Professional Documents
Culture Documents
to
June 2019
Audit and
Assurance (AA)
syllabus and study guide This shows the breakdown of the main
capabilities (sections) of the syllabus
into subject areas. This is the blueprint
Overall aim of the syllabus
for the detailed study guide.
This explains briefly the overall objective
Approach to examining the syllabus
of the syllabus and indicates in the
broadest sense the capabilities to be
This section briefly explains the
developed within the exam.
structure of the examination and how it
is assessed.
Relational diagram of linking Audit
and Assurance (AA) with other ACCA
Study Guide
exams
This is the main document that students,
This diagram shows direct and indirect
education and content providers should
links between this exam and other
use as the basis of their studies,
exams preceding or following it. It
instruction and materials. Examinations
indicates where you are expected to
will be based on the detail of the study
have underpinning knowledge and
guide which comprehensively identifies
where it would be useful to review
what could be assessed in any
previous learning before undertaking
examination session. The study guide is
study.
a precise reflection and breakdown of
the syllabus. It is divided into sections
Main capabilities
based on the main capabilities identified
in the syllabus. These sections are
The aim of the syllabus is broken down
divided into subject areas which relate to
into several main capabilities which
the sub-capabilities included in the
divide the syllabus and study guide into
detailed syllabus. Subject areas are
discrete sections.
broken down into sub-headings which
describe the detailed outcomes that
Relational diagram of the main
could be assessed in examinations.
capabilities
These outcomes are described using
verbs indicating what exams may
This diagram illustrates the flows and
require students to demonstrate, and the
links between the main capabilities
broad intellectual level at which these
(sections) of the syllabus and should be
may need to be demonstrated
used as an aid to planning teaching and
(*see intellectual levels below).
learning in a structured way.
Syllabus rationale
Guide to ACCA
Examination Assessment
ACCA reserves the right to examine
anything contained within the study
guide at any examination session. This
includes knowledge, techniques,
principles, theories, and concepts as
specified. For the financial accounting,
audit and assurance, law and tax exams
except where indicated otherwise,
ACCA will publish examinable
documents once a year to indicate
exactly what regulations and legislation
could potentially be assessed within
identified examination sessions.
This syllabus and study guide is designed to help with planning study and to provide
detailed information on what could be assessed in any examination session.
Aim
Main capabilities
On successful completion of this exam, candidates should be able to:
A Explain the concept of audit and assurance and the functions of audit, corporate
governance, including ethics and professional conduct.
B Demonstrate how the auditor obtains and accepts audit engagements, obtains
an understanding of the entity and its environment, assesses the risk of material
misstatement (whether arising from fraud or other irregularities) and plans an
audit of financial statements
C Describe and evaluate internal controls, techniques and audit tests, including IT
systems to identify and communicate control risks and their potential
consequences, making appropriate recommendations. Describe the scope , role
and function of internal audit.
D Identify and describe the work and evidence obtained by the auditor and others
required to meet the objectives of audit engagements and the application of the
International Standards on Auditing (ISAs)
E Explain how consideration of subsequent events and the going concern principle
can inform the conclusions from audit work and are reflected in different types of
auditor’s report, written representations and the final review and report.
This diagram illustrates the flows and links between the main capabilities (sections)
of the syllabus and should be used as an aid to planning teaching and learning in a
structured way.
Rationale
3. Tests of control
All questions are compulsory. The exam will contain both computational and discursive elements.
Computer-based exams
*For computer-based exams an extra 20 minutes is provided to candidates to reflect the additional
content as per below. The total exam time is therefore 3 hours and 20 minutes. Prior to the start of
the exam candidates are given an extra 10 minutes to read the exam instructions.
Section A of the exam comprises three 10 mark case-based questions. Each case has five
objective test questions worth 2 marks each.
Section B of the exam comprises one 30 mark question and two 20 mark questions.
Section B of the exam will predominantly examine one or more aspects of audit and assurance
from planning and risk assessment, internal control or audit evidence, although topics from other
syllabus areas may also be included
For the computer-based exam candidates will be delivered an extra 10 marks of objective test
content, for which candidates are given an extra 20 minutes. These questions are included to
ensure fairness, reliability and security of exams. These questions do not directly contribute
towards the candidate’s score. Candidates will not be able to differentiate between the questions
that contribute to the result and those that do not.
Paper-based exams
*For paper-based exams an extra 15 minutes is provided to candidates to reflect the manual effort
required as compared to the time needed for the computer-based exams. The total exam time is
therefore three hours and 15 minutes. Prior to the start of the exam candidates are given an extra
10 minutes to read the exam instructions.
Section A of the paper-based exam comprises three questions containing five multiple choice
questions.
Section B of the exam comprises one 30 mark question and two 20 mark questions.
Section B of the exam will predominantly examine one or more aspects of audit and assurance
from planning and risk assessment, internal control or audit evidence, although topics from other
syllabus areas may also be included
g) Explain the need for, and the importance b) Describe control objectives, control
of, audit documentation.[1] procedures, activities and tests of control
in relation to:
h) Describe the form and contents of
working papers and supporting i) The sales system;
documentation.[2] ii) The purchases system
iii) The payroll system
i) Explain the procedures to ensure safe iv) The inventory system
custody and retention of working v) The cash system
papers.[1] vi) Non-current assets
b) Explain outsourcing and the associated c) Discuss the problems associated with
advantages and disadvantages of the audit and review of accounting
outsourcing the internal audit function.[1] estimates.[2]
c) Discuss the nature and purpose of d) Describe why smaller entities may have
internal audit assignments including different control environments and
value for money, IT, financial, regulatory describe the types of evidence likely to
compliance, fraud investigations and be available in smaller entities.[1]
customer experience.[2] e) Discuss the difference between tests of
control and substantive procedures.[2]
d) Discuss the nature and purpose of
operational internal audit assignments [2] 3. Audit sampling and other means
of testing
e) Describe the format and content of
internal audit review reports and make a) Define audit sampling and explain the
appropriate recommendations to need for sampling.[1]
management and those charged with
governance.[2] b) Identify and discuss the differences
between statistical and non-statistical
sampling.[2]
D. Audit evidence
c) Discuss and provide relevant examples
1. Financial statement assertions and
of the application of the basic principles
audit evidence
of statistical sampling and other selective
testing procedures.[2]
a) Explain the assertions contained in the
financial statements about:[2] d) Discuss the results of statistical
(i) Classes of transactions and events sampling, including consideration of
and related disclosures; whether additional testing is required.[2]
(ii) Account balances and related
disclosures at the period end; 4. The audit of specific items
b) Describe audit procedures to obtain audit For each of the account balances stated in
evidence , including inspection, this sub-capability:
observation, external confirmation,
recalculation, re-performance, analytical Explain the audit objectives and the audit
procedures and enquiry.[2] procedures to obtain sufficient, appropriate
evidence in relation to:
c) Discuss the quality and quantity of audit
evidence.[2] a) Receivables: [2]
i) direct confirmation of accounts
d) Discuss the relevance and reliability receivable
of audit evidence.[2] ii) other evidence in relation to
receivables and prepayments,
2. Audit procedures iii) other evidence in relation to current
assets; and
a) Discuss substantive procedures for iv) completeness and occurrence of
obtaining audit evidence.[2] revenue.
3. Written representations
The main areas which have been added to the syllabus are summarised in the table below.
Table 1 – Amendments to AA
E5d) Learning outcome reworded to Describe the format and content of key
specifically reference Key Audit audit matters, emphasis of matter and
Matters other matter paragraphs [2]