©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
ACCA AA 2024 Exam Questions and
Answers
Who are the Stakeholders in an Audit? - ANSWER✔✔Shareholders
Directors
Employees
HMRC
Suppliers
The Public
What are the conditions for audit exemption? - ANSWER✔✔2 or more:
Turnover <10.2M
Assets <5.1M
Employees <50
Page 1/147
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
What is an Audit? - ANSWER✔✔Independent
Expression of opinion
"True and Fair"
Financial Statements in accordance with reporting Framework (eg IFRS)
What is the difference between an Internal & External Audit? - ANSWER✔✔*Internal*
Add value and improve operations
For directors
Focuses on control procedures
Prevention and detection of fraud is management's responsibility
*External*
Independent opinion on Financial Statements
For shareholders and external stakeholders
Focuses on financial Statements
Page 2/147
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Should be alert to weaknesses and exposures that may lead to fraud
What is a Review Engagement? - ANSWER✔✔Limited assurance
No material modifications required for FS to conform to the financial reporting framework.
What type of assurance is given by a Review Engagement? - ANSWER✔✔"Limited"
What are the key elements of an Assurance Engagement? x 5 - ANSWER✔✔Three Party Relationship
(Auditor,Shareholders, Directors)
Subject Matter (Financial Statements)
Criteria (IFRS)
Evidence (Sufficient and Appropriate)
Report
What is "Reasonable Assurance"? - ANSWER✔✔An independent opinion
Not a guarantee of correctness
Assurance of True and Fair within a "reasonable" margin of error
What type of assurance is offered by an External Audit? - ANSWER✔✔"Reasonable"
Page 3/147
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
What would make an item "material"? - ANSWER✔✔If omission or misstatement would reasonable
influence the decisions of the addressee
Both Quantitative and Qualitative aspects
Amount of misstatement + NATURE + EFFECT
eg Assets may be positive but tied up in inventory
What are key audit matters? - ANSWER✔✔Most important
*Matters to TCWG*
*Most auditor attention*
-Highest risk of misstatement
-High Management judgements (provisions etc)
-Significant transactions
Page 4/147
FIRST PUBLISH OCTOBER 2024
ACCA AA 2024 Exam Questions and
Answers
Who are the Stakeholders in an Audit? - ANSWER✔✔Shareholders
Directors
Employees
HMRC
Suppliers
The Public
What are the conditions for audit exemption? - ANSWER✔✔2 or more:
Turnover <10.2M
Assets <5.1M
Employees <50
Page 1/147
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
What is an Audit? - ANSWER✔✔Independent
Expression of opinion
"True and Fair"
Financial Statements in accordance with reporting Framework (eg IFRS)
What is the difference between an Internal & External Audit? - ANSWER✔✔*Internal*
Add value and improve operations
For directors
Focuses on control procedures
Prevention and detection of fraud is management's responsibility
*External*
Independent opinion on Financial Statements
For shareholders and external stakeholders
Focuses on financial Statements
Page 2/147
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Should be alert to weaknesses and exposures that may lead to fraud
What is a Review Engagement? - ANSWER✔✔Limited assurance
No material modifications required for FS to conform to the financial reporting framework.
What type of assurance is given by a Review Engagement? - ANSWER✔✔"Limited"
What are the key elements of an Assurance Engagement? x 5 - ANSWER✔✔Three Party Relationship
(Auditor,Shareholders, Directors)
Subject Matter (Financial Statements)
Criteria (IFRS)
Evidence (Sufficient and Appropriate)
Report
What is "Reasonable Assurance"? - ANSWER✔✔An independent opinion
Not a guarantee of correctness
Assurance of True and Fair within a "reasonable" margin of error
What type of assurance is offered by an External Audit? - ANSWER✔✔"Reasonable"
Page 3/147
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
What would make an item "material"? - ANSWER✔✔If omission or misstatement would reasonable
influence the decisions of the addressee
Both Quantitative and Qualitative aspects
Amount of misstatement + NATURE + EFFECT
eg Assets may be positive but tied up in inventory
What are key audit matters? - ANSWER✔✔Most important
*Matters to TCWG*
*Most auditor attention*
-Highest risk of misstatement
-High Management judgements (provisions etc)
-Significant transactions
Page 4/147
