F8 INT tips – December 2012 sitting

Opentuition

Sales accounting system: controls and receivables circularisation.
Elements of an assurance engagement; materiality
Computer aided audit techniques
Audit reports
Analytical procedures.

Kaplan Financial

• Audit risk including analytical procedures.
• Systems: purchasing/sales (including tests of control).
• Evidence: purchases/payables; share capital/directors transactions.
• Specific standards/topics:
? communicating with those charged with governance (ISA 260/265).
? materiality (ISA 320).
? external confirmations (ISA 505).
• Completion (ISA 580 – written representations)
• Auditor’s reports

BPP

The F8 exam consists of 5 compulsory questions. Question 1 is a 30 mark scenario based question which will test a wide range of topics such as internal controls and audit evidence and procedures.
The second question focuses on testing knowledge and is worth 10 marks. This question is often broken down in to 3 or 4 separate requirements and can require you to define some of the key terms within audit and assurance.
Questions 3, 4 and 5 are worth 20 marks each and the requirements will largely be based upon the given scenario. Typical areas which are tested in these questions are corporate governance, planning, audit risk, internal controls, audit procedures and audit reports.
Audit procedures, internal controls, audit risk and audit reports are almost always examined so make sure that you can generate both tests of control and substantive procedures for key cycles and balances as well as being able to identify internal control deficiencies. You should also ensure that you can draw out audit risks from a scenario as well as determining the effect audit issues may have on the audit report.

First intuition

Substantive audit procedures and tests of control on a key area of the Statement of Financial Position e.g. inventories or non-current assets.
Audit risks in a particular scenario.
Identifying and explaining the threats to auditor independence and ways of managing them.
Mgt letter: identifying the weaknesses, consequences and recommendations in a particular company.
Subsequent events.

LCA

The exam will cover a wide range of areas from the syllabus and so students should have a good overall knowledge. No-one knows what will come up – but particular areas to pay attention to are:
Internal controls and substantive procedures – usually come up (perhaps Bank & Cash / Liabilities).
Audit risk.
Materiality.
Written representations & audit reports.
Relevant & reliable evidence.
CAATs.
Other areas – ISA 402/ISA 720/going concern (recent technical article).

LSBF

Substative procedures – inventory, share capital, reserves and director’s emoluments, opening balances and comparatives.
Internal controls – revenue and capital expenditures.
Planning issues – audit risk.
Ethics – fundamental ethics (dr PICCO) and threats and safeguards.
Audit reports & going concern.
Audit evidence – quality, quantity, reliability and relevance.

best of luck with exam!
ansi