advanced audit and assurance (aaa)...



Guide to structure of thesyllabus and study guide

Overall aim of the syllabus

This explains briefly the overall objectiveof the syllabus and indicates in thebroadest sense the capabilities to bedeveloped within the exam.

Relational diagram of linkingAdvanced Audit and Assurance withother exams

This diagram shows direct and indirectlinks between this exam and otherexams preceding or following it. Itindicates where you are expected tohave underpinning knowledge andwhere it would be useful to reviewprevious learning before undertakingstudy.

Overall aim of the syllabus

This explains briefly the overall objectiveof the syllabus and indicates in thebroadest sense the capabilities to bedeveloped within the exam.

Main capabilitiesThe aim of the syllabus is broken downinto several main capabilities whichdivide the syllabus and study guide intodiscrete sections.

Relational diagram of the maincapabilities

This diagram illustrates the flows andlinks between the main capabilities(sections) of the syllabus and should beused as an aid to planning teaching andlearning in a structured way.

Syllabus rationale

This is a narrative explaining how thesyllabus is structured and how the maincapabilities are linked. The rationalealso explains in further detail what theexamination intends to assess and why.

Detailed syllabus

This shows the breakdown of the maincapabilities (sections) of the syllabusinto subject areas. This is the blueprintfor the detailed study guide.

Approach to examining the syllabus

This section briefly explains thestructure of the examination and how itis assessed.

Study Guide

This is the main document that students,education and content providers shoulduse as the basis of their studies,instruction and materials. Examinationswill be based on the detail of the studyguide which comprehensively identifieswhat could be assessed in anyexamination session. The study guide isa precise reflection and breakdown ofthe syllabus. It is divided into sectionsbased on the main capabilities identifiedin the syllabus. These sections aredivided into subject areas which relate tothe sub-capabilities included in thedetailed syllabus. Subject areas arebroken down into sub-headings whichdescribe the detailed outcomes thatcould be assessed in examinations.These outcomes are described usingverbs indicating what exams mayrequire students to demonstrate, and thebroad intellectual level at which thesemay need to be demonstrated(*see intellectual levels below).



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 exams are 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 line. This gives anindication of the intellectual depth atwhich an area could be assessed withinthe examination. However, while level 1broadly equates with AppliedKnowledge, level 2 equates to AppliedSkills and level 3 to StrategicProfessional, some lower level skills cancontinue to be assessed as the studentprogresses through each level. Thisreflects that at each stage of study therewill be a requirement to broaden, as wellas deepen capabilities. It is alsopossible that occasionally some higherlevel capabilities may be assessed atlower levels.

Learning Hours andEducation Recognition

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 qualifications arerecognised and valued by governments,regulatory authorities and employersacross all sectors. To this end, ACCAqualifications are currently recognisedon the education frameworks in severalcountries. Please refer to your nationaleducation framework regulator forfurther information.

Each syllabus contains between 20 and35 main subject area headingsdepending on the nature of the subjectand how these areas have been brokendown.



Guide to ACCAExamination Structure

The structure of examinations varieswithin and between levels.

The Applied Knowledge examinationscontain 100% compulsory questions toencourage candidates to study acrossthe breadth of each syllabus. These areassessed by a two-hour computer basedexamination.

The Corporate and Business Law examis a two-hour computer based objectivetest examination also available as apaper based version.

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 questionsdirectly contribute towards the candidateresult. These exams are available incomputer-based and paper-basedformats. Prior to the start of each examthere will be time allocated for studentsto be informed of the exam instructions.

Computer-based exams

For Applied Skills (PM, TX-UK, FR, AAand FM) computer-based examscandidates will be delivered an extra 10marks of objective test content (eitherfive single OT questions or five OTquestions based around a singlescenario), for which candidates aregiven an extra 20 minutes. Thesequestions are included to ensurefairness, reliability and security ofexams. These questions do not directlycontribute towards the candidate’sscore. Candidates will not be able todifferentiate between the questions thatcontribute to the result and those that donot. All questions have been subject to

ACCA’s regulatory approved qualityassurance process.

The total exam time is therefore 3 hoursand 20 minutes. Prior to the start of theexam candidates are given an extra 10minutes to read the exam instructions.

Paper-based exams

For paper-based exams 15 minutes areadded to the three hours to reflect themanual effort required as compared tocomputer-based exams. All paper-based and computer-based questionshave been subject to the same qualityassurance process. There will be timeawarded by the invigilator to read theexam instructions.

Strategic Business Leader is ACCA’scase study examination at the StrategicProfessional level 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 detailof the structure of this exam is describedin the Strategic Business Leadersyllabus and study guide document.

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. The detail of



the structure of each of these exams isdescribed in the individual syllabus andstudy guide documents.

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 writing in their answer books.

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%.



Guide to ACCAExamination Assessment

ACCA reserves the right to examineanything contained within the studyguide at any examination session. Thisincludes knowledge, techniques,principles, theories, and concepts asspecified. For the financial accounting,audit and assurance, law and tax examsexcept where indicated otherwise,ACCA will publish examinabledocuments once a year to indicateexactly what regulations and legislationcould potentially be assessed withinidentified examination sessions.

For all examinations, except tax,regulation 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.



Syllabus

Advanced Audit and Assurance (AAA)(INT) Syllabusand study guide

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.

Aim

To analyse, evaluate and conclude onthe assurance engagement and otheraudit and assurance issues in thecontext of best practice and currentdevelopments.

