ACCA - The global body for professional accountants

Evaluate and report on audit

PO 18 is linked to Paper F8, Audit and Assurance, and Paper P7, Advanced Audit and Assurance

The latter stages of statutory audits, internal reviews or investigations will involve evaluation of the entire project and production of a final written report (in compliance with relevant standards), signed off only after clarification and resolution of any outstanding issues or inconsistencies, and verification that the files accurately document the auditor’s opinion.

As a professional accountant, the knowledge of audit and assurance you will be expected to acquire would include how to evaluate and report on evidence and draw conclusions. You should be aware of relevant regulatory and legal frameworks, professional and ethical considerations and constraints, as well as audit’s overall role and processes.

To effectively demonstrate your competency, you might:

  • review financial statements and discuss any report-related issues with management
  • draft and present reports
  • show how you adhere to relevant standards and regulatory requirements.


The next step is to answer the challenge questions for this objective:

  • Explain your role in evaluating and reporting on audit assignments.
  • Bearing in mind the constantly evolving regulatory environment, explain how you might have had to assess the audit work differently because of new or amended auditing standards.
  • Consider your level and scope of responsibility and authority within the audit team, including what you could delegate to juniors and what required sanction from your seniors.
  • What was your involvement in researching, preparing and delivering presentations?


Using examples, what factors and issues have you uncovered through work on drafting audit reports?

  • Think about discrepancies you may have discovered, who you liaised with to resolve those and the action you took as a result.
  • You may have identified errors or confusion over certain complex regulatory or legal issues that you were aware have arisen previously, perhaps requiring additional training.
  • What ethical dilemmas may have been encountered by the audit team? How legitimate did you judge the concerns and how did you arrive at your conclusions as to how they had been resolved?
  • Perhaps there were positive aspects to the audit that you have helped to introduce more widely in the team or to your firm.


What have been the business benefits of your report?

  • How did your report improve you – or your team’s – standing with your client (or, if internal, with operational and senior management)?
  • Think about ways in which audits are now carried out for the better as a result of your report’s findings.
  • Describe how transactions, processes and decisions have become easier to trace by management and/or by auditors.
  • Detail how and why the level of risk that the client is exposed to has been reduced as a result of your report.

Last updated: 17 Jun 2013