Acca P7 Notes
ACCA Paper P7 (INT)
Advanced Audit & Assurance
Class Notes December 2011
Lecturer:
Contents
INTRODUCTION TO THE PAPER 2
CHAPTER 1 – REGULATORY ENVIRONMENT 3
CHAPTER 2 – PROFESSIONAL AND ETHICAL CONSIDERATIONS 8
CHAPTER 3 – PRACTICE MANAGEMENT 13
CHAPTER 4 – ASSIGNMENTS I: THE AUDIT OF FINANCIAL STATEMENTS 16
CHAPTER 5 – ASSIGNMENTS II: GROUP AUDITS 42
CHAPTER 6 – AUDIT REPORTS AND OTHER REPORTS 45
CHAPTER 7 – ASSIGNMENTS III: OTHER ASSIGNMENTS 57
CHAPTER 8 – CURRENT ISSUES AND DEVELOPMENTS 63
INTRODUCTION TO THE PAPER
AIM OF THE PAPER
The aim of the paper is to apply relevant knowledge, skills and exerciseprofessional judgement in analysing, evaluating and concluding and reporting onthe assurance engagement and other audit and assurance issues in the context of best practice and current developments.In simpler terms, this means a very practical exam, in which students need to lookat real situations and identify relevant issues to an auditor (or other assuranceprovider), and how those issues may be addressed.
OUTLINE OF THE SYLLABUS
1. Regulatory Environment 2. Professional and Ethical Considerations 3. Practice Management 4. Audits of Historical Financial Statements 5. Other Assignments 6. Reporting 7. Current Issues and Developments
FORMAT OF THE EXAM PAPER
The syllabus is assessed by a three hour paper-based examination, with 15 minutesof reading time.The examination consists of:
● two compulsory questions, totalling 50-70 marks, and covering several areasof the syllabus within a single scenario, and
● a choice of two from three questions totalling 30-50 marks, which are each likely to focus mostly on a single syllabus area.
CHAPTER 1 – REGULATORY ENVIRONMENT
EXAM QUESTIONS
●Define “Money Laundering”, and explain the auditor’s responsibilities.
●Comment on the need for ethical guidance for accountants on money laundering. (Pilot Paper Q5 )
●Explain the auditor’s responsibilities
Advanced Audit & Assurance
Class Notes December 2011
Lecturer:
Contents
INTRODUCTION TO THE PAPER 2
CHAPTER 1 – REGULATORY ENVIRONMENT 3
CHAPTER 2 – PROFESSIONAL AND ETHICAL CONSIDERATIONS 8
CHAPTER 3 – PRACTICE MANAGEMENT 13
CHAPTER 4 – ASSIGNMENTS I: THE AUDIT OF FINANCIAL STATEMENTS 16
CHAPTER 5 – ASSIGNMENTS II: GROUP AUDITS 42
CHAPTER 6 – AUDIT REPORTS AND OTHER REPORTS 45
CHAPTER 7 – ASSIGNMENTS III: OTHER ASSIGNMENTS 57
CHAPTER 8 – CURRENT ISSUES AND DEVELOPMENTS 63
INTRODUCTION TO THE PAPER
AIM OF THE PAPER
The aim of the paper is to apply relevant knowledge, skills and exerciseprofessional judgement in analysing, evaluating and concluding and reporting onthe assurance engagement and other audit and assurance issues in the context of best practice and current developments.In simpler terms, this means a very practical exam, in which students need to lookat real situations and identify relevant issues to an auditor (or other assuranceprovider), and how those issues may be addressed.
OUTLINE OF THE SYLLABUS
1. Regulatory Environment 2. Professional and Ethical Considerations 3. Practice Management 4. Audits of Historical Financial Statements 5. Other Assignments 6. Reporting 7. Current Issues and Developments
FORMAT OF THE EXAM PAPER
The syllabus is assessed by a three hour paper-based examination, with 15 minutesof reading time.The examination consists of:
● two compulsory questions, totalling 50-70 marks, and covering several areasof the syllabus within a single scenario, and
● a choice of two from three questions totalling 30-50 marks, which are each likely to focus mostly on a single syllabus area.
CHAPTER 1 – REGULATORY ENVIRONMENT
EXAM QUESTIONS
●Define “Money Laundering”, and explain the auditor’s responsibilities.
●Comment on the need for ethical guidance for accountants on money laundering. (Pilot Paper Q5 )
●Explain the auditor’s responsibilities