advanced audit and assurance (aaa) (int) · advanced audit and assurance (aaa) by audit and...



Summary of content

Introduction1. Intellectual levels2. Learning hours and educational

recognition3. Guide to ACCA examination structure4. Guide to ACCA examination

assessment

Advanced Audit and Assurance(INT) syllabus

5. Relational diagram linking AdvancedAudit and Assurance (INT) with otherexams

6. Overall aim of the syllabus7. Main capabilities8. Rationale9. Approach to examining the syllabus10. The syllabus

Advanced Audit and Assurance(INT) study guide

11. Detailed study guide



1. Intellectual levels

The syllabus is designed toprogressively broaden and deepen theknowledge, skills and professionalvalues demonstrated by the student ontheir way through the qualification.

The specific capabilities within thedetailed syllabuses and study guides areassessed at one of three intellectual orcognitive levels:

Level 1: Knowledge andcomprehension

Level 2: Application and analysisLevel 3: Synthesis and evaluation

Very broadly, these intellectual levelsrelate to the three cognitive levels atwhich the Applied Knowledge,the Applied Skills and the StrategicProfessional examsare assessed.

Each subject area in the detailed studyguide included in this document is givena 1, 2, or 3 superscript, denotingintellectual level, marked at the end ofeach relevant learning outcome. Thisgives an indication of the intellectualdepth at which an area could beassessed within the examination.However, while level 1 broadly equateswith Applied Knowledge, level 2equates to Applied Skills and level 3 toStrategic Professional, some lower levelskills can continue to be assessed asthe student progresses through eachlevel. This reflects that at each stage ofstudy there will be a requirement tobroaden, as well as deepen capabilities.It is also possible that occasionally somehigher level capabilities may beassessed at lower levels.

2. Learning hours andeducationrecognition

The ACCA qualification does notprescribe or recommend any particularnumber of learning hours forexaminations because study andlearning patterns and styles vary greatlybetween people and organisations. Thisalso recognises the wide diversity ofpersonal, professional and educationalcircumstances in which ACCA studentsfind themselves.

As a member of the InternationalFederation of Accountants, ACCA seeksto enhance the education recognition ofits qualification on both national andinternational education frameworks, andwith educational authorities and partnersglobally. In doing so, ACCA aims toensure that its qualification is recognisedand valued by governments, regulatoryauthorities and employers across allsectors. To this end, ACCA qualificationis currently recognised on the educationframeworks in several countries. Pleaserefer to your national educationframework regulator for furtherinformation.

Each syllabus is organised into mainsubject area headings which are furtherbroken down to provide greater detail oneach area.



3. Guide to ACCAexaminationstructure anddelivery mode

The structure and delivery mode ofexaminations varies.

Applied KnowledgeThe Applied Knowledge examinationscontain 100% compulsory questions toencourage candidates to study acrossthe breadth of each syllabus. Theseare assessed by a two-hour computerbased examination.

Applied SkillsThe Corporate and Business Law examis a two-hour computer-based objectivetest examination for English and Global.For the format and structure of theCorporate and Business Law orTaxation variant exams, refer to the‘Approach to examining the syllabus’ insection 9 of the relevant syllabus andstudy guide.

The other Applied Skills examinations(PM, TX-UK, FR, AA, and FM)contain a mix of objective and longertype questions with a duration of threehours for 100 marks. These areassessed by a three hour computer-based exam. Prior to the start of eachexam there will be time allocated forstudents to be informed of the examinstructions.

The longer (constructed response)question types used in the Applied Skillsexams (excluding Corporate andBusiness Law) require students toeffectively mimic what they do in theworkplace. Students will need to use arange of digital skills and demonstratetheir ability to use spreadsheets andword processing tools in producing theiranswers, just as they would use thesetools in the workplace. These

assessment methods allow ACCA tofocus on testing students’ technical andapplication skills, rather than, forexample, their ability to perform simplecalculations.

