Changes to the ACCA Qualification Skills module and Professional level in 2014–15

This article explains the planned updates to the ACCA Qualification syllabuses taking place as part of the process of continuous syllabus refreshment and improvement. The article highlights structural changes to exams, including the latest syllabus changes.

Introduction

We have already announced the syllabus and structure changes which took place in February 2014, relating to the Foundations level syllabuses, including the Papers F1–F3 specimen exams (please see 'Related links'). 

There are a number of other syllabus changes to the ACCA Qualification in 2014. Apart from the two tax papers (Papers F6 and P6) where syllabus changes relating to the new tax year for these exams will take effect from June 2014, these are all planned for December 2014. There are no changes to the remaining Skills Module exams of the Fundamentals Level or to the Professional level exams in June 2014.

For information about changes relating to content in each exam, please access the specific syllabus and study guide links within each paper area on the website.

With regard to the ACCA Qualification Skills module (Papers F4, F5, F7, F8 and F9) there are some significant structural changes and some less significant syllabus updates from December 2014 to announce. These latest changes are being introduced to ensure that the ACCA Qualification continues to comply with the appropriate regulatory standards, to improve the articulation between related syllabuses and to reflect the views of our key stakeholders. This will be described in the relevant Paper F4–F9 syllabus changes (see detailed changes below). Structural changes to Paper F6 will be implemented six months later in June 2015*.

At the Professional level there are no structural changes to the exams planned for December 2014, but there have been some significant syllabus additions to key papers to reflect latest developments and to re-focus some key areas. Therefore, the content of the ACCA syllabuses at all levels is being continually refreshed and updated to adapt to the latest business and accounting sector needs. Because it falls in line with the tax year, Paper P6, Advanced Taxation* will be updated as usual in June 2015.

*Malaysia and Czech Republic tax exams continue to be updated annually in December. Structural changes to Paper F6 (MYS) and (CZE) will arise in December 2015.

In all cases, please refer to the relevant study guides at the appropriate time for full details of structural changes for the papers you are particularly interested in. The summary of syllabus updates and changes for each exam is also included at the back of each study guide.

All the detailed changes to the syllabuses are summarised below.


Detailed changes outlined for June and December 2014 – Skills module exams

The following section summarises the structural and syllabus changes for the Skills module exams at the ACCA Fundamentals level.

Paper F4, Corporate and Business Law (ENG) and (GLO)

The Paper F4 exam will undergo significant changes in the coming year, with a new format for the written papers, for both English and Global and all variant papers, applicable from December 2014 and the introduction of computer-based exams for both English and Global only from 19 November 2014.

The new structure, applicable from December 2014, can be accessed via the Syllabus and Study Guide in the Qualifications Resources section of the ACCA website.

Take the time to familiarise yourself with the relevant structure and question types for the exam you will be sitting, but the new structure is described below.

New structure
The syllabus is assessed by a two-hour paper-based exam.

The exam consists of:

Section A
(%)
25 x 2 mark objective test question50
20 x 1 mark objective questions20
  
Section B 
5 x 6 mark multi-task questions30
 100

Syllabus changes
The main areas that have been amended in the syllabus are shown in Table 1 below:

Table 1 – Amendments to Paper F4 (ENG)

Section and subject areaSyllabus content
A2(d) Human rightsThe concept and impact of human rights (whole of A3 removed and merged into just one outcome so less emphasis on human rights)


The main areas that have been deleted in the syllabus are shown in Table 2 below:


Table 2 – Deletions to Paper F4 (ENG)

Section and subject area

Syllabus content
A1(b) Court structure

The structure and operation of the tribunal systems

A3(a) Human rights

The concept of human rights as expressed in the Human Rights Act 1998

H1(a) Corporate governance

The idea of corporate governance

H1(b) Corporate governance

The extra-legal codes of corporate governance

H1(c) Corporate governance

The legal regulation of corporate governance


Paper F5, Performance Management

From December 2014 the Paper F5 exam is being re-structured as follows:

New structure
The syllabus is assessed by a three-hour paper-based exam.

