P7- Advanced Audit and Assurance

Introduction

Main Focus of the P7 exam

The main focus is on the application of technical auditing knowledge to practical situations.

Are there any key areas that are likely to feature in the exam regularly?

The examiner has identified five (5) key areas:

1.) Planning and risk assessment- this area is likely to be examined at every sitting and is likely to appear in at least one of the compulsory questions.

2.) Gathering Evidence-this is another topic that is likely to appear in the compulsory section of the exam at every sitting the examiner has emphasised how important your financial knowledge will be in this type of question.

3.) Reporting- this is also likely to be a feature at every sitting but could be in either section of the paper it is another area where sound knowledge of financial reporting will be vital.

4.) Ethical and professional issues- the ethical status of auditors is under the spot light in today’s business climate so the examiner thinks that it is important to test this area regularly. Questions will not just cover independence but also areas such as conflicts of interest and confidentiality and other professional issues such as fraud and error and professional liability.

5.) Current Issues- there is likely to be at least one requirement per exam dealing with a topic from this area. Current issue topics will not be tested in isolation but in the context of a client scenario.

What do students find difficult about Advanced Audit and Assurance?

The main difficulty encountered is that it is always easy to write something in a paper of this nature answering the question actually asked however, is a difficult task for many students. Students also find the application of knowledge difficult. At this level few marks are available for the regurgitation of lists from the learning material, it’s important to take the technical knowledge and apply it to the facts in the question; this means there isn’t only one correct answer.

So to help someone pass the exam, what’s the best advice you would give?

The key to passing this exam is to write less and think more. The student who takes time to interpret the requirements thinks about the points they wish to make and writes in a direct and clear fashion will be rewarded with a pass. Many students believe that they will be awarded marks if they write a lot this is simply not the case. Marks are only awarded for points that are relevant to the question.