EVOLVED ACA SYLLABUS

PROFESSIONAL LEVEL
AUDIT AND ASSURANCE
2015

ACA OVERVIEW
The ICAEW chartered accountancy qualification, the ACA, is one of the most advanced learning
and professional development programmes available. Its integrated components provide an indepth understanding across accountancy, finance and business. Combined, they help build the
technical knowledge, professional skills and practical experience needed to become an ICAEW
Chartered Accountant.
Each component is designed to complement each other, which means that students can put theory
into practice and can understand and apply what they learn to their day-to-day work. The
components are:

Professional development
ICAEW Chartered Accountants are known for their professionalism and expertise. Professional
development prepares students to successfully handle a variety of different situations that they
encounter throughout their career.
The ACA qualification improves students ability and performance in seven key areas:
adding value
communication
consideration
decision making
problem solving
team working
technical competence.

Ethics and professional scepticism

Ethics is more than just knowing the rules around confidentiality, integrity, objectivity and
independence. Its about identifying ethical dilemmas, understanding the implications and behaving
appropriately. We integrate ethics throughout the ACA qualification to develop students ethical
capabilities so they will always know how to make the right decisions and justify them.

3-5 years practical work experience

Practical work experience is done as part of a training agreement with one of our 2,850 authorised
training employers around the world. Students need to complete 450 days, which normally takes
between three and five years. The knowledge, skills and experience they gain as part of their
training agreement are invaluable, giving them the opportunity to put what theyre learning into
practice.

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15 accountancy, finance and business modules

Each of the ACA modules is directly relevant to the work that students do on a day-to-day basis.
They will gain in-depth knowledge across a broad range of topics in accountancy, finance and
business.
There are 15 modules over three levels. These can be taken in any order with the exception of the
Case Study which has to be attempted last. Students must pass every exam (or receive credit)
there are no options. This ensures that once qualified, all ICAEW Chartered Accountants have a
consistent level of knowledge, skills and experience.

Certificate Level
There are six modules that will introduce the fundamentals of accountancy, finance and business.
They each have a 1.5 hour computer-based assessment which can be sat at any time. Students
may be eligible for credit for some modules if they have studied accounting, finance, law or
business at degree level or through another professional qualification.
These six modules are also available as a stand-alone certificate, the ICAEW Certificate in
Finance, Accounting and Business (ICAEW CFAB). Students studying for this certificate will only
complete the first six modules. On successful completion, the ICAEW CFAB can be used as a
stepping stone to studying for the ACA.

Professional Level
The next six modules build on the fundamentals and test students understanding and ability to use
technical knowledge in real-life scenarios. Each module has a 2.53 hour exam, which are
available to sit four times per year. These modules are flexible and can be taken in any order. The
Business Planning: Taxation and Business Strategy modules in particular help students to
progress to the Advanced Level.

Advanced Level
The Corporate Reporting and Strategic Business Management modules test students
understanding and strategic decision making at a senior level. They present real-life scenarios,
with increased complexity and implications from the Professional Level modules.

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The Case Study tests all the knowledge, skills and experience gained so far. It presents a complex
business issue which challenges students ability to problem solve, identify the ethical implications
and provide an effective solution.
The Advanced Level exams are fully open book, so they replicate a real-life scenario where all the
resources are readily accessible.

Syllabus
This document presents the learning outcomes for each of the ACA modules. The learning
outcomes in each module should be read in conjunction with the relevant technical knowledge
grids at the end of this document and, where applicable, the skills development grid for that
module.

Assessment
The six Certificate Level modules are examined using computer-based assessments. Each
computer-based assessment is 1.5 hours long.
The six Professional Level modules are examined using traditional paper-based exams. Each
paper-based exam is 2.5 hours long with the exception of the Financial Accounting and Reporting
exam which is 3 hours long.
The three Advanced Level modules are also examined using traditional paper-based exams. The
exams for the Corporate Reporting and Strategic Business Management modules are 3.5 hours
long. The Case Study exam is four hours long.

Flexibility
There are no regulations stipulating the order in which students must attempt the modules,
allowing employers to design training programmes according to business needs. The exception to
this rule is the Case Study module, which must be the last module attempted. Students will be
permitted a maximum of four attempts at each Certificate and Professional Level module, and
unlimited attempts at the Advanced Level modules.

Credit for prior learning (CPL)

Students with previous qualifications may be eligible to apply for CPL for up to 12 modules at the
Certificate and Professional Levels. CPL is not available at the Advanced Level. For more
information, visit icaew.com/cpl

Open book policy

For some Professional Level modules, students are permitted to take certain publications into the
examination room. Details of these publications and our open book policy can be found within the
student resources area of our website.
For the Professional Level Business Planning: Taxation module, and at the Advanced Level,
students are permitted to take any material into the exam hall, subject to practical space
restrictions.

