1. question scenario will be set in the planning phase of an audit, requirements could cover a range of topics, for example relating to evidence, audit quality or ethics.
2. Four professional marks will be available in Section A
3. Audit planning and risk assessment will continue to be examined in every sitting, in Section A.
1. One of the Section B questions will always be set in the completion stage of an audit, and could focus on topics including the final review of audit evidence, evaluation of matters and evidence to support the audit opinion, the audit of going concern and subsequent events, the auditor’s report, and reports to those charged with governance.
Key objectives of AAA:
1. Candidates should ensure that when asked to ‘design’ procedures that they provide the source and purpose for each relevant procedure.
2. When asked to comment on the 'matters to consider' in the completion phase of an audit, candidates should be aware that one of the key matters to consider is whether the relevant accounting standard has been adhered to, as well as the materiality of the matter, and to consider and explain the audit evidence which should have been obtained in relation to the issue.
3. Auditor’s reports and reporting to those charged with governance are both important areas. Candidates must familiarise themselves with the most up to date requirements in relation to auditor reporting and have sufficient knowledge and understanding of this area to answer a variety of question types, including providing a critique of a suggested report, or determining the appropriate opinion and form of report to be issued.. It is essential that candidates are confident answering questions on this topic as Syllabus section E will form one of the Section B questions every session.
4. Ethics and related professional issues are likely to feature in every session, either in Section A or Section B. It is important to appreciate that ethics is not just about independence but also covers ethical issues such as conflicts of interest and confidentiality, as well as fraud and error, and professional liability. Matters such as audit quality and professional scepticism are also important syllabus areas, and may feature in either area of the exam. Candidates should be prepared to evaluate whether an audit has been conducted suitably, including whether the auditor has applied an appropriate level of professional scepticism in a specific situation.
5. Current issues from ACCA website
6. Core competencies
- Reporting regulations
- Accounting standards
- Ability to apply knowledge
- Have independent opinion
- Consider commercial factors
- Development in Audit and Assurance