All questions are compulsory. It will contain both computational and discursive elements.

Some questions will adopt a scenario/case study approach.

The exam structure consists of:

Section A(%)
20 x 2 mark objective test question40
  
Section B 
3 x 10 marks30
2 x 15 marks30
 100

The two 15-mark questions will come from decision making techniques, budgeting and control and/or performance measurement and control areas of the syllabus. The section A questions and the other questions in section B can cover any areas of the syllabus.

Syllabus changes
There were no deletions but a few additions to clarify what was already assumed in the syllabus as detailed below in Table 3:


Table 3 – Additions to Paper F5

Section and subject area

Syllabus content

A4 Throughput accounting

(a) Discuss and apply the theory of constraints

C3 Quantitative analysis in budgeting

(b) Estimate the learning rate and learning effect

D8 Performance analysis and behaviour aspects

(a) Analyse and evaluate past performance using the results of variance analysis
 

(b) Use variance analysis to assess how future performance of an organisation or business can be improved

D4 Performance analysis in private sector organisations

(c) Analyse past performance and suggest ways for improving for improving financial and non-financial performance

Note that budgeting and standard costing are now merged into one syllabus area – budgeting and control

 


Paper F6, Taxation

Paper F6 (UK) is updated annually in June – in line with changes to the Finance Act or the equivalent statutory changes at the usual time for all variants. Paper F6 will continue to operate on the calendar year basis with the syllabus and study guide applying to June and December of each year for all but Malaysia and Czech variants. Because of the different update cycle applying to the tax papers the structural changes applying Paper F6 will be introduced in June 2015 and announced later in 2014. In Malaysia and Czech Republic, the structural changes will be six months later in December 2015.

The summary of changes in Paper F6 (UK) applicable from June 2014 is listed below:

Section and subject area

Syllabus content

B3(d) Income from self-employment                           

New part (d) on cash basis for small businesses (and remaining parts renumbered)

B3(i)(ii) Income from self-employment

Part (i)(ii) expanded to include the restriction that can apply on trading losses claimed against income

B3 Income from self-employment –
Excluded topics

Change of accounting date

B3 Income from self-employment –
Excluded topics

Loss relief following the incorporation of a business

B5(f) The comprehensive computation of taxable income and income tax liability

New part (f) on the child benefit tax charge (and remaining part renumbered).

C2 Taxable total profits – Excluded topics

Patent box

C4 The effect of a group corporate structure for corporation tax purposes – Excluded topics

Overseas aspects of corporation tax

Transfer pricing

D4 Gains and losses on the disposal of shares and securities – Excluded topics

The exemption for employee shareholders

D6 The use of exemptions and reliefs in deferring and minimising tax liabilities arising on the disposal of capital assets – Excluded topics

Incorporation relief

                       

H3 The procedures relating to compliance checks, appeals and disputes – Excluded topics

Information powers

Pre-return compliance checks

Detailed procedures on the carrying out and completion of a compliance check


The main areas that have been deleted from the syllabus are shown in Table 5 below:

Table 5 – Deletions from Paper F6 (UK)

Section and subject area

Syllabus content

B3(f) Change of accounting date

Parts (f) (ii) and (f) (iii) on conditions for a change and the computation of profits on a change deleted and part (f) (i) renumbered as (g)

C4 The effect of a group corporate structure for corporation tax purposes

Parts (d), (f) and (g) on overseas aspects of corporation tax deleted and part (e) moved to section A3

D1 The residence and ordinary residence of an individual

Ordinary residence abolished, and residence covered at B1(a)


The main areas that have been amended or clarified In the syllabus are shown in Table 6 below:

Table 6 – Amendments to Paper F6 (UK)

Section and subject area

Syllabus content

A3(d) Principal sources of revenue law and practicePart (d) calculation of double tax relief moved from section C

A4(a) Tax avoidance and tax evasion

Amended to clarify coverage of the General Anti-Abuse Rule (GAAR)

