Advanced Audit and Assurance (AAA) (INT) : Syllabus and Study Guide

Advanced Audit and Assurance (AAA) (INT)
Advanced Audit
and Assurance
(AAA) (INT)
Syllabus and study guide
September 2020 to June 2021
Designed to help with planning study and to provide

detailed information on what could be assessed in any
examination session
© ACCA 2020-2021 All rights reserved.

Summary of content
Introduction
1. Intellectual levels
2. Learning hours and educational recognition
3. The structure of the ACCA Qualification
4. Guide to ACCA examination structure and
delivery mode
5. Guide to ACCA examination assessment
Advanced Audit and Assurance
syllabus
6. Relational diagram linking Advanced Audit
and Assurance with other exams
7. Approach to examining the syllabus
8. Introduction to the syllabus
9. Main capabilities
10. The syllabus
Advanced Audit and Assurance
study guide
11. Detailed study guide
12. Summary of changes to Advanced Audit and
Assurance (AAA) (INT)

1.Intellectual levels 2.Learning hours and

The syllabus is designed to progressively
education recognition
broaden and deepen the knowledge, skills
The ACCA qualification does not prescribe
and professional values demonstrated by
or recommend any particular number of
the student on their way through the
learning hours for examinations because
qualification.
study and learning patterns and styles vary
greatly between people and organisations.
The specific capabilities within the detailed
This also recognises the wide diversity of
syllabuses and study guides are assessed at
personal, professional and educational
one of three intellectual or cognitive levels:
circumstances in which ACCA students find
themselves.
Level 1: Knowledge and
comprehension
As a member of the International Federation
Level 2: Application and analysis
of Accountants, ACCA seeks to enhance the
Level 3: Synthesis and evaluation
education recognition of its qualification on
both national and international education
Very broadly, these intellectual levels relate
frameworks, and with educational authorities
to the three cognitive levels at which the
and partners globally. In doing so, ACCA
Applied Knowledge,the Applied Skills and
aims to ensure that its qualification is
the Strategic Professional exams are
recognised and valued by governments,
assessed.
regulatory authorities and employers across
all sectors. To this end, ACCA qualification
Each subject area in the detailed study
is currently recognised on the education
guide included in this document is given a 1,
frameworks in several countries. Please
2, or 3 superscript, denoting intellectual
refer to your national education framework
level, marked at the end of each relevant
regulator for further information.
learning outcome. This gives an indication of
the intellectual depth at which an area could
Each syllabus is organised into main subject
be assessed within the examination.
area headings which are further broken
However, while level 1 broadly equates with
down to provide greater detail on each area.
Applied Knowledge, level 2 equates to
Applied Skills and level 3 to Strategic
Professional, some lower level skills can
continue to be assessed as the student
progresses through each level. This reflects
that at each stage of study there will be a
requirement to broaden, as well as deepen
capabilities. It is also possible that
occasionally some higher level capabilities
may be assessed at lower levels.