Strategic ProfessionalStrategic Business Leader is ACCA’scase study examination at StrategicProfessional and is examined as aclosed book exam of four hours,including reading, planning andreflection time which can be usedflexibly within the examination. There isno pre-seen information and all examrelated material, including caseinformation and exhibits are availablewithin the examination. StrategicBusiness Leader is an exam based onone main business scenario whichinvolves candidates completing severaltasks within which additional materialmay be introduced. All questions arecompulsory and each examination willcontain a total of 80 technical marks and20 Professional Skills marks.

The other Strategic Professional examsare all of three hours and 15 minutesduration. All contain twoSections and all questions arecompulsory. These exams all containfour professional marks.

For September and December 2019sessions, all Strategic Professionalexams will be assessed by paper basedexamination. From March 2020, theseexams will become available bycomputer based examination. Moredetail regarding what is available in yourmarket will be on the ACCA globalwebsite.

With Applied Knowledge and AppliedSkills exams now assessed by computerbased exam, ACCA is committed tocontinuing on its journey to assess all



exams within the ACCA Qualificationusing this delivery mode.

The question types used at StrategicProfessional again require students toeffectively mimic what they would do inthe workplace and, with the move toCBE, these exams again offer ACCA theopportunity to focus on the application ofknowledge to scenarios, using a rangeof tools – spreadsheets, wordprocessing and presentations - not onlyenabling students to demonstrate theirtechnical and professional skills but alsotheir use of the technology available totoday’s accountants.

ACCA encourages students to take timeto read questions carefully and to plananswers but once the exam time hasstarted, there are no additionalrestrictions as to when candidates maystart producing their answer.

Time should be taken to ensure that allthe information and exam requirementsare properly read and understood.

The pass mark for all ACCAQualification examinations is 50%.



4. Guide to ACCAExaminationAssessment

ACCA reserves the right to examine anylearning outcome contained within thestudy guide. This includes knowledge,techniques, principles, theories, andconcepts as specified. For the financialaccounting, audit and assurance, lawand tax exams except where indicatedotherwise, ACCA will publishexaminable documents once a year toindicate exactly what regulations andlegislation could potentially be assessedwithin identified examination sessions.

For most examinations (not tax),regulations issued or legislation passedon or before 31 August annually, will beexaminable from 1 September of thefollowing year to 31 August of the yearafter that. Please refer to theexaminable documents for the exam(where relevant) for further information.

Regulation issued or legislation passedin accordance with the above dates maybe examinable even if the effective dateis in the future.

The term issued or passed relates towhen regulation or legislation has beenformally approved.

The term effective relates to whenregulation or legislation must be appliedto an entity transactions and businesspractices.

The study guide offers more detailedguidance on the depth and level atwhich the examinable documents will beexamined. The study guide shouldtherefore be read in conjunction with theexaminable documents list.

For UK tax exams, examinations fallingwithin the period 1 June to 31 March will

generally examine the Finance Actwhich was passed in the previous year.Therefore, exams falling in the period 1June 2019 to 31 March 2020 willexamine the Finance Act 2018 and anyexaminable legislation which is passedoutside the Finance Act before 31 July2018.

For additional guidance on theexaminability of specific tax rules andthe depth in which they are likely to beexamined, reference should be made tothe relevant Finance Act article writtenby the examining team and published onthe ACCA website.

None of the current or impendingdevolved taxes for Scotland, Wales, andNorthern Ireland is, or will be,examinable.



5. Advanced Audit and Assurance (AAA)(INT) withother exams

This diagram shows links between this exam and other exams preceding orfollowing it. Some exams are directly underpinned by other exams such asAdvanced Audit and Assurance (AAA) by Audit and Assurance (AA). This diagramindicates where students are expected to have underpinning knowledge and whereit would be useful to review previous learning before undertaking study.

6. Overall aim of the syllabus

This syllabus and study guide is designed to help with planning study and to providedetailed information on what could be assessed in any examination session.

