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                                           Ken Lee

Sunday, November 30, 2008

Tips from FTC Kaplan site

ACCA Paper P7

Since this is still a new paper and a new examiner, it would be extremely rash to focus your studies too narrowly. The following therefore represents advice on the general areas on which you should concentrate most of your revision time.


Planning and risk assessment: : Ensure that you can distinguish between business risk, audit risk, and financial statement risk (refer to the article in Student Accountant September 2006). Practice identifying risks in a variety of different scenarios by trying lots of past questions but do NOT simply memorise the answers, since the scenarios in your exam are likely to be different. Remember that planning does not just include risk, but other areas such as materiality, logistics and other practical matters.


Evidence gathering: The examiner has indicated that she is going to be VERY keen on testing your knowledge of accounting issues through evidence gathering questions, so make sure you have a good knowledge of accounting standards, particularly those which you studied at F7. Practice lots of questions, and ensure you are clear on the difference between “audit procedures” and “audit evidence”.


Reporting: A good chance of being examined in each paper. Make sure you understand the various audit reports, including non-audit engagements and going concern, and again practice lots of questions.


Ethics and professional issues: This includes areas such as practice management and quality control. Make sure you know the ethical rules thoroughly, and practice applying them in lots of questions (notice a common trend here?).

All four of these key areas could be examined in the context of non-audit as well as audit engagements.

Other areas to watch out for include group audits and non-audit work, maybe prospective financial information, risk assessment or forensic auditing this time round.

Ensure you read recent articles by the examiner in Student Accountant as they often represent a hint as to exam questions:

• Groups – March 2008(topic examined a bit in June but lots still to be examined)
• Reports to those charged with governance – April 2008 (although already examined in June)
• Forensic auditing – September 2008
Quote:
ACCA Paper P5

• Financial and non financial performance for a production or service business together with pricing issues and learning curve applications involved in calculations. The performance pyramid could also be included in NFI analysis.
• Modern developments and strategy in MA especially TQM & ABC.
• Transfer pricing and divisional performance measures -RI vs.ROI and application of annuity method of depreciation. International transfer pricing issues are due to be examined.


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