Professional Learning Systems Australia

CA Candidate Study Check

As we come up to a long weekend there will be plenty of time to catch up on our study so let's just check where we should be focusing.

For those doing the "old" program:

TAX 122 Candidates .... engaging with the Unit 16 activities always gets a good return for time committed come the exam so ensure you focus on these before commencing with looking at past exams

AAA 122 Candidates .... whilst the return probably isn't as strong I would engage with the Unit 13 activities and the case study presented. The activities provide a good cross section of areas of interest in the exam through Units 1 to 10

FIN 122 Candidates .... this week we are looking at fair value, foreign exchange and property. plant and equipment. I will admit I like the property, plant and equipment to make a return for this exam

MAAF 122 Candidates .... this week we are looking at KPI's and the balanced scorecard which are consistent areas of examination. Be able to develop KPI's but also be able to review and comment to the positive and / or negative

CAP 122 Candidates .... we still have another week before Workshop 3 so if you have your presentation finalised why not spend some time reviewing past exams and understanding Institute expectations on constructing responses

For those candidates doing the "new" program:

RT 222 Term 2 Candidates .... we have our first assessment task this weekend. A sixty (60) minute quiz with twelve (12) multiple choice questions based around a case study that has been provided. Areas of interest are the introduction to risk management and the introductory coverage on the risk management process

TAX 222 Term 2 Candidates .... we have our first assessment task this weekend. A sixty (60) minute quiz with fifteen (15) multiple choice questions based on practical scenarios related to tax management and controls along with assessable income, allowable deductions and taxable income and tax payable

FAR 222 Term 2 Candidates .... this week we should be engaging with the income tax and impairment of asset coverage. With the income tax ensure you are comfortable with reconciling accounting profit to taxable income and determining DTLs and DTAs

FM 222 Term 2 Candidates .... this week we are engaging with a continuation of best practice principles and coverage on reviewing financial models including Excel tools to automate review processes

AR 222 Term 2 Candidates .... this is the first week so we are looking at audit quality and pre-engagement activities along with risk assessment based on risk assessment procedures and obtaining an understanding of the client and its environment.

In addition to study try to find some time for yourself and loved ones in amongst all the study!

Enjoy your long weekend

Graeme

CA Candidate Study Check

As we lead into another weekend there is plenty of sport to take our focus with the US Masters and the F1 on in Melbourne let alone the AFL, NRL, A-League, Premier League, NBA etc. but let’s just check where we should be up to with our studies as we try to balance our work / life / study.

For those still in the “old” program:

TAX 122 Candidates …. we are now down to the final two and a bit weeks so commit to finalising the international tax coverage with consideration of thin capitalisation as a potential path of interest come the exam and then review the anti-avoidance / ethics coverage at an overview level. The TAX 221 exam was one of the few instances when we have seen a question on general anti-avoidance.

AAA 122 Candidates …. like TAX candidates we are down to the final two and a bit weeks with the attention moving to the other engagements. The Unit is “dry” but the key is to be able to look at a set of facts and determine the Standard to apply and the level of assurance. Interestingly we are starting to see more questions based on which procedures are appropriate or inappropriate in a given scenario.

FIN 122 Candidates …. the first online assessment is this weekend covering Units 1 to 4 so ensure you free up some time for this aspect of the assessment process. I tend to find it is a good test of your technical understanding across the introductory units.

MAAF 122 Candidates …. the first online assessment is this weekend covering Units 1 to 3 so similar to the FIN candidates ensure you free up some time for this aspect of the assessment process. For MAAF I tend to find the first assessment is a good lead on whether you are understanding the Institute’s language and logic.

CAP 122 Candidates …. if you haven’t already done so, this weekend should have you working on your Workshop 3 presentation and the Workshop activities. Otherwise you can probably take a step back and have some time for yourself.

As for those involved in the “new” program:

RT 222 Term 2 Candidates …. into our second week and we are still considering the introductory coverage but also have stepped to the risk management process of risk identification and risk analysis and evaluation. We would engage with the logic of the risk scorecard and matrix in particular.

