Audit an d Assurance (INT) (F8) June and ber The Directory also Dece lists aterials by (ubscr ibers)

these aterials have not been /uality ass ured by #$%% A22A but they ay be use&ul rea so ding" 8ou will al
For in&or ation about A22A3s Approved 4earning *artners . content) please go A22A3s 2ontent *rovider Directory" &ind details here o& Additional 9eading which the -xa iner has and suggested ay be use&ul This syllabus study guide is designed to help supp le entary reading students" with planning study and&or to provide detailed in&or ation on what could be assesse d in A 22A3s ryexa can 2ontent be any ina&ound tion*rovider session" Directo here : http;<<www"accaglobal"co <learningprovid c<c ers<alp THE STRUCTURE OF THE SYLLABUS AND ontent=provider=directory<search< " STUDY $U%DE

so e higher level capabilities Syllabus lower levels" rationale

ay be assessed at

LEARN%N$ This is a narrative HOURS explaining how the syllabus is structured and how the ain capabilities are lin!ed" The A22A rationale /uali&ication also explains does in &urther not prescribe detail what or the exa ination reco end any intends particular to assess nu and be why" r o& learning hours &or exa inations because study and learning Detailedand patterns syllabus styles vary grea tly between people and organisations" This also recognises the wide This shows diversity o& the personal) brea!down pro&essional o& the and ain educational capabilities (sections) circu stances o& the insyll which abus A22A into sub'ect s tudents areas" &ind This is the blueprint selves" &or the detailed study guide" -ach syllabus Approac to e!a"inin# contains between t e syllabus #> and >? ain sub'ect area head ings depending on the nature o& This the sub'ect section and brie&ly how explains these areas thehave structure beeno& bro!en the exa ination and how it is asse ssed" down"

9elevant articles willo& also be published in (tuden Relational dia#ra" paper 'it ot er p apers t Accountant" This diagra shows direct and indirect lin! s %NTELLECTUAL LE*ELS Study $uide $U%DE TO E+A) STRUCTU RE between this paper and other papers prec r eding o &ollowing it" (o e papers are directly underpi d nne The syllabus is designed to progress The ively structure broaden This is the ain docu ent th varies at students) within tuition and by other papers such as Advanced *er&or a nce o& exa inations and deepen the !nowledge) s!ills and pro&e between odules and levels"hould use as the basis o& +anage ent by *er&or ance +anage ent l e providers "ssiona Thes and publishers s values deshown onstrated by the tudent on their way ials" lin!s are as solid linesarrows" ,the s their r paper studies) instruction and ater through the /uali&ication" -xa Funda The inations entals will be level based ex on a the inations detail contain o& the only have indirect relationships with eac h other % $$@ cocopulsory /uestions to encourage ely identi&ies what such as lin!s existing between the accounting an d study guide which prehensiv The speci&ic capabilities wit hinbe the detailed candidates to study across the breadth nation o& each session" auditing papers" The l wn in!s could between assessed these are in sho any exa i syllabuses and study guides are assessed at one o& tion and as dotted line arrows" This diagra indicates whe re syllabus" The study guide is a precise re&lec three intellectual levels; e brea!down ivided into sections you are expected or to cognitive have underpinning !nowledg o& the syllabus" It is d based The Anowledge on the ain odule capabilities is assess identi&ied ed by i e/uivalent n the and where it would be use&ul to review previous 4evel %; be&ore Anowledge and co study" prehension syllabus" These two.hour paper based sections and are co d ivided puter into based sub'ect learning underta!ing 4evel #; Application and analysis areas inations" exa which relate to the s ub.capabilities included 4evel >; ai" (ynthesis evaluation in the detailed s yllabus" (ub'ect areas are bro!en O(erall o& t eand syllabus down The (!ills into sub.headings odule exa inations which describe are all paper the detailed based Bery broadly) brie&ly these intellectual relate o& three.hour to the papers" The outco structu es that could be assessed in re exa o& papers inations" varies This explains the overalllevels ob'ective the three levels which the Anowled ge Theseten &ro outco /uestions es are in described the Corporate u singand verbs Business papercognitive and indicates in at the broadest sense the odule) the to (!ills odule and the *ro&essio vel nal le indicating Law (FC) paper whatto exa&our s #? ay re/uir ar! /uestions e students in to capabilities be developed within t he paper" are assessed" de onstrate) Financial Management and the broad (FD)"intellectual Individual level /uestions at which these within all (!ills ay need odule topapers be de owill nstrated attract between )ain capabilities -ach sub'ect area in the detailed study gu ide (0see %$ and intellectual >$ ar!s" levels below)" included in this ent is given a %) # n ) ral or ai This paper1s ai docu is bro!en down into seve > superscript) denoting intellectual level) at study ar!ed Learnin# The *ro&essional )aterials level papers are all three.hour capabilities which divide the syllabu s and the end o& each relevant line" This g ives an paper based exa inations) all containing two guide into discrete sections" indication o& the intellectual depth at wh ich an ar ea A22A3 sections" s Approved (ection A 4earning is co puls *artner ory) . content but there (A4*. will be could be assessed within exa capabilities ination" Eowever) c) isethe so choice progra o&&ered e through in (ection which 5" A22A approves Relational dia#ra" o& t the e "ain while level % broadly e/uates with the Anowledge learning aterials &ro high /uality content odule) level illustrates # e/uates to the (!ills odulebetween and providers For all three designed hour exa to support inationstudy papers) towards A22A A22A1s has This diagra the &lows and lin!s level tocapabilities the *ro&essional level)o& so esyllabus lower level /uali&ications" introduced %? inutes reading and planning ti e" the > ain (sections) the and s!ills can toaid be assessed as the student should be continue used as an to planning teaching and progresses through each odule and level" This A22A This additional has one ti *latinu e is allowed Approved at the 4earning beginning *artner o& learning in a structured way" re&lects that at each stage o& study there will be a content each three.hour which isexa 5** ination 4earning to +edia" allow candidates In addition) to re/uire ent to broaden) as well as deepen therethe read are/uestions a nu berand o& 6old to begin Approved planning 4earning their capabilities" It is also possible that occasionally *artners be&ore answers . content" they start writing in their answer

