Audit and Assurance-AA

Audit and Assurance (AA) – Read all ACCA Technical Articles, Examiners Comments and Exam Tips here.

Answering audit risk questions

This article aims to identify the most common mistakes made by candidates in answering audit risk questions as well as clarifying how such questions should be tackled in order to maximise marks. Candidates studying Paper F8, Audit and Assurance, are required under the syllabus to: ‘Explain the components of audit risk and explain the risks of material misstatement in the …

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Objective questions for session CBEs

What you need to know about the objective test questions for session CBEs for PM, TX, FR, AA and FM. What you need to know about the objective test (OT) questions in Session CBE format exams for: Performance Management (PM) Taxation (TX) * Financial Reporting (FR) Audit and Assurance  (AA) Financial Management (FM) * UK version only How many marks …

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Examiner approach

This article considers the examiner’s approach to the AA exam. The aim of AA is to develop knowledge and understanding of the process of carrying out the assurance engagement and its application in the context of the professional regulatory framework. The exam is practical in application, as well as aiming to ensure that candidates who pass this exam understand the …

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Decentralisation and the need for performance measurement

This article focuses on a classic performance measurement question, which involves a combination of financial and non-financial analysis. Decentralisation is essentially the delegation of decision-making responsibility. All organisations decentralise to some degree; some do it more than others. Decentralisation is a necessary response to the increasing complexity of the environment that organisations face and the increasing size of most organisations. …

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Auditing in a computer-based environment (2)

The aim of this article is to help students improve their understanding of computer-assisted techniques by giving practical illustrations of computer-based controls and the way they may feature in exam questions. Relevant to Foundation level Paper FAU and ACCA Qualification Papers F8 and P7 (Int and UK) The accounting systems of many companies, large and small, are computer-based; questions in …

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Analytical procedures

To obtain audit evidence, the auditor performs one – or a combination – of the following procedures: inspection observation external confirmation inquiry reperformance recalculation analytical procedures. It is mandatory that the auditor should perform risk assessment for the identification and assessment of risks of material misstatement at the financial statement and assertion level, and the risk assessment procedures should include …

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Audit working papers

How working papers provide evidence that an effective, efficient, and economic audit has been carried out. This article is about audit working papers. Auditors should prepare and organise their working papers in a manner that helps the auditor carry out an appropriate audit service. The auditor should avoid preparing or accumulating unnecessary working papers, and should therefore avoid making extensive …

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ISA 330 and responses to assessed risks

Relevant to ACCA Qualification Paper F8 This article considers the requirements of ISA 330, The Auditor’s Responses to Assessed Risks. The main objective of ISA 330 is to give guidance on how auditors should obtain sufficient appropriate evidence regarding the assessed risks of material misstatement by designing and implementing appropriate responses to those risks. UK and Irish students should note …

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Auditing in a computer-based environment

This article provides guidance on various aspects of auditing in a computer-based accounting environment. Relevant to Foundation level Paper FAU and ACCA Qualification Papers F8 and P7 Specific aspects of auditing in a computer-based environment Information technology (IT) is integral to modern accounting and management information systems. It is, therefore, imperative that auditors should be fully aware of the impact …

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Subsequent events

This article considers how subsequent events can affect an entity’s financial statements, and discusses the auditing requirements AA candidates need to know. Students of financial reporting and auditing papers will have to gain an understanding of how subsequent events (also known as ‘events after the reporting period’) affect the financial statements of an entity. This article will consider the financial …

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