3.The structure of ACCA qualification

4.Guide to ACCA Strategic Professional

Strategic Business Leader is ACCA’s case
examination structure study examination at Strategic Professional
and delivery mode and is examined as a closed book exam of
four hours, including reading, planning and
The structure and delivery mode of reflection time which can be used flexibly
examinations varies. within the examination. There is no pre-seen
information and all exam related material,
Applied Knowledge including case information and exhibits are
The Applied Knowledge examinations available within the examination. Strategic
contain 100% compulsory questions to Business Leader is an exam based on one
encourage candidates to study across the main business scenario which involves
breadth of each syllabus. These are candidates completing several tasks within
assessed by a two-hour computer based which additional material may be introduced.
examination. All questions are compulsory and each
examination will contain a total of 80
Applied Skills technical marks and 20 Professional Skills
The Corporate and Business Law exam is a marks.
two-hour computer-based objective test
examination for English and Global. For the The other Strategic Professional exams are
format and structure of the Corporate and all of three hours and 15 minutes duration.
Business Law or Taxation variant exams, All contain two sections and all questions
refer to the ‘Approach to examining the are compulsory. These exams all contain
syllabus’ in section 9 of the relevant syllabus four professional marks.
and study guide. For the format and
structure of the variant exams, refer to the From March 2020, Strategic Professional
‘Approach to examining the syllabus’ section exams will become available by computer
below. based examination. More detail regarding
what is available in your market will be on
The other Applied Skills examinations (PM, the ACCA global website.
TX-UK, FR, AA, and FM) contain a mix of
objective and longer type questions with a With Applied Knowledge and Applied Skills
duration of three hours for 100 marks. These exams now assessed by computer based
are assessed by a three hour computer- exam, ACCA is committed to continuing on
based exam. Prior to the start of each exam its journey to assess all exams within the
there will be time allocated for students to be ACCA Qualification using this delivery mode.
informed of the exam instructions.
The question types used at Strategic
The longer (constructed response) question Professional again require students to
types used in the Applied Skills exams effectively mimic what they would do in the
(excluding Corporate and Business Law) workplace and, with the move to CBE, these
require students to effectively mimic what exams again offer ACCA the opportunity to
they do in the workplace. Students will need focus on the application of knowledge to
to use a range of digital skills and scenarios, using a range of tools – spread
demonstrate their ability to use spread sheets, word processing and presentations -
sheets and word processing tools in not only enabling students to demonstrate
producing their answers, just as they would their technical and professional skills but
use these tools in the workplace. These also their use of the technology available to
assessment methods allow ACCA to focus today’s accountants.
on testing students’ technical and application
skills, rather than, for example, their ability to
perform simple calculations. ACCA encourages students to take time to
read questions carefully and to plan answers
but once the exam time has started, there
are no additional restrictions as to when

candidates may start producing their

answer.
Time should be taken to ensure that all the

information and exam requirements are
properly read and understood.
The pass mark for all ACCA Qualification

examinations is 50%.

5.Guide to ACCA For additional guidance on the examinability

of specific tax rules and the depth in which
examination they are likely to be examined, reference
assessment should be made to the relevant Finance Act
article written by the examining team and
ACCA reserves the right to examine any published on the ACCA website.
learning outcome contained within the study
guide. This includes knowledge, techniques, None of the current or impending devolved
principles, theories, and concepts as taxes for Scotland, Wales, and Northern
specified. For the financial accounting, audit Ireland is, or will be, examinable.
and assurance, law and tax exams except
where indicated otherwise, ACCA will
publish examinable documents once a year
to indicate exactly what regulations and
legislation could potentially be assessed
within identified examination sessions.
For most examinations (not tax), regulations

issued or legislation passed on or before
31 August annually, will be examinable from
1 September of the following year to 31
August of the year after that. Please refer to
the examinable documents for the exam
(where relevant) for further information.
Regulation issued or legislation passed in

accordance with the above dates may be
examinable even if the effective date is in
the future.
The term issued or passed relates to when

regulation or legislation has been formally
approved.
The term effective relates to when regulation

or legislation must be applied to an entity
transactions and business practices.
The study guide offers more detailed

guidance on the depth and level at which the
examinable documents will be examined.
The study guide should therefore be read in
conjunction with the examinable documents
list.
For UK tax exams, examinations falling

within the period 1 June to 31 March will
generally examine the Finance Act which
was passed in the previous year. Therefore,
exams falling in the period 1 June 2020 to
31 March 2021 will examine the Finance Act
2019 and any examinable legislation which
is passed outside the Finance Act before 31
July 2019.