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boo!s" This ti e should be used to ensure that a ll the in&or ation a nd exa re/uire ents are prope rly read and understood" During reading and planning ti e candida tes a y only annotate their /uestion paper" They ay not write anything in their answer boo!lets until told to do so by the invigilator" The -ssentials odule papers all have a (e A ction containing a a'or c ase study /uestion with all re/uire ents totalling ?$ ar!s relating to this case" (ection 5 gives students a choice o & two &ro three #? ar! /uestions" (ection A o& each o& the ,ptions pap ers contains ?$.F$ co pulsory a r!s &ro two /uestions) each attracting between #? and C$ ar!s" (ection 5 will o&&er a choice o& two &ro three /u g estions totallin >$.?$ ar!s) with each /uestion attracting between %? and #? ar!s" The pass ar! &or all A22A Guali&icat ion exa ination papers is ?$@" $U%DE TO E+A)%NAT%ON ASSESS)ENT A22A reserves the right to exa ine anything contained within the study guide a io t any exa inat n session" This includes !nowledge) techni/u es) principles) theories) and concepts as spe ci&ied" For the &inancial accounting) audit and as surance ) law and tax papers except where indicated otherwise) A22A will publish examina ble documents once a year to indicate exact ly what regulations and legislation could potentially be assessed within identi&ied exa ina tion sessions"" For paper based exa inations regulat ion issued or legislation passed on or be&ore >$ t h (epte ber annually) will be assessed &ro Jun e % s t o& the &ollowing year to +ay >% s t o& the year a&ter" *lease re&er to the exa inable docu ents &or the paper (where relevant) &or &urther in&or ation" 9egulation issued or legislation passed in accordance with the above dates ay be exa inable even i& the effective date is in the &uture" The ter issued or passed relates to when regulation or legislation has been &or ally approved"

The ter e&&ective relates to when regulation or legislation ust be applied to an entity transactions and business practices" The study guide o&&ers ore detailed guidance on the depth and level at which t he exa inable docu ents w ill be exa ined" The study guide should there&ore be read in con'unction with the exa inable docu ents list"

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>

(yllabus
$RE ,-./ AAA ,-0/

CL ,F1/

FR ,F0/

AA ,F2/

A%) To develop !nowledge and understanding o& the process o& carryin tg out the assurance engage en and its application in the context o& the pr o&essio nal regulatory &ra ewor!" )A%N CA-AB%L%T%ES ,n success&ul co pletio n o& this paper) candidates should be able to;

