WeACCA free acca study material | ACCA Global Fees and charges | ACCA Global myAcca ⚽⚽ ACCA P1 BPP I-Pass Free ⚽⚽ | Free ACCA Books, Practice Kits, Lectures, Revision+Summary Notes, 2016-2017 MCQs+Mocks

All Material Links


⚽⚽ ACCA P1 BPP I-Pass Free ⚽⚽


1. International regulatory frameworks for audit
and assurance services
a) Explain the need for laws, regulations,
standards and other guidance relating to audit,
assurance and related services.
b) Outline and explain the need for the legal and
professional framework including:
i) public oversight of audit and assurance
ii) the impact of corporate governance
principles on audit and assurance practice
iii) the role of audit committees and impact on
audit and assurance practice.
2. Money laundering
a) Define ‘money laundering’ and discuss
international methods for combatting money
b) Explain the scope of criminal offences of
money laundering and how professional
accountants may be protected from criminal
and civil liability.
c) Explain the need for ethical guidance in this
d) Describe how accountants meet their
obligations to help prevent and detect money
laundering including record keeping and
reporting of suspicion to the appropriate
regulatory body.
e) Explain the importance of customer due
diligence (CDD) and recommend the
information that should be gathered as part of
f) Recognise potentially suspicious transactions
and assess their impact on reporting duties.
g) Describe, with reasons, the basic elements of
an anti-money laundering program.
3. Laws and regulations
a) Compare and contrast the respective
responsibilities of management and auditors
concerning compliance with laws and
regulations in an audit of financial
b) Describe the auditors’ considerations of
compliance with laws and regulations and plan
audit procedures when possible non-compliance is discovered.
c) Discuss how and to whom non-compliance
should be reported.
d) Recognise when withdrawal from an
engagement is necessary.
1. Code of Ethics for Professional Accountants
a) Explain the fundamental principles and the
conceptual framework approach.
b) Identify, evaluate and respond to threats to
compliance with the fundamental principles.
c) Discuss and evaluate the effectiveness of
available safeguards.
d) Recognise and advise on conflicts in the
application of fundamental principles.
e) Discuss the importance of professional
scepticism in planning and performing an
f) Consider the ethical implications of the external
auditor providing non-audit services to a client
including an internal audit service.
g) Assess whether an engagement has been
planned and performed with an attitude of
professional scepticism, and evaluate the
© ACCA 2017-2018 All rights reserved.
2. Fraud and error
a) Identify and develop an appropriate response to
circumstances which indicate a high risk of
error, irregularity, fraud or misstatement in the
financial statements or a given situation.
b) Compare and contrast the respective
responsibilities of management and auditors for
fraud and error.
c) Describe the matters to be considered and
procedures to be carried out to investigate
actual and/or potential misstatements in a
given situation.
d) Explain how, why, when and to whom fraud
and error should be reported and the
circumstances in which an auditor should
withdraw from an engagement.
e) Discuss the current and possible future role of
auditors in preventing, detecting and reporting
error and fraud.
3. Professional liability
a) Recognise circumstances in which professional
accountants may have legal liability and the
criteria that need to be satisfied for legal
liability to be recognised.
b) Describe the factors to determine whether or
not an auditor is negligent and discuss the
auditor’s potential liability in given situations.
c) Compare and contrast liability to client with
liability owed to third parties (ie contract vs
establishing a duty of care).
d) Evaluate the practicability and effectiveness of
ways in which liability may be restricted
including the use of liability limitation
e) Discuss and appraise the principal causes of
audit failure and other factors that contribute to
the ‘expectation gap’ (e.g. responsibilities for
fraud and error) and recommend ways in
which the expectation gap might be bridged.
1. Quality control
a) Explain the principles and purpose of quality
control of audit and other assurance
b) Describe the elements of a system of quality
control relevant to a given firm.
c) Select and justify quality control procedures
that are applicable to a given audit
d) Assess whether an engagement has been
planned and performed in accordance with
professional standards and whether reports
issued are appropriate in the circumstances.
