F8 Audit and Assurance

Tips for F8 Audit and Assurance (int) Dec 2008

Question 1 (30m)

1. Confirm audit procedures (note: understand the differences between Test of Control TOC & Substantive procedure/testing).

2. Audit procedure relating to assertions on :

• Non-current asset
• Bank & cash

3. Audit sampling (5m approx)

4. Combine with IT or CAAT.

Question 2 (10m)

1. there’s 3 ISA that revised or redrafted compared to the last semester:

• ISA 230 Audit documentation (redrafted) - more info in August 2008 SA magazine pg 54 by Brian Pine
• ISA 560 Subsequent Events (redrafted)
• ISA 720 (Redrafted) The auditor’s Responsibility in Relation to Other Information in Documents Containing Audited FS

2. Again, these are only areas to focus.

3. Since it’s 10m and the syllabus is very wide, not possible to spot.

Question 3 - Risk & Audit Approach (20m)

1. Planning & audit risk - More in May 2008 SA magazine pg 43 by Brian Pine

2. Independence - Pilot

3. Work of others - experts

Question 4 - Specialised audit areas (20m)

1. Internal Audit & Corporate Governance

2. Internal audit assignments - procurement(purchase), marketing, treasury & Human resources.

3. Payroll - Pilot

Question 5 - Collection of audit evidence, closedown, reporting (20m)

1. Subsequent event - Pilot & Dec 2005 Q4 OilRakers

2. combine with auditor’s responsibility

3. Audit report

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Relevant Articles by Alan Lewin F8 examiner

1. Oct 2008 - Ready to sit for F8?

2. April 2008 - Auditing Fundamentals

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Note: Above area are forecast by Mr Han.

of course, the best tip for all exams is STUDYING EVERYTHING IN THE SYLLABUS & STUDY GUIDE at least 3 times

Resources : Past year questions, Pilot paper, Student accountant magazine, examiner’s approach & lots of judgement & estimates.