A-xplain the nature) purpos e and scope o& assurance engage ents inclu ding the role o& the external audit and its regulatory and ethical &ra ewor! B-xplain the nature o& interna l audit and describe its role as part o& overa ll per&or ance anage ent and its relationship with the external audit CDe onstrate how the aud itor obtains an understanding o& the en tity and its environ e nt) assesses the ris! o& aterial isstate ent (whether a rising &ro &raud or other irregularities) and plans an audit o& &inancial state ents DDescribe and eval uate in&or ation syste s and internal controls to ide nti&y and co unicate control r is!s and their potential conse/uences) a!ing appropriate reco endations EIdenti&y and describe the wor! and evidence re/uired to eet the ob'ect ives o& audit engage ents and the appli cation o& the International (tandards o n Auditing F-valuate &indi ngs and odi&y the audit plan as necessary $ -xplain how the conclusions &ro audit wor! are re&lected in di&&erent types o& audit report) explain the ele ents o& each type o& report"

RELAT%ONAL D%A$RA) OF )A%N CA-AB%L%T%ES

Audit &ra ewor! and regulat on i

,A/

Internal audit ,B/

*lanning and ris! assess ent

,C/

Internal control ,D/ Audit evidence

,E/

9eview ,F/

9eporting ( $/

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RAT%ONALE

>" Hnderstanding the entity and its environ ent

The Audit and Assurance syllabus is esse ntially C" +aterialit y) &raud) laws and regulations divided into seven areas" The syllabus starts with the nature) purpose and scope o& assurance ?" Ana lytical procedures engage ents) including the statutory audit ) its regulatory environ ent) and introduces p ro&ession al I" *lanning an audit ethics relating to audit and assurance" It th en lea ds into internal audit) including the scope o& i nterna l F" Audi t docu entation audit as well as the di&&erences betw een internal audit and external audit" The syllabus then covers a D3 %nternal control range o& areas relating to an audit o& &inan cial state ents" These include planning and ris! %" Internal control syste s assess ent) evaluating internal controls) a udit evidence) and a review o& th e &inancial state ent s" #" The use o& internal control syste s by auditors The &inal section th in en deals with reporting) includ g statutory audit reports) anage ent reports) and >" Transaction cycles internal audit reports" C" Tests o& control DETA%LED SYLLABUS ?" The evaluation o& internal control co ponents A3 Audit &ra"e' or4 and re#ulation I" 2o unication on internal control %" The concept o& audit and other as surance engage ents E3 Audit e(idenc e #" (tatutory audi >" The regulato governance ts ry environ ent and corporate %" The use o& assertions by #" Audit procedures >" The audit o& speci& C" *ro&essional ethics and A22A1s 2ode and 2onduct B3 %nternal audit %" Internal audit and corporate governance #" Di&&erences between the external auditor and the internal audit &unctio n >" The scope o& the internal audit &unction %" (ubse/uent events C" ,utsourcing the internal audit &unction #" 6oing concern ?" Internal audit assign ents >" Jritten representations C3 -lannin# and ris4 assess"ent C" Audit &inalisation and the &inal review %" ,b'ective and general principles $3 Reportin# #" Assessing the ris!s o& aterial isstate ent %" Audit reports o& -thi cs C" Audit sa pling and other ?" 2o puter.assi eans o& testing ic ite s auditors

sted audit techni/ues

I" Th e wor! o& others F Not.&or.pro F3 Re(ie' &it organisations

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#" 9eports to

anage ent

>" Internal audit reports

A--ROACH TO E+A)%N%N$ THE SYLL ABUS The syllabus is assessed by a thr ee.hour paper. based exa ination) consisting o& &ive co pulsory /uestion s" The bul! o& the /uestions will be discursive but so e /uestions involving co putational ele ents will be set &ro ti e to ti e" The /uestions will cover all areas o& the syllabu Guestion % will be a scenario.based /uestion worth >$ ar!s" Guestion # will be a !nowledge.based /uestion worth %$ ar!s" Guestions >) C and ? will be worth #$ ar!s each" s"