B1 The scope of income tax –
Excluded topics

                             

Residence amended to exclude split year treatment

B3 Income from self-employment – Excluded topics

CO2 emission thresholds for capital allowances for motor cars prior to 1 April 2013

B3 Income from self-employment – Excluded topics

Apportionment re the annual investment allowance where period spans 1 January 2013

B5(b) The comprehensive
computation of taxable income
and income tax liability

Amended to clarify personal allowances for people born before 6 April 1948


Paper F7, Financial Reporting

From December 2014 there will be no more adapted exams for Paper F7. All exams are based wholly on IFRS.

The Paper F7 exam is being re-structured as follows:

New structure
The syllabus is assessed by a three-hour paper-based exam.

The exam structure consists of:

Section A(%)
20 x 2 mark multiple-choice test questions
  
Section B 
2 x 15 marks30
1 x 30 marks30
Total100


All questions are compulsory. It will contain both computational and discursive elements.

Some questions will adopt a scenario/case study approach.

The 30-mark question will examine the preparation of financial statements for either a single entity or a group, and may include some interpretation of accounts. The section A question and the other questions in section B can cover any areas of the syllabus.

An individual question may often involve elements that relate to different subject areas of the syllabus. For example the preparation of an entity’s financial statements could include matters relating to several accounting standards.

Syllabus changes
The additions to Paper F7 are shown in Table 7 below:

Table 7 – Additions to Paper F7

B4(b)

Apply the requirements of relevant accounting standards for biological assets

The principles of IAS 41, Agriculture have been introduced to the Paper F7 syllabus


Deletions to Paper F7 are shown in Table 8 below:


Table 8 – Deletions to Paper F7

Ref in prior year study guide  
A1(c)

Indicate the circumstances and required disclosures where a ‘true and fair’ override may apply

 

B2(a)

Describe the structure and objectives of the IFRS Foundation, the International Accounting Standards Board (IASB), the IFRS Advisory Council (IFRS AC) and the IFRS Interpretations Committee (IFRS IC).

 

B9(b)

 

Record entries relating to income tax in the accounting records

 

E1(c)

Recognise how related party relationships have the potential to mislead users

This has been removed to clarify that no knowledge of disclosure of related parties is required.


There have been changes to how certain outcomes are grouped into sections within the syllabus. These changes are outlined below:

  • The conceptual and regulatory framework outcomes have been combined into one section. This section, A, also now includes the concepts relating to group accounting
  • The outcomes relating to substance over form, revenue and construction contracts have been grouped together in subject area B10
  • The outcome relating to government grants (previously grouped with the non-current assets outcomes) has been separately classified as subject area B11 to clarify that both revenue based and capital grants can be examined.
  • Preparation of financial statements of both single entities and groups are now combined within section D.

 

Paper F8, Audit and Assurance

From December 2014 there will be no more adapted exams for F8. All exams are based wholly on ISAs and IFRS. From the same date, the Paper F8 exam is being re-structured as follows:

New structure
The syllabus is to be assessed by a three-hour paper-based exam. All questions are compulsory.

The exam structure consists of:

Section A(%)
8 x 2 mark multiple-choice test questions
16
4 x 1 mark multiple-choice questions4
  
Section B 
4 x 10 marks40
2 x 20 marks40
Total100


Section A of the exam comprises 8 two mark questions and four one mark, multiple choice questions giving a total of 20 marks for that section.

Section B of the exam comprises four 10-mark questions and two longer 20 mark questions.

The 20-mark questions will examine one or more aspects of audit and assurance from planning and risk assessment to internal control or audit review and reporting.

