AAA Revision Guide Revision week 1

Revision week 1: 50 mark case study question (Q1 in the exam)

Revision week 1 includes the following content / activities, designed to maximise your
marks in Q1 of the exam:

1. Revision Guide
Your guide to this week’s content, with space for you to make your own notes
2. Exam techniques & professional skills for Q2 (video)
Actively watch the video, making notes as you watch
3. Demonstration Question
Work through the demonstration question together with your Expert Tutor
Use the ‘answer pack’ to fully debrief the question
4. Live class
Attend and actively participate in the live class
Your Expert Tutor will work through activities to improve your technique for Q1
5. Homework Question
Attempt the homework question to time, and submit your answer for marking
Use the ‘answer pack’ to fully debrief the question
6. Extra questions
Practice these extra questions (on the Study Hub) to further build exam technique

What is examined in Question 1?

Risk
Business risk, Risk of Material Misstatement (ROMM) and audit risk are typically
examined for up to 25 marks
Procedures
Audit procedures are typically examined in Q1. Expect up to 10 marks here
Ethics
‘Standard’ case study questions will include an exhibit detailing ethical issues, requiring
you to comment on the issues with actions for the auditor. Expect up to 10 marks.

Current issues
Occasionally, a current issue is tested in Q1. Recent topics include outsourcing, dealing
with component auditors and data analytics.

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Exam techniques for Q1 Your notes

‘Standard Q1’

1. Risk (business risk, ROMMs, audit risk)

2. Audit procedures

3. Ethics

Question order

Audit procedures and ethics first

Risk last

2. Audit procedures

1 mark per well explained procedure

FACT + EVIDENCE + EXPLANATION

Answer the PRECISE question asked

Avoid general / generic tests (e.g. discuss with

management)

3. Ethics

1 mark per well explained point

Use the scenario….WHY does the ethical threat exist

in THIS scenario

Tell the full story

Conclude

Ethical implications vs audit implications

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1a. Business Risks Your notes

2 marks per well explained risk

Impact on the COMPANY

- profits / cashflow
- ability to deliver a strategy / KPI
- key stakeholder impact

Use facts……DON’T SPECULATE

No repetition

1b. ROMMs / Audit Risks

3 marks for materiality

1) Range calculation

2) Setting materiality at the low level

3) Explain why HIGH RISK using facts from the

scenario

3 marks per well explained risk

1) Calculate materiality (separate paragraph)

2) Identify risks from the scenario

3) Apply materiality to your risk

4) State / apply the correct accounting treatment

5) Add depth to your risk

6) Refer to the specific accounts impacted

7) Under or over-stated?

8) Prioritise your top 2 risks

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Professional Skills for Q1 Your notes

1. Communication (4)

1) Format and structure

Briefing notes, introduction, subheadings

2) Style, language & clarity

Professional tone, separate materiality paragraph

3) Effectiveness
Answer all parts, use the scenario fully

4) Adherence
Follow specific requests from the partner

2. Analysis & Evaluation (2 or 3)

Include simple calculations…..and discuss them

Prioritise your top 2 ROMMs / audit risks

Apply materiality to every ROMM / audit risk

Develop your points (using the scenario)

3. Scepticism & Judgement (3 or 4)

Apply materiality to each ROMM / audit risk

Link ‘judgemental’ risks to a management bias

indicator

Comment on ‘missing’ information

Challenge information given WITH AUTHORITY

4. Commercial Acumen (1 or 2)

Evaluate business risks fully

Commercial implications for the auditor

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Demonstration Question – learning points from Tutor Video

Make notes here, summarising your learning points

Your notes

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Demonstration Question – learning points from Examiner

mark plan and Examiner’s comments
Make notes here, summarising your learning points

Your notes

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Homework question - learning points from Tutor Answer

Make notes here, summarising your learning points

Your notes

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Homework Question – learning points from Examiner mark

plan and examiner’s comments
Make notes here, summarising your learning points

Your notes

© ACCA 2023. The information in the course content and classes (the “Content”) may contain expressions
and opinions of the original creator and do not necessarily represent the views and opinions of ACCA. The
Content has been made available for tuition purposes and ACCA makes no representations and warranties
with respect to its effectiveness and accuracy and hereby disclaims all liability to any party for any direct,
indirect, implied, punitive, or other consequential damages arising from any use of the Content which is
provided as is, and without warranties.

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