6.Relational diagram linking Advanced Audit and

Assurance (AAA) (INT) with other exams
This diagram shows links between this exam and other exams preceding or following it.
Some exams are directly underpinned by other exams such as Advanced Audit and
Assurance (AAA) by Audit and Assurance (AA) and Strategic Business Reporting (SBR).
This diagram indicates where students are expected to have underpinning knowledge and
where it would be useful to review previous learning before undertaking study.
7.Approach to examining the syllabus
The Advanced Audit and Assurance exam builds upon the skills and knowledge examined in
the Audit and Assurance exam. At this stage candidates will be expected to demonstrate an
integrated knowledge of the subject. The study guide specifies the wide range of contextual
understanding that is required to achieve a satisfactory standard at this level.
Examination Structure
The syllabus is assessed by a three-hour 15 minutes examination
The examination is constructed in two sections. Questions in both sections will be largely
discursive. However, candidates will be expected, for example, to be able to assess
materiality and calculate relevant ratios where appropriate.
Section A
Section A will comprise a Case Study, worth 50 marks, set at the planning stage of the audit,
for a single company, a group of companies or potentially several audit clients. Candidates
will be provided with detailed information, which will vary between examinations, but is likely
to include extracts of financial information, strategic, operational and other relevant financial
information for a client business, as well as extracts from audit working papers, including
results of analytical procedures.
Candidates will be required to address a range of requirements, predominantly from syllabus

sections A, B, C and D, thereby tackling a real world situation where candidates may have to
address a range of issues simultaneously in relation to planning, risk assessment, evidence
gathering and ethical and professional considerations. Please note that other syllabus
areas, excluding E, may also be drawn on as part of the Case Study.

Four professional marks will be available in Section A and will be awarded based on the
level of professionalism with which a candidate’s answer is presented, including the structure
and clarity of the answer provided.
Section B
Section B will contain two compulsory 25 mark questions, with each being predominately
based around a short scenario which may relate to more than one client.
One question will always predominantly come from syllabus section E, and consequently
candidates should be prepared to answer a question relating to completion, review and
reporting. There are a number of formats this question could adopt, including, but not limited
to, requiring candidates to assess going concern, the impact of subsequent events,
evaluating identified misstatements and the corresponding effect on the auditor’s report.
Candidates may also be asked to critique an auditor’s report or evaluate the matters to be
included in a report which is to be provided to management or those charged with
governance.
The other Section B question can be drawn from any other syllabus section, including A, B,
C, D and F.
Quality control and ethics
The auditor’s assessment of effective quality control procedures and consideration of ethical
issue are fundamental to all stages of the audit and therefore these concepts could be
examined in any section of the exam.
Current issues
Syllabus section G on current issues may be examined in Section A or B as appropriate.

Current issues is unlikely to form the basis of any question on its own but instead will be
incorporated into the Case Study or either of the Section B questions dependent on question
content and the topical issues affecting the profession at the time of writing.
Total 100 marks
8.Introduction to the syllabus
The aim of the syllabus is to analyse, evaluate and conclude on the assurance engagement
and other audit and assurance issues in the context of best practice and current
developments .
The Advanced Audit and Assurance (AAA)(INT) syllabus is essentially divided into seven
areas.
The syllabus starts with the legal and regulatory environment including money laundering,
and professional and ethical considerations, including the Code of Ethics and professional
liability. This then leads into procedures in practice management, including quality control
and the acceptance and retention of professional engagements.

The syllabus then covers the audit of financial statements, including planning and evidence
gathering. It then covers the completion, evidence evaluation and review and reporting on an
audit of historical financial information. The next section moves onto other assignments
including prospective financial information, due diligence and forensic audit as well as the
reporting of these assignments.
The final section covers current issues and developments relating to the provision of audit-
related and assurance services.

9.Main capabilities
On successful completion of this exam, candidates should be able to:

A Recognise the legal and regulatory environment and its impact on audit and assurance
practice
B Demonstrate the ability to work effectively on an assurance or other service engagement

within a professional and ethical framework
C Assess and recommend appropriate quality control policies and procedures in practice
management and recognise the auditor’s position in relation to the acceptance and
retention of professional appointments
D Identify and formulate the work required to meet the objectives of audit assignments and
apply the International Standards on Auditing
E Evaluate findings and the results of work performed and draft suitable reports on
assignments
F Identify and formulate the work required to meet the objectives of non-audit assignments
G Understand the current issues and developments relating to the provision of audit-related
and assurance services
This diagram illustrates the flows and links between the main capabilities of the syllabus and
should be used as an aid to planning teaching and learning in a structured way.

