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Aa Syllabusandstudyguide Sept23 June24
Aa Syllabusandstudyguide Sept23 June24
Audit and
Assurance (AA)
Syllabus and study guide
September 2023 to June 2024
Contents
1. Intellectual levels .....................................3
2. Learning hours and education recognition
...................................................................3
3. The structure of ACCA qualification ........4
4. Guide to ACCA examination structure and
delivery mode .............................................5
5. Guide to ACCA examination assessment7
6. Relational diagram linking Audit and
Assurance (AA) with other exams ...............8
7. Approach to examining the syllabus ........8
8. Introduction to the syllabus......................9
9. Main capabilities ...................................10
10. The syllabus ........................................11
11. Detailed study guide............................12
12. Summary of changes to Audit and
Assurance (AA) .........................................19
Time management
ACCA encourages students to take time to
read questions carefully and to plan answers
but once the exam time has started, there
are no additional restrictions as to when
students may start producing their answer.
5. Guide to ACCA
examination assessment
This diagram shows links between this exam and other exams preceding or following it.
Some exams are directly underpinned by other exams such as Advanced Audit and
Assurance by Audit and Assurance. This diagram indicates where students are expected to
have underpinning knowledge and where it would be useful to review previous learning
before undertaking study.
The syllabus is assessed by a three-hour computer based examination. All questions are
compulsory. The exam will contain both computational and discursive elements. Some
questions will adopt a scenario/case study approach. Prior to the start of the exam
candidates are given an extra 10 minutes to read the exam instructions.
Section A
Section A of the exam comprises three 10 mark case-based questions. Each case has five
objective test questions worth 2 marks each.
Section B
Section B of the exam comprises one 30 mark question and two 20 mark questions.
Section B of the exam will predominantly examine one or more aspects of audit and
assurance from planning and risk assessment, internal control or audit evidence, although
topics from other syllabus areas may also be included.
The Audit and Assurance syllabus is essentially divided into six areas. The syllabus starts
with the nature, purpose and scope of assurance engagements, including the statutory audit,
its regulatory environment, and introduces governance and professional ethics relating to
audit and assurance.
It then leads into planning the audit and performing risk assessment.
The syllabus then covers a range of areas relating to an audit of financial statements
including the scope of internal control and the role and function of internal audit. These
include, evaluating internal controls, audit evidence, and a review of the financial statements.
In addition to final review procedures, the syllabus concentrates on reporting, including the
form and content of the independent auditor’s report.
Finally, the syllabus contains outcomes relating to the demonstration of appropriate digital
and employability skills in preparing for and taking the AA examination. This includes being
able to interact with different question item types, manage information presented in digital
format and being able to use the relevant functionality and technology to prepare and
present response options in a professional manner. These skills are specifically developed
by practicing and preparing for the AA exam, using the learning support content for
computer-based exams available via the practice platform and the ACCA website and will
need to be demonstrated during the live exam.
9. Main capabilities
A Explain the concept of audit and assurance and the functions of audit, corporate
governance, including ethics and professional conduct.
B Demonstrate how the auditor obtains and accepts audit engagements, obtains an
understanding of the entity and its environment, assesses the risk of material
misstatement (whether arising from fraud or other irregularities) and plans an audit of
financial statements
C Describe and evaluate internal controls, techniques and audit tests, including IT systems
to identify and communicate control risks and their potential consequences, making
appropriate recommendations. Describe the scope, role and function of internal audit.
D Identify and describe the work and evidence obtained by the auditor and others required
to meet the objectives of audit engagements and the application of the International
Standards on Auditing (ISAs)
E Explain how consideration of subsequent events and the going concern principle can
inform the conclusions from audit work and are reflected in different types of auditor’s
report, written representations and the final review and report.
This diagram illustrates the flows and links between the main capabilities of the syllabus and
should be used as an aid to planning teaching and learning in a structured way.
D Audit evidence
10. The syllabus
1. Assertions and audit evidence
A Audit framework and regulation
2. Audit procedures
1. The concept of audit and other
assurance engagements 3. Audit sampling and other means of
testing
2. External audits
4. The audit of specific items
3. Corporate governance
5. Automated tools and techniques
4. Professional ethics and ACCA’s Code of
Ethics and Conduct 6. The work of others
g) Explain the level of assurance provided e) Analyse the structure and roles of audit
by an external audit and other review committees and discuss their benefits
engagements and the concept of true and limitations.[2]
and fair presentation.[1]
f) Explain the importance of internal
2. External audits control and risk management.[1]
c) Explain and describe the relationship 2. The use and evaluation of systems of
between the overall audit strategy and internal control by auditors
the audit plan.[2]
a) Explain how auditors record systems of
d) Explain the difference between an internal control including the use of
interim and final audit.[1] narrative notes, flowcharts and
questionnaires.[2]
e) Describe the purpose of an interim
audit, and the procedures likely to be b) Evaluate internal control components,
adopted at this stage in the audit.[2] including deficiencies and significant
deficiencies in internal control.[2]
f) Describe the impact of the work
performed during the interim audit on c) Discuss the limitations of internal control
the final audit.[2] components.[2]
g) Explain the need for, and the 3. Tests of controls
importance of, audit documentation.[1]
a) Describe computer systems controls
h) Describe the form and contents of including general IT controls and
working papers and supporting information processing controls.[2]
documentation.[2]
b) Describe control objectives, control
i) Explain the procedures to ensure safe
procedures, control activities, direct
custody and retention of working
controls, indirect controls and tests of
papers.[1]
controls in relation to:[2]
e) Describe the format and content of a) Define audit sampling and explain the
internal audit review reports and make need for sampling.[1]
appropriate recommendations to
management and those charged with b) Identify and discuss the differences
governance.[2] between statistical and non-statistical
sampling.[2]
D Audit evidence
c) Discuss and provide relevant examples
of the application of the basic principles
1. Assertions and audit evidence of statistical sampling and other
selective testing procedures.[2]
a) Explain the assertions contained in the
financial statements about:[2] d) Discuss the results of statistical
(i) Classes of transactions and events sampling, including consideration of
and related disclosures; whether additional testing is required.[2]
(ii) Account balances and related
disclosures at the period end.
b) Explain the importance of and the need a) Identify and describe the basic elements
for going concern reviews.[2] contained in the independent auditor’s
report.[1]
c) Explain the respective responsibilities of
auditors and management regarding b) Explain unmodified audit opinions in the
going concern.[1] auditor’s report.[2]
ACCA periodically reviews its qualification syllabuses so that they fully meet the needs of
stakeholders such as employers, students, regulatory and advisory bodies and learning
providers.
There have not been any significant additions, deletions or amendments to the 2023/24
study guide from the 2022/23 study guide.