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AUDIT AND ASSURANCE

Module aim
To develop candidates understanding of the critical aspects of managing an assurance
engagement (including audit engagements): acceptance, planning, managing, concluding and
reporting.
On completion of this module, candidates will be able to:
understand and advise on the regulatory, professional and ethical issues relevant to those
carrying out an assurance engagement;
understand the processes involved in accepting and managing assurance engagements;
understand how quality assurance processes mitigate risks;
plan assurance engagements in accordance with the terms of the engagements and
appropriate standards; and
conclude and report on assurance engagements in accordance with the terms of the
engagements and appropriate standards.

Method of assessment
The Audit and Assurance module is examined using traditional paper-based exams. The paperbased exam is 2.5 hours long. The exam tests each of the four syllabus areas in accordance with
the weightings set out in the specification grid. The exam consists of six short-form questions and
three written test questions.
Ethics and law may be tested in any of the questions and candidates may use the open book text.

Specification grid
This grid shows the relative weightings of subjects within this module and should guide the relative
study time spent on each. Over time the marks available in the assessment will equate to the
weightings below, while slight variations may occur in individual assessments to enable suitably
rigorous questions to be set.
Syllabus area

Weighting (%)

1 Legal and other professional regulations, ethics and current issues

20

2 Accepting and managing engagements

15

3 Planning engagements

40

4 Concluding and reporting on engagements

25

The following learning outcomes should be read in conjunction with the relevant sections of the
technical knowledge grids from page 60 of this document.
For clarity, learning outcomes applicable to all types of assurance engagements (including audit)
are separated from those that are relevant only to audit engagements.
1 Legal and other professional regulations, ethics and current issues
Candidates will be able to understand and advise on the regulatory, professional and ethical issues
relevant to those carrying out an assurance engagement.
In the assessment, candidates may be required to:

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All assurance engagements

a. identify and advise upon the professional and ethical issues that may arise during an
assurance engagement
b. recognise the professional and ethical issues that may arise during an assurance engagement,
explain the relevance and importance of these issues and evaluate the relative merits of
different standpoints taken in debate
c. judge when to raise legal and ethical matters arising from assurance work with senior
colleagues for review and possible referral to external parties
d. discuss the purposes and consequences of UK laws and other regulatory requirements
surrounding assurance work
e. explain the standard-setting process used by national and international (IAASB) bodies and
the authority of the national and international standards
f. explain, in non-technical language, significant current assurance issues being dealt with by the
national standard-setting body and the IAASB
g. explain, using appropriate examples, the main ways in which national legislation affects
assurance.
Audit engagements
h. explain the main ways in which national legislation and other regulations affect the scope and
nature of the audit and the appointment and removal of auditors (including the relationship
between the law and auditing standards)
i. explain the principles behind different auditing requirements in different jurisdictions and
describe how national and international bodies are working to harmonise auditing
requirements, including requirements to report on internal controls
j. describe the principal causes of audit failure and their effects and the gap between outcomes
delivered by audit engagements and the expectations of users of audit reports.
2 Accepting and managing engagements
Candidates will be able to understand the processes involved in accepting and managing
assurance engagements and how quality assurance processes mitigate the risks to those
conducting the engagement.
In the assessment, candidates may be required to:
All assurance engagements
a. identify the legal, professional and ethical considerations that an individual or firm must
consider before accepting a specified assurance engagement
b. identify the sources of liability (including professional negligence) arising from an assurance
engagement and their impact upon the conduct of the engagement
c. discuss the issues which underlie the agreement of the scope and terms of an assurance
engagement (new or continuing)
d. formulate the approach suitable for management of the assurance engagement
e. discuss the principles and purposes of quality control of assurance engagements
f. demonstrate how the assurance function within an organisation can be monitored
g. describe how quality can be monitored and controlled through procedures external to the
organisation
Audit engagements
h. discuss the process by which an auditor obtains an audit engagement
i. discuss the issues and risks that an individual auditor or audit firm must consider with regard to
the acceptance of an audit engagement (new or continuing) with a client, including terms of
engagement and their documentation
j. identify the legal, professional and ethical considerations that an individual auditor or audit firm
must consider before accepting a specified audit engagement.