10.The syllabus 4. Reports to those charged with

governance and management
A Regulatory Environment F Other assignments
1. International regulatory frameworks for 1. Audit-related and assurance services

audit and assurance services
2. Specific assignments
2. Money laundering
3. The audit of social, environmental and
3. Laws and regulations integrated reporting
B Professional and Ethical 4. The audit of performance information

Considerations (pre-determined objectives) in the public
sector
1. Code of Ethics for Professional
Accountants 5. Reporting on other assignments
2. Fraud and error G Current Issues and Developments
3. Professional liability 1. Professional and ethical developments
C Quality Control and Practice 2. Other current issues

Management
1. Quality control (firm-wide)
2. Advertising, tendering and obtaining

professional work and fees
3. Professional appointments
D Planning and conducting an audit of

historical financial information
1. Planning, materiality and assessing the

risk of material misstatement
2. Evidence and testing considerations
3. Audit procedures and obtaining evidence
4. Using the work of others
5. Group audits
E Completion, review and reporting
1. Subsequent events and going concern
2. Completion and final review
3. Auditor’s reports

g) Describe, with reasons, the basic

11.Detailed study guide elements of an anti-money laundering
program.[2]
A Regulatory environment 3. Laws and regulations
1. International regulatory frameworks a) Compare and contrast the respective

for audit and assurance services responsibilities of management and
auditors concerning compliance with
a) Explain the need for laws, regulations, laws and regulations in an audit of
standards and other guidance relating to financial statements.[2]
audit, assurance and related services.[2]
b) Describe the auditors’ considerations of
b) Outline and explain the need for the compliance with laws and regulations
legal and professional framework and plan audit procedures when possible
including:[2] non-compliance is discovered. [2]
i) public oversight of audit and
assurance practice c) Discuss how and to whom non-
ii) the impact of corporate compliance should be reported.[2]
governance principles on audit
and assurance practice d) Recognise and recommend when
iii) the role of audit committees and withdrawal from an engagement is
impact on audit and assurance necessary.[2]
practice.
2. Money laundering
B Professional and ethical
considerations
a) Define ‘money laundering’ and discuss
international methods for combatting 1. Code of Ethics for Professional
money laundering.[2] Accountants
b) Explain the scope of criminal offences of a) Explain the fundamental principles and
money laundering and how professional the conceptual framework approach.[1]
accountants may be protected from
criminal and civil liability.[2] b) Identify, evaluate and respond to threats
to compliance with the fundamental
c) Explain the need for ethical guidance in principles.[3]
this area.[2]
c) Discuss and evaluate the effectiveness
d) Describe how accountants meet their of available safeguards.[3]
obligations to help prevent and detect
money laundering including record d) Recognise and advise on conflicts in the
keeping and reporting of suspicion to the application of fundamental principles.[3]
appropriate regulatory body.[2]
e) Discuss the importance of professional
e) Explain the importance of customer due scepticism in planning and performing an
diligence (CDD) also referred to as Know audit.[2]
Your Customer (KYC) and recommend
the information which should be f) Consider the ethical implications of the
gathered as part of CDD/KYC.[2] external auditor providing non-audit
services to a client including an internal
f) Recognise potentially suspicious audit service.[2]
transactions and assess their impact on
reporting duties.[2] g) Assess whether an engagement has
been planned and performed with an

attitude of professional scepticism, and that contribute to the ‘expectation gap’

evaluate the implications.[3] (e.g. responsibilities for fraud and error)
and recommend ways in which that gap
2. Fraud and error may be bridged.[3]
a) Identify and develop an appropriate

response to circumstances which
C Quality control and practice
indicate a high risk of error, irregularity, management
fraud or misstatement in the financial
statements or a given situation.[2] 1. Quality control (firm-wide)
b) Compare and contrast the respective a) Explain the principles and purpose of
responsibilities of management and quality control of audit and other
auditors for fraud and error.[2] assurance engagements.[1]
c) Describe the matters to be considered b) Describe the elements of a system of

