My 5 tips to Pass P7

Ok so I passed both p7 and f8 first time. These are the tips I followed:

First please note that these tips might not work for you because there is NO one for all rule when it comes to studying. It works differently for everyone but I am very confident that if you follow these basic tips then you are more likely to pass this extremely tricky paper.

Please read my tips to pass f8 first here: https://opentuition.com/topic/my-tips-for-passing-f8/

For p7 please follow below:

1) Please make sure that you get yourself familiar with the accounting standards. These are different from auditing standards. Basically you have to get yourself familiar with every accounting standard on this page here https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f7/examinable%20documents/f7-and-p2-examdocs-2017%20-18.pdf

Please follow the p7 column in this link and ignore the Other statements and exposure draft sections. I cannot stress more how important it is for you to follow this step seriously. Without accounting standards, you will never be able to answer at least 70% to 80% of the paper. Just think about it logically since its no rocket science. P7 is about auditing financial statements and if you are not familiar with p2 accounting standards then how are you going to audit them? It’s very simple. Please get an understanding of all accounting standards and then attempt questions because only then it would make sense to you when you do audit risk questions and issues in question 3, 4 and 5.

2) Next practice all audit risk questions.
Remember that audit risk is inherent risk * Control risk * detection risk. Inherent risk * Control risk is ALSO called financial statement risks and risk of MM. The detection risk is any risk that the auditor faces and which is likely to impact the auditors ability to detect MM. For example New client increases detection risk because Auditors have no experience and knowledge of the industry and there is a high risk of Auditor missing detecting MM. Similarly if there is shortage of audit staff or pressure from the client to complete audit work by a certain deadline then that also increases audit risk. Watch the YouTube video and practice questions on this again and again

3) Get yourself familiar with all auditing standards on this link https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f8/examinable%20documents/f8-p7-int-2017-18-examdocs.pdf

4) Understand the impact of each accounting standard on the three financial statements (income statement, SOFP and Cash flow) and think about how to audit each of these standards. This step is inextricably intertwined with step 1. Try and think logically of evidences and procedures required in order to audit a particular accounting standard. Follow the AEIOU approach when it comes to evidence and use common sense. Please read this short thread https://opentuition.com/topic/audit-procedures-or-evidence/

5) Practice past paper questions straight after finishing a particular topic and please do not forget to mention materiality and calculations. This is a very important step

Conclusion

Accounting standards are the key to pass this exam. If you are familiar with accounting standards then you will be able to easily think of how to audit a particular accounting standard. This will help you in answering all questions in relation to procedures and evidence. Think about for example IAS 37 Provision. Once you are familiar with this standard then think about the auditing aspect. Think about what would you do as an auditor to verify a provision figure in company’s accounts. Think about speaking to the company’s lawyer and insurance company and use common sense to keep it simple.

Get basic understanding of the accounting standard first then practice past papers.

That is it. You are more likely to pass this beast if you follow the above tips.

Thanks and Regards

Roy