FOR INDIA'S BEST CA CS CMA VIDEO CLASSES CALL 9980100288 OR VISIT HERE
Take This Quiz & Predict Your Score in the coming CA CS or CMA Exam!
  • How important it is for you to pass the exam in this attempt?
  • What percentage of course you have finished well so far roughly?
  • How many hours you study in a day?
  • How many times you have revised the topics you have finished
  • Have you taken online or pen drive or live class from a renowned faculty?
  • What percentage of the classes you have watched?
  • Have you attempted mock tests or practice tests yet?
  • Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute?
  • How many tests you have taken?
  • Did you manage to finish the test papers on time?
  • Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body?
  • How is your health in general?
  • How is your food habit?
  • Any interest in yoga or exercise or play sports regularly?
  • Planning to sleep well nights before the exams?
  • Planning to have light food and water before exams?

ACCA P7 Advanced Audit and assurance examiner’s report

ACCA P7 Advanced Audit and assurance examiner’s report

ACCA P7 Advanced Audit and assurance examiner’s report: ACCA stands for the Association of Chartered Certified Accountants a leading international accountancy body. The ACCA qualification is recognised and is treated in other countries as being equivalent to their local qualification.

Founded in 1904, the Association of Chartered Certified Accountants (ACCA) is the global professional accounting body offering the Chartered Certified Accountant qualification (ACCA or FCCA). From June 2016, ACCA recorded that it has 188,000 members and 480,000 students in 178 countries. ACCA’s headquarters are in London with principal administrative office in Glasgow. ACCA works through a network of 100 offices and centres and more than 7,100 Approved Employers worldwide, who provide employee development.

The term ‘Chartered’ in ACCA qualification refers to the Royal Charter granted in 1974.

Chartered Certified Accountant is a legally protected term. Individuals who describe themselves as Chartered Certified Accountants must be members of ACCA and if they carry out public practice engagements, must comply with additional regulations such as holding a practising certificate, carrying liability insurance and submitting to inspections.

The Association of Authorised Public Accountants (AAPA), one of the British professional bodies for public accountants, has been a subsidiary of ACCA since 1996.ACCA works in the public interest, assuring that its members are appropriately regulated. It promotes principles-based regulation. ACCA actively seeks to enhance the value of accounting in society through international research. It takes progressive stances on global issues to ensure accountancy as a profession continues to grow in reputation and influence.

ACCA works in the public interest, assuring that its members are appropriately regulated. It promotes principles-based regulation. ACCA actively seeks to enhance the value of accounting in society through international research. It takes progressive stances on global issues to ensure accountancy as a profession continues to grow in reputation and influence.

ACCA P7 Advanced Audit and assurance examiner’s report

The examination consisted of two sections, Section A contained two compulsory questions for 35 and 25 marks respectively and Section B contained three questions of 20 marks each, from which candidates had to answer two questions.

Overall performance in this sitting was poor with it being obvious that many candidates had not properly prepared for this wide-ranging examination and were unable to adequately apply their knowledge to answer the questions set. Too many candidates focused on the minutiae of a point and produced a list of everything they knew about a topic, whether relevant or not while missing the wider implications of the issue in hand. There was a clear lack of both auditing and financial reporting knowledge.

A number of common issues arose in candidates’ answers that contributed to the disappointing pass rate:

 Writing out or simply restating points from the question with little development

 Not answering the question as set,

 Quoting accounting standards without applying them,

 Using vague phrases like “perform analytical procedures”, “check the relevant documentation”, “in accordance with the relevant standard” does not earn marks unless the point is developed further,

 Obvious lack of accounting knowledge; an error cannot simultaneously overstate assets and understate profits for example.

ACCA P7 Advanced Audit and assurance examiner’s report

Section A

Section A Question One (35 marks) This question followed the pattern of previous examinations and was set at the planning stage of the audit/assurance cycle and candidates were presented with four requirements which covered risks, using the work of a service organisation and audit procedures.

Candidates were required to provide an analysis of business risks for a large retail chain operating in a specialized industry. Some candidates answered this very well and were able to draw on the details in the scenario to confidently discuss risk over compliance, regulation and licensing, macroeconomic issues and the implications of a recent purchase of a portfolio of stores. However, disappointingly many candidates were unable to differentiate between business risks and audit risks.

Candidates were then required to identify and discuss four risks of material misstatement. A question of this nature should be straightforward for most candidates and provide the opportunity to showcase and apply their accumulated knowledge. Disappointingly many candidates were not able to provide sufficient detail and analysis in relation to the risks identified. Many candidates focused on issues that were not relevant or they had been specifically told in the question were not material, for example the valuation of certain inventory in the various stores was specifically referred to in the question that this inventory had been immaterial in previous years and was expected to be the same this year yet the number of candidates who identified this as their main risk was concerning. Candidates are reminded that the requirement is looking for risks of MATERIAL misstatement. If a balance is immaterial it is unlikely that it can result in a material misstatement in the financial statements.

Section B 

This was the least popular of the optional questions and was answered by a minority of candidates. The first part required candidates to discuss why auditors should presume that there is a risk of fraud in revenue recognition and this requirement was poorly answered with most candidates setting out lengthy explanations of the respective duties of the auditor and management for the identification and prevention of fraud and thereby not answering the question. Strong answers considered management bias and targets, judgments in complex business and cut-off errors.

The second part explored two unusual issues which had occurred in an entrepreneurial audit client. Many candidates were able to identify the potential money laundering transaction and identified the placement and layering stages which were involved. Most candidates answered this part of the question well and were able to identify; the need for proper evidence, the poor controls over payments, notification to the MLRO and avoiding tipping-off the client.

Candidates were also asked to consider the release of a provision relating to a legal claim for which evidential documentation was not available. Most candidates discussed the implications of the reversal quite well but failed to identify the creative accounting and profit smoothing which was the purpose behind the provision reversal.

In both parts numerous candidates demonstrated poor exam technique and diverted into highlighting what would be included in the audit report which was not required.

ACCA P7 Advanced Audit and assurance examiner’s report

brief history of ACCA:

ACCA stands for the Association of Chartered Certified Accountants a leading international accountancy body. The ACCA qualification is recognised and is treated in other countries as being equivalent to their local qualification.

ACCA traces its origin to 1904, when eight people formed the London Association of Accountants to allow more open access to the profession than was available through the accounting bodies at the time, notably the Institute of Chartered Accountants in England and Wales and the Institute of Chartered Accountants of Scotland. As of 2006, the goal of ACCA is to become the world’s largest global professional body.

The term ‘Chartered’ in ACCA qualification refers to the Royal Charter granted in 1974.

Chartered Certified Accountant is a legally protected term. Individuals who describe themselves as Chartered Certified Accountants must be members of ACCA and if they carry out public practice engagements, must comply with additional regulations such as holding a practising certificate, carrying liability insurance and submitting to inspections.

The Association of Authorised Public Accountants (AAPA), one of the British professional bodies for public accountants, has been a subsidiary of ACCA since 1996.

ACCA works in the public interest, assuring that its members are appropriately regulated. It promotes principles-based regulation. ACCA actively seeks to enhance the value of accounting in society through international research. It takes progressive stances on global issues to ensure accountancy as a profession continues to grow in reputation and influence.

ACCA P7 Advanced Audit and assurance examiner’s report

For more information on ACCA please follow this Visit cakart.in

For other exam related information visit www.cakart.in

Leave a comment

Your email address will not be published. Required fields are marked *