Acca aa s21 Notes

Section A
Case questions (30%)
3 case-based questions each consisting of 5 x 2 mark objective test questions
Section B 
Written questions (70%)
 
 
1 x 30 mark question
2 x 20 mark questions
Questions in Section A may be drawn from any syllabus area. 
Section B will predominantly examine one or more of syllabus areas B, C and D although topics from 
other syllabus areas may also be included.
Note that there are no 'stand-alone’ objective test questions in the exam. All questions in each case 
relate to the information in the case. However, because all the questions in a case must be 
independent (so that getting one wrong does not jeopardise your chances at the next one) they 
retain the characteristics of stand-alone questions. Therefore, it is still worth attempting the many 
stand-alone questions that are available on this site.
4. Accounting standards
The accounting knowledge assumed for AA is the same as that examined in Financial Accounting (FA/
FFA).
September 2021 to June 2022 exams
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AUDIT FRAMEWORK AND REGULATION
Chapter 1
WHAT IS ASSURANCE?
1. Audit and assurance
It is often not possible to check things for yourself, whether quality, accuracy, performance or 
existence.
You might not have the skills or the time, or you might be in the wrong location. Therefore you must 
rely on someone else to give you assurance. This means you have to decide:
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What standards should be applied?
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What represents ‘good’, ‘acceptable’ or ‘unacceptable?
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How much checking should be done? All checking and assurance has an associated cost.
Audit is one form of assurance.
An audit is defined as: the independent examination of and expression of opinion on the financial 
statements of an entity by a duly appointed auditor in pursuit of that appointment.
The important words here are ‘independent’ and ‘opinion’.
Independence is essential and underlies the value of auditing.
Opinion really means that one auditor could look at a set of financial statements and disagree with 
the opinion of another auditor.
Judgment is essential to all auditing, there are no certainties and there are no certifications of 
correctness or accuracy.