ACCA P1 Exam Tips:
ACCA P1 Governance Risk and Ethics Exam Tips for June 2015 session are given as follows by famous tuition providers
- Corporate governance critique and improvements.
- Effective internal control systems, reporting within differing jurisdictions.
- Influence of and intervention by institutional investors.
- Diversification of Board
- Function and importance of internal audit.
- Risk definition, analysis of risk and the role of the Board of Directors.
- Risk correlation and strategies for management of such risks.
- Ethical standpoints and their application to business decisions.
- Corporate codes of ethics critique and improvements.
- Tucker’s ethical decision making model.
- Social and environmental footprint.
- Sustainability accounting.
We expect that the P1 exam in June will reflect previous sittings closely, with one compulsory question and a choice of two from three optional questions.
Remember, the compulsory question will be fixed at 50 marks, focusing on one scenario testing all three main syllabus areas, with up to 4 professional marks available for producing some form of written communication (a briefing note, press release or letter to shareholders).
The optional questions will score 25 marks each and can test up to two syllabus areas each by applying the syllabus to a real-world scenario.
The December 2014 exam tested content from two areas added to the syllabus for that sitting onwards – public sector governance and integrated reporting – so it is unlikely that you will see them tested again so soon, but make sure you have read the examiner’s technical articles just in case.
You can also expect to see the use of ethical and CSR theories applied to scenarios, as well as the use of risk and governance syllabus content – you should be aiming to revisit as many past-paper questions as possible as we are starting to see exam requirements that reflect those we have seen before.
Candidates should also take heed of the examining team’s recently published article content for P1 when preparing for this exam – at time of going to press, this included one article on CSR strategy and strategic CSR – so keep checking to make sure you don’t miss any last minute additions.
– Purpose of governance codes, last examined June 13
– Unitary/two tier, June 12
– Chair role/CEO chair split, D9/D11
– Performance appraisal, June 12
– Reward systems Dec 13
– AGM/insider dealing, June11
– Comply and explain, Dec 12
– Rules vs principle, Dec 13
– COSO failures, Dec 12
– Board responsibility for control, Dec
– Disclosure/information, D10/D12
- Risk Management
– Risk committee or risk manager, J12/J9
– Strategic/operational risk, Dec 12
– Static and dynamic risk, June 11
– Risk diversification/embedded risk, June 13
– ALARP, Dec 11
– Risk assessment, June 13
– Absolute/relative, Dec 10
– Professionalism, June 10
– AAA model or Tucker, J12 D12
– 50-mark scenario question, to include ethics, Tucker’s 5 questions, single v. two-tier board structures, corporate social responsibility.
– Optional questions to include importance of internal controls, governance committees and structure of directors’ remuneration, business risks, integrated reporting and environmental reporting.
Question 1 will probably be the “usual” 500 – 700 word case study with sub questions covering governance, risk AND ethics with a part question asking for something like a chair’s address to the members at an AGM or a report to, say, institutional investors
Questions 2, 3 and 4 could have at their root a topic covered by recent Student Accountant articles including any or all of the following:
- Diversifying the Board
- Integrated Reporting Framework
- CSR Strategy and Strategic CSR
- Environmental Accounting and Reporting
but, throughout the paper, the underlying themes will be governance, risk and ethics
Manchester Metropolitan University MMU