September 2018

to
June 2019

Audit and
Assurance (AA)

Syllabus and study guide

 Audit and Assurance (AA)

Guide to structure of the Detailed syllabus

syllabus and study guide This shows the breakdown of the main
capabilities (sections) of the syllabus
into subject areas. This is the blueprint
Overall aim of the syllabus
for the detailed study guide.
This explains briefly the overall objective
Approach to examining the syllabus
of the syllabus and indicates in the
broadest sense the capabilities to be
This section briefly explains the
developed within the exam.
structure of the examination and how it
is assessed.
Relational diagram of linking Audit
and Assurance (AA) with other ACCA
Study Guide
exams
This is the main document that students,
This diagram shows direct and indirect
education and content providers should
links between this exam and other
use as the basis of their studies,
exams preceding or following it. It
instruction and materials. Examinations
indicates where you are expected to
will be based on the detail of the study
have underpinning knowledge and
guide which comprehensively identifies
where it would be useful to review
what could be assessed in any
previous learning before undertaking
examination session. The study guide is
study.
a precise reflection and breakdown of
the syllabus. It is divided into sections
Main capabilities
based on the main capabilities identified
in the syllabus. These sections are
The aim of the syllabus is broken down
divided into subject areas which relate to
into several main capabilities which
the sub-capabilities included in the
divide the syllabus and study guide into
detailed syllabus. Subject areas are
discrete sections.
broken down into sub-headings which
describe the detailed outcomes that
Relational diagram of the main
could be assessed in examinations.
capabilities
These outcomes are described using
verbs indicating what exams may
This diagram illustrates the flows and
require students to demonstrate, and the
links between the main capabilities
broad intellectual level at which these
(sections) of the syllabus and should be
may need to be demonstrated
used as an aid to planning teaching and
(*see intellectual levels below).
learning in a structured way.

Syllabus rationale

This is a narrative explaining how the

syllabus is structured and how the main
capabilities are linked. The rationale
also explains in further detail what the
examination intends to assess and why.

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 Audit and Assurance (AA)

Intellectual Levels Learning Hours and

The syllabus is designed to
Education Recognition
progressively broaden and deepen the
The ACCA qualification does not
knowledge, skills and professional
prescribe or recommend any particular
values demonstrated by the student on
number of learning hours for
their way through the qualification.
examinations because study and
learning patterns and styles vary greatly
The specific capabilities within the
between people and organisations. This
detailed syllabuses and study guides are
also recognises the wide diversity of
assessed at one of three intellectual or
personal, professional and educational
cognitive levels:
circumstances in which ACCA students
find themselves.
Level 1: Knowledge and
comprehension
As a member of the International
Level 2: Application and analysis
Federation of Accountants, ACCA seeks
Level 3: Synthesis and evaluation
to enhance the education recognition of
its qualification on both national and
Very broadly, these intellectual levels
international education frameworks, and
relate to the three cognitive levels at
with educational authorities and partners
which the Applied Knowledge,
globally. In doing so, ACCA aims to
the Applied Skills and the Strategic
ensure that its qualifications are
Professional exams
recognised and valued by governments,
are assessed.
regulatory authorities and employers
across all sectors. To this end, ACCA
Each subject area in the detailed study
qualifications are currently recognised
guide included in this document is given
on the education frameworks in several
a 1, 2, or 3 superscript, denoting
countries. Please refer to your national
intellectual level, marked at the end of
education framework regulator for
each relevant line. This gives an
further information.
indication of the intellectual depth at
which an area could be assessed within
Each syllabus contains between 20 and
the examination. However, while level 1
35 main subject area headings
broadly equates with Applied
depending on the nature of the subject
Knowledge , level 2 equates to Applied
and how these areas have been broken
Skills and level 3 to Strategic
down.
Professional, some lower level skills can
continue to be assessed as the student
progresses through each level. This
reflects that at each stage of study there
will be a requirement to broaden, as well
as deepen capabilities. It is also
possible that occasionally some higher
level capabilities may be assessed at
lower levels.

