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Advanced Audit and Assurance (AAA) (INT)

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Advanced Auditand Assurance(AAA) (INT)

Syllabus and study guide

September 2020 to June 2021

Designed to help with planning study and to providedetailed information on what could be assessed in anyexamination session



Summary of content

Introduction1. Intellectual levels2. Learning hours and educational recognition3. The structure of the ACCA Qualification4. Guide to ACCA examination structure and

delivery mode5. Guide to ACCA examination assessment

Advanced Audit and Assurancesyllabus

6. Relational diagram linking Advanced Auditand Assurance with other exams

7. Approach to examining the syllabus8. Introduction to the syllabus9. Main capabilities10. The syllabus

Advanced Audit and Assurancestudy guide

11. Detailed study guide12. Summary of changes to Advanced Audit and

Assurance (AAA) (INT)



1.Intellectual levels

The syllabus is designed to progressivelybroaden and deepen the knowledge, skillsand professional values demonstrated bythe student on their way through thequalification.

The specific capabilities within the detailedsyllabuses and study guides are assessed atone of three intellectual or cognitive levels:

Level 1: Knowledge andcomprehension

Level 2: Application and analysisLevel 3: Synthesis and evaluation

Very broadly, these intellectual levels relateto the three cognitive levels at which theApplied Knowledge,the Applied Skills andthe Strategic Professional exams areassessed.

Each subject area in the detailed studyguide included in this document is given a 1,2, or 3 superscript, denoting intellectuallevel, marked at the end of each relevantlearning outcome. This gives an indication ofthe intellectual depth at which an area couldbe assessed within the examination.However, while level 1 broadly equates withApplied Knowledge, level 2 equates toApplied Skills and level 3 to StrategicProfessional, some lower level skills cancontinue to be assessed as the studentprogresses through each level. This reflectsthat at each stage of study there will be arequirement to broaden, as well as deepencapabilities. It is also possible thatoccasionally some higher level capabilitiesmay be assessed at lower levels.

2.Learning hours andeducation recognition

The ACCA qualification does not prescribeor recommend any particular number oflearning hours for examinations becausestudy and learning patterns and styles varygreatly between people and organisations.This also recognises the wide diversity ofpersonal, professional and educationalcircumstances in which ACCA students findthemselves.

As a member of the International Federationof Accountants, ACCA seeks to enhance theeducation recognition of its qualification onboth national and international educationframeworks, and with educational authoritiesand partners globally. In doing so, ACCAaims to ensure that its qualification isrecognised and valued by governments,regulatory authorities and employers acrossall sectors. To this end, ACCA qualificationis currently recognised on the educationframeworks in several countries. Pleaserefer to your national education frameworkregulator for further information.

Each syllabus is organised into main subjectarea headings which are further brokendown to provide greater detail on each area.



3.The structure of ACCA qualification



4.Guide to ACCAexamination structureand delivery mode

The structure and delivery mode ofexaminations varies.

Applied KnowledgeThe Applied Knowledge examinationscontain 100% compulsory questions toencourage candidates to study across thebreadth of each syllabus. These areassessed by a two-hour computer basedexamination.

Applied SkillsThe Corporate and Business Law exam is atwo-hour computer-based objective testexamination for English and Global. For theformat and structure of the Corporate andBusiness Law or Taxation variant exams,refer to the ‘Approach to examining thesyllabus’ in section 9 of the relevant syllabusand study guide. For the format andstructure of the variant exams, refer to the‘Approach to examining the syllabus’ sectionbelow.

The other Applied Skills examinations (PM,TX-UK, FR, AA, and FM) contain a mix ofobjective and longer type questions with aduration of three hours for 100 marks. Theseare assessed by a three hour computer-based exam. Prior to the start of each examthere will be time allocated for students to beinformed of the exam instructions.