Relational diagram linkingAdvanced Audit and Assurance(AAA) (INT) with other ACCAexams

This diagram shows direct and indirectlinks between this exam and otherexams preceding or following it. Some exams are directly underpinned by otherexams such as Advanced Audit and Assurance (AAA) by Audit and Assurance (AA).These links are shown as solid line arrows. Other exams only have indirectrelationships with each other such as links existing between the accounting andauditing exams. The links between these are shown as dotted line arrows. Thisdiagram indicates where you are expected to have underpinning knowledge andwhere it would be useful to review previous learning before undertaking study.

StrategicBusiness

Reporting (SBR)

Advanced Auditand Assurance

(AAA)

Audit andAssurance (AA)



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.



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 planning,evidence gathering and evaluation. Itthen covers the completion, review andreporting on an audit of historicalfinancial information. The next sectionmoves onto other assignments includingprospective financial information, duediligence and forensic audit as well asthe reporting of these assignments.

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



Detailed 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, publicity, 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 evidenceevaluation

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



Approach to examining the syllabus

The Advanced Audit and Assurance exam builds upon the skills and knowledgeexamined in the Audit and Assurance exam. At this stage candidates will beexpected to demonstrate an integrated knowledge of the subject. The study guidespecifies the wide range of contextual understanding that is required to achieve asatisfactory standard at this level.

Examination Structure

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

The examination is constructed in two sections. Questions in both sections will belargely discursive. However, candidates will be expected, for example, to be able toassess materiality and calculate relevant ratios where appropriate.

Section A

Section A will comprise a Case Study, worth 50 marks, set at the planning stage ofthe audit, for a single company, a group of companies or potentially several auditclients. Candidates will be provided with detailed information, which will varybetween examinations, but is likely to include extracts of financial information,strategic, operational and other relevant financial information for a client business,as well as extracts from audit working papers, including results of analyticalprocedures.

Candidates will be required to address a range of requirements, from syllabussections A, B, C and D, thereby tackling a real world situation where candidates mayhave to address a range of issues simultaneously in relation to planning, riskassessment, evidence gathering and ethical and professional considerations.

Four professional marks will be available in Section A and will be awarded based onthe level of professionalism with which a candidate’s answer is presented, includingthe structure and clarity of the answer provided.

Section B

Section B will contain two compulsory 25 mark questions, with each beingpredominately based around a short scenario.

One question will always predominantly come from syllabus section E, andconsequently candidates should be prepared to answer a question relating to



completion, review and reporting. There are a number of formats this questioncould adopt, including, but not limited to, requiring candidates to assess goingconcern, the impact of subsequent events, evaluating identified misstatements andthe corresponding effect on the auditor’s report. Candidates may also be asked tocritique an auditor’s report or report which is to be provided to management or thosecharged with governance.

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

Current issues

Syllabus section G on current issues may be examined in Section A or B asappropriate. Current issues is unlikely to form the basis of any question on its ownbut instead will be incorporated into the Case Study or either of the Section Bquestions dependent on question content and the topical issues affecting theprofession at the time of writing.

Total 100 marks



Study Guide

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) andrecommend the information thatshould be gathered as part ofCDD.[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 inwhich 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 the

preconditions 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) Identify additional information thatmay be required to assist the auditorin obtaining an understanding of theentity.[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.[2]

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

c) Identify additional information thatmay be required to effectively carryout a planned assignment.[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 evidenceevaluation

a) Design appropriate audit proceduresand evaluate the matters (e.g.materiality, risk, relevant accountingstandards, audit evidence) relatingto:[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 costs.xiv) 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) Evaluate evidence provided orrecommend the audit evidenceexpected to be available toi) support the financial statement

assertions and accountingtreatments (including fair values)

ii) support disclosures made in thenotes to the financial statements.[3]

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

d) Explain the auditor’s mainconsiderations in respect of social



and environmental matters and howthey impact on entities and theirfinancial statements (e.g. impairmentof 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 acomplex 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) Justify the review procedures whichshould be performed in a givenassignment, including the need foran engagement quality controlreview and recommend additionalprocedures or actions needed in thecircumstances.[2]

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

3 Auditor’s reports

a) Determine the form and content ofan unmodified audit report andassess the appropriateness of thecontents of an unmodified auditreport.[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 audit report is issued.[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 andother matter paragraph and KAMdisclosure would be appropriate.[3]

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

information Prospective financial

information Forensic audits

For each of the other assignments listedabove:

a) Define and describe the purpose ofeach type of assignment andanalyse the appropriate level ofassurance that may be offered by aprofessional firm in relation to theseassignments. [3]

b) Identify and describe the matters tobe considered 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 sufficientappropriate 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 and Assurance(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

A3d) Recognise and recommendwhen withdrawal from anengagement is necessary.[2]

Wording amended slightly forclarification

B2c) Describe the matters to beconsidered and recommendprocedures to be carried outto investigate actual and/orpotential misstatements in agiven situation.[2]

Wording of learning outcomeamended for clarification

D1b) Evaluate business risks,audit risks and risks ofmaterial misstatement for agiven assignment.[3]

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

D3a) Design appropriate auditprocedures and evaluatethe matters (e.g. materiality,risk, relevant accountingstandards, audit evidence)

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

E1aand b)

Design audit procedures toidentify subsequent eventswhich may requireadjustment to, or disclosurein, the financial statementsof a given entity.[2]

Evaluate indicators that thegoing concern basis may bein doubt and recognisemitigating factors.[2]

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

advanced audit and assurance (aaa)...

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