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 Audit and Assurance (AA)

Guide to ACCA around a single scenario). These

questions are included to ensure the
Examination Structure fairness and reliability of the exams.
These questions do not directly
The structure of examinations varies contribute towards the candidate’s
within and between levels. score. Candidates will not be able to
differentiate between the questions that
The Applied Knowledge examinations contribute to the result and those that do
contain 100% compulsory questions to not. Due to this additional content, an
encourage candidates to study across extra 20 minutes is provided to
the breadth of each syllabus. These are candidates. The total exam time is
assessed by a two-hour computer based therefore 3 hours and 20 minutes (not
examination. including reading time).

The Corporate and Business Law exam Exams from June 2019 onwards
is a two-hour computer-based objective As part of our ongoing exam
test examination for English and Global, development, from June 2019
and available as a paper based version candidates will no longer receive seeded
for all variants. content. Processes and systems are in
place to ensure every question a
The other Applied Skills examinations candidate receives is fair and
(PM, TX-UK, FR, AA, and FM) reliable. Due to the removal of this
contain a mix of objective and longer content, the exam duration will change
type questions with a duration of three from 3 hours 20 minutes to 3 hours (this
hours for 100 marks; these questions does not include reading time).
directly contribute towards the candidate
result. These exams are available in Paper-based exams
computer-based and paper-based
formats. Prior to the start of each exam For paper-based exams 15 minutes are
there will be time allocated for students added to the three hours to reflect the
to be informed of the exam instructions. manual effort required as compared to
computer-based exams. All paper-
Computer-based exams based and computer-based questions
have been subject to the same quality
For the Applied Skills (PM, TX-UK, FR, assurance process. There will be time
AA and FM) computer-based exams awarded by the invigilator to read the
candidates are given an extra 10 exam instructions.
minutes to read the instructions prior to
the start of the exam. Additional content Strategic Business Leader is ACCA’s
may be included in the exam. This will case study examination at the Strategic
be dependent on which exam session Professional level and is examined as a
the candidate sits their exam. For more closed book exam of four hours,
information see below. including reading, planning and
reflection time which can be used
Exams from September 2018 – March flexibly within the examination. There is
2019 no pre-seen information and all exam
For these exams candidates will receive related material, including case
an extra 10 marks of objective test information and exhibits are available
seeded content (either five single OT within the examination. Strategic
questions OR five OT questions based

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 Audit and Assurance (AA)

Business Leader is an exam based on

one main business scenario which
involves candidates completing several
tasks within which additional material
may be introduced. All questions are
compulsory and each examination will
contain a total of 80 technical marks and
20 Professional Skills marks. The detail
of the structure of this exam is described
in the Strategic Business Leader
syllabus and study guide document.

The other Strategic Professional exams

are all of three hours and 15 minutes
duration. All contain two
Sections and all questions are
compulsory. These exams all contain
four professional marks. The detail of
the structure of each of these exams is
described in the individual syllabus and
study guide documents.

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 candidates may
start writing in their answer books.

Time should be taken to ensure that all

the information and exam requirements
are properly read and understood.

The pass mark for all ACCA

Qualification examinations is 50%.

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 Audit and Assurance (AA)

Guide to ACCA
Examination Assessment
ACCA reserves the right to examine
anything contained within the study
guide at any examination session. This
includes knowledge, techniques,
principles, theories, and concepts as
specified. For the financial accounting,
audit and assurance, law and tax exams
except where indicated otherwise,
ACCA will publish examinable
documents once a year to indicate
exactly what regulations and legislation
could potentially be assessed within
identified examination sessions.

For examinations, regulation issued or

legislation passed on or before 31
August annually, will be examinable
from 1 September of the following year
to 31 August of the year after that.
Please refer to the examinable
documents for the exam (where
relevant) for further information.

Regulation issued or legislation passed

in accordance with the above dates may
be examinable even if the effective date
is in the future.

The term issued or passed relates to

when regulation or legislation has been
formally approved.

The term effective relates to when

regulation or legislation must be applied
to an entity transactions and business
practices.

The study guide offers more detailed

guidance on the depth and level at
which the examinable documents will be
examined. The study guide should
therefore be read in conjunction with the
examinable documents list.

© ACCA 2018-2019 All rights reserved.

 Audit and Assurance (AA)

Audit and Assurance (AA) Syllabus and study guide

This syllabus and study guide is designed to help with planning study and to provide
detailed information on what could be assessed in any examination session.