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3 Planning engagements
Candidates will be able to plan assurance engagements in accordance with the terms of the
engagements and appropriate standards.
In the assessment, candidates may be required to:
All assurance engagements
a. explain, in the context of a given scenario, why it is important to have an understanding of the
business when planning an engagement
b. identify ways of gaining an understanding of a clients business
c. recognise the circumstances under which it may be necessary to bring in expertise from other
parties to support assurance processes
d. identify the risks arising from, or affecting, a given set of business processes and
circumstances and assess their implications for the engagement
e. identify the risks arising from error, fraud and non-compliance with law and other regulations
and assess their implications for the engagement
f. assess significant business risks identified for their potential impact upon an organisation, in
particular their potential impact on performance measurement
g. identify the components of risk for a specified assurance engagement
h. assess the impact of risk and materiality on the engagement plan, including the nature, timing
and extent of assurance procedures, for a given organisation
i. discuss the benefits and limitations of analytical procedures at the planning stage
j. determine an approach appropriate for an engagement for a specified organisation which
addresses:
possible reliance on controls (including those within IT systems)
possible reliance on the work of internal audit
possible reliance on the work of other experts
possible reliance on the work of another auditor
probable extent of tests of controls and of substantive procedures, including analytical
procedures
the nature and extent of client-generated information
the probable number, timing, staffing and location of assurance visits
the assurance of entities published sustainability and corporate responsibility reports.
Audit engagements
k. identify the components of audit risk for a specified audit engagement, including the
breakdown of audit risk into inherent risk, control risk and detection risk
l. outline the aspects of employment and social security law which are relevant to statutory audit
m. discuss the differences between the audit of a non-specialised profit oriented entity and the
audit of a given specialised profit oriented entity
n. discuss the differences between the audit of a non-specialised profit oriented entity and the
audit of a given not-for-profit entity
o. specify and explain the steps necessary to plan, perform, conclude and report on the audit of
the financial statements of a non-specialised profit oriented entity in accordance with the terms
of the engagement including appropriate auditing standards
p. evaluate the impact of risk and materiality in preparing the audit plan, including the nature,
timing and extent of audit procedures.
4 Concluding and reporting on engagements
Candidates will be able to conclude and report on assurance engagements in accordance with the
terms of the engagements and appropriate standards.
In the assessment, candidates may be required to:

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All assurance engagements

a. describe the nature and timing of specific procedures designed to identify subsequent events
that may require adjustment or disclosure in relation to the matters being reported on
b. describe the nature and timing of specific procedures designed to identify the appropriateness
of the going concern assumption, including compliance with relevant legal and regulatory
requirements
c. evaluate, quantitatively and qualitatively (including use of analytical procedures), the results
and conclusions obtained from assurance procedures
d. draw conclusions on the ability to report on an assurance engagement which are consistent
with the results of the assurance work
e. draft suitable extracts for an assurance report (including any report to the management issued
as part of the engagement) in relation to a specified organisation on the basis of given
information, including in the extracts (where appropriate) statements of facts, their potential
effects, and recommendations for action relevant to the needs and nature of the organisation
being reported upon
f. advise on reports to be issued to those responsible for governance in accordance with
International Standards on Auditing, legislation, regulation and codes of corporate governance
g. judge when to refer reporting matters for specialist help.
Audit engagements
h. draw conclusions on the ability to report on an audit engagement, including the opinion for a
statutory audit, which are consistent with the results of the audit work
i. explain the elements (both explicit and implicit) of the auditors report issued in accordance
with the International Standards on Auditing and statutory requirements and recommend the
nature of an audit opinion to be given in such a report
j. draft suitable extracts for an audit report (including any report to the management issued as
part of the engagement) in relation to a specified organisation on the basis of given
information, including in the extracts (where appropriate) statements of facts, their potential
effects, and recommendations for action relevant to the needs and nature of the organisation
being reported upon.

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TECHNICAL KNOWLEDGE
The tables contained in this section show the technical knowledge in the disciplines of financial
reporting, audit and assurance, business analysis, ethics and taxation covered in the ACA syllabus
by module.
For each individual standard the level of knowledge required in the relevant Certificate and
Professional Level module and at the Advanced Level is shown.
The knowledge levels are defined as follows:
Level D
An awareness of the scope of the standard.
Level C
A general knowledge with a basic understanding of the subject matter and training in its application
thereof sufficient to identify significant issues and evaluate their potential implications or impact.
Level B
A working knowledge with a broad understanding of the subject matter and a level of experience in
the application thereof sufficient to apply the subject matter in straightforward circumstances.
Level A
A thorough knowledge with a solid understanding of the subject matter and experience in the
application thereof sufficient to exercise reasonable professional judgement in the application of
the subject matter in those circumstances generally encountered by chartered accountants.
Key to other symbols:

the knowledge level reached is assumed to be continued

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Audit and
Assurance

Advanced
Level

The International Auditing and Assurance Standards Board

The Authority Attaching to Standards Issued by the International Auditing and

Assurance Standards Board

Topic

Assurance

ASSURANCE AND AUDIT

The Authority Attaching to Practice Statements Issued by the International Auditing and
Assurance Standards Board