TAX 222 Term 2 Candidates …. this week we would be engaging with the assessable income and allowable deduction coverage. With the deduction coverage note how repairs, borrowing expenses, bad debts, leave payments and tax related expenses are not explained but are referenced as “Candidates should be familiar with …” so I would argue you would be expected to be able to apply

FAR 222 Term 2 Candidates …. we are in our first week with an expectation of knowledge on IAS 1, IAS 7 and IAS 8 being just some of the areas that we are expected to build knowledge on. I will note FAR has a large amount of knowledge expected to be built so ensure you start early because the load doesn’t get any lighter as we go.

FM 222 Term 2 Candidates …. this is the first time the elective financial modelling subject is being undertaken so this week we are being introduced to what is financial modelling and best practice principles.

For those doing Audit and Risk under the ”new” program make the most of a “free” weekend before the subject commences.

Enjoy the weekend!

Graeme

CA Candidate Study Check

As we move into the start of April we have all five (5) modules of the “old” program up and running along with two (2) under the “new” program.

For those undertaking the “old” program:

TAX 122 Candidates …. this week we have been looking at financing transactions and the start of the international tax coverage. I would always expect to see international tax in the exam and the coverage around Section 23AH, Section 23AI and Section 768-5 is of ongoing interest to the Institute. With the financing transaction coverage ensure you are comfortable around the debt v equity distinction and appreciate that not only can this be examined as a stand-alone question but it can also be seen as a component of a taxable income reconciliation like it is in Activity 16.1 or a franking account question.

AAA 122 Candidates …. this week we are moving onto the other assurance engagement coverage with particular reference to the 800 series on audits of special purpose frameworks, single financial statements and summary financial statements together with the review engagements of interim financial information and historical financial information other than a financial report. In each instance it is about understanding when the particular standard applies and the level of assurance that applies.

FIN 122 Candidates …. this week we are still engaging with Unit 2 but I would like to think we are looking more at the accounting policy, events after the reporting period and related party standards. With the related party in particular make sure you are comfortable in applying para 9 in identifying related parties and that 9(a) relates to individuals being related to an entity whilst 9(b) relates to entities being related to an entity.

MAAF 122 Candidates …. this week we are looking at business risks with a focus on understanding the different categories of risk and the risk assessment before extending to risk mitigation in Week 3. Pay particular attention to how the Institute references sources of strategic risk, sources of operational risk etc. as they have caught candidates previously with the term “source” in the exam and it would appear that candidates didn’t understand expectations of the Institute. I would also ensure I can subset financial risk noting that under the “old” program they are still phrasing credit risk as non-receipt whereas under the “new” they view credit risk as non-payment.

CAP 122 Candidates …. the Workshop 3 presentation information is now available so ensure you are co-ordinating with your team as to who is presenting what. Keep in mind that the presentation is made up of 10 marks for your individual performance and 10 marks for your team performance so unless the team is working collaboratively it is easy to sacrifice marks.

As for the “new” program:

RT 222 Term 2 Candidates …. We are coming to the end of the first week and we should be looking to build our understanding of the ISO 31000:2018 Risk Management Framework and the COSO Enterprise Risk Management Framework. I would also engage with the governance frameworks presented with particular consideration given to Principle 7 and the four (4) related recommendations of the ASX Corporate Governance Principles and Recommendations. It should also be appreciated that these principles relate to listed entities so when engaging with questions ensure you consider your context.

TAX 222 Term 2 Candidates …. At the end of the first week so make sure you engage with the Institute’s assumed knowledge quiz as it appears this is at a reasonable level of expectation. The other observation is that the Institute start TAX under the “new” program with areas such as anti-avoidance and tax professional conduct which were typically at the end under the “old” program so there is a “flip” in their focus so I might expect greater focus on these areas in the assessment tasks and in the exam than under the “old” program. Not necessarily saying “marks” will be large but just that I might expect some attention on these areas.