The aim of the syllabus is to analyse, evaluate and conclude on the assuranceengagement and other audit and assurance issues in the context of best practiceand current developments



7. Main capabilities

On successful completion of this exam, candidates should be able to:

A Recognise the legal and regulatory environment and its impact on audit andassurance practice

B Demonstrate the ability to work effectively on an assurance or other serviceengagement within a professional and ethical framework

C Assess and recommend appropriate quality control policies and procedures inpractice management and recognise the auditor’s position in relation to theacceptance and retention of professional appointments

D Identify and formulate the work required to meet the objectives of auditassignments and apply the International Standards on Auditing

E Evaluate findings and the results of work performed and draft suitable reports onassignments

F Identify and formulate the work required to meet the objectives of non-auditassignments

G Understand the current issues and developments relating to the provision ofaudit-related and assurance services

This diagram illustrates the flows and links between the main capabilities (sections)of the syllabus and should be used as an aid to planning teaching and learning in astructured way.



8. Rationale

The Advanced Audit and Assurance(AAA)(INT) syllabus is essentiallydivided into seven areas.

The syllabus starts with the legal andregulatory environment including moneylaundering, and professional and ethicalconsiderations, including the Code ofEthics and professional liability. Thisthen leads into procedures in practicemanagement, including quality controland the acceptance and retention ofprofessional engagements.

The syllabus then covers the audit offinancial statements, including planningand evidence gathering. It then coversthe completion, evidence evaluation andreview and reporting on an audit ofhistorical financial information. The nextsection moves onto other assignmentsincluding prospective financialinformation, due diligence and forensicaudit as well as the reporting of theseassignments.

The final section covers current issuesand developments relating to theprovision of audit-related and assuranceservices.



9. Approach toexamining thesyllabus

The Advanced Audit and Assuranceexam builds upon the skills andknowledge examined in the Audit andAssurance exam. At this stagecandidates will be expected todemonstrate an integrated knowledge ofthe subject. The study guide specifiesthe wide range of contextualunderstanding that is required toachieve a satisfactory standard at thislevel.

Examination Structure

The syllabus is assessed by a three-hour 15 minutes examination

The examination is constructed in twosections. Questions in both sections willbe largely discursive. However,candidates will be expected, forexample, to be able to assessmateriality and calculate relevant ratioswhere appropriate.

Section A

Section A will comprise a Case Study,worth 50 marks, set at the planningstage of the audit, for a single company,a group of companies or potentiallyseveral audit clients. Candidates will beprovided with detailed information, whichwill vary between examinations, but islikely to include extracts of financialinformation, strategic, operational andother relevant financial information for aclient business, as well as extracts fromaudit working papers, including resultsof analytical procedures.

Candidates will be required to address arange of requirements, predominantly

from syllabus sections A, B, C and D,thereby tackling a real world situationwhere candidates may have to addressa range of issues simultaneously inrelation to planning, risk assessment,evidence gathering and ethical andprofessional considerations. Pleasenote that other syllabus areas, excludingE, may also be drawn on as part of theCase Study.

Four professional marks will be availablein Section A and will be awarded basedon the level of professionalism withwhich a candidate’s answer ispresented, including the structure andclarity of the answer provided.

Section B

Section B will contain two compulsory25 mark questions, with each beingpredominately based around a shortscenario.

One question will always predominantlycome from syllabus section E, andconsequently candidates should beprepared to answer a question relatingto completion, review and reporting.There are a number of formats thisquestion could adopt, including, but notlimited to, requiring candidates toassess going concern, the impact ofsubsequent events, evaluating identifiedmisstatements and the correspondingeffect on the auditor’s report.Candidates may also be asked tocritique an auditor’s report or evaluatethe matters to be included in a reportwhich is to be provided to managementor those charged with governance.

The other Section B question can bedrawn from any other syllabus section,including A, B, C, D and F.



Quality control and ethics

The auditor’s assessment of effectivequality control procedures andconsideration of ethical issue arefundamental to all stages of the auditand therefore these concepts could beexamined in any section of the exam.

