What you will learn in AAA
Examination Structure
The syllabus is assessed by a three-hour 15 minutes examination
The examination is constructed in two sections.
Questions in both sections will be largely discursive. However, candidates will be expected, for example, to be able to assess materiality and calculate relevant ratios where appropriate.
Section A
Section A will comprise a Case Study, worth 50 marks, set at the planning stage of the audit, for a single company, a group of companies or potentially several audit clients.
Candidates will be provided with detailed information, which will vary between examinations, but is likely to include extracts of financial information, strategic, operational and other relevant financial information for a client business, as well as extracts from audit working papers, including results of analytical procedures.
The 50 marks will comprise of 40 technical marks and 10 professional skills marks.
All professional skills with be examined in Section A.
Candidates will be required to address a range of requirements, predominantly from syllabus sections A, B, C and D, thereby tackling a real-world situation where candidates may have to address a range of issues simultaneously in relation to planning, risk assessment, evidence gathering and ethical and professional considerations.
Please note that other syllabus areas, excluding E, may also be drawn on as part of the Case Study.
Section B
Section B will contain two compulsory 25-mark questions, with each being predominately based around a short scenario which may relate to more than one client.
The 25 marks will comprise of 20 technical marks and five professional skills marks.
Section B questions will examine a combination of professional skills appropriate to the question.
Each question will examine a minimum of two professional skills from analysis and evaluation, professional scepticism and judgement and commercial acumen
One question will always predominantly come from syllabus section E, and consequently candidates should be prepared to answer a question relating to completion, review and reporting.
There are a number of formats this question could adopt, including, but not limited to, requiring candidates to assess going concern, the impact of subsequent events, evaluating identified misstatements and the corresponding effect on the auditor’s report.
Candidates may also be asked to critique an auditor’s report or evaluate the matters to be included in a report which is to be provided to management or those charged with governance.
The other Section B question can be drawn from any other syllabus section, including A, B, C, D and F.
Quality management and ethics
The auditor’s assessment of effective quality management and consideration of ethical issues are fundamental to all stages of the audit and therefore these concepts could be examined in any section of the exam.
Current issues
Syllabus section G on current issues may be examined in Section A or B as appropriate.
Current issues are unlikely to form the basis of any question on its own but instead will be incorporated into the Case Study or either of the Section B questions dependent on question content and the topical issues affecting the profession at the time of writing.
Total 100 marks