Summary of changes
The main areas that have been changed in the syllabus are shown in the Table 9 below:


Table 9 – Amendments to Paper F8

Section and subject area

Syllabus content

A1(e) Explain reporting as a means of communication to different stakeholders

Deleted

A3(i) Compare the responsibilities of management and auditors for the design and operation of systems and controls

Deleted

B2(a) Identify the overall objectives of the auditor and the need to conduct an audit in accordance with ISAs

Old C1(a) and (c) combined

E2(g) Explain the auditor’s responsibilities and describe procedures to be applied in relation to opening balances and comparative information

Deleted               

E6(c) Discuss the extent to which auditors are able to rely on the work of internal audit

Combined with D6(b)

 

E7(b) Explain how the audit of not-for-profit organisations differs from the audit of for-profit organisations

Deleted


Paper F9, Financial Management

From December 2014 the Paper F9 exam is being re-structured as follows:

New structure
The syllabus is assessed by a three-hour paper-based exam.

All questions are compulsory. It will contain both computational and discursive elements.

Some questions will adopt a scenario/case study approach.

The exam structure consists of:

Section A(%)
20 x 2 mark objective test questions
40
  
Section B 
3 x 10 marks30
2 x 15 marks30
Total100


Section A of the exam comprises 20 multiple-choice questions of 2 marks each.

Section B of the exam comprises three 10 mark questions and two 15 mark questions.

The two 15 mark questions will come from working capital management, investment appraisal and business finance areas of the syllabus. The section A questions and the other questions in section B can cover any areas of the syllabus.

Syllabus changes
There are no changes to the syllabus except rearrangement of syllabus sections. The section on cost of capital is now part of business finance section.

Detailed changes outlined for June and December 2014 – Professional level exams

The following section summarises the syllabus changes for the ACCA Professional Level exams. Please note that there are no structural changes to any of these syllabuses for the period in question.


Paper P1, Governance, Risk and Ethics

Table 7 shows the main changes to the Paper P1 syllabus. The main significant changes are the introduction of a new section on public sector governance in Section A and some new outcomes on Integrated Reporting in Section E. Key changes relate to addition of public sector governance and to the addition of integrated reporting in the syllabus. The detailed changes are shown in Table 10 below:


Table 10: Summary of changes for Paper P1

Section and subject area

Syllabus content

A1(d) addition of new (iii) and (iv)

Explain, and apply in context of corporate governance, the key underpinning concepts of:

(i) fairness
(ii) openness/transparency
(iii) innovation
(iv) scepticism
(iii) independence
(iv) probity/honesty
(v) responsibility
(vi) accountability
(vii) reputation
(viii) judgment

A1(e) amended to add references to integrated reporting principles

Explain and assess the major areas of organisational life affected by issues in corporate governance.

(i) duties of directors and functions of the board (including setting a responsible ‘tone’ from the top and being accountable for the performance and impacts of the organisation)
(ii) the composition and balance of the board (and board committees)
(iii) relevance and reliability of corporate reporting and external auditing

New A9 subject area added on public sector governance

9. Public sector governance
(a) Describe, compare and contrast public sector, private sector, charitable status and non-governmental (NGO and quasi-NGOs) forms of organisation, including purposes, ownership and stakeholders (including lobby groups)
(b) Describe, compare and contrast the different types of public sector organisations at subnational, national and supranational level
(c) Assess and evaluate the strategic objectives and governance arrangements specific to public sector organisations as contrasted with private sector
(d) Discuss and assess the nature of democratic control, political influence and policy implementation in public sector organisations including the contestable nature of public sector policy

Section E title amended to specifically mention social responsibility and to reflect greater emphasis on integrated reporting principles in E7 of this section see below: 

E. PROFESSIONAL VALUES, ETHICS AND SOCIAL RESPONSIBILITY

E2(d) added to cover strategic aspects of CSR

(d) Explain and evaluate the concepts of 'CSR strategy' and 'strategic CSR' 

Heading of E7 changed to specifically refer to integrated reporting

7. Integrated reporting and sustainability issues in the conduct of business

E7(a) added to reflect integrated reporting aspects of sustainability

(a) Explain and assess the concept of integrated reporting and evaluate the issues concerning accounting for sustainability (including the alternative definitions of capital:

