STUDENTS
Current issues in auditing: part 1 Candidates must be fully prepared on the topic of current and professional issues in auditing, as reflected in the AIA’s May 2019 support paper.
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examined as a discrete question which they can choose to avoid, rather than as a requirement to contextualise other aspects of the syllabus around the emergent concerns for the profession in a more embedded manner. To this end, the AIA has produced the following support for candidates preparing for the May 2020 sitting of Paper 15, highlighting a number of emerging issues which they should ensure familiarity with. This article is not intended to be exhaustive but should signpost candidates towards their wider professional reading. Students should also be familiar with the specific more advanced areas of auditing practice that are only examined on Paper 15. The last sitting again exposed limited understanding of both the audit of segmental reports and the audit of related party transactions. A diligent review of the detailed syllabus for Paper 15 should highlight these specific technical concerns. Students are also reminded that Paper 15 is 90% application rather than knowledge recall and that their answers must reflect this. To this end, the examiner advises students to ensure that they understand the key issues in accounting standards and auditing standards, codes, etc. and then apply this to the question diligently. Reiterating the question does not score marks and merely stating the theory without application also results in a very low mark.
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s highlighted to students in the last study guidance article, within the syllabus for Paper 15 Professional Practice (Auditing) is section 15.5 Current and Professional Issues and Pronouncements. It states in this section of the syllabus that: “Candidates are expected to keep abreast with the latest developments in professional issues, decisions of legal cases, changes in legislation and issuance of audit and accounting pronouncements that will affect processes, strategies and legal implications of audit assignments and evaluation services and the profession.” I re-emphasise to students that this topic is weighted at 20% and is therefore as important as topic 15.1 Regulatory Issues and Professional Practices; and only 5% less important than 15.2 Statutory Audit and Other Evaluation and 15.3 Audit Strategy and Process. It is therefore of continued concern to the examiner that students do not appear to be adequately prepared in this area. Following the performance on the November 2019 paper, the examiner continues to feel that candidates are expecting this topic to be
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