P7 builds on the audit content of F8 but the P7 syllabus is much broader. In particular, the P7 syllabus contains a lot on assurance engagements. Many more financial reporting issues are examinable in P7, as all of the standards in P2 are assumed knowledge.
The other difference is in the style of questions. P7 is a practical exam; to do well in the exam candidates must display judgment, commercial awareness and professionalism.
Section A will contain two compulsory case study questions for 60% of the marks for the exam. Each case study will describe a detailed scenario and several different requirements from across the syllabus will be covered.
Section B will contain three questions, two of which must be answered. These questions will describe shorter scenarios and the requirements are likely to be focused on a particular area of the syllabus.
Current issues could be tested in Section A or Section B. Candidates should have an awareness of recent developments in the profession, such as new auditing standards and exposure drafts, and emerging ethical guidelines. It is likely that a current issue will be tested in the context of a question scenario rather than in isolation.
P2 should be attempted before P7 but candidates are advised to take the exams in fairly close succession as candidates are required to have up-to-date P2 knowledge.
In order to comply with the requirements of the Statutory Audit Directive (SAD) and to practise as an auditor certain elements of UK legislation and regulation need to be examined. P7 (UK) and (IRL) fully meet regulatory and business environment requirements for those wishing to obtain the UK/Irish audit qualification.
As such, if candidates wish to obtain the UK or Irish audit qualification (or practise as an auditor within the UK or Ireland) they must take either the UK or Irish version of P7. They must also sit P2 (UK) or (IRL) as well as the UK or Irish, and English or Irish variants for all tax and law exams.
No, we used to give minimal marks for knowledge of ISA, IAS and IFRS numbers but we won't be doing so in the future due to the increasingly applied nature of the exam. It is the content of the standards that are important.
No. As the UK financial reporting exams (P2 UK) examine IFRS, candidates will only need to carry over their IFRS knowledge into P7 (UK).
Insolvency is a non-audit area of the syllabus similar in ‘weighting' to a topic such as forensic accounting, which has been examined as a small part of a question and as a question in its own right.
This would depend on the nature of the question. Candidates should have a working knowledge of simple foreign currency transactions and be able to think about them from the auditor's point of view – ie they need to understand the risk of misstatement.
Last updated: 4 Mar 2016