Aim

To develop knowledge and

understanding of the process of carrying Syllabus
out the assurance engagement and its
application in the context of the Strategic Business Advanced Audit
professional regulatory framework. Reporting (SBR) and Assurance
(AAA)

Relational diagram linking Audit and

Assurance (AA) with other ACCA Corporate and Financial Audit and
Business Law Reporting (FR) Assurance
exams (LW) (AA)

This diagram shows direct and indirect

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. These links
are shown as solid line arrows. Other exams only have indirect relationships with
each other such as links existing between the accounting and auditing exams. The
links between these are shown as dotted line arrows. This diagram indicates where
you are expected to have underpinning knowledge and where it would be useful to
review previous learning before undertaking study.

© ACCA 2018-2019 All rights reserved.

 Audit and Assurance (AA)

Main capabilities
On successful completion of this exam, candidates should be able to:

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 (sections)
of the syllabus and should be used as an aid to planning teaching and learning in a
structured way.

© ACCA 2018-2019 All rights reserved.

 Audit and Assurance (AA)

Rationale

The Audit and Assurance syllabus is

essentially divided into five 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 final section
concentrates on reporting, including the
form and content of the independent
auditor’s report.

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 Audit and Assurance (AA)

Detailed syllabus 6. The scope of the internal audit

function, outsourcing and internal
audit assignments
A Audit framework and regulation
D Audit evidence
1. The concept of audit and other
assurance engagements 1. Financial statement assertions and
audit evidence
2. External audits
2. Audit procedures
3. Corporate governance
3. Audit sampling and other means of
4. Professional ethics and ACCA’s testing
Code of Ethics and Conduct
4. The audit of specific items
B Planning and risk assessment
5. Computer-assisted audit techniques
1. Obtaining, accepting and continuing
audit engagements 6. The work of others

2. Objective and general principles 7 Not-for-profit organisations

3. Assessing audit risks

E Review and reporting
4. Understanding the entity and its
environment
1. Subsequent events
5. Fraud, laws and regulations
2. Going concern
6. Audit planning and documentation
3. Written representations
C Internal control
4. Audit finalisation and the final review
1. Internal control systems
5. The Independent Auditor’s Report
2. The use and evaluation of internal
control systems by auditors

3. Tests of control

4. Communication on internal control

5. Internal audit and governance and

the differences between external
audit and internal audit

© ACCA 2018-2019 All rights reserved.

 Audit and Assurance (AA)

Approach to examining the syllabus

The syllabus is assessed by a three-hour examination available in both computer-based and
paper-based formats. *

All questions are compulsory. The exam will contain both computational and discursive elements.

Some questions will adopt a scenario/case study approach.

Computer-based exams

* Prior to the start of the exam candidates are given an extra 10 minutes to read the exam
instructions.

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.

Additional content may be included in the exam. This will be dependent on which exam session the
candidate sits their exam. For more information see below.

Exams from September 2018 – March 2019

For these exams candidates will receive an extra 10 marks of objective test seeded content (either
five single OT questions OR five OT questions based around a single scenario). These questions
are included to ensure the fairness and reliability of the exams. These questions do not directly
contribute towards the candidate’s score. Candidates will not be able to differentiate between the
questions that contribute to the result and those that do not.
*Due to this additional content, an extra 20 minutes is provided to candidates. The total exam time
is therefore 3 hours and 20 minutes (not including reading time).

Exams from June 2019 onwards

As part of our ongoing exam development, from June 2019 candidates will no longer receive
seeded content. Processes and systems are in place to ensure every question a candidate
receives is fair and reliable. Due to the removal of this content, the exam duration will change from
3 hours 20 minutes to 3 hours (this does not include reading time).

Paper-based exams

*For paper-based exams an extra 15 minutes is provided to candidates to reflect the manual effort
required as compared to the time needed for the computer-based exams. The total exam time is
therefore three hours and 15 minutes. Prior to the start of the exam candidates are given an extra
10 minutes to read the exam instructions.

© ACCA 2018-2019 All rights reserved.

 Audit and Assurance (AA)

Section A of the paper-based exam comprises three questions containing five multiple choice
questions.