For those doing Financial Accounting and Reporting and Financial Modelling under the ”new” program make the most of a “free” weekend before the subject commences.

Enjoy the weekend!

Graeme

CA Candidate Study Check

Another week down and the EB Term 2 candidates under the "new" program are coming to the end of the two (2) week program with your assessment this weekend. The feedback that I am receiving is that not overly difficult but time consuming so ensure you allocate appropriate time.

As for the "old" program all modules are up and running so let's just see where we should be up to.

TAX 122 Candidates .... we have our third online assessment this weekend covering Units 8 to 12. We would also expect that this week candidates were working on Unit 12 which relates to tax consolidations. From an exam perspective my expectation is that you will either be determining taxable income for a head entity or applying the CGT events of L3, L4, L5 and L8 related to capital gain / capital loss upon entering or exiting a consolidated group.

AAA 122 Candidates .... we also have our third online assessment this weekend covering Units 8 to 10. We would also expect that you would be engaging with Unit 10 on audit opinions and audit reports which is drawing marks in the 4 to 8 mark range of late in the exam. From the audit report perspective don't be surprised in the exam to see something on "other implications" eg. the identification that the report should contain an "emphasis of matter" paragraph or a key audit matter paragraph.

FIN 122 Candidates .... we are coming to the end of our first week so whilst you should have engaged with Unit 1 the primary exam focus is the ethics coverage for typically smaller marks. Unit 2 on the other hand around IAS 1 Presentation of Financial Statements is a high rotation area for the exam so ensure adequate attention is given to presenting a Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive Income and Statement of Changes in Equity.

MAAF 122 Candidates .... we are also coming to the end of our first week. MAAF is very much a language and logic module so as you proceed ensure you are having solid engagement with the Institute Activities and Worked Examples so that you build an understanding of how the Institute thinks and how they expect responses to be constructed.

CAP 122 Candidates .... this weekend we have our Workshop 2 so ensure you have done your preparation and that yourself and fellow team members work together to maximise your workshop participation mark.

Enjoy your weekend!

Graeme

CA Candidate Study Check

For the "new" program we are now through to the start of Term 2 with the Ethics and Business subject underway.

For those starting their journey you have your online assessment this weekend.

I would also suggest you ensure you engage with the Institute expectations as you build an appreciation of the Institute requirements around work / study / life balance as you undertake the CA program.

For those intending to undertake Risk and Technology or Taxation subjects just a reminder that enrolment with the Institute closes today.

For those undertaking the "old" program:

FIN 122 and MAAF 122 candidates .... you have your final weekend before your studies start so make the most of it. For those requiring assistance we will be available to support your studies so if you need assistance please email [email protected].

TAX 122 Candidates .... this week we should be considering trusts and superannuation funds. Not major areas of examination but certainly with trusts I would ensure I can apply the present entitlement and legal disability rules and with superannuation funds ensure you appreciate the deductibility of contributions to the contributor and the assessability to the superannuation fund.

AAA 122 Candidates .... this week we should be engaging with the Unit 9 coverage on finalisation and reporting. We would pay particular attention to the ISA 560 coverage on subsequent events and appreciate the implications of the three (3) time periods. We would also engage with ISA 450 evaluation of misstatements coverage with particular reference to the summary of misstatements noting that in AAA 221 candidates were presented with a summary of misstatements and had to prepare a revised summary to correctly reflect the issues found.

CAP 122 Candidates .... we are still in the midst of our Workshop 2 preparation which will be held next weekend so ensure you take the opportunity to get the preparation with your team out of the way. I would also reflect on the feedback you have received individually and for the team and think about how you might increase these if they are down on where you would have liked with Workshop 1.

Enjoy the weekend!

Graeme

CA Candidate Study Check

As we come to the second weekend of March some of us have completed our first term of study but for others we are still engaged so let’s just check where we are at.

