AAAP7 Int exam tips – June 2013 (Bpp, Kaplan , First Intuition, Becker)

Exam tips are out! Enjoy but do not rely on them. Kaplan Core areas (as per examiner’s approach article) likely to be examined in every paper: • Engagement planning and risk assessment (audit risk); • Engagement procedures (i.e. evidence); • Ethics and professional issues; • Completion (matters to consider/evidence on file) and engagement reporting; Subjects of recent articles: • Planning (October 2012) Significant topics not examined for at least 18 months: • Subsequent Events (ISA 560) • Due diligence • Auditor’s responsibilities regarding fraud • Limiting liability • Changing auditors Current topics: • Competition in the statutory audit market • Improving the audit report. Please note: the UK variant is also very likely to include an aspect of Insolvency (wrongful & fraudulent trading?). Please be aware that the whole syllabus is examinable. Whilst the above topics are likely to be examined in forthcoming sittings this does not mean candidates should avoid other areas of the syllabus in their exam preparation. The examiner will set 5 questions, which will all have multiple elements, so it is likely that topics other than the ones noted above will be examined in the June 2013 exam. The examiner has noted that questions will not be restricted to topic areas (e.g. question 5 will not necessarily be on audit reporting) and instead we should expect to see topics spread across a number of questions. In addition, please note the case study questions in section A will have the requirements embedded in the question (see the article from the examiner ‘Changes in question style’). 4 professional marks will be available within one of the section A case study questions. Finally, please note that the questions in the exam now have a fixed number of marks as follows: • Question 1: 35 marks • Question 2: 25 marks • Questions 3 to 5: 20 marks each BPP We expect that the P7 exam in June will mirror previous sittings, with two compulsory questions making up the majority of the marks on offer and a choice of two from three optional questions. For exams in 2013 and beyond, the compulsory questions will be fixed at 35 marks and 25 marks for Questions 1 and 2 respectively, while the optional questions will each score 20 marks. For this sitting, you can expect a planning scenario in the compulsory section which should draw on article content recently published by the P7 examiner, while we expect that optional questions will again test audit reports, ethical issues and practice-related matters. Candidates should also take heed of the examiner’s recent advice on exam technique for P7 and assurance engagements when preparing for this exam. Opentuition Question 1 Respond to an email ( with briefing notes from a meeting with a (possibly ) new client ). You are asked to prepare an outline report for the partner to present the case / problems to the members of the audit team at the planning meeting. Take your calculator – there WILL BE materiality considerations to take into account Question 2 Identify business risks ( or audit risks ) relating to a client and suggest ways to minimise the risk Question 3 “Identify the matters you should consider” and “State what audit evidence you should expect to find” BEWARE the difference between “audit evidence you should expect to find” compared with “the audit procedures which you should expect to have been carried out” Question 4 Various matters and their impact on the audit report / opinion Question 5 Advantages and costs of establishing an internal audit department as distinct from outsourcing OR Comment on the ethical and professional issues raised within a brief scenario with 2 or 3 matters identified First Intuition * Audit risks in a scenario. * Identifying ethical and other professional issues in a scenario. * Audit reports. * Group audits. * Money laundering. Becker • New audits, tendering. • Planning, materiality, sampling, analytical review. • Audit, business or financial statement risk. • Group audits, goodwill, joint audit, joint ventures. • Assurance services, PFI, KPI, due diligence, forensic audit, reviews, insolvency. • Ethics, practice management and other professional issues. • Any audit matter covering IFRS. • Close down procedures, opening balances, comparatives. • Outsourcing, service providers, use of an expert. • CG, internal audit (ethics/outsourcing), audit committees. • Current issues. _______________________________________ Source: https://www.pqaccountant.com/ https://www.kaplan-exam-tips.com/acca/ Very best of luck with your exams! ansi