(i) Financial
(ii) Manufactured
(iii) Intellectual
(iv) Human
(v) Social and relationship
(vi) Natural

E7(b) amended to refer to impacts of an organisation

(b) Describe and assess the social and environmental impacts that economic activity can have (in terms of social and environmental ‘footprints’ and environmental reporting))

Old E7(b) deleted

(b) Explain and assess the concept of sustainability and evaluate the issues concerning accounting for sustainability (including the contribution of ‘full cost’ accounting)

New E7(c) amended to include reference to sustainability accounting

(c) Describe the main features of internal management systems for underpinning environmental and sustainability accounting such as EMAS and ISO 14000

New E7(d) amended to include specific reference to integrated reporting

(d) Explain and assess the typical content elements and guiding principles of an integrated report, and discuss the usefulness of this information to stakeholders  

New E7(e) amended to include reference to integrated reporting implications for audit

(e) Explain the nature of social and environmental audit and evaluate the contribution it can make to the assurance of integrated reports


P2, Corporate Reporting (INT)

There have not been any additions to the Study Guide for the exam year commencing 1 September 2014. However there have been minor amendments to the wording of some of the study guide outcomes corresponding to changes within examinable documents. Table 11 shows these changes which updates Paper P2 to take into account integrated reporting developments.


Table 11 – Additions to Paper P2 (INT)

Section and subject area

Syllabus content

A3(b)

Discuss the progress towards a framework for integrated reporting

H1(b)

Evaluate current reporting requirements in the area including the draft Integrated Reporting Framework

E1(a)

Apply knowledge from the syllabus to straightforward transactions and events arising in specialised, not-for-profit, and public sector entities.

(The inclusion of IAS 41, Agriculture in the examinable documents for this paper means that this is a business sector that could now be examined under this outcome.)


There have been two specific deletions from the Study Guide for the exam year commencing 1 September 2014. However there have also been changes made within the examinable documents, particularly in respect of exposure drafts that may be examined.

Table 12 below shows what is being deleted from Paper P2 (INT).
 

Table 12 – Deletions to Paper P2 (INT)

Section and subject area (in prior year study guide)

Syllabus content

C11(a)

Outline the principal considerations in developing a set of accounting standards for SMEs

C 11(c)

Discuss the reasons why the IFRS for SMEs does not address certain topics.


Paper P2, Corporate Reporting (UK)

There have not been any additions to the study guide for the exam year commencing 1 September 2014. However, there have been minor amendments to the wording of some of the Study Guide outcomes corresponding to changes within examinable documents, including the specific reference to integrated reporting. In addition, the comparison between IFRS and UK GAAP will be based on the new UK GAAP as set out in FRSs 100-102.

These changes are shown in Table 13 below:


Table 13 – Additions to Paper P2 (UK)

Section and subject area

Syllabus content

A3(b)

Discuss the progress towards a framework for integrated reporting

H1(b)

Evaluate current reporting requirements in the area including the draft Integrated Reporting Framework

E1(a)

Apply knowledge from the syllabus to straightforward transactions and events arising in specialised, not-for-profit, and public sector entities.

(The inclusion of IAS 41, Agriculture in the examinable documents for this paper means that this is a business sector that could now be examined under this outcome.)

C11(d)

Discuss the key differences between the IFRS for SMEs and UK GAAP.


There have been two specific deletions from the Study Guide for the exam year commencing 1 September 2014. There have also been changes made within the examinable documents, particularly in respect of exposure drafts that may be examined. In addition, the comparison between IFRS and UK GAAP will be based on the new UK GAAP as set out in FRSs 100–102, so the standard by standard comparisons that appeared in previous editions of this Study Guide are now combined in outcome C11(d) as detailed in the table above.