2. Advertising, publicity, obtaining professional
work and fees
a) Recognise situations in which specified
advertisements are acceptable.
b) Discuss the restrictions on practice
descriptions, the use of the ACCA logo and the
names of practising firms.
c) Discuss the extent to which reference to fees
may be made in promotional material.
d) Outline the determinants of fee-setting and
justify the bases on which fees and
commissions may and may not be charged for
e) Discuss the ethical and other professional
problems, for example, lowballing, involved in
establishing and negotiating fees for a specified
3. Tendering
a) Discuss the reasons why entities change their
auditors/professional accountants.
b) Recognise and explain the matters to be
considered when a firm is invited to submit a
proposal or fee quote for an audit or other
professional engagement.
© ACCA 2017-2018 All rights reserved.
c) Identify the information to be included in a
4. Professional appointments
a) Explain the matters to be considered and the
procedures that an audit firm/professional
accountant should carry out before accepting a
specified new client/engagement or continuing
with an existing engagement, including:
i) client acceptance
ii) engagement acceptance
iii) establish whether the preconditions for an
audit are present
iv) agreeing the terms of engagement.
b) Recognise the key issues that underlie the
agreement of the scope and terms of an
engagement with a client.
1. Planning, materiality and assessing the risk of
a) Define materiality and performance materiality
and demonstrate how it should be applied in
financial reporting and auditing.
b) Identify and explain business risks for a given
c) Identify and explain audit risks for a given
d) Identify and explain risks of material
misstatement for a given assignment.
e) Discuss and demonstrate the use of analytical
procedures in the planning of an assignment.
f) Explain how the result of planning procedures
determines the relevant audit strategy.
g) Explain the planning procedures specific to an
initial audit engagement.
h) Identify additional information that may be
required to assist the auditor in obtaining an
understanding of the entity.
i) Recognise matters that are not relevant to the
planning of an assignment.
2. Evidence
a) Identify and describe audit procedures
(including substantive procedures and tests of
control) to obtain sufficient, appropriate audit
evidence from identified sources.
b) Assess and describe how IT can be used to
assist the auditor and recommend the use of
Computer-assisted audit techniques (CAATs)
where appropriate.
c) Identify additional information that may be
required to effectively carry out a planned
d) Identify and evaluate the audit evidence
expected to be available to
i) support the financial statement assertions
and accounting treatments (including fair
ii) support disclosures made in the notes to
the financial statements.
e) Apply analytical procedures to financial and
non-financial data.
f) Explain the specific audit problems and
procedures concerning related parties and
related party transactions.
g) Recognise circumstances that may indicate the
existence of unidentified related parties and
select appropriate audit procedures.
h) Evaluate the use of written representations
from management to support other audit
i) Recognise when it is justifiable to place
reliance on the work of an expert (e.g. a
surveyor employed by the audit client).
j) Assess the appropriateness and sufficiency of
the work of internal auditors and the extent to
which reliance can be placed on it.
© ACCA 2017-2018 All rights reserved.
3. Evaluation and review
a) Evaluate the matters (e.g. materiality, risk,
relevant accounting standards, audit evidence)
relating to:
i) inventory
ii) standard costing systems
iii) statement of cash flows
iv) changes in accounting policy
v) taxation (including deferred tax)
vi) segmental reporting
vii) non-current assets
viii) fair values
ix) leases
x) revenue from contracts with customers
xi) employee benefits
xii) government grants
xiii) related parties
xiv) earnings per share
xv) impairment
xvi) provisions, contingent liabilities and
contingent assets
xvii) intangible assets
xviii) financial instruments
xix) investment properties
xx) share-based payment transactions
xxi) business combinations
xxii) assets held for sale and discontinued
xxiii) events after the end of the reporting
xxiv) the effects of foreign exchange rates
xxv) borrowing costs.
b) Explain the use of analytical procedures in
evaluation and review.