Current issues

Syllabus section G on current issuesmay be examined in Section A or B asappropriate. Current issues is unlikely toform the basis of any question on itsown but instead will be incorporated intothe Case Study or either of the SectionB questions dependent on questioncontent and the topical issues affectingthe profession at the time of writing.

Total 100 marks



10. The syllabus

A Regulatory Environment

1. International regulatory frameworksfor audit and assurance services

2. Money laundering

3. Laws and regulations

B Professional and EthicalConsiderations

1. Code of Ethics for ProfessionalAccountants

2. Fraud and error

3. Professional liability

C Quality Control and PracticeManagement

1. Quality control (firm-wide)

2. Advertising, tendering and obtainingprofessional work and fees

3. Professional appointments

D Planning and conducting an auditof historical financial information

1. Planning, materiality and assessingthe risk of material misstatement

2. Evidence and testing considerations

3. Audit procedures and obtainingevidence

4. Using the work of others

5. Group audits

E Completion, review and reporting

1. Subsequent events and goingconcern

2. Completion and final review

3. Auditor’s reports

4. Reports to those charged withgovernance and management

F Other assignments

1. Audit-related and assuranceservices

2. Specific assignments

3. The audit of social, environmentaland integrated reporting

4. The audit of performanceinformation (pre-determinedobjectives) in the public sector

5. Reporting on other assignments

G Current Issues and Developments

1. Professional and ethicaldevelopments

2. Other current issues



11. Detailed studyguide

A Regulatory environment

1. International regulatoryframeworks for audit andassurance services

a) Explain the need for laws,regulations, standards and otherguidance relating to audit, assuranceand related services.[2]

b) Outline and explain the need for thelegal and professional frameworkincluding:[2]

i) public oversight of audit andassurance practice

ii) the impact of corporategovernance principles on auditand assurance practice

iii) the role of audit committees andimpact on audit and assurancepractice.

2. Money laundering

a) Define ‘money laundering’ anddiscuss international methods forcombatting money laundering.[2]

b) Explain the scope of criminaloffences of money laundering andhow professional accountants maybe protected from criminal and civilliability.[2]

c) Explain the need for ethicalguidance in this area.[2]

d) Describe how accountants meettheir obligations to help prevent anddetect money laundering includingrecord keeping and reporting ofsuspicion to the appropriateregulatory body.[2]

e) Explain the importance of customerdue diligence (CDD) also referred toas Know Your Customer (KYC) andrecommend the information whichshould be gathered as part ofCDD/KYC.[2]

f) Recognise potentially suspicioustransactions and assess their impacton reporting duties.[2]

g) Describe, with reasons, the basicelements of an anti-moneylaundering program.[2]

3. Laws and regulations

a) Compare and contrast therespective responsibilities ofmanagement and auditorsconcerning compliance with lawsand regulations in an audit offinancial statements.[2]

b) Describe the auditors’considerations of compliance withlaws and regulations and plan auditprocedures when possible non-compliance is discovered. [2]

c) Discuss how and to whom non-compliance should be reported.[2]

d) Recognise and recommend whenwithdrawal from an engagement isnecessary.[2]

B Professional and ethicalconsiderations

1. Code of Ethics for ProfessionalAccountants

a) Explain the fundamental principlesand the conceptual frameworkapproach.[1]



b) Identify, evaluate and respond tothreats to compliance with thefundamental principles.[3]

c) Discuss and evaluate theeffectiveness of availablesafeguards.[3]

d) Recognise and advise on conflicts inthe application of fundamentalprinciples.[3]

e) Discuss the importance ofprofessional scepticism in planningand performing an audit.[2]

f) Consider the ethical implications ofthe external auditor providing non-audit services to a client including aninternal audit service.[2]

g) Assess whether an engagement hasbeen planned and performed with anattitude of professional scepticism,and evaluate the implications.[3]