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

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 Audit and Assurance (AA)

Study Guide f) Explain the development and status of

International Standards on Auditing
(ISAs).[1]
A. Audit framework and
g) Explain the relationship between
regulation International Standards on Auditing and
national standards.[1]
1. The concept of audit and other
assurance engagements 3. Corporate governance
a) Identify and describe the objective and a) Discuss the objectives, relevance and
general principles of external audit importance of corporate governance.[2]
engagements.[2]
b) Discuss the provisions of international
b) Explain the nature and development of codes of corporate governance (such as
audit and other assurance OECD) that are most relevant to
engagements.[1] auditors.[2]
c) Discuss the concepts of accountability, c) Describe good corporate governance
stewardship and agency.[2] requirements relating to directors’
responsibilities (e.g. for risk management
d) Define and provide the objectives of an and internal control) and the reporting
assurance engagement.[1] responsibilities of auditors.[2]
e) Explain the five elements of an d) Evaluate corporate governance
assurance engagement.[2] deficiencies and provide
recommendations to allow compliance
f) Describe the types of assurance with international codes of corporate
engagement[2] governance.[2]
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 control
2. External audits and risk management.[1]
a) Describe the regulatory environment g) Discuss the need for auditors to
within which external audits take place.[1] communicate with those charged
with governance.[2]
b) Discuss the reasons and mechanisms for
the regulation of auditors.[1]
4. Professional ethics and ACCA’s Code
of Ethics and Conduct
c) Explain the statutory regulations
governing the appointment, rights,
a) Define and apply the fundamental
removal and resignation of auditors.[1]
principles of professional ethics of
d) Explain the regulations governing the integrity, objectivity, professional
rights and duties of auditors[1] competence and due care, confidentiality
and professional behaviour.[2]
e) Describe the limitations of external
audits.[1] b) Define and apply the conceptual
framework, including the threats to the
fundamental principles of self-interest,

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 Audit and Assurance (AA)

self-review, advocacy, familiarity, and

intimidation.[2] d) Explain and calculate materiality levels
from financial information.[2]
c) Discuss the safeguards to offset the
threats to the fundamental principles.[2]
4. Understanding the entity and its
d) Describe the auditor’s responsibility with environment
regard to auditor independence, conflicts
of interest and confidentiality.[1] a) Explain how auditors obtain an initial
understanding of the entity and its
B. Planning and risk assessment environment.[2]

b) Describe and explain the nature, and

1. Obtaining, accepting and continuing
audit engagements purpose of, analytical procedures in
planning.[2]
a) Discuss the requirements of professional
ethics and ISAs in relation to the Compute and interpret key ratios used in
acceptance / continuance of audit analytical procedures.[2]
engagements.[2]
5. Fraud, laws and regulations
[2]
b) Explain the preconditions for an audit
a) Discuss the effect of fraud and
c) Explain the process by which an auditor misstatements on the audit strategy and
obtains an audit engagement.[2] extent of audit work.[2]

d) Discuss the importance of engagement b) Discuss the responsibilities of internal

letters and their contents.[1] and external auditors for the prevention
and detection of fraud and error.[2]
e) Explain the quality control procedures
that should be in place over engagement c) Explain the auditor’s responsibility to
performance, monitoring quality and consider laws and regulations.[2)
compliance with ethical requirements [2]
6. Audit planning and documentation
2. Objective and general principles
a) Identify and explain the need for and
a) Identify the overall objectives of the importance of planning an audit.[2]
auditor and the need to conduct an audit
in accordance with ISAs.[2] b) Identify and describe the contents of the
overall audit strategy and audit plan.[2]
b) Explain the need to plan and perform
c) Explain and describe the relationship
audits with an attitude of professional
between the overall audit strategy and
scepticism, and to exercise professional
the audit plan.[2]
judgment.[2]
d) Explain the difference between an interim
3. Assessing audit risks
and final audit.[1]
a) Explain the components of audit risk.[1]
e) Describe the purpose of an interim audit,
and the procedures likely to be adopted
b) Describe the audit risks in the financial
at this stage in the audit.[2]
statements and explain the auditor’s
response to each risk.[2]
f) Describe the impact of the work
performed during the interim audit on the
c) Define and explain the concepts of
final audit.[2]
materiality and performance materiality.[2]

