ACCA P7 Advanced Audit and Assurance aims to analyse, evaluate and conclude on the assurance engagement and other audit and assurance issues in the context of best practice and current developments.
On successful completion of this paper candidates should be able to:
- Recognize the legal and regulatory environment and its impact on audit and assurance practice
- Demonstrate the ability to work effectively on an assurance or other service engagement within a professional and ethical framework
- Assess and recommend appropriate quality control policies and procedures in practice management and recognise the auditor’s position in relation to the acceptance and retention of professional appointments
- Identify and formulate the work required to meet the objectives of audit assignments and apply the International Standards on Auditing
- Identify and formulate the work required to meet the objectives of non-audit assignments
- Evaluate findings and the results of work performed and draft suitable reports on assignments
- Understand the current issues and developments relating to the provision of audit related and assurance services
The Advanced Audit and Assurance syllabus is essentially divided into seven areas.
The syllabus starts with the legal and regulatory environment including money laundering, and professional and ethical considerations, including the Code of Ethics and professional liability. This then leads into procedures in practice management, including quality control and the acceptance and retention of professional engagements.
The syllabus then covers the audit of financial statements, including planning, evidence and review. It then covers other assignments including prospective financial information, and other assurance assignments, as well as the reporting of these assignments.
The final section covers current issues and developments relating to the provision of audit related and assurance services.
APPROACH TO EXAMINING THE SYLLABUS
The examination is a three hour 15 minutes paper constructed in two sections. Questions in both sections will be largely discursive. However, candidates will be expected, for example, to be able to assess materiality and calculate relevant ratios where appropriate.
Section A questions will be based on ‘case study’ type questions. That is not to say that they will be particularly long, rather that they will provide a setting within a range of topics, issues and requirements can be addressed. Different types of question will be encountered in Section B and will tend to be more focused on specific topics, for example ‘auditor’s reports’, ‘quality control’ and topics of ISAs which are not examinable in Paper F8, Audit and Assurance. (This does not preclude these topics from appearing in Section A). Current issues will be examined across a number of questions.
Section A: 2 compulsory questions
Question 1 35 marks
Question 2 25 marks
Section B: Choice of 2 from 3 40 marks questions- 20 marks each
Total: 100 marks