The longer (constructed response) questiontypes used in the Applied Skills exams(excluding Corporate and Business Law)require students to effectively mimic whatthey do in the workplace. Students will needto use a range of digital skills anddemonstrate their ability to use spreadsheets and word processing tools inproducing their answers, just as they woulduse these tools in the workplace. Theseassessment methods allow ACCA to focuson testing students’ technical and applicationskills, rather than, for example, their ability toperform simple calculations.

Strategic ProfessionalStrategic Business Leader is ACCA’s casestudy examination at Strategic Professionaland is examined as a closed book exam offour hours, including reading, planning andreflection time which can be used flexiblywithin the examination. There is no pre-seeninformation and all exam related material,including case information and exhibits areavailable within the examination. StrategicBusiness Leader is an exam based on onemain business scenario which involvescandidates completing several tasks withinwhich additional material may be introduced.All questions are compulsory and eachexamination will contain a total of 80technical marks and 20 Professional Skillsmarks.

The other Strategic Professional exams areall of three hours and 15 minutes duration.All contain two sections and all questionsare compulsory. These exams all containfour professional marks.

From March 2020, Strategic Professionalexams will become available by computerbased examination. More detail regardingwhat is available in your market will be onthe ACCA global website.

With Applied Knowledge and Applied Skillsexams now assessed by computer basedexam, ACCA is committed to continuing onits journey to assess all exams within theACCA Qualification using this delivery mode.

The question types used at StrategicProfessional again require students toeffectively mimic what they would do in theworkplace and, with the move to CBE, theseexams again offer ACCA the opportunity tofocus on the application of knowledge toscenarios, using a range of tools – spreadsheets, word processing and presentations -not only enabling students to demonstratetheir technical and professional skills butalso their use of the technology available totoday’s accountants.

ACCA encourages students to take time toread questions carefully and to plan answersbut once the exam time has started, thereare no additional restrictions as to when



candidates may start producing theiranswer.

Time should be taken to ensure that all theinformation and exam requirements areproperly read and understood.

The pass mark for all ACCA Qualificationexaminations is 50%.



5.Guide to ACCAexaminationassessment

ACCA reserves the right to examine anylearning outcome contained within the studyguide. This includes knowledge, techniques,principles, theories, and concepts asspecified. For the financial accounting, auditand assurance, law and tax exams exceptwhere indicated otherwise, ACCA willpublish examinable documents once a yearto indicate exactly what regulations andlegislation could potentially be assessedwithin identified examination sessions.

For most examinations (not tax), regulationsissued or legislation passed on or before31 August annually, will be examinable from1 September of the following year to 31August of the year after that. Please refer tothe examinable documents for the exam(where relevant) for further information.

Regulation issued or legislation passed inaccordance with the above dates may beexaminable even if the effective date is inthe future.

The term issued or passed relates to whenregulation or legislation has been formallyapproved.

The term effective relates to when regulationor legislation must be applied to an entitytransactions and business practices.

The study guide offers more detailedguidance on the depth and level at which theexaminable documents will be examined.The study guide should therefore be read inconjunction with the examinable documentslist.

For UK tax exams, examinations fallingwithin the period 1 June to 31 March willgenerally examine the Finance Act whichwas passed in the previous year. Therefore,exams falling in the period 1 June 2020 to31 March 2021 will examine the Finance Act2019 and any examinable legislation whichis passed outside the Finance Act before 31July 2019.

For additional guidance on the examinabilityof specific tax rules and the depth in whichthey are likely to be examined, referenceshould be made to the relevant Finance Actarticle written by the examining team andpublished on the ACCA website.

None of the current or impending devolvedtaxes for Scotland, Wales, and NorthernIreland is, or will be, examinable.



6.Relational diagram linking Advanced Audit andAssurance (AAA) (INT) with other exams

This diagram shows links between this exam and other exams preceding or following it.Some exams are directly underpinned by other exams such as Advanced Audit andAssurance (AAA) by Audit and Assurance (AA) and Strategic Business Reporting (SBR).This diagram indicates where students are expected to have underpinning knowledge andwhere it would be useful to review previous learning before undertaking study.