For those undertaking the “old” program:

TAX 122 Candidates …. you should be now looking at the company and partnership coverage. Both areas tend to link more to calculating taxable income / net income with either reconciling accounting profit to taxable income / net income or identifying errors being the primary styles of question. For the company path I would also ensure I spend some time looking at the imputation and Division 7A coverage as I wouldn’t be surprised to see one of these at least make an appearance in the exam

AAA 122 Candidates …. this week we are looking at Unit 8 which relates to using the work of others and the 600 series. There are three (3) standards that are reflected upon by the Institute:
ISA 600 .... using the work of another auditor;
ISA 610 .... using the work of internal audit;
ISA 620 .... using the work of an expert.
Our expectation is probably more in the context of two (2) to eight (8) mark questions quite probably as stand alone.

CAP 122 Candidates …. having got the first Workshop out of the way the attention turns to the Workshop 2 activities and reflecting on the learning that we can take from the first Workshop of Institute expectations. Probably a chance for a little bit of “me” time especially if you have been weather effected from the events of the last week or so.

For those undertaking the “new” program we are now down to two (2) subjects:

BP Term 1 Candidates …. Assessment Task 3 is now open with submission required next Wednesday. The requirement is an email regarding ethical issues and a 2,000 word report based on making a recommendation as to whether to proceed with an acquisition opportunity. The scenario presented is comprehensive and requires the undertaking of a business valuation, a funding analysis and a financial analysis along with other requirements. I will note that Term 4 2021 candidates found the assessment task as “lengthy” so like I noted for the Risk and Technology candidates last week give yourself plenty of time. For those that have selected our Premium or Application study assistance I will be available over the weekend for guidance on any questions you may have.

ICAP Term 1 Candidates …. the pre-release information is now available for next Tuesdays exam. Ensure you engage with the information presented, the stage of the life cycle you are at and reflect on the areas that may be extended to in the exam. Keep in mind the expectation is that you will integrate technical, business and professional knowledge and skills to address business problems.

Enjoy your weekend!

Graeme

CA Candidate Study Check

So we have a big weekend coming up for those engaged in their CA studies.

For those undertaking the "old" program":

TAX 122 Candidates .... this week we have our second online assessment covering Units 4 to 7 so ensure you find some time to get this step out of the way. With the Unit 6 small business entity coverage ensure you can apply access to the provisions and the implications on calculating taxable income. I would also ensure I engage with the SBE capital gains tax concessions because I would not be surprised if these are explored in the exam.

AAA 122 Candidates .... this week we have the second online assessment covering Units 5 to 7 so ensure you find some time to get this step out of the way. With respect to the Unit 7 coverage ensure you engage with the substantive analytical procedures and appreciate that the back end of the Unit coverage relates to fraud, accounting for estimates and going concern which were all areas that the Institute identified as significant risk areas in Unit 3.

CAP 122 Candidates .... this week we have our first workshop so I trust you have worked your way through the Workshop 1 activities and remember that the workshops are based on operating in a team environment with 10 marks attached to your workshop participation. Engage with the rubric and appreciate that 5 of the marks relate to your individual performance whilst 5 are team related so ideally the team will work together to maximise this mark.

For those undertaking the "new" program:

RT Term 1 Candidates .... Assessment Task 3 is now open with submission required next Wednesday. The requirement is a 2,000 word report along with a recorded video presentation. An initial observation is that the video presentation is new for this term so ensure you note the requirement and allocate some time to take this step that prior candidates did not have to worry about. For those that have selected our Premium or Application study assistance I will be available over the weekend for guidance on any questions you may have. My experience with past assessments is that they are more time consuming than candidates anticipate so ensure you allow adequate time to complete.

FAR Term 1 Candidates .... the pre-release information is now available for next Tuesdays exam. Interesting that the pre-release adds to the information provided with Assessment 2 which is a change to the Term 3 2021 assessment which is the only other time that FAR under the new program has been undertaken. The exam is based on 2 hours and 15 minutes with eight (8) questions represented. My expectation is that additional information will be added as you look at each question in the exam so the key for me is to understand the pre-release and consider where the questions may extend to without thinking it is like Assessment 2 where all the information has been provided. For those that have selected our Premium or Application study assistance I will be available over the weekend for guidance on any questions you may have.

