The aim of ACCA Audit and Assurance (AA) (F8) is to develop knowledge and understanding of the process of carrying out the assurance engagement and its application in the context of the professional regulatory framework.
The ACCA Audit and Assurance (AA) Syllabus 2021 includes:
- A) Audit framework and regulation
- B) Planning and risk assessment
- C) Internal control
- D) Audit evidence
- E) Review and reporting
What is Audit?
The audit is the process of evaluating the accounting entries present in the financial statement of the company. The audit checks the accuracy of financial reports. Auditing includes making sure ethically presentation, fairly presented, accurate, and it also checks whether financial reports are as per accounting standard and accounting principle. The audit tells about any misrepresentation done in financial records, any misuse of funds, any fraud, and any fraudulent activities done in a company or done by the company. Internal auditors and external auditors conduct the audits, who are independent auditors.
What is Assurance?
Assurance is the process of analyzing and used in the assessment of accounting entries
and financial records. Assurance is the process of verifying the records available in the company’s accounting record as per accounting standard and principle, and it also confirms that the accounting record is accurate or not. Assurance is the assessing process, operations, procedure, etc. The main aim of assurance is to check the accuracy of financial reports. It also assures all the stakeholders that there is no misrepresentation done in financial records, no misuse of funds, no fraud, and no fraudulent activities done in a company or done by the company. Assurance check financial reports are as per accounting standard and accounting principle. Assurance is applied to assess the process, the procedure, and operations, and these processes, procedures, systems are observed closely to assure the process is right, and it gives optimum results. Assurance specializes in assessing and improving the quality of the information in a company. It helps in decision making in an organization as it works on customer feedback, financial information, employee feedback, or areas where information is very much required in decision making in an organization.
How to pass audit and assurance?
The key to clear any ACCA Exam is time management.
A student has to make sure he is on track with his syllabus, revising each and every topic religiously, writing unit tests after every topic and a minimum of 3 mock tests with an average score of 75 marks.
If a student were to self study, he needs to make sure he is on track at every stage and not delaying any process. The ACCA syllabus is vast and its important that the student concentrates on what’s important from the exam point of view. There are a lot of concepts especially in the practical papers which a student may spend hours trying to understand by himself. On the other hand a professor might be able to solve his doubts in a minute.
Perseverance is absolutely necessary.
But perseverance with guidance is what makes the life of an ACCA aspirant easy.
All students are willing to put in the hours, but its important that the student is guided in such a way that he doesn’t waste his hours. Professors at institutes guide students at every stage and push them towards achieving their goals.
Here are 5 tips from our ACCA F8 training expert to help you ace it:
The 3 part approach
Before you start, split the syllabus in 3 parts: Planning, Execution and Opinion. Apply these throughout and you will be able to apply the principles in practice.
Breakdown section B questions into 4 categories
When answering the section B questions, always split the questions in 4 categories:
- Internal controls
- Risk assessment
- Audit procedures
Remember, the examiner will only test you on 3 questions, so it’s likely you that one of these categories will be left out.
5 MCQs a day, keeps a resit away
With the F8 paper, you can’t cram all the MCQ’s towards the end of your study plan. This is why you need to do 5 MCQs per day over the course of the syllabus and eventually this will accumulate to around 300 MCQs over the span of your lecture. This will aid retention and the overall absorption of the ideas.
Short is sweet
While writing your answers, make sure you do NOT exceed your paragraph beyond 4 lines. Keep your answers focused and concise. Long and wordy paragraphs will not help you score any points.
The EFG rule
Finally remember the EFG rule – 3 mistakes you should avoid while writing your answers:
E- Exclusion of key points
F- Stating facts from the questions
G- Generalizing your answers
Following these simple rules, and putting them in practice could well make the difference between a pass or fail.