7.Approach to examining the syllabus

The Advanced Audit and Assurance exam builds upon the skills and knowledge examined inthe Audit and Assurance exam. At this stage candidates will be expected to demonstrate anintegrated knowledge of the subject. The study guide specifies the wide range of contextualunderstanding that is required to achieve a satisfactory standard at this level.

Examination Structure

The syllabus is assessed by a three-hour 15 minutes examination

The examination is constructed in two sections. Questions in both sections will be largelydiscursive. However, candidates will be expected, for example, to be able to assessmateriality and calculate relevant ratios where appropriate.

Section A

Section A will comprise a Case Study, worth 50 marks, set at the planning stage of the audit,for a single company, a group of companies or potentially several audit clients. Candidateswill be provided with detailed information, which will vary between examinations, but is likelyto include extracts of financial information, strategic, operational and other relevant financialinformation for a client business, as well as extracts from audit working papers, includingresults of analytical procedures.

Candidates will be required to address a range of requirements, predominantly from syllabussections A, B, C and D, thereby tackling a real world situation where candidates may have toaddress a range of issues simultaneously in relation to planning, risk assessment, evidencegathering and ethical and professional considerations. Please note that other syllabusareas, excluding E, may also be drawn on as part of the Case Study.



Four professional marks will be available in Section A and will be awarded based on thelevel of professionalism with which a candidate’s answer is presented, including the structureand clarity of the answer provided.

Section B

Section B will contain two compulsory 25 mark questions, with each being predominatelybased around a short scenario which may relate to more than one client.

One question will always predominantly come from syllabus section E, and consequentlycandidates should be prepared to answer a question relating to completion, review andreporting. There are a number of formats this question could adopt, including, but not limitedto, requiring candidates to assess going concern, the impact of subsequent events,evaluating identified misstatements and the corresponding effect on the auditor’s report.Candidates may also be asked to critique an auditor’s report or evaluate the matters to beincluded in a report which is to be provided to management or those charged withgovernance.

The other Section B question can be drawn from any other syllabus section, including A, B,C, D and F.

Quality control and ethics

The auditor’s assessment of effective quality control procedures and consideration of ethicalissue are fundamental to all stages of the audit and therefore these concepts could beexamined in any section of the exam.

Current issues

Syllabus section G on current issues may be examined in Section A or B as appropriate.Current issues is unlikely to form the basis of any question on its own but instead will beincorporated into the Case Study or either of the Section B questions dependent on questioncontent and the topical issues affecting the profession at the time of writing.

Total 100 marks

8.Introduction to the syllabus

The aim of the syllabus is to analyse, evaluate and conclude on the assurance engagementand other audit and assurance issues in the context of best practice and currentdevelopments .

The Advanced Audit and Assurance (AAA)(INT) syllabus is essentially divided into sevenareas.

The syllabus starts with the legal and regulatory environment including money laundering,and professional and ethical considerations, including the Code of Ethics and professionalliability. This then leads into procedures in practice management, including quality controland the acceptance and retention of professional engagements.



The syllabus then covers the audit of financial statements, including planning and evidencegathering. It then covers the completion, evidence evaluation and review and reporting on anaudit of historical financial information. The next section moves onto other assignmentsincluding prospective financial information, due diligence and forensic audit as well as thereporting of these assignments.

The final section covers current issues and developments relating to the provision of audit-related and assurance services.



9.Main capabilities

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

A Recognise the legal and regulatory environment and its impact on audit and assurancepractice

B Demonstrate the ability to work effectively on an assurance or other service engagementwithin a professional and ethical framework

C Assess and recommend appropriate quality control policies and procedures in practicemanagement and recognise the auditor’s position in relation to the acceptance andretention of professional appointments

D Identify and formulate the work required to meet the objectives of audit assignments andapply the International Standards on Auditing

E Evaluate findings and the results of work performed and draft suitable reports onassignments

F Identify and formulate the work required to meet the objectives of non-audit assignments

G Understand the current issues and developments relating to the provision of audit-relatedand assurance services

This diagram illustrates the flows and links between the main capabilities of the syllabus andshould be used as an aid to planning teaching and learning in a structured way.



