Core areas (as per examiner’s approach article) likely to be examined in every paper:
– Engagement planning and risk assessment (Business risk & risk of material misstatement)
– Engagement procedures (or evidence)
– Ethics and professional issues
– Completion (matters to consider/evidence on file) and engagement reporting
– Current topics.
Subjects of recent articles:
– IAASB Developments
– Reporting on audited financial statements – significant changes proposed
Significant topics not examined for at least 18 months:
– Understanding the entity
– Related party transactions
– Relying on the work of others including experts
– Review of interim FS
– Joint audits
– Transnational audits
– Opening balances
– Subsequent events
– Internal audit
– Audit of social and environmental and integrated reporting
Please be aware that the whole syllabus is examinable. Whilst the above topics are likely to be examined in forthcoming sittings this does not mean candidates should avoid other areas of the syllabus in their exam preparation.
The examiner will set 5 questions, which will all have multiple elements, so it is likely that topics other than the ones noted above will be examined in the December 2014 exam. The examiner has noted that questions will not be restricted to topic areas (e.g. question 5 will not necessarily be on audit reporting) and instead we should expect to see topics spread across a number of questions.
In addition, please note the case study questions in section A will have the requirements embedded in the question (see the article from the examiner ‘Changes in question style’).
4 professional marks will be available within one of the section A case study questions.
Finally, please note that the questions in the exam now have a fixed number of marks as follows:
– Question 1: 35 marks
– Question 2: 25 marks
– Questions 3 to 5: 20 marks each
We expect that the P7 exam in December will mirror previous sittings, with two compulsory questions making up the majority of the marks on offer and a choice of two from three optional questions.
You should be aware that for exams from December 2014 onwards, the P7 INT syllabus includes examinable content on the audit of public sector performance information which you should be prepared for.
For this sitting, you can again expect a planning scenario in the compulsory section which should test risk assessment, audit procedures and professional issues, while we expect that optional questions will also test audit reports, evidence, ethical and other practice-related matters.
Candidates should also take heed of other recently published article content from the P7 examining team on internal audit, ethics, accounting issues and forensics when preparing for this exam.
– Business risk and risk of material misstatement.
– Ethics and professional issues, including money laundering and advertising.
– Matters and evidence on various IAS/IFRS.
– Criticism of a given audit report.
– Discussion on benefits of proposed new audit report format.
– Quality control of audit.
– Prospective financial information.
– ISAs 210, 240, 510, 550, 560, 720.
– Business risks in a scenario.
– Identifying ethical and other professional issues in a scenario.
– Matters to be considered and audit evidence for a couple of core accounting issues.
– Audit reports.
– Money laundering.
– Internal Auditors
– Forensic Accounting
– Accounting Issues
– Integrated Reporting
– IAS 41 Agriculture (New Area)
– Audit planning: Business risk and audit risk.
– Audit evidence: procedures, matters to consider and evidence required.
– Reporting: form and content.
– Social and environmental audit.
– Code of ethics.
– Public sector organisations.