Discussion Papers

Working Procedures

International Standards on Auditing (UK and Ireland)

A

210 Agreeing the Terms of Audit Engagements

220 Quality Control for an Audit of Financial Statements

200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in
Accordance with International Standards on Auditing

230 Audit Documentation

240 The Auditors Responsibilities Relating to Fraud in an Audit of Financial

Statements

250 A Consideration of Laws and Regulations in an Audit of Financial Statements

250 B The Auditors Right and Duty to Report to Regulators in the Financial Sector

260 (Revised October 2012) Communication with Those Charged with Governance

265 Communicating Deficiencies in Internal Control to Those Charged with

Governance and Management

300 Planning an Audit of Financial Statements

315 (Revised June 2013) Identifying and Assessing the Risks of Material Misstatement
Through Understanding the Entity and its Environment

320 Materiality in Planning and Performing an Audit

330 The Auditors Responses to Assessed Risks

402 Audit Considerations Relating to an Entity Using a Service Organisation

450 Evaluation of Misstatements Identified during the Audit

500 Audit Evidence

501 Audit Evidence - Specific Considerations for Selected Items

505 External Confirmations

510 Initial Audit Engagements - Opening Balances

520 Analytical Procedures

530 Audit Sampling

540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and
Related Disclosures

550 Related Parties

560 Subsequent Events

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Audit and
Assurance

Advanced
Level

Assurance

705 (Revised October 2012) Modifications to the Opinion in the Independent Auditors
Report

706 (Revised October 2012) Emphasis of Matter Paragraphs and Other Matter
Paragraphs in the Independent Auditors Report

710 Comparative Information Corresponding Figures and Comparative Financial

Statements

720 A (Revised October 2012) The Auditors Responsibility Relating to Other

Information in Documents Containing Audited Financial Statements

720 B The Auditors Statutory Reporting Responsibility in Relation to Directors Reports

Topic

570 Going Concern

580 Written Representations

600 Special Considerations Audits of Group Financial Statements (including the Work
of Component Auditors)
610 (Revised June 2013) Using the Work of Internal Auditors

620 Using the Work of an Auditors Expert

700 (Revised June 2013) The Independent Auditors Report on Financial Statements

International Standards on Auditing

800 Special Considerations Audits of Financial Statements prepared in Accordance
with Special Purpose Frameworks

805 Special Considerations Audits of Single Financial

Statements and Specific Elements, Accounts or items of a Financial Statement

810 Engagements to Report on Summary Financial Statements

International Auditing Practice Note (IAPN)

1000 Special Considerations in Auditing Financial Instruments

International Standards on Review Engagements (ISREs)

2400 (Revised September 2012) Engagements to Review Financial Statements

2410 Review of Interim Financial Information Performed by the Independent Auditor of

the Entity

B
B

International Standards on Assurance Engagements (ISAEs)

3000 Assurance Engagements Other than Audits or Reviews of Historical Financial
Information

3400 The Examination of Prospective Financial Information

3402 Assurance Reports on Controls at a Service Organisation

3410 Assurance Engagements on Greenhouse Gas Statements

International Standards on Related Services (ISRSs)

4400 Engagements to Perform Agreed-upon Procedures Regarding Financial
Information

4410 Compilation Engagements (Revised March 2012)

IFAC Statements
ISQC1 Quality Control for Firms that Perform Audits and Reviews of Financial
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B
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Advanced
Level

Audit and
Assurance

Assurance

Topic

Statements, and Other Assurance and Related Services Engagements

Other Guidance
2010/2 (Revised March 2012) Compendium of illustrative Auditors Reports on UK
Private Sector Financial Statements

FRC Briefing Paper

Professional Scepticism establishing a common understanding and reaffirming its
central role in delivering audit quality

ETHICS CODES AND STANDARDS

Ethics Codes and Standards

Level

Modules

Certificate Level
C/D
B
C/D
D
C
C
IESBA Code of Ethics for Professional Accountants
(parts A, B and C and Definitions)
ICAEW Code of Ethics

Professional Level
A
B
B
B/C
B
B

A
A
A
B
A
FRC Ethical Standards 1-5 (revised)
Provisions Available for Small Entities (revised)

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Accounting
Assurance
Business and Finance
Law
Management Information
Principles of Taxation

Audit and Assurance

Business Strategy
Financial Accounting and
Reporting
Financial Management
Tax Compliance
Business Planning: Taxation

Advanced Level
Corporate Reporting
Strategic Business Management
Case Study
Assurance
Audit and Assurance

Advanced Level
A
A
A

Corporate Reporting
Strategic Business Management
Case Study

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