Table 14: Deletions to Paper P2 (UK)

Section and subject area (in prior year study guide)

Syllabus content

C11(a)

Outline the principal considerations in developing a set of accounting standards for SMEs

C11(c)

Discuss the reasons why the IFRS for SMEs does not address certain topics


Paper P3, Business Analysis

The changes to Paper P3 mainly involve references to integrated reporting elements as would impact on Paper P3 in Section A, such as terminology changes to refer to ‘future outlook’ and the role of integrated reporting in communicating strategy. Other changes involve introducing a greater range of organisation structures to reflect the modern way of organising business functions in Section C, such as shared services and ‘hollow’ or ‘boundaryless’ organisations. Another substantive change involves the updating the information technology section to include a new Section E1 to reflect the updated International Education Standard (IES) 2 on IT capabilities required in an accounting curriculum. These are summarised in Table 15 below.


Table 15 – Summary of changes to Paper P3

Section and subject area

Syllabus content

Subject area A2 heading amended

Environmental issues affecting the strategic position of, and future outlook for, an organisation

A2(b) amended to add ‘external’

Highlight the external key drivers of change likely to affect the structure of a sector or market

A5(f) deleted

Identify opportunities for managing the strategic capability of an organisation

A6(h) added

Explain the role of integrated reporting in communicating strategy and strategic performance
B1(f) amended to delete and add models                                   Explain and apply the following portfolio models (the BCG growth/share matrix, the public sector portfolio matrix, the parenting matrix or Ashridge Portfolio Display) to assist corporate parents in managing their business portfolios

B2(c) deleted

Explore how organisations can respond to hypercompetitive conditions

C1(d) amended

Discuss how organisational structure and external relationships (boundary-less organisations; hollow, modular and virtual) and strategic alliances (joint ventures, networks, franchising, licensing) and the supporting concepts of outsourcing, offshoring and shared services, can be used to deliver a selected strategy 

C2(e) and (f) deleted

Specify organisational roles required to manage strategic change

Discuss levers that can be employed to manage strategic change

Section D heading amended and New D1 Subject area added

 

D. BUSINESS AND PROCESS CHANGE

1.Business change

(a) Explain that business change projects are initiated to address strategic alignment

(b) Apply the stages of the business change lifecycle (alignment, definition, design, implementation and realisation)

(c) Assess the value of the four view (POPIT – people, organisation, processes and information technology) model to the successful implementation of business change

New E1 Subject area added

E. INFORMATION TECHNOLOGY

1. Principles of information technology
(a) Advise on the basic hardware and software infrastructure required to support business information systems

(b) Identify and analyse general information technology controls and application controls required for effective accounting information systems

(c) Analyse the adequacy of general information technology controls and application controls for relevant application systems

(d) Evaluate controls over the safeguarding of information technology assets to ensure the organisational ability to meet business objectives


Paper P4, Advanced Financial Management

There are few changes to the syllabus to reflect the latest business and educational developments affecting this paper.

These are summarised in Table 16 below.


Table 16 – Additions to Paper P4

Section and subject area

Syllabus content

New A5(b) added

(b) Assess and advise on the impact of investment and  financing strategies and decisions on the organisations' stakeholders, from an integrated reporting and governance perspective


There are no deletions to Paper P4.

Paper P5, Advanced Performance Management

There is only one change to the syllabus to reflect the latest business and educational developments affecting this paper, relating to integrated reporting. This is summarised in Table 17 below:


Table 17: Additions to Paper P5

Section and subject area

Syllabus content

New F2(d) added                         

Explore the role of the management accountant in providing key performance information for integrated reporting to stakeholders


There are no deletions to Paper P5.


Paper P6, Advanced Taxation (UK)

Paper P6 (UK) is being updated from June 2014. A summary of the changes is listed in Table 18 below.


