Engagement Letter Precondition of Audit

audit planning

Preconditions for an audit

ISA 210 Agreeing with the Terms of Audit Engagements provides steerage to auditors on the steps they must absorb acceptive a brand new audit or continued on AN existing audit engagement. It sets out a variety of processes that the auditor ought to perform together with agreeing whether or not the preconditions square measure gift, agreement of audit terms in AN engagement letter, continual audits and changes in engagement terms.

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How to Pass ACCA AA

How to pass ACCA AA

Audit and Assurance Exam Tips

  • In September 2017 ACCA introduced Computer-based Exams for skill level papers.
  • According to The New Pattern ACCA F8 AA Exam Formate as following.
  • Section A: 3 case studies, each case study have 5 questions of 2 marks each.
  • Section B: 3 long questions, Each Question have 30 marks and two questions of 20 marks each.

How to pass ACCA AA

ACCA Testing Some topics frequently in past exam’s

  1. Ethics
  2. Audit risks and responses
  3. Purchases, revenue, Payroll
  4. Auditor’s reports
  5. Limited assurance engagements
  6. Auditor rights and duties
  7. Engagement letters
  8. Fraud and error
  9. Inherent limitations of internal control
  10. Risk
  11. Financial statement assertions
  12. inventory, purchases, Cash

  • How to pass ACCA AA exam you must be familiar with IAS and IFRS deeply,
  • However near 40% of AA exam depends on IAS and IFRS,
  • you need to support your statements with evidence to complete sentences.
  • in AA many area’s Examiner tests straightforwardly,
  • so straightforward knowledge must be rote-learning to gain easy marks.
  • Practice: Practice plays a key roll in pass ACCA exams, so practice as much as you can it’s very important

Some important terms you need to be comfortable with

  • Classes of transactions for the period under review: (Means area in the statement of Profit and loss)
  • Account balance at the period end (Means area in Statement of Financial Position)
  • F/s Disclosure (Notes to the Accounts)
  • Public company vs Public sector Org
    • Pubic Company means a listed company
    • And Public sector Org means  Government controlled Org which is not for profit Org

Some Common Reason for Unsuccessful F8 AA attempt

  1. Insufficient number of relevant points to obtain a pass stander
  2. Not explaining comments made in the answer in sufficient detail
  3. lack of understanding of audit procedures and the audit method
  4. Not applying knowledge to the scenario in question
  5. Not answering all the questions (Time Management issue?)
  6. Insufficient number of relevant points to obtain a pass stander

How to pass ACCA AA

  • Understanding of concepts of Audit and Finance reporting (FR, like IASs & IFRS) is essential to pass Audit assurance
  • Do practice the questions again which you did in the classes regularly at least once in a week, Keep revising your concepts, If you keep revising your concepts you will forget your concepts.
  • Do practice other questions from Exam kits and Past papers as well
  • Make your habit to read the requirement first so that you will know your direction then read the scenario, Contact your knowledge to the scenario.
  • Remember, If you write the knowledge only and not connect to the scenario, you will gain only 0.5 marks which won’t help you to pass.

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