2. Fraud and error

a) Identify and develop an appropriateresponse to circumstances whichindicate a high risk of error,irregularity, fraud or misstatement inthe financial statements or a givensituation.[2]

b) Compare and contrast therespective responsibilities ofmanagement and auditors for fraudand error.[2]

c) Describe the matters to beconsidered and recommendprocedures to be carried out toinvestigate actual and/or potentialmisstatements in a given situation.[2]

d) Explain how, why, when and towhom fraud and error should bereported and the circumstances in

which an auditor should withdrawfrom an engagement.[2]

e) Consider the current and possiblefuture role of auditors in preventing,detecting and reporting error andfraud.[2]

3. Professional liability

a) Recognise circumstances in whichprofessional accountants may havelegal liability and the criteria thatneed to be satisfied for legal liabilityto be recognised.[2]

b) Describe the factors to determinewhether or not an auditor isnegligent and discuss the auditor’spotential liability in given situations.[2]

c) Compare and contrast liability owedto client with liability owed to thirdparties (ie contract vs establishingduty of care).[3]

d) Evaluate the practicability andeffectiveness of ways in whichliability may be restricted includingthe use of liability limitationagreements.[3]

e) Discuss and appraise the principalcauses of audit failure and otherfactors that contribute to the‘expectation gap’ (e.g.responsibilities for fraud and error)and recommend ways in which thatgap may be bridged.[3]

C Quality control andpractice management

1. Quality control (firm-wide)

a) Explain the principles and purposeof quality control of audit and otherassurance engagements.[1]



b) Describe the elements of a systemof quality control relevant to a givenfirm.[2]

c) Evaluate the quality controlprocedures that are in place for agiven firm.[3]

2. Advertising, tendering andobtaining professional work andfees

a) Evaluate the appropriateness ofpublicity material including the use ofthe ACCA logo and reference tofees.[2]

b) Outline the determinants of fee-setting and justify the bases onwhich fees and commissions mayand may not be charged forservices.[3]

c) Discuss the ethical and otherprofessional problems, for example,lowballing, involved in establishingand negotiating fees for a specifiedassignment.[3]

d) Recognise and explain the mattersto be considered prior to tenderingfor an audit or other professionalengagement and explain theinformation to be included in theproposal.[2]

3. Professional appointments

a) Explain the matters to be consideredand the procedures that an auditfirm/professional accountant shouldcarry out before accepting aspecified new client/engagement orcontinuing with an existingengagement, including:[3]

i) client acceptanceii) engagement acceptance (new

and existing engagements)

iii) establish whether thepreconditions for an audit arepresent

iv) agreeing the terms ofengagement.

b) Recognise the key issues thatunderlie the agreement of the scopeand terms of an engagement with aclient.[2]

D Planning and conductingan audit of historicalfinancial information

1. Planning, materiality andassessing the risk of materialmisstatement

a) Define materiality and performancemateriality and demonstrate how itshould be applied in financialreporting and auditing.[2]

b) Evaluate business risks, audit risksand risks of material misstatementfor a given assignment.[3]

c) Discuss and demonstrate the use ofanalytical procedures in the planningof an assignment.[3]

d) Explain how the result of planningprocedures determines the relevantaudit strategy.[2]

e) Explain the planning proceduresspecific to an initial auditengagement.[2]

f) Recommend additional informationwhich may be required to assist theauditor in obtaining anunderstanding of the entity.[2]

g) Discuss how transnational auditsmay differ from other audits ofhistorical financial information (e.g.



in terms of applicable financialreporting and auditing standards,listing requirements and corporategovernance requirements). [2]

h) Recognise matters that are notrelevant to the planning of anassignment.[2]