and recommend procedures to be quality control relevant to a given firm.[2]
carried out to investigate actual and/or
potential misstatements in a given c) Evaluate the quality control procedures
situation.[2] which are in place for a given firm and
assess if they have been appropriately
d) Explain how, why, when and to whom applied in a given engagement.[3]
fraud and error should be reported and
the circumstances in which an auditor 2. Advertising, tendering and obtaining
should withdraw from an engagement.[2] professional work and fees
e) Consider the current and possible future a) Evaluate the appropriateness of publicity
role of auditors in preventing, detecting material including the use of the ACCA
and reporting error and fraud.[2] logo and reference to fees.[2]
3. Professional liability b) Outline the determinants of fee-setting

and justify the bases on which fees and
a) Recognise circumstances in which commissions may and may not be
professional accountants may have legal charged for services.[3]
liability and the criteria that need to be
satisfied for legal liability to be c) Discuss the ethical and other
recognised.[2] professional problems, for example,
lowballing, involved in establishing and
b) Describe the factors to determine negotiating fees for a specified
whether or not an auditor is negligent assignment.[3]
and discuss the auditor’s potential
liability in given situations.[2] d) Recognise and explain the matters to be
considered prior to tendering for an audit
c) Compare and contrast liability owed to or other professional engagement and
client with liability owed to third parties explain the information to be included in
(ie contract vs establishing duty of the proposal.[2]
care).[3]
3. Professional appointments
d) Evaluate the practicability and
effectiveness of ways in which liability a) Explain the matters to be considered and
may be restricted including the use of the procedures that an audit
liability limitation agreements.[3] firm/professional accountant should
carry out before accepting a specified
e) Discuss and appraise the principal new client/engagement or continuing
causes of audit failure and other factors with an existing engagement, including:[3]

i) client acceptance 2. Evidence and testing considerations

ii) engagement acceptance (new
and existing engagements) a) Identify and describe audit procedures
iii) establish whether the preconditions (including substantive and test of
for an audit are present controls) to obtain sufficient appropriate
iv) agreeing the terms of engagement. audit evidence from identified sources to
support the financial statement
b) Recognise the key issues that underlie assertions and disclosures.[2]
the agreement of the scope and terms of
an engagement with a client.[2] b) Assess and describe how IT can be
used to assist the auditor, and
recommend the use of automated tools
D Planning and conducting an and techniques, such as audit software,
audit of historical financial test data and other data analytics tools
information where appropriate.[2]
1. Planning, materiality and assessing c) Recommend additional information

the risk of material misstatement which may be required to effectively
carry out a planned engagement or a
a) Define materiality and performance specifc aspect of an engagement.[2]
materiality and demonstrate how it
should be applied in financial reporting d) Apply the further considerations and
and auditing.[2] audit procedures relevant to initial
engagements.[2]
b) Evaluate business risks, audit risks and
risks of material misstatement for a given e) Apply analytical procedures to financial
assignment.[3] and non-financial data.[2]
c) Discuss and demonstrate the use of f) Explain the specific audit problems and
analytical procedures in the planning of procedures concerning related parties
an assignment.[3] and related party transactions.[2]
d) Explain how the result of planning g) Recognise circumstances that may

procedures determines the relevant audit indicate the existence of unidentified
strategy.[2] related parties and recommend
appropriate audit procedures.[2]
e) Explain the planning procedures specific
to an initial audit engagement.[2] 3. Audit procedures and obtaining
evidence
f) Recommend additional information
which may be required to assist the a) Design appropriate audit procedures
auditor in obtaining an understanding of relating to:[3]
the entity.[2] i) inventory (including standard costing
systems)
g) Discuss how transnational audits may ii) non-current assets
differ from other audits of historical iii) intangible assets
financial information (e.g. in terms of iv) biological assets
applicable financial reporting and v) investment properties
auditing standards, listing requirements vi) assets held for sale and
and corporate governance discontinued operations
requirements).[2] vii) financial instruments
viii) fair values
h) Recognise matters that are not relevant ix) government grants
to the planning of an assignment.[2] x) leases
xi) impairment