BP Term 1 Candidates .... we are into the final stretch before we see the Assessment 3 task next weekend. I would take the opportunity to ensure I have worked through the financing, capital structure and dividend policy coverage. I would also note that last time the assessment task was business valuation related and whilst I can't guarantee we will be in the same area this time I might ensure that I have reviewed any questions that the Institute have provided to practice the logic.

ICAP Term 1 Candidates .... this week we have our Workshop 3 and our Assessment 2A and 2B Tasks. The Assessment 2A is based on workshop contribution where you are assessed on preparation, collaboration, communication and engagement along with your technical accuracy and relevance. Assessment 2B is a group presentation which is marked against a rubric. Application is required of ethics and technical knowledge across multiple areas much like practitioners do in practice.

Enjoy your weekend!

Graeme

Candidate CA Study Check

Another week down so let's just make sure where we are up to with our studies.

For those undertaking the "old" program:

TAX 122 Candidates .... this week I would expect candidates are working their way through the balance of CGT and the capital allowances coverage. With capital allowances ensure you are comfortable with the motor vehicle cost limit and the implication upon disposal of the vehicle in particular

AAA 122 Candidates .... this week you should be engaging with Unit 6 on test of controls. I would ensure that I understand the theory of nature, timing and extent but I would also ensure that I can link Unit 4 and Unit 6 in identifying controls to test and then designing a test of control

CAP 122 Candidates .... we are already up to the first online assessment on ethics and corporate governance. Ten (10) marks are available and considering we need sixty (60) in total to pass the exam and there is no requirement to pass the final exam every mark helps.

For those undertaking the "new" program:

RT Term 1 Candidates .... this is the final weekend before the Assessment 3 is released so make sure you have engaged with the coverage over the final grouping of chapters with a particular reference to data analysis and reporting which has been front and centre in prior assessment 3 tasks.

FAR Term 1 Candidates .... the Institute have released their practice exam and you should be aware that the pre-release for the final exam will be released next Friday. My approach would be to look at the practice exam this weekend so that next weekend I can focus on the pre-release and reflecting on potential paths of examination.

BP Term 1 Candidates .... the Assessment 2 is now out of the way so whilst I would like you to take a breath just make sure you have a think about where you are at with your knowledge on areas such as decision making and business valuations.

ATAX Term 1 Candidates .... you are into your final stretch and the pre-release information for Assessment 2 should now be available. The assessment consists of a written report and a recorded presentation both of which are due next Wednesday.

ASR Term 1 Candidates .... similar to the Advanced Tax candidates you are into your final stretch and the pre-release information for Assessment 2 should now be available. The assessment consists of a written report and a recorded presentation both of which are due next Wednesday.

ICAP Term 1 Candidates .... we now have the online assessments out of the way and should be engaging with the maturity phase of the life cycle. Keep in mind that you have this weekend to work out where you are at and undertake preparation before your Workshop 3 which is being conducted across the weekend of 5 / 6 March.

Enjoy your weekend!

Regards

Graeme

CA Candidate Study Check

Another week down on our CA journey with the CAP 122 candidates starting their final module of study this week.

Whilst I appreciate some candidates find the Capstone module under the "old" program a frustrating experience with a questioning on what they are learning I would recommend that if you are starting your studies keep an open mind about the process and the key to me is the passing not the learning that you may build!

As for the balance of the "old" program studies:

TAX 122 Candidates .... this week should be focused on CGT with an appreciation that the lack of examination in TAX 221 was inconsistent with prior exams so I would think there is a chance that a stand alone question will make a re-appearance this time around.

AAA 122 Candidates .... this week should be focused on materiality and audit planning. From a materiality perspective ensure that you are comfortable with determining the benchmark and % to apply in calculating overall materiality and then be able to rationalise the performance materiality that would apply.