2. Evidence and testingconsiderations

a) Identify and describe auditprocedures (including substantiveand test of controls) to obtainsufficient appropriate audit evidencefrom identified sources to supportthe financial statement assertionsand disclosures.[2]

b) Assess and describe how IT can beused to assist the auditor andrecommend the use of Computer-assisted audit techniques (CAATs)and data analytics whereappropriate.[2]

c) Recommend additional informationwhich may be required to effectivelycarry out a planned engagement ora specifc aspect of anengagement.[2]

d) Apply the further considerations andaudit procedures relevant to initialengagements.[2]

e) Apply analytical procedures tofinancial and non-financial data.[2]

f) Explain the specific audit problemsand procedures concerning relatedparties and related partytransactions.[2]

g) Recognise circumstances that mayindicate the existence of unidentifiedrelated parties and recommendappropriate audit procedures.[2]

3. Audit procedures and obtainingevidence

a) Design appropriate audit proceduresrelating to:[3]

i) inventory (including standardcosting systems)

ii) non-current assetsiii) intangible assetsiv) biological assetsv) investment propertiesvi) assets held for sale and

discontinued operationsvii) financial instrumentsviii) fair valuesix) government grantsx) leasesxi) impairmentxii) provisions, contingent liabilities

and contingent assetsxiii) borrowing costsxiv) employee benefitsxv) share-based payment

transactionsxvi) taxation (including deferred tax)xvii) related partiesxviii) revenue from contracts with

customersxix) statement of cash flowsxx) business combinationsxxi) events after the end of the

reporting periodxxii) the effects of foreign exchange

ratesxxiii) segmental reportingxxiv) earnings per sharexxv) changes in accounting policy

b) Explain how the auditor’sresponsibilities for correspondingfigures, comparative financialstatements, and ‘other information’,are discharged.[3]

c) Explain the auditor’s mainconsiderations in respect of socialand environmental matters and howthey impact on entities and theirfinancial statements (e.g. impairment



of assets, provisions and contingentliabilities).[2]

4. Using the work of others

a) Recognise when it is justifiable toplace reliance on the work of anexpert (e.g. a surveyor employedby the audit client).[2]

b) Evaluate the potential impact of aninternal audit department on theplanning and performance of theexternal audit.[2]

c) Assess the appropriateness andsufficiency of the work of internalauditors and the extent to whichreliance can be placed on it. [2]

d) Recognise and evaluate the impactof outsourced functions, such aspayroll, on the conduct of an audit.[3]

5. Group audits

a) Recognise the specific matters to beconsidered before acceptingappointment as group auditor to agroup in a given situation.[3]

b) Identify and describe the matters tobe considered and the proceduresto be performed at the planningstage, when a group auditorconsiders the use of the work ofcomponent auditors.[3]

c) Identify and explain the mattersspecific to planning an audit ofgroup financial statementsincluding: assessment of group and

component materiality, the impact of non-coterminous

year ends within a group, changes in group structure or a

complex group structure.[2]

d) Recommend and discuss thecommunications and content thereinto be provided by the group auditorto the component auditor in a givensituation.[3]

e) Recognise the audit problems anddescribe audit procedures specificto: a business combination,

including the classification ofinvestments

the determination of goodwilland its impairment,

group accounting policies, intra-group trading, equity accounting for associates

and joint ventures, changes in group structure,

including acquisitions anddiposals,

and accounting for a foreignsubsidiary.[3]

f) In respect of the consolidationprocess identify and explain therelevant audit risks and auditprocedures necessary to obtainsufficient appropriate evidence.[3]

g) Consider how the group auditorshould evaluate the audit workperformed by a componentauditor.[2]

h) Explain the responsibilities of thecomponent auditor before acceptingappointment, and the procedures tobe performed in a group situation.[2]

i) Justify the situations where a jointaudit would be appropriate.[2]

E Completion, review andreporting

1. Subsequent events and goingconcern



a) Design audit procedures to identifysubsequent events which mayrequire adjustment to, or disclosurein, the financial statements of agiven entity.[2]

b) Evaluate indicators that the goingconcern basis may be in doubt andrecognise mitigating factors.[2]

c) Recommend audit procedures, orevaluate the evidence that might beexpected to be available and assessthe appropriateness of the goingconcern basis in given situations.[3]

d) Assess the adequacy of disclosuresin financial statements relating togoing concern and explain theimplications for the auditor’s reportwith regard to the going concernbasis.[3]

