F8 Audit and Assurance

F8 Audit and Assurance(INT) (KAPLAN)

• Audit risk including analytical procedures
• Assurance engagements
• Ethics including fundamental principles/confidentiality
• Systems: payroll, inventory
• Evidence: payroll, inventory, share capital, reserves, opening balances
• Specific standards/topics:

o ISA 530 (sampling)

o ISA 220 (review of working papers)

o Audit committees

o Not for profit organisations

o ISA 520 (analytical procedures)

o Audit regulation – International standards on Auditing

- Completion (ISA 560 – subsequent events)

- Auditor’s reports


• NOTE :
• Please be aware that the current examiner has suggested that the questions will not be restricted to topic areas, i.e. question 1 won’t just be about systems and controls. This is a significant difference from the previous examiner. Also be aware that recent diets for F8 have ranged from those requiring knowledge of the content of a broad range of standards (some quite peripheral to the syllabus) and those requiring grounding in the core auditing concepts/techniques. Therefore, students should be prepared for either possibilities in the December 2011 paper, or a combination of the two.


F8 Audit and Assurance(INT) (BPP)
Q1 (30 marks)
This question will be based on a scenario and incorporate between 3 and 5 distinct requirements.
The areas most likely to be tested in this question include audit planning and the identification and explanation of audit risk, audit procedures (substantive tests and/ or tests of control) and internal control.

Q2 (10 marks)
This will be a factual or knowledge based question. It is likely to cover several areas of the syllabus with 2 or 3 separate requirements worth between 2 and 5 marks each.
Topics for Question 2 can be drawn from all areas of the F8 syllabus and questions could include the responsibilities of directors and auditors as well as other definitions such as audit risk, audit assertions, audit regulation and corporate governance.

Q3, Q4 & Q5 (20 marks each)
These questions will be scenario based but will also include some knowledge based requirements.
Areas which are likely to be covered in these questions include ethics, planning, the audit of specific transactions or account balances (including estimates), subsequent events, management representations, going concern, audit reports, internal control and corporate governance.
Note that the scenario may be set in the context of a profit making or non-profit making organisation.

F8 Audit and Assurance(INT) (ICOUNT)

System deficiencies and controls
· Corporate governance
· Audit assertions and appropriate audit procedures.
· Written representations
· Ethics and safeguards.

F8 Audit and Assurance(INT) (FIRST INTUITION)

Q1 Substantive audit procedures and tests of control on a key area of the Statement of Financial Position eg inventories or non-current assets
Q2 Short 10-marker on ISAs eg audit reports, fraud & error
Q3 ‘Identifying and explaining’ the threats to auditor independence and ways of managing them
Q4 Management letter; identify the weaknesses, consequences and recommendations in a particular company
Q5 Subsequent events