Exam technique for Advanced Audit and Assurance: part 1 – ethics
Ethical standards and their application form a major part of the Advanced Audit and Assurance syllabus and are examined regularly. This article demonstrates how to maximise marks on these areas using effective exam technique.
Exam technique for Advanced Audit and Assurance: part 2 – risk
Risk is examined in several ways within the Advanced Audit and Assurance syllabus and understanding the difference between these can be key to scoring good marks in the exam. This article demonstrates how to maximise marks on these areas using effective exam technique.
The completion stage of the audit is when the auditor reviews the work performed and considers the implications for the auditor’s report. A crucial part of this review is the evaluation of misstatements found during the audit.
Responding to Non-Compliance with Laws and Regulations (NOCLAR)
This article is intended to provide insight into recent developments to the International Ethics Standards Board’s Code of Ethics for Professional Accountants (IESBA) in relation to the auditor’s response to non-compliance with laws and regulations.
Auditor reporting – an update for P7 students on Key Audit Matters (P7 INT) and the Extended Auditor’s Report (P7 UK)
This article outlines the key changes in the requirements relating to auditor’s reports, focusing on the new requirements relating to the Key Audit Matters paragraph for P7 International candidates, and Extended Auditor Reporting for P7 UK and Ireland candidates.
Corporate governance and its impact on audit practice
P7 candidates are expected to be conversant with corporate governance principles, many of which they will have seen in previous exams like F8 and P1. In P7, the focus is on the impact that corporate governance principles and practice can have on the audit process, and this article explores some of these issues.
The new auditor’s report
The completion of an IAASB project in 2015 resulted in a set of new and revised standards on auditor reporting. These standards are examinable from the September 2016 exam session, meaning that F8 and P7 candidates will be expected to understand the requirements and responsibilities of the auditor as set out in the standards.
Auditing disclosures in financial statements
This article looks at auditing disclosures in financial statements, an issue that has been considered by the IAASB in recent years following developments in IFRS requirements and the increased level of complexity and subjectivity involved in the preparation of information to be disclosed in financial statements.
Performance information in the public sector
The Syllabus and Study Guide for P7 (INT), Advanced Audit and Assurance (and SGP adapted paper) includes a section entitled ‘The audit of performance information (pre-determined objectives) in the public sector’. This article is intended to provide insight into this syllabus area and explain some of the issues of which candidates should be aware when studying this aspect of the syllabus.
Laws and regulations
It is important that candidates preparing for P7 have an understanding of how laws and regulations affect an audit, not only in terms of the work the auditor is required to do, but also to appreciate the responsibilities of both management and the auditor where laws and regulations are concerned.
Audit quality – a perpetual current issue
Audit quality is relevant to P7 in that the Syllabus and Study Guide includes a specific section, C1, which contains a number of learning outcomes in relation to quality control in the context of practice management.
The article explains the importance of professional scepticism as an essential part of the auditor’s mindset, and considers the reasons why approaching an audit with an attitude of professional scepticism is becoming increasingly important.
Using the work of internal auditors
This article focuses on the provision of direct assistance by the internal auditors, which – to date – has been a very controversial issue. Although internal auditors are the employees of the entity, which could result in threats to independence (either in fact or perceived) if direct assistance is provided by the internal auditors, there are benefits relating to this provision which cannot be ignored.
Staying on the right side of ethics
Within the exam, ethical issues are commonly examined alongside practice management issues as the implications of ethical guidelines will interlink with the processes and procedures that an audit or advisory firm must put in place to ensure compliance.
A very common theme in P7 questions is to present you with information that embodies an accounting issue. Sometimes the information is presented as a standalone requirement but is often, for example, included in a set of notes of a conversation with an audit client’s finance director.
With at least one requirement relating to forensic accounting in three out of five P7 exams between December 2011 and December 2013, this is an area of the syllabus that students cannot afford to overlook. This article explores some of the issues relevant to forensic accounting.
This article focuses on the issue of auditor’s liability in the UK, and therefore contains references to the UK Companies Act 2006, as well as UK-specific legal cases. Candidates other than those attempting the UK adapted paper are not expected to have UK-specific knowledge. The concepts discussed in this article however are broadly relevant and will help candidates to understand why this is an important issue within the auditing profession.