10.The syllabus

A Regulatory Environment

1. International regulatory frameworks foraudit and assurance services

2. Money laundering

3. Laws and regulations

B Professional and EthicalConsiderations

1. Code of Ethics for ProfessionalAccountants

2. Fraud and error

3. Professional liability

C Quality Control and PracticeManagement

1. Quality control (firm-wide)

2. Advertising, tendering and obtainingprofessional work and fees

3. Professional appointments

D Planning and conducting an audit ofhistorical financial information

1. Planning, materiality and assessing therisk of material misstatement

2. Evidence and testing considerations

3. Audit procedures and obtaining evidence

4. Using the work of others

5. Group audits

E Completion, review and reporting

1. Subsequent events and going concern

2. Completion and final review

3. Auditor’s reports

4. Reports to those charged withgovernance and management

F Other assignments

1. Audit-related and assurance services

2. Specific assignments

3. The audit of social, environmental andintegrated reporting

4. The audit of performance information(pre-determined objectives) in the publicsector

5. Reporting on other assignments

G Current Issues and Developments

1. Professional and ethical developments

2. Other current issues



11.Detailed study guide

A Regulatory environment

1. International regulatory frameworksfor audit and assurance services

a) Explain the need for laws, regulations,standards and other guidance relating toaudit, assurance and related services.[2]

b) Outline and explain the need for thelegal and professional frameworkincluding:[2]

i) public oversight of audit andassurance practice

ii) the impact of corporategovernance principles on auditand assurance practice

iii) the role of audit committees andimpact on audit and assurancepractice.

2. Money laundering

a) Define ‘money laundering’ and discussinternational methods for combattingmoney laundering.[2]

b) Explain the scope of criminal offences ofmoney laundering and how professionalaccountants may be protected fromcriminal and civil liability.[2]

c) Explain the need for ethical guidance inthis area.[2]

d) Describe how accountants meet theirobligations to help prevent and detectmoney laundering including recordkeeping and reporting of suspicion to theappropriate regulatory body.[2]

e) Explain the importance of customer duediligence (CDD) also referred to as KnowYour Customer (KYC) and recommendthe information which should begathered as part of CDD/KYC.[2]

f) Recognise potentially suspicioustransactions and assess their impact onreporting duties.[2]

g) Describe, with reasons, the basicelements of an anti-money launderingprogram.[2]

3. Laws and regulations

a) Compare and contrast the respectiveresponsibilities of management andauditors concerning compliance withlaws and regulations in an audit offinancial statements.[2]

b) Describe the auditors’ considerations ofcompliance with laws and regulationsand plan audit procedures when possiblenon-compliance is discovered. [2]

c) Discuss how and to whom non-compliance should be reported.[2]

d) Recognise and recommend whenwithdrawal from an engagement isnecessary.[2]

B Professional and ethicalconsiderations

1. Code of Ethics for ProfessionalAccountants

a) Explain the fundamental principles andthe conceptual framework approach.[1]

b) Identify, evaluate and respond to threatsto compliance with the fundamentalprinciples.[3]

c) Discuss and evaluate the effectivenessof available safeguards.[3]

d) Recognise and advise on conflicts in theapplication of fundamental principles.[3]

e) Discuss the importance of professionalscepticism in planning and performing anaudit.[2]

f) Consider the ethical implications of theexternal auditor providing non-auditservices to a client including an internalaudit service.[2]

g) Assess whether an engagement hasbeen planned and performed with an



attitude of professional scepticism, andevaluate the implications.[3]