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(tud y 6uide
A AUD%T FRA)E6OR7 AND RE$ULAT %O N .3 T e concept o& audit and ot er assur nc a e en#a#e"ents a) Identi&y and describe the ob'ective a nd general principles o& external audit en gage en "ts K #L b) -xplain the nature and develop ent o& audit and other assurance engage ents" K % L c) Discuss the concepts o& accounta stewardship and agency" K # L bility)

53

T e re#ulatory en(iron"ent and corporate #o(ernance

a) -xplain the develop ent and status o& International (tandards on Auditing (I(As)"K % L b) -xplain the relationship between International (tandards on Auditing and national standards" K % L

c) Discuss the ob'ective) releva nce and i portance o& corpora te governance"

K #L

d) Discuss the need &or auditors to co unicate K with those charged with gov ernance" #L e) Discuss the provisio ns o& international codes o& corporate governa nce (such as ,-2D) that are ost relevant to auditors" K # L &) Describe good corporate governance re/uire ents relating to directors1 responsibilities (e"g" &or r is! anage ent and internal control) and the reporting responsibilities o& auditors" K % L g) Analyse the structure and roles o& audit co ittees and discuss th eir bene&its and li itations" K # L h) -xplain the i portance o& in ris! anage ent" K %L ternal control and

d) Discuss the concepts o& true and &air presentation and reasonable assura nce" K #L e) -xplain reporting as a eans o& co to di&&erent sta!eholders" K %L &)De&ine and provide the ob'ectives o& an assurance engage ent" K % L g) -xplain the &ive ele ents o& an assurance engage ent" K # L h) -xplain the level o& assura c by n e provided audit and other review engage ents "K %L " 83 Statutory audits a) Describe the regulatory environ ent w which s tatutory audits ta!e place" K % L b) Discuss the reasons and echanis regulation o& auditors" K # L ithin unication

i) 2o pare the responsibilities o& anage ent and auditors &or the desi gn and operation o& syste s and controls" K #L 13 -ro&essional et ics and AC and Conduct CA9s Code o& Et ics

s &or the

c) -xplain the statutory regulations governi ng the appoint ent) rights) re oval and resignation o& auditors" K %L d) (tate the ob'ectives and principle activities o& statutory audit and assess its value (e"g" in assisting anage ent to reduce ris! and i prove per&or ance)" K %L e) Describe the li itations o& statutory audits"
K%L

a) De&ine and apply the &u nda ental principles o& pro&essional ethics o& integr ity) ob'ectivity) pro&essional c o petence and due care) con&identiality and pro&essional behaviour" K #L b) De&ine and apply the conceptual &ra ewor!) including the threats to the &unda ental principles o& sel&.interest) sel&.review) advocacy) &a iliarity) and inti idation" K # L c) Discuss the sa&eguards to o&&set the threats to the &unda ental principles" K # L

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d)with Describe reg d the auditor1s responsibility ar to auditor indep endence) con&licts o& interes t and con&identiality" K %L

-LANN%N$ AND R%S7 ASSESS)ENT iples

.3 Ob:ecti(e and #eneral princ

e) Discuss ire the preconditions) re/u ents o& a) Identi&y the overall ob'ec tives o& the auditor" K #L pro&essional ethics) and other re/uire ents in relation to the acceptance o& new audit b) Identi&y and describe the need to plan and engage ents" K #L per&or audits with an attitude o& pro&essional scepticis ) and to exe rcise pro&essional &) Discuss the process by which an aud itor 'udg ent "K #L obtains an audit eng age ent" K #L c) -xplain the need to conduc t an audit in g) -xplain the i portance o& engage ent letters accordance with I(As" K % L and state their contents" K %L 83 Assessin# t e ris4s o& "at erial "isstate"ent B %NTERNAL AUD%T K %L a) -xplain the co ponents o& audit ris!" .3 %nternal audit and corporate #o(ernance b) -xplain the ris!s o& aterial isstate ent in a) Discuss the &actors to be ta!en into a ccount the &inancial state ents" K # L when assessing th e need &or internal audit" K #L 53 Understandin# t e entity and its en(iron"ent b) Discuss the ele ents o& best practice in the structure and operati ons o& internal audit with a) -xplain how auditors obta in an initial re&erence to appropriate international cod s e o& understanding o& the entity and its corporate governance" K # L environ ent" K # L 83 Di&&erences bet'een t e e!ternal auditor t e internal audit &unction and b) Describe ris! assess ent pr ocedures &or the identi&ication a nd assess ent o& the ris!s o& aterial isstate ent" K # L 13 )ateriality; &raud; la's and re#ulations ateriality

