AUDIT & ASSURANCE
Topic Page number
Using These Notes 1
About The Exam 1
Introduction 4
Assurance Engagements 6
Regulation Of Auditors 12
Code Of Ethics 20
Client Acceptance/Continuance, Agreeing Terms of Engagement 33
Planning 39
Systems Of Internal Controls 63
Management Assertions, Audit Procedures & Audit Evidence 88
Procedures On Specific Areas 98
Review 123
Opinion & Reporting 141
Audit Sampling 164
CAATs (Including Data Analytics) 167
Fraud 172
Laws & Regulations 175
Audit Documentation 178
Quality Management 181
Corporate Governance 185
Internal Audit 192
Not For Profit Organizations-Audit Techniques 198
2023 - 2024
, Using These Notes
For each area of the syllabus, the notes cover:
- The key knowledge/technical areas
- The answer technique!
It is VERY important to understand that the nature of the AA exam is such that it cannot be passed without
excessive practice so these notes HAVE to be used in combination with past exams or the revision kit.
Use the LATEST revision kits from approved content providers.
The past papers on the ACCA website are not updated for changes in ISAs or IFRS.
When you are attempting questions from the latest revision kits, focus on ‘knowing’ the language used
and understanding the ‘answer technique’; remember, it’s not the English language which will help you
get through the exam- it is the ‘audit language’!
Lastly, ensure you read the Technical articles on the ACCA website; focus on the ones that have been
published in the last 12 months from you exam attempt.
About The Exam
- All questions are compulsory. The exam will contain both computational and discursive elements.
- Questions will adopt a scenario/case study approach.
Computer-based exams
The total exam time is 3 hours.
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 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
Page | 1
,Tools available in the CBE
- Calculator- can bring own!
- Scratch pad
- Screen splitter- can be moved
- Highlight: visible for all requirements
- Strikethrough: dealt with this information
- Cut and paste within the CR area
- Re-set: ALL text removed. Be careful! Only if want to start again- warning message will come up.
Can use undo function to restore!
For Section B in CBEs
- Each question will have a number of requirements.
- Use word processing tools to construct the answer.
- A pre-formatted response template might also be given (mainly for audit risks, control deficiencies
and IESBA’s ethical threats and safeguards)
Which formatting options should a student use in CRs?
- Bold
- Underline
- Marks for content NOT how you are presenting it. No marks for formatting!
- Can insert table yourself if pre-formatted not given
Page | 2
, Reasons for an unsuccessful attempt
Very bad scripts
1. Very brief answers to most, if not all questions. In other words, some of the basic knowledge is known,
but there is little or no application of that knowledge to the scenario
2. Significant lack of understanding of audit procedures and the audit process. For example, where a
question asks for audit procedures to be listed and explained, a typical answer is ‘check the ledger’
providing no indication of which ledger will be ‘checked’ or what the ledger is being checked for
3. Lack of exam practice. In a significant minority of scripts, it appears that candidates have not
attempted any mock exams prior to the ‘real’ exam. Poor exam technique is identified as:
• answering questions in a random sequence (for example, Question 1 Part (a), followed by
Question 3 Part (b), followed by Question 2 Part (c), and so on)
• spending far too much time on one question, leaving little or no time for the other questions
• not writing in the required style (e.g., providing the answer in one long paragraph rather than
splitting the answer up into individual points)
• focusing on theory only with no attempt to use the scenario.
Marginal scripts
1. Answering questions correctly, but not including a sufficient number of relevant points to obtain a
pass standard.
2. Having a good knowledge of auditing, but being unable to apply that knowledge to the scenarios
provided in the question.
3. Not answering all the questions.
Pass standard scripts
1. Are usually well presented, and make appropriate use of paragraphs, sentences and table formats
where appropriate.
2. Demonstrate that students are able to apply that knowledge to the question, clearly and succinctly.
Audit procedures are listed as well as explained.
3. All questions are attempted, even though some sections may not be answered that well. A few marks
could normally be obtained from a valid attempt; obviously, no marks are awarded if the question is
not attempted at all.