2. Fraud and error

a) Identify and develop an appropriateresponse to circumstances whichindicate a high risk of error, irregularity,fraud or misstatement in the financialstatements or a given situation.[2]

b) Compare and contrast the respectiveresponsibilities of management andauditors for fraud and error.[2]

c) Describe the matters to be consideredand recommend procedures to becarried out to investigate actual and/orpotential misstatements in a givensituation.[2]

d) Explain how, why, when and to whomfraud and error should be reported andthe circumstances in which an auditorshould withdraw from an engagement.[2]

e) Consider the current and possible futurerole of auditors in preventing, detectingand reporting error and fraud.[2]

3. Professional liability

a) Recognise circumstances in whichprofessional accountants may have legalliability and the criteria that need to besatisfied for legal liability to berecognised.[2]

b) Describe the factors to determinewhether or not an auditor is negligentand discuss the auditor’s potentialliability in given situations.[2]

c) Compare and contrast liability owed toclient with liability owed to third parties(ie contract vs establishing duty ofcare).[3]

d) Evaluate the practicability andeffectiveness of ways in which liabilitymay be restricted including the use ofliability limitation agreements.[3]

e) Discuss and appraise the principalcauses of audit failure and other factors

that contribute to the ‘expectation gap’(e.g. responsibilities for fraud and error)and recommend ways in which that gapmay be bridged.[3]

C Quality control and practicemanagement

1. Quality control (firm-wide)

a) Explain the principles and purpose ofquality control of audit and otherassurance engagements.[1]

b) Describe the elements of a system ofquality control relevant to a given firm.[2]

c) Evaluate the quality control procedureswhich are in place for a given firm andassess if they have been appropriatelyapplied in a given engagement.[3]

2. Advertising, tendering and obtainingprofessional work and fees

a) Evaluate the appropriateness of publicitymaterial including the use of the ACCAlogo and reference to fees.[2]

b) Outline the determinants of fee-settingand justify the bases on which fees andcommissions may and may not becharged for services.[3]

c) Discuss the ethical and otherprofessional problems, for example,lowballing, involved in establishing andnegotiating fees for a specifiedassignment.[3]

d) Recognise and explain the matters to beconsidered prior to tendering for an auditor other professional engagement andexplain the information to be included inthe proposal.[2]

3. Professional appointments

a) Explain the matters to be considered andthe procedures that an auditfirm/professional accountant shouldcarry out before accepting a specifiednew client/engagement or continuingwith an existing engagement, including:[3]



i) client acceptanceii) engagement acceptance (new

and existing engagements)iii) establish whether the preconditions

for an audit are presentiv) agreeing the terms of engagement.

b) Recognise the key issues that underliethe agreement of the scope and terms ofan engagement with a client.[2]

D Planning and conducting anaudit of historical financialinformation

1. Planning, materiality and assessingthe risk of material misstatement

a) Define materiality and performancemateriality and demonstrate how itshould be applied in financial reportingand auditing.[2]

b) Evaluate business risks, audit risks andrisks of material misstatement for a givenassignment.[3]

c) Discuss and demonstrate the use ofanalytical procedures in the planning ofan assignment.[3]

d) Explain how the result of planningprocedures determines the relevant auditstrategy.[2]

e) Explain the planning procedures specificto an initial audit engagement.[2]

f) Recommend additional informationwhich may be required to assist theauditor in obtaining an understanding ofthe entity.[2]

g) Discuss how transnational audits maydiffer from other audits of historicalfinancial information (e.g. in terms ofapplicable financial reporting andauditing standards, listing requirementsand corporate governancerequirements).[2]

h) Recognise matters that are not relevantto the planning of an assignment.[2]