a) 2o pare and contrast the role o& external and internal audit regarding audit planning and the collection o& audit evidence" K # L 53 T e scope o& t e internal audit &unc tion

a) De&ine and explain the concepts o& and per&or ance ateriality" K # L

a) Discuss the scope o& in n the ternal audit a d li itations o& the internal audit &unction 13 Outsourcin# t e internal audit &unct ion

"K #L

b) -xplain and calculate ateriality levels &ro &inancial in&or ation" K #L c) Discuss the e&&ect o& &raud a nd isstate ents on the a udit strategy and extent o& audit wor!"K # L d) Discuss the responsibilities o& internal and external auditors &or the prevention and detection o& &raud and error" K #L e) -xplain the auditor1s responsibility to consider laws and regulations" K # )

a) -xplain the advantages and disadvan tages o & outsourcing the internal audi t &unction" K %L <3 %nternal audit assi#n"ents a) Discuss the nature and purpose o& internal audit assign ents including value &or oney) IT) best value and &inancial" K #L b) Discuss the nature and purpose o& operational internal audit assign ents including procure ent" K # L

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<3 Analytical procedures a) Describe and explain the nature urpose ) and p o&) analytical procedures in plann ing"K #L b) 2o pute and interpret !ey ratios used i analytical procedures" K #L =3 -lannin# an audit a) Identi&y and explain the need &or plann audit" K # L b) Identi&y and describe the contents o& audit strategy and audit plan" K #L ing an n

process) the in&or ation syste ) including the related business proc esses) relevant to &inancial reporting) and co unicati on) control activities relevant to the audit) and onitoring o& controls" K # L c) Discuss the di&&erence between tests o& control and substantive proce dures" K #L 83 T e use o& internal contro auditors l syste"s by

a) -xp lain how auditors record internal control the ove rall syste s including the use o& internal control /uestionnaires and internal control evaluation /uestionnaires" K # L
K#L

c) -xplain nd describe a the relationship between the overall audit strategy and the audit plan" d) -xplain the di&&erence between inte &inal audit" K % L 03 Audit docu"entation ri and

b)

-xplain how auditors identi&y de&iciencies and signi&ican t de&iciencies in internal control syste s and how those signi&icant de&iciencies li it the extent o& audito rs1 reliance on those syste s" K #L

53 Transaction cycles a) -xplain the need &or and the i portan audit docu entation" K % L ce o& a) -xplain) analyse and provide exa ples o& inte rnal control procedures and control activities" K #L b) *rovide exa ples o c & o puter syste c) -xplain e procedures th a&eto custody e controls" nsure s and retenti on o& wor!ing papers" K % L D %NTERNAL CONTROL The &ollowing transaction cycles and account balances are relevant to this capability; M revenue) M purchases) M inventory) M revenue and c apital expenditure) M payroll) M ban! and cash" .3 %nternal control syste"s a) -xplain why an auditor needs to obtain an understanding o& internal control relevant to the audit" K %L b) Describe and explain the &ive co ponents o& an internal control syste o& the control environ ent) the entity1s ris! assess ent b) -xplain the need to odi&y the audit strategy and audit plan &ollowing the results o& tests o& control" K %L c) Identi&y and explain anage ent1s ris! assess ent process with re&erence to internal control co ponents" K % L a) -xplain and tabulate tests o& control suitable &or inclusion in audit wor!ing papers" K # L b) 4ist exa ples o& applicatio general IT controls" K # L <3 T e e(aluation o& inte n controls and
K#L

b) Describe the conten ts o& wor!ing papers and supporting docu entation" K# L

13 Tests o& control

rnal control co"ponents

a) Analyse the li itations o& internal control co ponents in the context o& &raud and error"

K #L

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=3 Co""unication on internal control a) Discuss and provide exa ples o& how the reporting o& internal control signi&icant de&iciencies and reco endations to overco e those signi&icant de&iciencies are provided to i anage ent" K #L E AUD%T E*%DENCE .3 T e use o& assert ions by auditors