2 Completion and final review

a) Explain the use of analyticalprocedures in evaluation andreview.[3]

b) Assess whether an engagement hasbeen planned and performed inaccordance with professionalstandards and whether reportsissued are appropriate in thecircumstances.[3]

c) Evaluate as part of the final reviewthe matters (e.g. materiality, risk,relevant accounting standards) andaudit evidence to confirm if sufficientand appropriate evidence has beenobtained. [3]

d) Justify the review procedures whichshould be performed in a givenassignment, including the need foran engagement quality controlreview and recommend additional

procedures or actions needed in thecircumstances.[2]

e) Evaluate the use of writtenrepresentations from managementto support other audit evidence.[2]

3 Auditor’s reports

a) Determine the form and content ofan unmodified auditor’s report andassess the appropriateness of thecontents of an unmodified auditor’sreport.[3]

b) Recognise and evaluate the factorsto be taken into account whenforming an audit opinion in a givensituation and justify audit opinionsthat are consistent with the results ofaudit procedures.[3]

c) Critically appraise the form andcontent of an auditor’s report in agiven situation.[3]

d) Assess whether or not a proposedaudit opinion is appropriate.[3]

e) Advise on the actions which may betaken by the auditor in the event thata modified auditor’s opinion isissued.[3]

f) Explain the implications for theauditor’s report on the groupfinancial statements of an entitywhere the opinion on a component ismodified in a given situation.[2]

g) Recognise when the use of anemphasis of matter paragraph, othermatter paragraph and KAMdisclosure would be appropriate.[3]

h) Discuss the courses of actionavailable to an auditor if a materialinconsistency or materialmisstatement exists in relation to



other information such as containedin the integrated report.[2]

4. Reports to those charged withgovernance and management

a) Critically assess the quality of areport to those charged withgovernance and management.[3]

b) Advise on the content of reports tothose charged with governance andmanagement in a given situation.[3]

F Other assignments

1. Audit-related and assuranceservices

a) Describe the nature of audit-relatedservices, the circumstances in whichthey might be required and thecomparative levels of assuranceprovided by professionalaccountants and distinguishbetween:[2]

i) audit-related services and anaudit of historical financialstatements

ii) an attestation engagement and adirect engagement.[2]

b) Describe the main categories ofassurance services that audit firmscan provide and assess the benefitsof providing these services tomanagement and external users.[3]

c) Describe the level of assurance(reasonable, high, moderate, limited,negative) for an engagementdepending on the subject matterevaluated, the criteria used, theprocedures applied and the qualityand quantity of evidence obtained.[3]

2. Specific assignments

Due Diligence

Review of interim financialinformation

Prospective financialinformation

Forensic audits

For each of the other assignments listedabove:

a) Define and describe the purpose ofeach type of assignment andanalyse the appropriate level ofassurance which may be offered bya professional firm in relation tothese assignments. [3]

b) Evaluate the matters to beconsidered before accepting theengagement, including any ethicaland professional considerations. [3]

c) Plan the assignment to gathersuitable evidence and provide anappropriate level of assurance in linewith the objectives of theassignment. [2]

d) Discuss the level of assurance thatthe auditor may provide and explainthe other factors to be considered indetermining the nature, timing andextent of examination procedures.[1]

e) Describe and recommendappropriate substantive, examinationor investigative procedures whichcan be used to gather sufficient andappropriate evidence in thecircumstances. [2]

3. The audit of social, environmentaland integrated reporting

a) Plan an engagement to provideassurance on integrated reporting(performance measures andsustainability indicators).[2]



b) Describe the difficulties in measuringand reporting on economic,environmental and socialperformance and give examples ofperformance measures andsustainability indicators.[2]

c) Describe substantive procedures todetect potential misstatements inrespect of socio-environmentalmatters.[2]

d) Discuss the form and content of anindependent verification statement ofan integrated report. [2]