2. Evidence and testing considerations

a) Identify and describe audit procedures(including substantive and test ofcontrols) to obtain sufficient appropriateaudit evidence from identified sources tosupport the financial statementassertions and disclosures.[2]

b) Assess and describe how IT can beused to assist the auditor, andrecommend the use of automated toolsand techniques, such as audit software,test data and other data analytics toolswhere appropriate.[2]

c) Recommend additional informationwhich may be required to effectivelycarry out a planned engagement or aspecifc aspect of an engagement.[2]

d) Apply the further considerations andaudit procedures relevant to initialengagements.[2]

e) Apply analytical procedures to financialand non-financial data.[2]

f) Explain the specific audit problems andprocedures concerning related partiesand related party transactions.[2]

g) Recognise circumstances that mayindicate the existence of unidentifiedrelated parties and recommendappropriate audit procedures.[2]

3. Audit procedures and obtainingevidence

a) Design appropriate audit proceduresrelating to:[3]

i) inventory (including standard costingsystems)

ii) non-current assetsiii) intangible assetsiv) biological assetsv) investment propertiesvi) assets held for sale and

discontinued operationsvii) financial instrumentsviii) fair valuesix) government grantsx) leasesxi) impairment



xii) provisions, contingent liabilitiesand contingent assets

xiii) borrowing costsxiv) employee benefitsxv) share-based payment

transactionsxvi) taxation (including deferred tax)xvii) related partiesxviii) revenue from contracts with

customersxix) statement of cash flowsxx) business combinationsxxi) events after the end of the

reporting periodxxii) the effects of foreign exchange

ratesxxiii) segmental reportingxxiv) earnings per sharexxv) changes in accounting policyxxvi) payroll and other expenses

b) Explain how the auditor’s responsibilitiesfor corresponding figures, comparativefinancial statements, and ‘otherinformation’, are discharged.[3]

c) Explain the auditor’s main considerationsin respect of social and environmentalmatters and how they impact on entitiesand their financial statements (e.g.impairment of assets, provisions andcontingent liabilities).[2]

4. Using the work of others

a) Recognise when it is justifiable to placereliance on the work of an expert (e.g. asurveyor employed by the audit client).[2]

b) Evaluate the potential impact of aninternal audit department on theplanning and performance of theexternal audit.[2]

c) Assess the appropriateness andsufficiency of the work of internalauditors and the extent to which reliancecan be placed on it. [2]

d) Recognise and evaluate the impact ofoutsourced functions, such as payroll,on the conduct of an audit.[3]

5. Group audits

a) Recognise the specific matters to beconsidered before acceptingappointment as group auditor to a groupin a given situation.[3]

b) Identify and describe the matters to beconsidered and the procedures to beperformed at the planning stage, when agroup auditor considers the use of thework of component auditors.[3]

c) Identify and explain the matters specificto planning an audit of group financialstatements including: assessment of group and

component materiality, the impact of non-coterminous year

ends within a group, changes in group structure or a

complex group structure.[2]

d) Recommend and discuss thecommunications and content therein tobe provided by the group auditor to thecomponent auditor in a given situation.[3]

e) Recognise the audit problems anddescribe audit procedures specific to: a business combination, including

the classification of investments the determination of goodwill and its

impairment, group accounting policies, intra-group trading, equity accounting for associates and

joint ventures, changes in group structure,

including acquisitions and diposals, and accounting for a foreign

subsidiary.[3]

f) In respect of the consolidation processidentify and explain the relevant auditrisks and audit procedures necessary toobtain sufficient appropriate evidence.[3]

g) Consider how the group auditor shouldevaluate the audit work performed by acomponent auditor.[2]

h) Explain the responsibilities of thecomponent auditor before accepting



appointment, and the procedures to beperformed in a group situation.[2]

i) Justify the situations where a joint auditwould be appropriate.[2]