M explain the substantive procedures used in auditing each balance" a) 9eceivables; K #L i) direct c on&ir ation o& accounts receivable i) other evidence in re lation to receivables and prepay ents) and iii) the related inco e state ent entries" b)

a) -xplain the assertions contained in th &inancial state ents" K #L b) -xplain the assertions in relation to cla transact ions) account balances) and presentation and disclosures" K % L c) -xplain the use o& assertions in o evidenc e" K #L

Inventory; K #L i) inventory counting procedures in relation to year.end and continuo us inventory esy ste s ii) cut.o&& iii) auditor1s attendance at in ventory counting sses o & iv) direct con&ir ation o& inventory held by third parties) v) other evidence in rel ation to inventory"

btainin g audit c) *ayables) accruals) provisions an d K #L contingencies; i) supplier state ent reconciliations and 83 Audit procedures direct con&ir ation o& accounts payable) ii) obtain evidence in relation to payables a) Discuss the /uality and /uantity o& audit and accruals) and evidence" K #L iii) the related inco e s tate ent entries" b) Discuss the relevance and reliability o& evidence" K #L
K#L audit d) 5an! and cash; i) ban! con&ir ation reports used in obtaining evidence in relation to ban! and c) Discuss and provide exa ples o & how cash analytical procedures are used as subs tantive ii) other evidence in relation to ban! and procedures" K # L cash) and iii) the related inco e s tate ent entries" d) Discuss the proble s associated with the audit and review o& accounting esti ates" K # L e) Tangible non.current as sets and non.current liabilities; K # L e) Describe w hy s aller entities ay have i) evidence in relation t o non.current assets di&&erent control environ ents and describe the and types o& evidence li!e ly to be available in ii) non.current liabilities and K % L s aller entities" iii) the related inco e s tate ent entries"

&) -xplain the auditor1s responsib ilities an d describe procedures to be applie d in relation o t opening balances and co parative in&or ation" K # L 53 T e audit o& speci&ic ite"s

&)

(hare capital) reserves and directors1 e olu ents; K # L i) evidence in relation to share capital) reserves and directors1 e olu ents) and ii) the related inco e state ent entries" 13 Audit sa"plin# and ot er "eans o& testin#

For each o& the account balances stated in this sub. capability; M explain the purpose o& substantive procedures in relation to assertions)

a) De&ine audit sa pling and explain the need &or sa pling" K % L

%$

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b) Identi&y and discuss the di&&erenc es between statistical and non.statistical sa pling" K # L c) Discuss and provide relevant exa ple s o&) the application o& the basic principles o& statistical sa pling and other selective testin g procedures" K # L d) Discuss the results o& statisti cal sa pling) including consideration o& whet additional her K # L testing is re/uired" <3 Co"puter?assisted audit tec ni es >u a) -xplain the use o& co puter.assisted techni/ues in the context o& an audit" audit
K%L

F RE*%E6 .3 Subse>uent e(ents a) -xplain the purpose o& a subse/uent events review"K % L b) Di scuss the procedures to be underta!en in per&or ing a subse /uent events review" K #L 83 $oin# conce rn

a) De&ine and discuss the si gni&icance o& the concept o & going concern" K #L b) -xplain the i portance o& and the need &or going concern reviews" K # L c) -xplain the respective responsibilities o& auditors and anage ent regarding going concern" K % L d) Discuss the procedures to be applied in per&or ing going conce rn reviews" K #L rs are ab l e t o e) Discuss the disclosure re/uire ents in relation to going concern issues" K #L &) Discuss the reporti ng i plications o& the &indings o& going concern re views"K # L 53 6ritten representations a) -xplain the purpose o& and procedure &or obtaining written repre sentations" K #L b) Discuss the /uality a nd reliability o& written representations as audit evidence" K # L c) Discus s the circu stances where written representations are n ecessary and the atters on which representat ions are co only obtained" K# L 13 Audit &inalisation and t e &inal re(ie' a) Discuss the i portance o& the overall review o& evidence obtained" K # L b) -xplain the signi&icance o& uncorrected isstate ents" K % L

