STUDENTS
Exam technique Some suggestions for how you can improve your exam technique for the paper “Developments in Auditing and Assurance”.
T
he new Developments in Auditing and Assurance paper was set for the first time in November. The paper has changed somewhat from the old Paper 15 Professional Accountant in construct and emphasis, although the content is broadly similar and the key factors leading to success in the paper apply. The new examination is building on the Principles of Governance and Audit paper from the Professional 1 level and the other related elements of the Foundation level and then aims to extend and deepen the student’s understanding of auditing and auditing techniques. The examination therefore explores auditing and assurance procedures to consider more challenging reporting areas and issues. It examines and critiques current practices and explores emerging and future developments in auditing and assurance. In addition to providing a thorough professional grounding in audit, other assurance areas are also discussed, applying audit techniques to emerging areas. The specific aims are to develop and examine the candidate’s ability to: 1. present, discuss and critique advanced auditing approaches and techniques; 2. demonstrate how these can be applied in different situations mainly (but not only) in relation to financial statement audits; and 3. discuss and critique developments in auditing and accountability. (Note that wider aspects of accountability are also covered within this paper.)
What does this mean in practice?
The paper is examining your ability to analyse issues and then develop appropriate audit or other responses, as well as demonstrating your ability to critically appraise current practice and future developments. To enable the examiner to test these skills, the Developments in Auditing and Assurance paper is based around a complex real-world scenario from which audit and assurance issues arise.
8
The paper is split into three questions, all of which are compulsory, and which may or may not always relate to the same scenario. The first question, worth 50% of the marks, will always be based on this scenario. The remainder of this article is aiming to help students to prepare for this first unseen practice scenario-based question.
Key skills
The key skill that you are being assessed on within this question is the ability to apply your professional knowledge and skills to the specific issues arising in the audit/assurance engagement described. To maximise your marks, you must address the specific issues in the scenario against relevant professional auditing standards or professional codes or quality guidance, and illustrate that you appreciate the key risks and problems within the issue.
Nature of the scenario
The scenario will give details of an entity subject to an audit or assurance assignment. Students will be asked to place themselves within a professional service team – usually as the audit manager or engagement partner – and to respond to the issues raised from this practical perspective. Always these topics represent the audit of an ISSUE 122 | AIAWORLDWIDE.COM