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 Audit and Assurance (AA)

g) Explain the need for, and the importance b) Describe control objectives, control
of, audit documentation.[1] procedures, activities and tests of control
in relation to:
h) Describe the form and contents of
working papers and supporting i) The sales system;
documentation.[2] ii) The purchases system
iii) The payroll system
i) Explain the procedures to ensure safe iv) The inventory system
custody and retention of working v) The cash system
papers.[1] vi) Non-current assets

C. Internal control 4. Communication on internal control

a) Discuss the requirements and methods

1. Internal control systems of how reporting significant deficiencies
in internal control are provided to
a) Explain why an auditor needs to obtain management and those charged with
an understanding of internal control governance.[2]
relevant to the audit.[1]
b) Explain, in a format suitable for inclusion
b) Describe and explain the five in a report to management significant
components of internal control[2] deficiencies within an internal control
system and provide recommendations
i) the control environment for overcoming these deficiencies to
ii) the entity’s risk assessment process, management
iii)the information system, including the
related business processes, relevant 5. Internal audit and governance, and the
to financial reporting and differences between external audit and
communication internal audit
iv) control activities relevant to the audit
v) monitoring of controls a) Discuss the factors to be taken into
account when assessing the need for
2. The use and evaluation of internal internal audit.[2]
control systems by auditors
b) Discuss the elements of best practice in
a) Explain how auditors record internal the structure and operations of internal
control systems including the use of audit with reference to appropriate
narrative notes, flowcharts, internal international codes of corporate
control questionnaires and internal governance.[2]
control evaluation questionnaires.[2]
c) Compare and contrast the role of
b) Evaluate internal control components, external and internal audit.[2]
including deficiencies and significant
deficiencies in internal control.[2]
6. The scope of the internal audit
function, outsourcing and internal
c) Discuss the limitations of internal control
audit assignments
components.[2]
a) Discuss the scope of internal audit and
3. Tests of control the limitations of the internal audit
function.[2]
a) Describe computer systems controls
including general IT controls and
application controls.[2]

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 Audit and Assurance (AA)

b) Explain outsourcing and the associated c) Discuss the problems associated with
advantages and disadvantages of the audit and review of accounting
outsourcing the internal audit function.[1] estimates.[2]

c) Discuss the nature and purpose of d) Describe why smaller entities may have
internal audit assignments including different control environments and
value for money, IT, financial, regulatory describe the types of evidence likely to
compliance, fraud investigations and be available in smaller entities.[1]
customer experience.[2] e) Discuss the difference between tests of
control and substantive procedures.[2]
d) Discuss the nature and purpose of
operational internal audit assignments [2] 3. Audit sampling and other means
of testing
e) Describe the format and content of
internal audit review reports and make a) Define audit sampling and explain the
appropriate recommendations to need for sampling.[1]
management and those charged with
governance.[2] b) Identify and discuss the differences
between statistical and non-statistical
sampling.[2]
D. Audit evidence
c) Discuss and provide relevant examples
1. Financial statement assertions and
of the application of the basic principles
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; 4. The audit of specific items

b) Describe audit procedures to obtain audit For each of the account balances stated in
evidence , including inspection, this sub-capability:
observation, external confirmation,
recalculation, re-performance, analytical Explain the audit objectives and the audit
procedures and enquiry.[2] procedures to obtain sufficient, appropriate
evidence in relation to:
c) Discuss the quality and quantity of audit
evidence.[2] a) Receivables: [2]
i) direct confirmation of accounts
d) Discuss the relevance and reliability receivable
of audit evidence.[2] ii) other evidence in relation to
receivables and prepayments,
2. Audit procedures iii) other evidence in relation to current
assets; and
a) Discuss substantive procedures for iv) completeness and occurrence of
obtaining audit evidence.[2] revenue.

b) Discuss and provide examples of how b) Inventory: [2]

analytical procedures are used as i) inventory counting procedures in
substantive procedures.[2] relation to year-end and continuous
inventory systems
ii) cut-off testing

