TARC ACCA 2005: tips for 3.1

~~~~~~~~~~~~~~~Motivation Quote~~~~~~~~~~~~~~~~ ~~~~~~~~~~Sometimes it takes a lot of rain before you get your rainbow!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~Just FOcus On The Key Topics That You Know And Ignore What You Don't!!!!!!~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~The glory is not in never failing but in rising again everytime you fall!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~YOU MAKE THE FAILURE COMPLETE WHEN YOU STOP TRYING!!!!!!~~~~~~~~~~~~~~~~~~~~~~~~~~~

Friday, November 26, 2004

tips for 3.1

*Q6 - Conceptual Framework (Independence) vs Rule-driven approach

*Environmental reporting with narrative reporting

*Biz risk approach to auditing - Discuss the impact of this approach to
auditors

The others are not exacty tips but general things to look into.

Q4 - Audit report
- Appropriateness
- Shortcoming - what is wrong with the report?
- Factors to consider

Q5 - Ethics Q
- Professional issue - Consideration of risk, materiality,
staffing,
etc
- Ethical issue - Close relationship
If examiner ask for professional issues only, then it also
includes
ethical issues.

Q1 - Audit & Biz risk - control

Q2 - Risk
- Assurance service (Prospective Financial Information - PYQ)
- Positve/Negative opinion
- Level of assurance
- Timing

Q3 - Like usual but pay attention to the revised stds - applicable to
3.1
- IFRS 3 (including goodwill)
- IFRS 5
- Research and development

If got free time, read this from his class notes - Ethics
-
Conceptual
Framework (FASSI)

this is a tips by my friend where she got it from a sunway gal:)

hot topics analysis for 3.1
The oct 04 article is important for Q6. Must do. Q4 is tough so if you can do Q6, then don't do Q4. Q4 is techical and there's no fixed format to answer it.
a) Business risk/Audit risk identification (see past exam). Using the headings in the latest ISA 315 to describe risks. (see item i) below)
b) Group audit and acquisition (read latest Nov 04 article by Kim). Impact of an acquisition on the audit (see past year exam like Pilot Q1, Dec 2001 Q1). Include audit strategies like directional testing.
c) Legal liability – Legal cases on third party liability, duty of care, insurance (PII and FGI) and defenses used by the auditor
d) Accounting problems/issues - Important areas include deferred tax, leases, related parties, borrowing costs, stocks, earnings per share, reporting the substance of transactions, impairment of assets, plus agriculture.
e) Ethical issues facing the auditor - independence, conflict of interests, offering consultancy services to audit clients and confidentiality.
f) Ownership of documents/books and working papers
g) Reporting – The usual Q4.
h) Describe recent trends in IT and their current and potential impact on auditors.
i) Latest risk standards ISA 315, 330 and audit evidence ISA 500. See article in October 2004 (for current issue Q6).