Table 18: Amendments to Paper P6 (UK)

Section and subject area

Amendment
Throughout

References to ‘stamp duty and stamp duty land tax’ changed to ‘stamp taxes’

Throughout
Areas excluded from Paper F6 that continue to be examinable at Paper P6
A1(d)(i) Change of accounting date
A1(d)(ii) The relief available for trading losses following the transfer of a business to a company
A2(d)(v) Double taxation relief
A2(e)(ix) Treatment of overseas branch
A3(g)(iii) Incorporation relief

Corporation tax

A2(c)(ii) Profits attributable to patents
A2(e)(vi) Pre-entry gains removed from syllabus
A2(f)(i) Disincorporation relief

Inheritance tax excluded topics

Trusts created prior to 22 March 2006

Stamp taxes excluded topic

Residential property held by non-natural persons



Paper P7, Advanced Audit and Assurance (INT)

The changes to Paper P7 are introduced to the syllabus to reflect the latest business and educational developments affecting this paper. The main changes include the introduction of outcomes relating to public sector audit and the audit of social, environmental and integrated reporting. These are all summarised in Table 19 below.


Table 19: Summary of changes to Paper P7 (INT)

Section and subject area

Syllabus content

New D4(b) added to include component auditor’s responsibilities in a group situation

(b) Explain the responsibilities of the component auditor before accepting appointment, and the procedures to be performed in a group situation

D3(e) Amended to add reference to integrated reporting

(e) Discuss the courses of action available to an auditor if an inconsistency or misstatement of fact exists in relation to other information such as contained in the integrated report

 

Heading E1 amended to include old E2 assurance services

1. Audit-related and assurance services

Old E2(c) Deleted

c) Recognise the ways in which different types of risk (eg strategic, operating, information) may be identified and analysed and assess how management should respond to risk

New E6 subject area added on public sector audit

6. The audit of performance information in public sector
(a) Describe the audit of performance information and differentiate from performance auditing
(b) Plan the audit of performance information, and describe examination procedures to be used in the audit of performance information
(c) Discuss the existence, measurability and relevance of reported performance information
(d) Discuss the form and content of a report on the audit of performance information
(e) Discuss the content of an audit conclusion on an integrated report of performance against predetermined objectives

Old G2 deleted

2. Information technology

(a) Describe recent trends in IT and their current and potential impact on auditors (eg the audit implications of ‘cyberincidents’ and other risks).
(b) Explain how IT may be used to assist auditors and discuss the problems that may be encountered in automating the audit process

Heading of G3 amended to refer to integrated reporting

4. The audit of social, environmental and integrated reporting

G3(a) Amended to add reference to integrated reporting

(a) Plan an engagement to provide assurance on integrated reporting (performance measures and sustainability indicators)

G3(e) Amended to add reference to integrated reporting

 


Paper P7, Advanced Audit and Assurance (UK)

Changes to the Paper P7 (UK) syllabus are included in Table 20 below:


Table 20: Summary of Changes to Paper P7 (UK)

Section and subject area

Syllabus content

A1(b)(ii) Amended to cover the whole UK Corporate Governance Code

A1(b)(ii) Discuss the provision of the UK Corporate Governance Code and its impact on audit and assurance practise.

New D2(b) added to include component auditor’s responsibilities in a group situation

(b) Explain the responsibilities of the component auditor before accepting appointment, and the procedures to be performed in a group situation

D3(e) Amended to add reference to integrated reporting

(e) Discuss the courses of action available to an auditor if an inconsistency or misstatement of fact exists in relation to other information such as contained in the integrated report

Heading E1 amended to include old E2 assurance services

1. Audit-related and assurance services

Old E2(c) deleted

(c) Recognise the ways in which different types of risk (eg strategic, operating, information) may be identified and analysed and assess how management should respond to risk

Old G2 deleted

2. Information technology

(a) Describe recent trends in IT and their current and potential impact on auditors (eg the audit implications of ‘cyberincidents’ and other risks)
(b) Explain how IT may be used to assist auditors and discuss the problems that may be encountered in automating the audit process

Heading of G3 amended to refer to integrated reporting

3. The audit of social, environmental and integrated reporting

G3(a) Amended to add reference to integrated reporting

(a) Plan an engagement to provide assurance on integrated reporting (performance measures and sustainability indicators)

G3(e) Amended to add reference to integrated reporting

(e) Discuss the form and content of an independent verification statement of an integrated report