As for the "new" program:

RT Term 1 Candidates .... at this stage you should be starting to build some appreciation of IT strategy before moving into computational thinking. Having got the second assessment out of the way I would take the opportunity to take a breath before we get into the final couple of weeks

FAR Term 1 Candidates .... your second assessment is this weekend. Make sure you do the preparation for your online quiz, which I believe is 31 questions in 40 minutes so not much time to think, and then remember that you have to submit the second component on impairment by Monday evening.

BP Term 1 Candidates .... you are still in the middle of your second assessment with the revised dashboard and the presentation still to be submitted by Monday evening. Make sure you appreciate that the revised dashboard is to incorporate feedback that you should have received from your Workshop group.

ATAX Term 1 Candidates .... this week you should be looking at the cross border transactions coverage with respect to international tax. You are down to the final couple of weeks with your second assessment fast approaching so ensure you have the learning out of the way so that we can move to the application.

ASR Term 1 Candidates .... this week you should be looking at the extended external reporting coverage on assurance engagements surrounding sustainability and integrated reporting. You are down to the final couple of weeks with your second assessment fast approaching so like the Advanced Tax candidates ensure you have the learning out of the way so that we can move to the application.

ICAP Term 1 Candidates .... this weekend you should be undertaking your second Workshop and then the Assessment 1B covering the Workshop content and the Introduction and Shake out phase learning. Ensure you find the time for the assessment early next week and that if work is busy that you at least find some time to prioritise the assessment.

Enjoy your weekend!

Graeme

CA Candidate Study Check

For those doing the FIN and MAAF 321 Supplementary Exams next week and have signed up for the online tuition services we offer I am looking forward to catching up this evening or over the weekend and assisting with getting this step out of the way.

As for those in the midst of studies this term:

TAX 122 Candidates .... the first online assessment is this weekend covering Units 1 to 3, just ensure you free up some time to get this step out of the way and use it as a means of assessing where you are at with your understanding of assessability, deductibility, trading stock, GST and FBT amongst other areas

AAA 122 Candidates .... you are also undertaking the first online assessment with the coverage on Units 1 to 4. For the auditors it provides a good test of whether you are applying Institute logic and for the non-auditor it allows you to assess how you are understanding the audit process

From the perspective of the "new" program:

RT Term 1 Candidates .... you have your second assessment task based on a written submission of 1,000 words. Ensure you engage with the marking rubric and appreciate how to obtain "exemplary" for your mark. Also pay attention to whether the Institute has provided any guidance on writing in a business environment and whether you have been asked for a board paper, report, memo, email etc to ensure that you don't sacrifice the "format" marks which are typically available.

FAR Term 1 Candidates .... another week before your second assessment so make sure you have moved onto the revenue and financial instrument coverage and look to give yourself some time to refresh prior to the assessment task next weekend

BP Term 1 Candidates .... you are looking at the first part of your second assessment which relates to the preparation of a memo and dashboard report for your functional area against reasonably detailed scenario material. Ensure you focus on your functional area which is determined by reference to your surname.

ATAX Term 1 Candidates .... you are looking at your first online assessment which is worth 40%. The assessment will be based on your learning across employment remuneration, property and assets and the taxation of structures and transactions. My understanding is that you will be responding to scenario based questions much like the ASR Term 1 candidates were applying last week.

ASR Term 1 Candidates .... having moved past the first assessment this week you need to reflect upon the coverage around assurance engagements other than audits or reviews of historical financial information. Engage with the acceptance criteria, performance of an engagement and the reporting requirements of ASAE / ISAE 3000 in particular.

ICAP Term 1 Candidates .... having got the first online assessment out of the way you have now moved onto what the Institute are referring to as the "shake-out" phase so ensure you engage with how they are viewing this phase and if it is any different to how traditionally we would refer to the growth phase

The other observation I would make is that for those with their assessments occurring the submission is Monday evening which also happens to be Valentines day so if you have plans (or are hoping a loved one will step up with a plan) just ensure you have got the submission out of the way so that you can ensure the day / evening is enjoyed without thinking that you still have to submit!

Enjoy the weekend!

Graeme