ACCA P7 Exam Tips:
ACCA P7 Advanced Audit and Assurance Exam Tips for June 2015 session are given as follows by famous tuition providers
Core areas 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.
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.
– Relying on the work of others including experts.
– Review of interim FS.
– Joint audits.
– Opening & closing balances.
– Internal audit.
We expect that the P7 exam in June will reflect previous sittings, with two compulsory questions making up the majority of the marks on offer and a choice of two from three optional questions. Remember, the compulsory questions will be fixed at 35 marks and 25 marks for Q1 & 2 respectively, with up to 4 professional marks available in one of these questions for professional layout of your answer, while the optional questions will score 20 marks each.
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 – watch out for technical article content right up to the date of the exam as the examining team may decide to supplement the study guide with additional information!
For this sitting, you can again expect a planning scenario in the compulsory section which should test risk assessment, audit procedures and professional issues, possibly in the context of a consolidated group, while we expect that optional questions will also test audit reports, audit evidence, ethical and other practice-related matters. Remember that this paper is called “Advanced Audit and Assurance” so you should make sure you are familiar with all the non-audit engagements on the syllabus too!
Candidates should also take heed of other recently published article content from the P7 examining team on audit quality and professional scepticism when preparing for this exam – each of these topics feeds into so many parts of the syllabus so you should consider how each one could be applied to what you have already learned.
- Audit risk/risk of material misstatement.
- Audit procedures/Matters & evidence.
– IAS 10, 12, 16, 17, 19, 20, 23, 24, 37, 38.
– IFRS 3, 5.
- Ethics and professional issues.
– Money laundering.
– Threats to objectivity.
– Quality control.
- Criticise a given audit report.
- New format audit reports vs. old format.
- Non-audit assignments.
– Due diligence.
- Other audit standards.
– Subsequent events.
– Other information.
– Initial audits.
– Reliance on internal audit
- 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.
Usual question 1 – an email from a partner asking for your response and concerning a forthcoming audit where the partner has had a preliminary meeting that has revealed a number of accounting and auditing issues. Those issues could very likely involve various risks and the categorization of those risks. In addition, there could well be ethical matters to be brought in as well as professional considerations
As question 2, coming out of left field, I like the idea of the need for, and identification of, appropriate procedures instituted by companies for the protection of their employees from the threats caused by bribery
Questions 3, 4 and 5 could be based on any or all of recent articles from Student Accountant. These include:
Using the Work of Internal Auditors (last exam was reliance on an expert)
Staying on the right side of Ethics
Answering questions involving Accounting Issues
Also, again a flyer, auditing the financial statements of a farm bringing in IAS 41 Agriculture matters
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