Technical articles and topic explainers

A library of articles and bite-sized videos to help you develop broader insight into the subject, split by syllabus section.

Audit framework and regulation (A)

Laws and regulations

It is important that candidates preparing for AA have an understanding of how laws and regulations affect an audit, not only in terms of the work the auditor is required to do, but also to appreciate the responsibilities of both management and the auditor where laws and regulations are concerned. 

Planning and risk assessment (B)

Risk and understanding the entity
Candidates studying Audit and Assurance (AA) and Advanced Audit and Assurance (AAA) are often presented with questions that focus on the planning stage of the audit. A sound understanding of ISA 315 (Revised 2019) is therefore essential.

Audit risk
This article outlines and explains the concept of audit risk, making reference to the key auditing standards which give guidance to auditors about risk assessment

ISA 330 and responses to assessed risks
Outlining the requirements of ISA 330.

Audit working papers
How working papers provide evidence that an effective, efficient, and economic audit has been carried out.

Topic explainer video: Audit risk and planning
In this video, expert tutor Erin Morton looks at the topic of 'Audit risk and planning' (YouTube).

Internal control (C)

The audit of wages
Also available as a podcast on iTunes
The most common payroll frauds can affect even those companies that appear to have good internal controls. This article sets out to help AA/FAU candidates better identify significant deficiencies in internal control, explain the implications of the deficiencies and recommend appropriate controls. It considers the different stages in a typical wages system – for example, what tasks should be undertaken during both the interim audit and final audit stages – as well as the link between control objectives, controls and audit tests.

Specific aspects of auditing in a computer-based environment
This article provides guidance on various aspects of auditing in a computer-based accounting environment

Auditing in a computer-based environment
The aim of this article is to help students improve their understanding of computer-assisted techniques by giving practical illustrations of computer-based controls and the way they may feature in exam questions.

Topic explainer video: Systems of Internal controls and test of controls

In this video, expert tutor Roger Gitonga looks at the topic of 'Systems of Internal controls and test of controls' (YouTube).

 

 

Audit evidence (D)

The audit of assertions
This article focuses on assertions as identified by ISA 315 (Revised) and also provides useful guidance to candidates on how to tackle questions dealing with these.

Audit sampling
This article will consider the various sampling methods in the context of AA and FAU.

Topic explainer video: Audit procedures
In this video, expert tutor Erin Morton tackles the topic of 'Audit procedures' (YouTube)

Review and reporting (E)

The auditor’s report
The completion of an IAASB project in 2015 resulted in a set of new and revised standards on auditor reporting. These standards are examinable from the September 2016 exam session, meaning that AA and AAA candidates will be expected to understand the requirements and responsibilities of the auditor as set out in the standards.

Going concern
It is essential that candidates preparing for the AA exam understand the respective responsibilities of auditors and management regarding going concern. This article discusses these responsibilities, as well as the indicators that could highlight where an entity may not be a going concern, and the reporting aspects relating to going concern.

Subsequent events
This article considers how subsequent events can affect an entity's financial statements, and discusses the auditing requirements AA candidates need to know.

Multiple areas

Using the work of internal auditors
Also available as a podcast on iTunes
This article focuses on the provision of direct assistance by the internal auditors, which – to date – has been a very controversial issue. Although internal auditors are the employees of the entity, which could result in threats to independence (either in fact or perceived) if direct assistance is provided by the internal auditors, there are benefits relating to this provision which cannot be ignored.

Analytical procedures
An outline of the analytical procedures relevant to the audit papers.

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