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F8 AA | Study Text - BPP

Syllabus of F8 Audit and Assurance (AA)

In essence, the Audit and Assurance syllabus is divided into five areas. The syllabus begins with the purpose, nature and scope of assurance engagements, including the statutory audit, its regulatory framework, and introduces audit and assurance-related governance and professional ethics.

It then contributes to the audit planning and risk assessment being carried out.

The syllabus then covers a number of areas, including the scope of internal control and the role and function of internal audit, relating to the audit of financial statements. This include the assessment of audit evidence, internal controls and the review of the financial statements.

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The final section focuses on reporting, in addition to the final review procedures, including the type and content of the independent auditor's report.

  • Explain the concept of audit and assurance and the audit functions, including ethics and professional behavior, corporate governance.
  • Show how audit engagements are obtained and approved by the auditor, understand the company and its environment, assess the risk of material misrepresentation (whether resulting from fraud or other irregularities) and plan an audit of financial statements
  • To identify and communicate control threats and their possible effects, describe and evaluate internal controls, procedures and audit tests, including IT systems and make necessary recommendations.
  • Identify the scope, function and role of the internal audit.
  • Identify and explain the work and evidence obtained by the auditor and others needed to fulfill the audit engagement objectives and the application of the International Auditing Standards
  • Explain how the conclusions of the audit work can be informed by the consideration of subsequent events and the concept of the going concern and are expressed in various forms of auditor's report, written representations and the final review and report.

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