E Completion, review andreporting

1. Subsequent events and goingconcern

a) Design audit procedures to identifysubsequent events which may requireadjustment to, or disclosure in, thefinancial statements of a given entity.[2]

b) Evaluate indicators that the goingconcern basis may be in doubt andrecognise mitigating factors.[2]

c) Recommend audit procedures, orevaluate the evidence that might beexpected to be available and assess theappropriateness of the going concernbasis in given situations.[3]

d) Assess the adequacy of disclosures infinancial statements relating to goingconcern and explain the implications forthe auditor’s report with regard to thegoing concern basis.[3]

2 Completion and final review

a) Explain the use of analytical proceduresin evaluation and review.[3]

b) Assess whether an engagement hasbeen planned and performed inaccordance with professionalstandards.[3]

c) Evaluate whether reports issued areappropriate in the relevantcircumstances .[3]

d) Evaluate as part of the final review thematters (e.g. materiality, risk, relevantaccounting standards) and auditevidence to confirm if sufficient andappropriate evidence has been obtained.[3]

e) Justify the review procedures whichshould be performed in a givenassignment, including the need for anengagement quality control review andrecommend additional procedures oractions needed in the circumstances.[2]

f) Evaluate the use of writtenrepresentations from management tosupport other audit evidence.[2]

3 Auditor’s reports

a) Determine the form and content of anunmodified auditor’s report and assessthe appropriateness of the contents of anunmodified auditor’s report.[3]

b) Recognise and evaluate the factors to betaken into account when forming anaudit opinion in a given situation andjustify audit opinions that are consistentwith the results of audit procedures.[3]

c) Critically appraise the form and contentof an auditor’s report in a givensituation.[3]

d) Assess whether or not a proposed auditopinion is appropriate.[3]

e) Advise on the actions which may betaken by the auditor in the event that amodified auditor’s opinion is issued.[3]

f) Explain the implications for the auditor’sreport on the group financial statementsof an entity where the opinion on acomponent is modified in a givensituation.[2]

g) Recognise when the use of an emphasisof matter paragraph, other matterparagraph and KAM disclosure would beappropriate.[3]

h) Discuss the courses of action availableto an auditor if a material inconsistencyor material misstatement exists inrelation to other information such ascontained in the integrated report.[2]



4. Reports to those charged withgovernance and management

a) Critically assess the quality of a report tothose charged with governance andmanagement.[3]

b) Advise on the content of reports to thosecharged with governance andmanagement in a given situation.[3]

F Other assignments

1. Audit-related and assurance services

a) Describe the nature of audit-relatedservices, the circumstances in whichthey might be required and thecomparative levels of assuranceprovided by professional accountantsand distinguish between:[2]

i) audit-related services and anaudit of historical financialstatements

ii) an attestation engagement and adirect engagement.

b) Describe the main categories ofassurance services that audit firms canprovide and assess the benefits ofproviding these services to managementand external users.[3]

c) Describe the level of assurance(reasonable, high, moderate, limited,negative) for an engagement dependingon the subject matter evaluated, thecriteria used, the procedures applied andthe quality and quantity of evidenceobtained.[3]

2. Specific assignment Due Diligence Review of interim financial

information Prospective financial

information Forensic audits

For each of the other assignments listedabove:

a) Define and describe the purpose of eachtype of assignment and analyse the

appropriate level of assurance whichmay be offered by a professional firm inrelation to these assignments. [3]

b) Evaluate the matters to be consideredbefore accepting the engagement,including any ethical and professionalconsiderations. [3]

c) Plan the assignment to gather suitableevidence and provide an appropriatelevel of assurance in line with theobjectives of the assignment. [2]

d) Discuss the level of assurance that theauditor may provide and explain theother factors to be considered indetermining the nature, timing and extentof examination procedures.[1]

e) Describe and recommend appropriatesubstantive, examination or investigativeprocedures which can be used to gathersufficient and appropriate evidence inthe circumstances.[2]