xii) provisions, contingent liabilities 5. Group audits

and contingent assets
xiii) borrowing costs a) Recognise the specific matters to be
xiv) employee benefits considered before accepting
xv) share-based payment appointment as group auditor to a group
transactions in a given situation.[3]
xvi) taxation (including deferred tax)
xvii) related parties b) Identify and describe the matters to be
xviii) revenue from contracts with considered and the procedures to be
customers performed at the planning stage, when a
xix) statement of cash flows group auditor considers the use of the
xx) business combinations work of component auditors.[3]
xxi) events after the end of the
reporting period c) Identify and explain the matters specific
xxii) the effects of foreign exchange to planning an audit of group financial
rates statements including:
xxiii) segmental reporting  assessment of group and
xxiv) earnings per share component materiality,
xxv) changes in accounting policy  the impact of non-coterminous year
xxvi) payroll and other expenses ends within a group,
 changes in group structure or a
b) Explain how the auditor’s responsibilities complex group structure.[2]
for corresponding figures, comparative
financial statements, and ‘other d) Recommend and discuss the
information’, are discharged.[3] communications and content therein to
be provided by the group auditor to the
c) Explain the auditor’s main considerations component auditor in a given situation.[3]
in respect of social and environmental
matters and how they impact on entities e) Recognise the audit problems and
and their financial statements (e.g. describe audit procedures specific to:
impairment of assets, provisions and 
a business combination, including
contingent liabilities).[2] the classification of investments

the determination of goodwill and its
4. Using the work of others impairment,

group accounting policies,
a) Recognise when it is justifiable to place 
intra-group trading,
reliance on the work of an expert (e.g. a 
equity accounting for associates and
surveyor employed by the audit client).[2]
joint ventures,

b) Evaluate the potential impact of an changes in group structure,
internal audit department on the including acquisitions and diposals,

planning and performance of the and accounting for a foreign
external audit.[2] subsidiary.[3]
c) Assess the appropriateness and f) In respect of the consolidation process

sufficiency of the work of internal identify and explain the relevant audit
auditors and the extent to which reliance risks and audit procedures necessary to
can be placed on it. [2] obtain sufficient appropriate evidence.[3]
d) Recognise and evaluate the impact of g) Consider how the group auditor should
outsourced functions, such as payroll, evaluate the audit work performed by a
on the conduct of an audit.[3] component auditor.[2]
h) Explain the responsibilities of the

component auditor before accepting

appointment, and the procedures to be e) Justify the review procedures which

performed in a group situation.[2] should be performed in a given
assignment, including the need for an
i) Justify the situations where a joint audit engagement quality control review and
would be appropriate.[2] recommend additional procedures or
actions needed in the circumstances.[2]
E Completion, review and
f) Evaluate the use of written
reporting representations from management to
support other audit evidence.[2]
1. Subsequent events and going
concern 3 Auditor’s reports
a) Design audit procedures to identify a) Determine the form and content of an
subsequent events which may require unmodified auditor’s report and assess
adjustment to, or disclosure in, the the appropriateness of the contents of an
financial statements of a given entity.[2] unmodified auditor’s report.[3]
b) Evaluate indicators that the going b) Recognise and evaluate the factors to be
concern basis may be in doubt and taken into account when forming an
recognise mitigating factors.[2] audit opinion in a given situation and
justify audit opinions that are consistent
c) Recommend audit procedures, or with the results of audit procedures.[3]
evaluate the evidence that might be
expected to be available and assess the c) Critically appraise the form and content
appropriateness of the going concern of an auditor’s report in a given
basis in given situations.[3] situation.[3]
d) Assess the adequacy of disclosures in d) Assess whether or not a proposed audit
financial statements relating to going opinion is appropriate.[3]
concern and explain the implications for
the auditor’s report with regard to the e) Advise on the actions which may be
going concern basis.[3] taken by the auditor in the event that a
modified auditor’s opinion is issued.[3]
2 Completion and final review
f) Explain the implications for the auditor’s
a) Explain the use of analytical procedures report on the group financial statements
in evaluation and review.[3] of an entity where the opinion on a
component is modified in a given
b) Assess whether an engagement has situation.[2]
been planned and performed in
accordance with professional g) Recognise when the use of an emphasis
standards.[3] of matter paragraph, other matter
paragraph and KAM disclosure would be
c) Evaluate whether reports issued are appropriate.[3]
appropriate in the relevant
circumstances .[3] h) Discuss the courses of action available
to an auditor if a material inconsistency
d) Evaluate as part of the final review the or material misstatement exists in
matters (e.g. materiality, risk, relevant relation to other information such as
accounting standards) and audit contained in the integrated report.[2]
evidence to confirm if sufficient and
appropriate evidence has been obtained.
[3]