c) Explain how the auditor’s responsibilities for
corresponding figures, comparative financial
statements, and ‘other information’, are
d) Apply the further considerations and audit
procedures relevant to initial engagements.
e) Specify audit procedures designed to identify
subsequent events that may require adjustment
to, or disclosure in, the financial statements of
a given entity.
f) Identify and explain indicators that the going
concern basis may be in doubt and recognise
mitigating factors.
g) Recommend audit procedures, or evaluate the
evidence that might be expected to be
available and assess the appropriateness of the
going concern basis in given situations.
h) Assess the adequacy of disclosures in financial
statements relating to going concern and
explain the implications for the auditor’s report
with regard to the going concern basis.
4. Group audits
a) Recognise the specific matters to be
considered before accepting appointment as
group auditor to a group in a given situation.
b) Explain the responsibilities of the component
auditor before accepting appointment, and the
procedures to be performed in a group
situation. .
c) Identify and explain the matters specific to
planning an audit of group financial statements
 assessment of group and component
 the impact of non-coterminous year ends
within a group, and
 changes in group structure.
d) Recognise the audit problems and describe
audit procedures specific to:
a business combination, including the
classification of investments,
the determination of goodwill and its
group accounting policies,
inter-company trading,
equity accounting for associates and joint
changes in group structure including
acquisitions and disposals, and
accounting for a foreign subsidiary.
e) Identify and explain the audit risks, and
necessary audit procedures relevant to the
consolidation process.
f) Identify and describe the matters to be
considered and the procedures to be performed
at the planning stage, when a group auditor
considers the use of the work of component
© ACCA 2017-2018 All rights reserved.
g) Consider how the group auditor should
evaluate the audit work performed by a
component auditor.
h) Justify the situations where a joint audit would
be appropriate.
i) Explain the implications for the auditor’s report
on the financial statements of an entity where
the opinion on a component is modified in a
given situation.
1. Audit-related and assurance services
a) Describe the nature of audit-related services,
the circumstances in which they might be
required and the comparative levels of
assurance provided by professional
accountants and distinguish between:
i) audit-related services and an audit of
historical financial statements
ii) an attestation engagement and a direct
b) Plan review engagements, for example:
i) a review of interim financial information
ii) a ‘due diligence’ assignment (when
acquiring a company, business or other
c) Explain the importance of enquiry and
analytical procedures in review engagements
and apply these procedures.
d) Describe the main categories of assurance
services that audit firms can provide and
assess the benefits of providing these services
to management and external users.
e) Describe the level of assurance (reasonable,
high, moderate, limited, negative) for an
engagement depending on the subject matter
evaluated, the criteria used, the procedures
applied and the quality and quantity of
evidence obtained.
2. Prospective financial information
a) Define ‘prospective financial information’ (PFI)
and distinguish between a ‘forecast’, a
‘projection’, a ‘hypothetical illustration’ and a
b) Explain the principles of useful PFI.
c) Identify and describe the matters to be
considered before accepting a specified
engagement to report on PFI.
d) Discuss the level of assurance that the auditor
may provide and explain the other factors to be
considered in determining the nature, timing
and extent of examination procedures.
e) Describe examination procedures to verify
forecasts and projections.
f) Compare the content of a report on an
examination of PFI with reports made in
providing audit-related services.
3. Forensic audits
a) Define the terms ‘forensic accounting’, ‘forensic
investigation’ and ‘forensic audit’.
b) Describe the major applications of forensic
auditing (e.g. fraud, negligence, insurance
claims) and analyse the role of the forensic
auditor as an expert witness.
c) Apply the fundamental ethical principles to
professional accountants engaged in forensic
audit assignments.
d) Plan a forensic audit engagement.
e) Select investigative procedures and evaluate
evidence appropriate to determining the loss in
a given situation.
4. Internal audit
a) Evaluate the potential impact of an internal
audit department on the planning and
performance of the external audit.
b) Explain the benefits and potential drawbacks of
outsourcing internal audit.
