ACCA AA exam
support webinar Audit and Assurance
(AA) paper
Presented by: Ms Magdalene Chia
FOCUS
This session will cover:
Important AA time management and Exam techniques
How to earn marks with few minutes left on the clock for
CR questions
Q&A
COMMON ISSUES OF AA PAPER
● Writing vague answers/incomplete answers
● Not answering the questions
● Scattergun approach - no clear plan e.g how many
points to write
● Poor allocation of time - Section A vs Section B
questions
● Most candidates - start with Sec B questions first
1. Intro
FORMAT OF AA PAPER: 3 Hours 15 mins
➔ Section A
15 Objective test (OT) case questions 30 marks
➔ Section B
One (1) constructive response (CR)
question worth 30 marks
Two(2) constructive response(CR)
questions worth 20 marks each
STRATEGY TO PASS
AA PAPER
TIME
MANAGEMENT
Usual questions
asked:
Should I do Section A
or Section B first?
Tip
SECTION A IS CRUCIAL FOR
PASSING AA EXAMS
Answer: SECTION A
Section A: 15 OT questions (30m)
● 3 OT cases
● Each OT case - support 5 OT questions
● Broad range of syllabus- KNOWLEDGE
● Time mgt - 45-60 mins (use 15 mins Average
time spent
reading time)
- less than
30 mins
● Target marks - at least 18/30m
(9 correct OT answers)
Section B: THREE (3) CR
questions (70m) - Aim
35/70m
Average
time spent 1.5 to 2 hrs
● CR (30m) - 1 hr
● Target marks: Min 15/30m
Section B: THREE (3) CR
questions (70m) - Aim
35/70m
About
1hr left
to do 2
Qs
● 2 CR (20m) - 30-40 mins each
● Target marks - at least 10m12m each
2. Exam
Techniques- CR Qs
➔ Presenting your answers for CR
Questions
Table form - acceptable for AA
Questions related to:
- Audit risks and auditors responses
- Deficiencies in internal controls and
recommendations
- Direct controls and Test of controls
- Ethical threat and safeguards
- Corporate governance weaknesses and
recommendations
Tip
NO BULLET
POINTS - most
students fail to
elaborate
2. Exam
Techniques- CR Qs
➔ Writing out answers for CR -
Method + marking scheme
Example:
Audit risk and auditors responses
-
-
Identify an appropriate point (0.5m)
Describe (0.5m) - implications/impact
on audit risk- why?
Auditors responses (1m)- actions to be
taken by audit team
Example:Extract Sept Dec 23
No of points to
write - 80% of
marks
Appx 30
mins
Targeted
approachRead the Qs
first
Example:Extract Sept Dec 23
2 Audit
Risks split
Targeted
approachWhat to
write!
Audit Risk
Auditors responses ACTIONS (at least one point)
Properties revalued from $3.8m to $8.4mil based
on management’s valuation. (IDENTIFY -0.5m)
The audit team should discuss with management
regarding the basis used for the revaluation and
assess if the assumptions and methods used are
reasonable.(0.5 to 1m - depends on whether
responses are appropriate)
This will increase audit risk as the revaluation of
properties may not be on an appropriate basis and
could overstate property, plant & equipment as
Knight is considering stock exchange listing.
(0.5m) -DESCRIBE (which part of the FS could be
materially misstated?)
2. Exam
Techniques- CR Qs
➔ Writing out answers for CR -
Method + marking scheme
Example:
Internal control deficiencies and
Recommendations
-
-
-
Identify an appropriate point (0.5m)
Explanation (0.5m) implications/impact on the entitywhy?
Control recommendations (1m)- actions
to be taken by the entity
Example:Extract Sept Dec 23
No of points to
write - 80% of
marks
Appx 30
mins
Targeted
approachRead the Qs
first
Example:Extract Sept Dec 23
Targeted
approachWhat to
write!
Control Deficiency
Control recommendation ACTIONS - implemented by
the entity to overcome deficiencies
The warehouse supervisor will undertake this year’s
valuation of WIP which was carried out by an
external expert previously. (IDENTIFY -0.5m)
The valuation should continue be undertaken by an
expert to value WIP. If the company does not want to
use this expert, the warehouse supervisor can
perform this valuation but has to be verified by the
expert.( 0.5 to 1m - depends on whether
recommendations are appropriate)
This is a control deficiency as the supervisor may not
have the relevant experience and expertise as the
expert to value WIP even though he is familiar with
the company’s inventory. (0.5m) - EXPLANATION
2. Exam
Techniques- CR Qs
➔ Writing out answers for CR -
Method + marking scheme
Example:
Substantive Procedures - How to
write a well described
procedure? 1m
-
Audit procedure (review, inspect,
recalculate…)
Source of evidence
For what purpose?
Example:Extract Sept Dec 23
Present
obligation &
amount
Targeted
approachRead the Qs
first
Did you
notice what
area you
need
evidence?
No of
points
Well described point - 1m
SUGGESTIONS:
How to earn marks
with few minutes left
on the clock for CR
Questions?
● Plan no of points at the early stages
E.g Marking scheme - 5m - writing 3
good point will earn you 3m/5m
(80% of marks) - if you have time,
you can go back and write 1 more
● Write ‘IDENTIFY’ parts as examiner
do award 0.5m (if no time for
explanation points) - write as many
as you can
● Do not know what to write - Do not
leave it blank -write something (no
negative marking)
3. SUMMARY
Build confidence for AA paper:
Practice OT questions
Target: At least 9 OT questions accurately answered
CR Questions
Use table form - clear presentation of answers
Time management + Plan how many points to write
Marking scheme - Identify (0.5m), Explain/describe
(0.5m), response/recommendations (1m), well
described TOC & SP (1m)
Practice PYQs
Study Resources
ACCA Study
Hub
Revision Kits
Past year
Questions
(PYQs)
ACCA Mock
Exams
Good luck!
Q&A