to JY business:

BPR RECOMMENDATION 1:
- customer-focused outcome : faster supplies for JY instead of weeks to deliver for rare books, less costly to customers and provide rich content information enable customers to better self-select books wanted.
- Customers can be made to ‘process’ the information where they perform a review of certain books. This promotes more perspective on books review to complement the existing critiques.
- Information gathering and information processing are the same process so that there is no distinction between the both category. Allows higher accuracy in information management.
- Centralized all information despite JY has to source from many suppliers. JY can increase its bargaining powers by concentrating orders as a single entity. Have a record on how many books it buys from a specific supplier over a time period. Greater bulk discount given if volume is large. - Warehouse can be eliminated. Use e-business tools to link directly between suppliers and customers.
- Offer greater autonomy for website managers to control quality content instead of allowing freelancers the powers (not allow them to direct the information content on website).
- Information should be captured at source.

BPR RECOMMENDATION 2:

- closures of warehouse

- ceased shipments of books

- ceased courier distribution of books

- convert classic books to e-books format. That way, its virtual delivery of instant download where customers pay per page or per chapter.

- compile books under copyright and negotiate to pay royalties to printers for every sale of e-books. Recommend 65-35 profit share arrange in favour of printers/authors.
- conduct a CRM program to research on popularity of different types of books to prioritise the types of book for conversion to e-books format in view that JY has 3 million titles.

BPR PROCESS:
Step 1: develop a vision. JY to have 0 stocks through direct link to suppliers.
Step 2: processes redesigned are:
- all web news contributors be based in JY’s office. This encourage interchange of information and innovation, safe costs on relocation of hardware between freelancers, in event that one quits and another joints.
- Direct link to suppliers so that orders placed are treated as ‘triggers’ to supply
- Manage haulage networks to have efficient distribution.

Step 3: measure existing processes:
- delivery time for rare books
- number of web visitors per day
- sales conversion rate per period

step 4: identify change levers: invest in IT hardware and software handle greater volume. Empower IT committee to effect change.
Step 5: design / build prototype or outsource the software engineering program.

RISKS:
- BPR is not a cost cutting initiatives but seek to add value and fulfilling customers expectations.
- BPR mistaken as a mere ‘scientific management’ approach where it improves or simplify exiistins system taken as a ‘hollowing out’ process
- BPR has tendency of top-down approach resulting in forcing employees to adopt approaches recommended and same time restricting their innovation cabability.
- BPR risk unwittingly destroy core competencies that top strategic apex is unaware of as this is a “causal ambiguity’