© ACCA 2017-2018 All rights reserved.
c) Consider the ethical implications of the external
auditor providing an internal audit service to a
5. Outsourcing
a) Explain the different approaches to
‘outsourcing’ and compare with ‘insourcing’.
b) Discuss and conclude on the advantages and
disadvantages of outsourcing finance and
accounting functions.
c) Recognise and evaluate the impact of
outsourced functions on the conduct of an
6 The audit of performance information
(pre-determined objectives) in the public sector
a) Describe the audit of performance
information (pre-determined objectives) and
differentiate from performance auditing.
b) Plan the audit of performance information
(pre-determined objectives), and describe
examination procedures to be used in the
audit of this type of information.
c) Discuss the audit criteria of reported
performance information, namely
compliance with reporting requirements,
usefulness, measurability and reliability.
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 pre-determined objectives [3]
1 Auditor’s reports
a) Determine the form and content of an
unmodified auditor’s report and assess the
appropriateness of the contents of an
unmodified auditor’s report.
b) Recognise and evaluate the factors to be taken
into account when forming an audit opinion in
a given situation and justify audit opinions that
are consistent with the results of audit
c) Critically appraise the form and content of an
auditor’s report in a given situation.
d) Assess whether or not a proposed audit opinion
is appropriate.
e) Advise on the actions which may be taken by
the auditor in the event that a modified
auditor’s report is issued.
f) Recognise when the use of an emphasis of
matter paragraph, other matter paragraph and
KAM disclosure would be appropriate.
g) Discuss the courses of action available to an
auditor if a material inconsistency or material
misstatement exists in relation to other
information such as contained in the integrated
2. Reports to those charged with governance and
a) Critically assess the quality of a report to those
charged with governance and management.
b) Advise on the content of reports to those
charged with governance and management in a
given situation.
3. Other reports
a) Analyse the form and content of the
professional accountant’s report for an
assurance engagement as compared with an
auditor’s report.
b) Discuss the content of a report for an
examination of prospective financial
c) Discuss the effectiveness of the ‘negative
assurance’ form of reporting and evaluate
situations in which it may be appropriate to
modify a conclusion.
© ACCA 2017-2018 All rights reserved.
Discuss the relative merits and the consequences of
different standpoints taken in current debates and
express opinions supported by reasoned arguments.
1. Professional and ethical developments
a) Discuss emerging ethical issues and evaluate
the potential impact on the profession, firms
and auditors.
b) Discuss the content and impact of exposure
drafts, consultations and other
pronouncements issued by IFAC and its
supporting bodies (including IAASB, IESBA and
2. Transnational audits
a) Define ‘transnational audits’ and explain the
role of the Transnational Audit Committee
(TAC) of IFAC.
b) Discuss how transnational audits may differ
from other audits of historical financial
information (e.g. in terms of applicable
financial reporting and auditing standards,
listing requirements and corporate governance
3. The audit of social, environmental and
integrated reporting
a) Plan an engagement to provide assurance on
integrated reporting (performance measures
and sustainability indicators).
b) Describe the difficulties in measuring and
reporting on economic, environmental and
social performance and give examples of
performance measures and sustainability
c) Explain the auditor’s main considerations in
respect of social and environmental matters
and how they impact on entities and their
financial statements (e.g. impairment of assets,
provisions and contingent liabilities).
d) Describe substantive procedures to detect
potential misstatements in respect of socio-environmental matters.
e) Discuss the form and content of an
independent verification statement of an
integrated report
4. Other current issues
a) Discuss current developments in auditing
standards including the need for new and
revised standards and evaluate their impact on
the conduct of audits.
b) Discuss current developments in business
practices, practice management and audit
methodology and evaluate the potential impact
on the conduct of an audit and audit quality.
c) Discuss current developments in emerging
technologies, including big data and the use of
data analytics and the potential impact on the
conduct of an audit and audit quality.
© ACCA 2017-2018 All rights reserved.

ACCA periodically reviews its qualification sylla