4. Reports to those charged with appropriate level of assurance which

governance and management may be offered by a professional firm in
relation to these assignments. [3]
a) Critically assess the quality of a report to
those charged with governance and b) Evaluate the matters to be considered
management.[3] before accepting the engagement,
including any ethical and professional
b) Advise on the content of reports to those considerations. [3]
charged with governance and
management in a given situation.[3] c) Plan the assignment to gather suitable
evidence and provide an appropriate
F Other assignments level of assurance in line with the
objectives of the assignment. [2]
1. Audit-related and assurance services
d) Discuss the level of assurance that the
a) Describe the nature of audit-related auditor may provide and explain the
services, the circumstances in which other factors to be considered in
they might be required and the determining the nature, timing and extent
comparative levels of assurance of examination procedures.[1]
provided by professional accountants
and distinguish between:[2] e) Describe and recommend appropriate
i) audit-related services and an substantive, examination or investigative
audit of historical financial procedures which can be used to gather
statements sufficient and appropriate evidence in
ii) an attestation engagement and a the circumstances.[2]
direct engagement.
3. The audit of social, environmental
b) Describe the main categories of and integrated reporting
assurance services that audit firms can
provide and assess the benefits of a) Plan an engagement to provide
providing these services to management assurance on integrated reporting
and external users.[3] (performance measures and
sustainability indicators).[2]
c) Describe the level of assurance
(reasonable, high, moderate, limited, b) Describe the difficulties in measuring
negative) for an engagement depending and reporting on economic,
on the subject matter evaluated, the environmental and social performance
criteria used, the procedures applied and and give examples of performance
the quality and quantity of evidence measures and sustainability indicators.[2]
obtained.[3]
c) Describe substantive procedures to
2. Specific assignment detect potential misstatements in respect
 Due Diligence of socio-environmental matters.[2]
 Review of interim financial
information d) Discuss the form and content of an
independent verification statement of an
 Prospective financial
integrated report. [2]
information
 Forensic audits
4 The audit of performance information
(pre-determined objectives) in the
For each of the other assignments listed
public sector
above:
a) Describe the audit of performance
a) Define and describe the purpose of each
information (pre-determined objectives)
type of assignment and analyse the

and differentiate from performance a) Discuss emerging ethical issues and

auditing. [2] evaluate the potential impact on the
profession, firms and auditors.[3]
b) Plan the audit of performance
information (pre-determined b) Discuss the content and impact of
objectives), and describe exposure drafts, consultations and other
examination procedures to be used pronouncements issued by IFAC and its
in the audit of this type of supporting bodies (including IAASB,
information.[3] IESBA and TAC).[2]
c) Discuss the audit criteria of reported 2. Other current issues

performance information, namely
compliance with reporting requirements, a) Discuss current developments in
usefulness, measurability and auditing standards including the need for
reliability.[3] new and revised standards and evaluate
their impact on the conduct of audits. [3]
d) Discuss the form and content of a report
on the audit of performance information. b) Discuss current developments in
[2]
business practices, practice
management and audit methodology and
e) Discuss the content of an audit evaluate the potential impact on the
conclusion on an integrated report of conduct of an audit and audit quality. [3]
performance against pre-determined
objectives. [3] c) Discuss current developments in
emerging technologies, including big
5. Reporting on other assignments data and the use of automated tools and
techniques such as data analytics and
a) Analyse the form and content of the the potential impact on the conduct of an
professional accountant’s report for an audit and audit quality.[3]
assurance engagement as compared
with an auditor’s report.[2]
b) Discuss the content of a report for an

examination of prospective financial
information.[2]
c) Discuss the effectiveness of the