b) Discuss and provide relevant exa ples o& the use o& test dat &or a and theaudit so&tware transaction cycles and balances entio ned in K # L sub.capability >" =3 T e 'or4 o& ot ers a) Discuss the extent to which audito rely on the wor! o& experts" K # L

b) Discuss the extent to which exter nal auditors are ab le to rely on the wor! o& internal audit" K # L c) Discuss the audit considerations relat entities using service organisations" ing to
K#L

d) Discuss why auditors rely on the wor! o& others" K # L e) -xplain the extent to which re &erence to the wor! o& others can be ade in audit r eports "K %L 03 Not?&or?pro&it or#anisations a) Apply audit techni/ues to not.&or.pro&it organisations" K #L b) -xplain how the audit o& not.&or.pro&it organisations di&&ers &ro the audit o& &or.pro&it organisations" K %L

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c) -valuate e&&ect o& the dealing with uncorrected isstate ents" K # L $ RE-ORT%N $ .3 Audit reports a) Describe and analyse the &or at and content o& un odi&ied audit reports" K #L b) Describe and analy se the &or at and content o& odi&ied audit reports" K # L 83 Reports to "ana#e"ent a) Identi&y and analyse internal control and syste de&iciencies and signi&icant de&iciencies and their potential e&&ects) and a!e appropriate reco endations to anage ent" K #L 53 %nternal au dit reports

a) Describe and explain the &or at and conten t o& internal audit review reports and other reports dealing with the enhance ent o& per&or ance" K %L b) -xplain the process &or producing an interna audit report" K % L l

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SU))ARY OF CHAN$ES TO F2 RAT%ONALE FOR CHAN$ES TO STUDY $U%DE -A-ER F2 A22A periodically reviews its /uali& ication syllabuses so that they &ully eet the nee ds o& sta!eholders such as e ployers) students) regulatory and advisory bodies and learnin g providers" As a result o& the latest review ) A22A is a!ing changes to the A22A Guali&ication e &&ective &ro June #$%%" Jith each syllabu s is included a speci&ic rationale &or these c hanges as &ar as each exa ination syllabus rned" and study guide is conce Table . @ Additions to F2

2hanges have been ade to F8 (I NT) to provide clari&ication regarding ite s whic h were listed in the exa inable docu ents) but not speci&ically re&erred to in the study guide" These were there&ore intrinsically always within the syllabus and are not additions as such" The deletions are areas which by the new exa iner" will not be exa ined

The ain areas to be added or deleted &ro the syllabus &ro that date are shown in Table % below;

Section and sub:ect area Syllabus content A%&) Audit &ra ewor! and regulation ,b'ectives o& an assurance engage ent A%g) Audit &ra ewor! and regulation Five ele ents o& an assurance engage ent ACd) 2%a) *lanning and ris! assess ent b'ectives o& the auditor 2%c) 2>b) 2Ce) D#a) Internal control Auditor independence) con&licts o& interest and con&identiality ,verall o The need to conduct an audit in accordance with I(As 9is! assess ent procedures 4aws and regulations Internal contro l /uestionnaires and internal control evaluation /uestionnaires 9elevance and reliab ility o& audit evidence ,pening balances and co parative in&or ation *rovisions and contingencies (hare capital) reserves) and directors1 e olu ents isstate ents

-#b) Audit evidence -#&) ->c) ->&) FCc) 9eview -&&ect o& uncorrected

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The areas to be re oved &ro shown in Table # below;

the syllabus are

Table 8 @ Deletions to F2 Section and sub:ect area Syllabus content A Audit &ra ewor! and regulation #d) Types o& opinion provided in statutory audits 5 Internal Audit #b) 2o pare and contrast internal and external audit reports >b) Types o& audit report provided in internal audit assign ents ?b) +ar!ing) treasury and hu an resources anage ent

2 *lanning and ris! assess ent %b) -ngage ent ris!s a&&ecting the audit 2 %d) 2o pare and contrast ris! based) procedural and other approaches to audit w or! %e) I portance o& ris! analysis %&) In&or ation technology in ris! analysis

2 2

D Internal control ) The i portance o& internal control to auditors #a D - Audit evidence #a) (ources and ?d) develop and docu ent an audit plan erits o& di&&erent types o& evidence ?c) Hse o& co puters in relation to the ad inistration o& the audit oved to -I

NoteA 2F The wor! o& others has

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