To develop knowledge and understanding of the process of carrying out the assurance engagement and its application in the context of the professional regulatory framework.

DETAILED SYLLABUS

A. Audit Framework and Regulation

• 1. The concept of audit and other assurance
• 2. engagements
• 3. Statutory audits
• 4. The regulatory environment and corporate
• 5. governance
• 6. Professional ethics and ACCA’s Code of Ethics
• 7. and Conduct

B. Internal audit

• 1. Internal audit and corporate governance
• 2. Differences between external and internal audit
• 3. The scope of the internal audit function
• 4. Outsourcing the internal audit department
• 5. Internal audit assignments

C. Planning and risk assessment

• 1. Objective and general principles
• 2. Understanding the entity and knowledge of the business
• 3. Assessing the risks of material misstatement and fraud
• 4. Analytical procedures
• 5. Planning an audit
• 6. Audit documentation
• 7. The work of others

D. Internal control

• 1. Internal control systems
• 2. The use of internal control systems by auditors
• 3. Transaction cycles
• 4. Tests of control
• 5. The evaluation of internal control components
• 6. Communication on internal control

E. Audit evidence

• 1. The use of assertions by auditors
• 2. Audit procedures
• 3. The audit of specific items
• 4. Audit sampling and other means of testing
• 5. Computer-assisted audit techniques
• 6. Not-for-profit organisations

F. Review

• 1. Subsequent events
• 2. Going concern
• 3. Management representations
• 4. Audit finalisation and the final review
• G. Reporting
• 1. Audit reports
• 2. Reports to management
• 3. Internal audit reports

THE EXAMINATION

The examination is a three-hour paper covering five compulsory questions. The bulk of the questions will be discursive but some questions involving computational elements will be set from time to time.

The questions will cover all areas of the syllabus:

Number of marks

Question 1 (scenario based) - 30
Question 2 (knowledge based) - 10
Questions 3-5 (each question will be worth 20 marks each) - 60
Total - 100
Total time allowed: reading and planning 15 minutes; writing 3 hours.