Audit Framework: Ethics / confidentiality / Audit committees
Internal Audit: Direct assistance by internal audit for external audit
Planning and Risk: Audit risks and responses
Internal Control: Cash, inventory, purchases (including tests of control)
Audit Evidence: Purchases, revenue, inventory
Completion & reporting : Written representations (ISA 580), Subsequent events (ISA 560), and Auditor’s reports
– Limited assurance engagements
– Expectation gap
– Auditor rights and duties
– Benefits / limitations of audits
– Engagement letters (ISA 210)
– Fraud and error (ISA 240)
– Laws and regulations (ISA 250)
– Components of an internal control system (ISA 315)
– Inherent limitations of internal control
– Risk assessment procedures (ISA 315)
– Auditing accounting estimates (ISA 540)
– Financial statement assertions
Please be aware that recent diets for F8 have ranged from those requiring knowledge of the content of a broad range of standards (some quite peripheral to the syllabus) and those requiring grounding in the core auditing concepts/techniques. Therefore, students should be prepared for either possibilities in the December 2014 paper, or a combination of both.
– Internal control.
– Audit planning.
– Audit evidence and audit procedures (both substantive procedures and tests of control).
– Ethical threats and safeguards.
– Audit finalisation.
– Corporate governance and internal control.
– MCQ’s will likely to be a mix of knowledge and practical, so knowledge of ISAs, corporate governance etc will be important
– Substantive testing – tangible non-current assets, trade payables, provisions, bank and cash.
– Controls – reporting to management and tests of controls on Purchases (including asset purchases), bank and cash.
– Planning – audit risk and response, with ratios.
– Ethics – threats to objectivity, confidentiality.
– Finalisation/reports – subsequent events, other Information.
– Internal audit– reliance by external auditors (ISA 610).
– Other – roles of audit committees, CAATS, levels of assurance, ISA 240, 250, 260, 402.
MCQs on whole syllabus.
– Audit risk and auditor response (including ratio calculations).
– Internal control – deficiencies, implications and recommendations (purchases and payables cycle).
– Audit evidence and substantive testing.
– Subsequent events.
– Modified auditors reports.
Section A: 20 marks MCQ’s from any area of syllabus
- Audit planning and risk assessment
- Internal control evaluation or criticism – for sale system
- Audit evidence for specific figures in Financial statement
- CAAT – Computer assisted audit techniques
- Ethical dilemmas