Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Failed AA
- This topic has 4 replies, 2 voices, and was last updated 5 years ago by Kim Smith.
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- January 21, 2019 at 8:21 pm #502917
Hi sir AA exam- got 46% . Can you please suggest me how do i start my prep again?
Shall i study everything again? like in detail?
Please share some tipsThanks in advance
January 21, 2019 at 8:28 pm #502922Also, I have been told FR should be done before AA but if i start FR now its difficult to give both exam in march.. So, do you think Failing my AA is the reason of not doing FR before?
January 22, 2019 at 8:47 am #502975See my advice here https://opentuition.com/topic/failed-aa-more-than-4-times/
You may need to study selected topics again if lack of knowledge contributed to your failure but mostly you should be properly practicing questions.
No – the assumed accounting knowledge for AA is only that at FA (F3), not FR (F7). So although I generally recommend that students study for FR before AA to have a better appreciation of financial statements (what it is that the auditor audits), it is not essential and should not be the reason for failure. Read the examiner’s report (it’s available) – only you can really know where you didn’t earn the marks.
January 26, 2019 at 2:07 pm #503327Thanks sir.
I have a doubt in Audit risk question, When there is a question to identify 6 audit risk and responses- It is very much similar like find the deficiencies and recommendation it?
For example – There is a question in BPP course notes which says find the audit risk and give audit response, So one of thee audit risk i found that the company’s accounting system is in US dollar but there transactions are mostly in Euros because they are doing trading in European countries :
So under this the AR- is that there there accounting system is in Us dollar and they are dealing in Euros so it will lead into material misstatement in FD because of conversion rates and
Audit response in this will be-Re-calculate the transaction of a sample of invoices that they have been accurately record and enquire the management and what is the exchange rate used to translate their invoices.Don’t you think audit risk is mainly to do with IR, CR, and DR but they haven’t any of these in risks. Why is that?
Also, if there is a same question regarding deficiency it would be similar answer like
Deficiencies will be same as Ar and audit response will be the recommendation.What key words exactly we have to use in these questions?
Thanks in advance and
have a lovely weekend:)January 27, 2019 at 9:10 am #503393Please can you remember to post new questions on new topics to new threads with a suitable name – this helps using and navigating the forums.
Picking up on some of your comments:
“It is very much similar like find the deficiencies and recommendation it?” – the short answer is NO – I’ll expand on this below. The only similarity is that you’d be expected to present an answer in a columnar/tabular format – but the answer points are completely different.“Don’t you think audit risk is mainly to do with IR, CR, and DR …” – YES, I do
“… but they haven’t any of these in risks. Why is that?” – I don’t understand what you are saying/asking.
“Deficiencies will be same as Ar and audit response will be the recommendation.” – short answer is NO.Longer answer – look at the overview of the audit process (Chapter 7). The auditor assesses ROMM through understanding the entity – the AUDITOR’s response to those risks is what the AUDITOR must do – this will be substantive in nature unless the auditor expects there to be effective internal controls.
There is inevitably some “overlap” between topics in so far as a lack of control increases CR and is a deficiency, but the “deficiencies/recommendation” question is completely different. The recommendation is what MANAGEMENT (not the auditor) should do.
I think you will generally find that most risks in “risk” questions are inherent – so the scope for potential overlap/confusion should be very limited.
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