3. The audit of social, environmentaland integrated reporting

a) Plan an engagement to provideassurance on integrated reporting(performance measures andsustainability indicators).[2]

b) Describe the difficulties in measuringand reporting on economic,environmental and social performanceand give examples of performancemeasures and sustainability indicators.[2]

c) Describe substantive procedures todetect potential misstatements in respectof socio-environmental matters.[2]

d) Discuss the form and content of anindependent verification statement of anintegrated report. [2]

4 The audit of performance information(pre-determined objectives) in thepublic sector

a) Describe the audit of performanceinformation (pre-determined objectives)



and differentiate from performanceauditing. [2]

b) Plan the audit of performanceinformation (pre-determinedobjectives), and describeexamination procedures to be usedin the audit of this type ofinformation.[3]

c) Discuss the audit criteria of reportedperformance information, namelycompliance with reporting requirements,usefulness, measurability andreliability.[3]

d) Discuss the form and content of a reporton the audit of performance information.[2]

e) Discuss the content of an auditconclusion on an integrated report ofperformance against pre-determinedobjectives. [3]

5. Reporting on other assignments

a) Analyse the form and content of theprofessional accountant’s report for anassurance engagement as comparedwith an auditor’s report.[2]

b) Discuss the content of a report for anexamination of prospective financialinformation.[2]

c) Discuss the effectiveness of the‘negative assurance’ form of reportingand evaluate situations in which it maybe appropriate to modify a conclusion.[3]

G Current issues anddevelopments

Discuss the relative merits and theconsequences of different standpointstaken in current debates and expressopinions supported by reasonedarguments.

1. Professional and ethicaldevelopments

a) Discuss emerging ethical issues andevaluate the potential impact on theprofession, firms and auditors.[3]

b) Discuss the content and impact ofexposure drafts, consultations and otherpronouncements issued by IFAC and itssupporting bodies (including IAASB,IESBA and TAC).[2]

2. Other current issues

a) Discuss current developments inauditing standards including the need fornew and revised standards and evaluatetheir impact on the conduct of audits. [3]

b) Discuss current developments inbusiness practices, practicemanagement and audit methodology andevaluate the potential impact on theconduct of an audit and audit quality. [3]

c) Discuss current developments inemerging technologies, including bigdata and the use of automated tools andtechniques such as data analytics andthe potential impact on the conduct of anaudit and audit quality.[3]



12.Summary of changes to Advanced Audit andAssurance (AAA) (INT)

ACCA periodically reviews its qualification syllabuses so that they fully meet the needs ofstakeholders such as employers, students, regulatory and advisory bodies and learningproviders.

The main changes which have been made to the syllabus are summarised in the tablebelow.

Table of amendments

C1c Evaluate the quality controlprocedures which are inplace for a given firm andassess if they have beenappropriately applied in agiven engagement..[3]

Wording of learning outcomeextended to include andspecifically reference qualitycontrol for a given engagement.

D2b Assess and describe howIT can be used to assist theauditor, and recommendthe use of automated toolsand techniques, such asaudit software, test dataand other data analyticstools

Terminology has been revised tobring the syllabus in to line withthe proposed approach by theIAASB. Learning outcome D2(b)has been reworded for clarity.

D3a) Design appropriate auditprocedures relating to:[3]

xxvi) payroll and otherexpenses

Learnng outcome extended tospecifically cover testing aroundpayroll and other expenses forclarity.

E2b andE2c

b) Assess whether anengagement has beenplanned and performedin accordance withprofessionalstandards.[3]

c) Evaluate whetherreports issued areappropriate in therelevant circumstances.[3]

Previous learning outcome E2bsplit into two to demonstrate thatthese aspects of the syllabus arenot always tested together.



G2c) Discuss currentdevelopments in emergingtechnologies, including bigdata and the use ofautomated tools andtechniques such as dataanalytics and the potentialimpact on the conduct of anaudit and audit quality.[3]

Learning outcome amended toreflect change in terminologyadopted at D2b.

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Advanced Audit and Assurance (AAA) (INT) · Advanced Audit and Assurance syllabus 6. Relational...

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