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 Audit and Assurance (AA)

iii) auditor’s attendance at b) Discuss and provide relevant examples

inventory counting of the use of test data and audit
v) direct confirmation of inventory held software.[2]
by third parties
vi) valuation, and 6. The work of others
vii) other evidence in relation to
inventory. a) Discuss why auditors rely on the work of
others.[2]

c) Payables and accruals: [2] b) Discuss the extent to which external

i) supplier statement reconciliations auditors are able to rely on the work of
and direct confirmation of accounts experts, including the work of internal
payable, audit.[2]
ii) obtain evidence in relation to
payables and accruals, c) Explain the audit considerations relating
iii) other evidence in relation to current to entities using service organisations.[2]
liabilities; and
iv) purchases and other expenses, d) Explain the extent to which reference to
including payroll. the work of others can be made in the
independent auditor’s report.[1]
d) Bank and cash: [2] 7. Not-for-profit organisations
i) bank confirmation reports used in
obtaining evidence in relation to a) Apply audit techniques to not-for-profit
bank and cash organisations.[2]
ii) other evidence in relation to bank
and
E. Review and reporting
iii) other evidence in relation to cash.
1. Subsequent events
e) Tangible and intangible non-current
assets [2]
a) Explain the purpose of a subsequent
i) evidence in relation to non-current
events review.[1]
assets,
ii) depreciation, and
iii) profit/loss on disposal b) Explain the responsibilities of auditors
regarding subsequent events.[1]
f) Non-current liabilities, provisions and
contingencies[2] c) Discuss the procedures to be undertaken
i) evidence in relation to non-current in performing a subsequent events
liabilities, and review.[2]
ii) provisions and contingencies
2. Going concern
g) Share capital, reserves and directors’
emoluments: [2] a) Define and discuss the significance of the
i) evidence in relation to share capital, concept of going concern.[2]
reserves and directors’ emoluments
b) Explain the importance of and the need
5. Computer-assisted audit for going concern reviews.[2]
techniques
c) Explain the respective responsibilities of
a) Explain the use of computer-assisted auditors and management regarding
audit techniques in the context of an going concern.[1]
audit.[1]
d) Identify and explain potential indicators
that an entity is not a going concern. 2]

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 Audit and Assurance (AA)

e) Discuss the procedures to be applied in

performing going concern reviews.[2]
f) Discuss the disclosure requirements in
relation to going concern issues.[2]

g) Discuss the reporting implications of the

findings of going concern reviews.[2]

3. Written representations

a) Explain the purpose of and procedure for

obtaining written representations.[2]

b) Discuss the quality and reliability of

written representations as audit
evidence.[2]

c) Discuss the circumstances where written

representations are necessary and the
matters on which representations are
commonly obtained.[2]

4. Audit finalisation and the final review

a) Discuss the importance of the overall

review in ensuring that sufficient,
appropriate evidence has been
obtained.[2]

b) Describe procedures an auditor should

perform in conducting their overall review
of financial statements.[2]

c) Explain the significance of uncorrected

misstatements.[1]

d) Evaluate the effect of dealing with

uncorrected misstatements.[2]

5. The Independent Auditor’s Report

a) Identify and describe the basic elements

contained in the independent auditor’s
report.[1]
b) Explain unmodified audit opinions in the
auditor’s report.[2]

c) Explain modified audit opinions in the

auditor’s report.[2]

d) Describe the format and content of key

audit matters, emphasis of matter and
other matter paragraphs.[2]

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 Audit and Assurance (AA)

Summary of changes to Audit and Assurance (AA)

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.

The main areas which have been added to the syllabus are summarised in the table below.

Table 1 – Amendments to AA

Section and subject area Syllabus content

C5 and Learning outcomes which were C Internal control

C6 previously under A5 and A6 have
been moved to a new position as 5. Internal audit and governance, and
it is considered more appropriate the differences between external
to include the learning outcomes audit and internal audit
around internal audit in the
d) Discuss the factors to be taken into
section on internal control
account when assessing the need for
internal audit.[2]

e) Discuss the elements of best practice

in the structure and operations of
internal audit with reference to
appropriate international codes of
corporate governance.[2]

f) Compare and contrast the role of

external and internal audit.[2]

6. The scope of the internal audit

function, outsourcing and internal
audit assignments

h) Discuss the scope of internal audit

and the limitations of the internal
audit function.[2]

i) Explain outsourcing and the

associated advantages and
disadvantages of outsourcing the
internal audit function.[1]

E5d) Learning outcome reworded to Describe the format and content of key
specifically reference Key Audit audit matters, emphasis of matter and
Matters other matter paragraphs [2]

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