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PLEASE CLARIFY THE EXPECTED LEVEL OF SENIORITY FOR AN

AUDITOR ATTEMPTING THIS EXAM.


Most questions will be set at the audit senior/manager level. Questions may be set at the junior level but it is extremely unlikely that there will be
questions set at the partner level.

IS THERE ANY VALUE IN KNOWING ALL THE ISAS AND THE ISA
NUMBERS?
No. Candidates need to have knowledge of the key points of the relevant ISAs and be able to apply the guidance included in the ISAs. There is no
need to quote numbers and paragraphs in answers.

CAN BULLET POINTS BE USED IN ANSWERS?


Bullet points can be used in answers. However, each bullet must contain a complete sentence. The only exception to this is where the requirement
asks candidates to 'list' a number of requested items, such as assertions or the elements of the auditors report. Each item identified would be worth
mark each and therefore may be provided without explanation.

HOW MUCH DETAIL WILL CANDIDATES BE EXPECTED TO GO INTO FOR


AUDIT REPORT QUESTIONS?
Candidates need to be able to identify the basic elements of the auditors report and should be able to explain the effects of different modifications to
both the report and the opinion. Candidates need to be able to discuss how the content of the report changes dependent on the opinion that is given ie
basis for opinion paragraph for an unmodified report vs basis for qualified opinion where the opinion is qualified. Questions will not be set asking
candidates to write out an audit report in its entirety.

ARE INTANGIBLE NON-CURRENT ASSETS EXAMINABLE IN THIS EXAM?


Candidates are expected to have knowledge of accounting standards listed under F3 for F8 and therefore intangible non-current assets are
examinable.

SHOULD QUESTIONS BE ANSWERED IN ORDER?


Not necessarily. Candidates may answer questions in any order they wish. Candidates should allocate appropriate time to read and plan their answers
to the questions. It may be helpful to start with the longest question first.
From September 2016 the format of the F8 exam is changing and will include a 30 mark question. A specimen exam produced under this new format
can be found on the website under F8 Qualification Resources.

WILL INTERNAL AUDIT BE EXAMINED AT EVERY SITTING?


Internal audit will not necessarily be examined at every single sitting going forward. However, it is an important area of the syllabus and is likely to
be examined regularly.

HOW IMPORTANT ARE ASSURANCE ENGAGEMENTS AS OPPOSED TO


STANDARD AUDITS?
Assurance will feature in future exams but it is a limited area of the syllabus.

SHOULD CANDIDATES TAKE F7 BEFORE F8?


There is no need to take F7 before F8. However, candidates do need to take F3 before F8.

WILL CANDIDATES NEED A CALCULATOR IN THE F8 EXAM?


Yes. Candidates may be asked to calculate materiality or to perform an analytical review by way of ratio analysis.

HOW ARE MARKS ALLOCATED FOR QUESTIONS INCLUDING THE


VERBS IDENTIFY' AND STATE'?
For questions which require candidates to identify' certain points within a scenario, generally half to one mark will be awarded for the identification
of an issue.
Where candidates are asked to state' various points, generally half to one mark will be available for each point made (eg the June 2015 exam asked
candidates to state the auditors responsibilities in relation to the prevention and detection of fraud and error, and attracted one mark per point).

COULD A 20-MARK QUESTION BE SET ON AUDIT REPORTS?


A full 20-mark question would not be set on reporting in isolation, but as reporting is a key aspect of the syllabus it may form a substantial part of a
question.

COULD CANDIDATES BE ASKED ABOUT BUSINESS AS WELL AS AUDIT


RISK?
No. Business risk isn't part of the F8 syllabus. However, candidates need an awareness of the auditor's responsibility for understanding the entity and
its environment in planning questions. They should apply that knowledge to an audit risk area.

IS BUSINESS RISK EXAMINABLE IN THE CONTEXT OF GOING


CONCERN?
Business risk is not examinable in relation to planning and risk assessment in F8.
Candidates would not be asked a question requiring them to identify business risks in a scenario. However going concern indicators, which may
technically be business risks, are examinable. ISA 570 is fully examinable as is the topic of going concern including going concern indicators.
To avoid confusing candidates, it would be preferable when teaching to refer to these as going concern indicators rather than business risks.

IS MONETARY UNIT SAMPLING EXAMINABLE?


Yes. Candidates are expected to be able to identify and describe the methods for picking a sample as per ISA 530, Audit Sampling.

COULD CANDIDATES BE EXPECTED TO PICK A SAMPLE?


No. Candidates are expected to understand the requirements of ISA 530 and be able to discuss the considerations that an auditor should make when
using sampling techniques but a question will not be set where candidates will be asked to choose a sample.

IS ERROR PROJECTION EXAMINABLE?


Yes. Candidates are expected to be able to understand what the auditor should do where an error is found in a sample.