‘negative assurance’ form of reporting
and evaluate situations in which it may
be appropriate to modify a conclusion.[3]
G Current issues and

developments
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

12.Summary of changes to Advanced Audit and

Assurance (AAA) (INT)
ACCA periodically reviews its qualification syllabuses so that they fully meet the needs of
stakeholders such as employers, students, regulatory and advisory bodies and learning
providers.
The main changes which have been made to the syllabus are summarised in the table
below.
Table of amendments
C1c Evaluate the quality control Wording of learning outcome

procedures which are in extended to include and
place for a given firm and specifically reference quality
assess if they have been control for a given engagement.
appropriately applied in a
given engagement..[3]
D2b Assess and describe how Terminology has been revised to
IT can be used to assist the bring the syllabus in to line with
auditor, and recommend the proposed approach by the
the use of automated tools IAASB. Learning outcome D2(b)
and techniques, such as has been reworded for clarity.
audit software, test data
and other data analytics
tools
D3a) Design appropriate audit Learnng outcome extended to
procedures relating to:[3] specifically cover testing around
payroll and other expenses for
clarity.
xxvi) payroll and other
expenses
E2b and b) Assess whether an Previous learning outcome E2b
E2c engagement has been split into two to demonstrate that
planned and performed these aspects of the syllabus are
in accordance with not always tested together.
professional
standards.[3]
c) Evaluate whether
reports issued are
appropriate in the
relevant circumstances
.[3]

G2c) Discuss current Learning outcome amended to

developments in emerging reflect change in terminology
technologies, including big adopted at D2b.
data and the use of
automated tools and
techniques such as data
analytics and the potential
impact on the conduct of an
audit and audit quality.[3]

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Advanced Audit and Assurance (AAA) (INT)

September 2020 to June 2021

Designed to help with planning study and to provide

© ACCA 2020-2021 All rights reserved.

© ACCA 2020-2021 All rights reserved.

1.Intellectual levels 2.Learning hours and

© ACCA 2020-2021 All rights reserved.

3.The structure of ACCA qualification

© ACCA 2020-2021 All rights reserved.

4.Guide to ACCA Strategic Professional

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candidates may start producing their

Time should be taken to ensure that all the

The pass mark for all ACCA Qualification

© ACCA 2020-2021 All rights reserved.

5.Guide to ACCA For additional guidance on the examinability

For most examinations (not tax), regulations

Regulation issued or legislation passed in

The term issued or passed relates to when

The term effective relates to when regulation

The study guide offers more detailed

For UK tax exams, examinations falling

© ACCA 2020-2021 All rights reserved.

6.Relational diagram linking Advanced Audit and

7.Approach to examining the syllabus

The syllabus is assessed by a three-hour 15 minutes examination

Candidates will be required to address a range of requirements, predominantly from syllabus

© ACCA 2020-2021 All rights reserved.

Quality control and ethics

Syllabus section G on current issues may be examined in Section A or B as appropriate.

Total 100 marks

8.Introduction to the syllabus

© ACCA 2020-2021 All rights reserved.

© ACCA 2020-2021 All rights reserved.

On successful completion of this exam, candidates should be able to:

B Demonstrate the ability to work effectively on an assurance or other service engagement

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10.The syllabus 4. Reports to those charged with

A Regulatory Environment F Other assignments

1. International regulatory frameworks for 1. Audit-related and assurance services

B Professional and Ethical 4. The audit of performance information

2. Fraud and error G Current Issues and Developments

3. Professional liability 1. Professional and ethical developments

C Quality Control and Practice 2. Other current issues

1. Quality control (firm-wide)

2. Advertising, tendering and obtaining

D Planning and conducting an audit of

1. Planning, materiality and assessing the

2. Evidence and testing considerations

3. Audit procedures and obtaining evidence

4. Using the work of others

E Completion, review and reporting

1. Subsequent events and going concern

2. Completion and final review

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g) Describe, with reasons, the basic

1. International regulatory frameworks a) Compare and contrast the respective

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attitude of professional scepticism, and that contribute to the ‘expectation gap’