The control environment of a company
The purpose of this article is to provide candidates with a more detailed appreciation of matters pertinent to an auditor, focusing on the need for the auditor of a large limited liability company (in the UK – a limited company) to evaluate the effectiveness of the company’s control environment.
Continue to be ‘rest assured’
This article looks at the topic of assurance in the context of P7, describing a framework for the classification of assurance and non-assurance engagements, and giving guidance on the practical approach required when undertaking assurance assignments.
ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment (Related to Entity’s Internal Control)
One of the major revisions of ISA 315 relates to the inquiries made by external auditors of the internal audit function since internal auditors have better knowledge and understanding of the organisation and its internal control. This article addresses and highlights the components of internal control.
Tackling questions on ethics
When ethics appears in an optional question in the P7 exam, it is often a popular choice for candidates, but their answers often lack detail and are not well applied to the question scenario. This article aims to assist candidates in terms of knowledge and question technique when tackling a question on ethics.
Planning an audit of financial statements
The key to a successful audit is effective planning. This article explains how planning an audit involves more than just obtaining business understanding and performing risk assessment. She also summarises the main requirements and guidance contained in ISA 300, Planning an Audit of Financial Statements.
Completing the audit
This article explores some of the key requirements of International Standards on Auditing (ISA) that are relevant at the completion stage, and discusses the practical implications of those requirements.
Auditor’s reports in the UK
This article considers the rationale behind the UK retaining its own version of the clarified ISA 700, and highlights the main differences between the UK version and its international equivalent.
Audit and insolvency
This article highlights some of the issues that auditors may have to deal with in respect of insolvency.
This article reviews the most significant elements of group audits and changes to ISA 600 that were introduced as a result of the recent Clarity project.
Acceptance decisions for audit and assurance engagements
This article discusses the learning outcomes of Professional Appointments from Syllabus reference C4.
Specific aspects of auditing in a computer-based environment
This article provides guidance on various aspects of auditing in a computer-based accounting environment.
Audit of estimates and fair values
Guidance on making estimates, a vital part of preparing financial statements.
An outline of the analytical procedures relevant to the audit papers.
A matter of opinion
This article revisits the basic principles of forming an audit opinion and looks at how this knowledge should be applied by considering a past P7 exam question.
The additional guidance given for ISA 570, Going Concern.
This article outlines and explains the concept of audit risk, making reference to the key auditing standards which give guidance to auditors about risk assessment.
Auditing in a computer-based environment
The aim of this article is to help students improve their understanding of computer-assisted techniques by giving practical illustrations of computer-based controls and the way they may feature in exam questions.
Massaging the figures
Earnings management – what it is, when it becomes fraud, and implications for auditors.
ISA 240 (redrafted), auditors and fraud
The definitions given by International Standard on Auditing (ISA) 240 (Redrafted) of fraud and error, and the historical expectations of the audit role.
The importance of financial reporting standards to auditors
This article provides guidance on the financial reporting issues that require a detailed level of knowledge, and those for which less detailed knowledge will be expected.
This article explores some of the key issues relevant to forensic investigations.
Auditors’ reports to those charged with governance
This article discusses the important reporting ‘output’ produced as a result of the audit process, that of the auditor’s communication to those charged with governance.
Group audit issues
This article summarises some of the sections of ISA 600 (Revised and Redrafted).
This article explains the importance of understanding audit evidence.
Audit working papers
How working papers provide evidence that an effective, efficient, and economic audit has been carried out.
Planning, risk and audit procedures
Matters to consider when delivering a valid audit opinion
Risk assessment and audit procedures
Professional marks – the difference between a pass and a fail
Advice for students retaking exams
Changes to the ACCA Qualification skills module, Professional level and Foundations in 2016–17
ACCA embeds integrated reporting
Syllabus and Study Guide and exam format update
Making the best Options choices
P7 – A guide to using the examiner’s reports
P7 – 重考学员复习指南
P7 – A guide to reflection for retake students
Underpinning knowledge for the audit papers
Approaching Question 1
Exam technique for P7
Passing the Professional level papers
How to tackle exams – from a marker’s perspective
如何回答审计与鉴证案例分析题 – 第一部分
How to tackle audit and assurance case study questions – part 1
如何回答审计与鉴证案例分析题 – 第二部分
How to tackle audit and assurance case study questions – part 2