Page | 3
Topic Page number
Using These Notes 1
About The Exam 1
Introduction 4
Assurance Engagements 6
Regulation Of Auditors 12
Code Of Ethics 20
Client Acceptance/Continuance, Agreeing Terms of Engagement 33
Planning 39
Systems Of Internal Controls 63
Management Assertions, Audit Procedures & Audit Evidence 88
Procedures On Specific Areas 98
Review 123
Opinion & Reporting 141
Audit Sampling 164
CAATs (Including Data Analytics) 167
Fraud 172
Laws & Regulations 175
Audit Documentation 178
Quality Management 181
Corporate Governance 185
Internal Audit 192
Not For Profit Organizations-Audit Techniques 198
2023 - 2024
, Using These Notes
For each area of the syllabus, the notes cover:
- The key knowledge/technical areas
- The answer technique!
It is VERY important to understand that the nature of the AA exam is such that it cannot be passed without
excessive practice so these notes HAVE to be used in combination with past exams or the revision kit.
Use the LATEST revision kits from approved content providers.
The past papers on the ACCA website are not updated for changes in ISAs or IFRS.
When you are attempting questions from the latest revision kits, focus on ‘knowing’ the language used
and understanding the ‘answer technique’; remember, it’s not the English language which will help you
get through the exam- it is the ‘audit language’!
Lastly, ensure you read the Technical articles on the ACCA website; focus on the ones that have been
published in the last 12 months from you exam attempt.
About The Exam
- All questions are compulsory. The exam will contain both computational and discursive elements.
- Questions will adopt a scenario/case study approach.
Computer-based exams
The total exam time is 3 hours.
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 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
Page | 1
,Tools available in the CBE
- Calculator- can bring own!
- Scratch pad
- Screen splitter- can be moved
- Highlight: visible for all requirements
- Strikethrough: dealt with this information
- Cut and paste within the CR area
- Re-set: ALL text removed. Be careful! Only if want to start again- warning message will come up.
Can use undo function to restore!
For Section B in CBEs
- Each question will have a number of requirements.
- Use word processing tools to construct the answer.
- A pre-formatted response template might also be given (mainly for audit risks, control deficiencies
and IESBA’s ethical threats and safeguards)
Which formatting options should a student use in CRs?
- Bold
- Underline
- Marks for content NOT how you are presenting it. No marks for formatting!
- Can insert table yourself if pre-formatted not given
Page | 2
, Reasons for an unsuccessful attempt
Very bad scripts
1. Very brief answers to most, if not all questions. In other words, some of the basic knowledge is known,
but there is little or no application of that knowledge to the scenario
2. Significant lack of understanding of audit procedures and the audit process. For example, where a
question asks for audit procedures to be listed and explained, a typical answer is ‘check the ledger’
providing no indication of which ledger will be ‘checked’ or what the ledger is being checked for
3. Lack of exam practice. In a significant minority of scripts, it appears that candidates have not
attempted any mock exams prior to the ‘real’ exam. Poor exam technique is identified as:
• answering questions in a random sequence (for example, Question 1 Part (a), followed by
Question 3 Part (b), followed by Question 2 Part (c), and so on)
• spending far too much time on one question, leaving little or no time for the other questions
• not writing in the required style (e.g., providing the answer in one long paragraph rather than
splitting the answer up into individual points)
• focusing on theory only with no attempt to use the scenario.
Marginal scripts
1. Answering questions correctly, but not including a sufficient number of relevant points to obtain a
pass standard.
2. Having a good knowledge of auditing, but being unable to apply that knowledge to the scenarios
provided in the question.
3. Not answering all the questions.
Pass standard scripts
1. Are usually well presented, and make appropriate use of paragraphs, sentences and table formats
where appropriate.
2. Demonstrate that students are able to apply that knowledge to the question, clearly and succinctly.
Audit procedures are listed as well as explained.
3. All questions are attempted, even though some sections may not be answered that well. A few marks
could normally be obtained from a valid attempt; obviously, no marks are awarded if the question is
not attempted at all.
Page | 3