4 The audit of performanceinformation (pre-determinedobjectives) in the public sector

a) Describe the audit of performanceinformation (pre-determinedobjectives) and differentiate fromperformance auditing. [2]

b) Plan the audit of performanceinformation (pre-determinedobjectives), and describeexamination procedures to be usedin the audit of this type ofinformation.[3]

c) Discuss the audit criteria of reportedperformance information, namelycompliance with reportingrequirements, usefulness,measurability and reliability.[3]

d) Discuss the form and content of areport on the audit of performanceinformation. [2]

e) Discuss the content of an auditconclusion on an integrated report ofperformance against pre-determinedobjectives. [3]

5. Reporting on other assignments

a) Analyse the form and content of theprofessional accountant’s report foran assurance engagement ascompared with an auditor’s report.[2]

b) Discuss the content of a report foran examination of prospectivefinancial information.[2]

c) Discuss the effectiveness of the‘negative assurance’ form ofreporting and evaluate situations inwhich it may be appropriate tomodify a conclusion.[3]

G Current issues anddevelopments

Discuss the relative merits and theconsequences of different standpointstaken in current debates and expressopinions supported by reasonedarguments.

1. Professional and ethicaldevelopments

a) Discuss emerging ethical issues andevaluate the potential impact on theprofession, firms and auditors.[3]

b) Discuss the content and impact ofexposure drafts, consultations andother pronouncements issued byIFAC and its supporting bodies(including IAASB, IESBA andTAC).[2]

2. Other current issues

a) Discuss current developments inauditing standards including theneed for new and revised standardsand evaluate their impact on theconduct of audits. [3]



b) Discuss current developments inbusiness practices, practicemanagement and audit methodologyand evaluate the potential impact onthe conduct of an audit and auditquality. [3]

c) Discuss current developments inemerging technologies, including bigdata and the use of data analyticsand the potential impact on theconduct of an audit and auditquality.[3]



Summary of changes to Advanced Audit andAssurance (AAA) (INT)

ACCA periodically reviews its qualification syllabuses so that they fully meet theneeds of stakeholders such as employers, students, regulatory and advisory bodiesand learning providers.

The main changes which have been made to the syllabus are summarised in thetable below.

Table of amendments

A2e) Explain the importance ofcustomer due diligence(CDD) also referred to asKnow Your Customer (KYC)and recommend theinformation which should begathered as part ofCDD/KYC. [2]

Wording of learning outcomeextended to include commonterminology used to refer to theseprocedures.

D1f) Recommend additionalinformation which may berequired to assist theauditor in obtaining anunderstanding of theentity.[2]

Verb in learning outcomeamended to better reflect expecteddepth of understanding in AAA

D2a) Identify and describe auditprocedures (includingsubstantive and tests ofcontrols) to obtain sufficientappropriate evidence fromidentified sources to supportthe financial statementassertions anddisclosures.[2]

Learning outcome D3bamalgamated with D2a

D2b) Assess and describe how ITcan be used to assist theauditor and recommend theuse of Computer-assistedaudit techniques (CAATs)and data analytics whereappropriate.[2]

Learning outcome extended toinclude data analytics.



D2c)Recommend additionalinformation which may berequired to effectively carryout a planned engagementor a specific aspect of anengagement.[2]

Verb in learning outcomeamended to better reflect expecteddepth of understanding at AAAand wording extended for clarity.

E2c)Evaluate as part of the finalreview the matters (egmateriality, risk, relevantaccounting standards) andaudit evidence to confirm ifsufficient and appropriateevidence has beenobtained. [3]

New learning outcome to provideclarity on requirements at thecompletion stage.

F2b)Evaluate the matters to beconsidered beforeaccepting the engagement,including any ethical andprofessional considerations.[3]

Verb in learning outcomeamended to better reflect expecteddepth of understanding at AAA.

advanced audit and assurance (aaa) (int) · advanced audit and assurance (aaa) by audit and...

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