Acca aaa s21 Notes

EMPLOYABILITY AND TECHNOLOGY SKILLS
33.
Employability and Technology Skills 
153
September 2021 to June 2022 exams
Watch free ACCA AAA lectures 
1

---

Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
September 2021 to June 2022 exams
Watch free ACCA AAA lectures 
2
Access FREE ACCA AAA
online resources on OpenTuition:
AAA LECTURES (complete course)
To fully benefit from these notes you 
should
watch
our free AAA lectures 
AAA Flashcards
Practice
key terms and concepts using our AAA flashcards!
AAA Revision lectures
How to 
tackle
 the AAA exam, how exam answers are marked and AAA questions debriefs
Ask the AAA Tutor
Post
questions to our ACCA tutor 
visit 
https://opentuition.com/acca/aaa/

---

Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
INTRODUCTION TO ADVANCED AUDIT AND 
ASSURANCE (AAA) (INT/UK)
1. Warning!
Do not even think of studying this paper if you haven’t already studied paper Strategic Business 
Reporting (SBR)/Corporate Reporting (P2).
In every AAA paper, there is at least one question dealing with audit risk and/or audit evidence. Audit 
risk is the risk that there might be a material misstatement in the financial statements. Whenever 
there is such a risk, the auditor must decide how to respond and that usually means carrying out more 
audit work to gather more audit evidence.
What you need to realise is that material misstatements can be caused by two types of error:
๏
The amount is wrong.
๏
The item has not been treated in line with the relevant accounting standards or financial 
reporting standards.
For example, if the company incurs research and development expenditure, not only does the auditor 
have to obtain evidence about the amount of expenditure, but must also collect evidence that the 
expenditure has been written off or capitalised in line with IAS 38 
Intangible Assets
. Therefore, if the 
expenditure has been capitalised, the auditor must collect evidence that the project is technically 
viable, that the company can fund its completion….and so on. If you do not know the standard, you 
cannot plan to collect the right evidence.
Every accounting standard studied in SBR/P2 sets out rules that govern how amounts in financial 
statement are to be displayed and therefore each standard has implications for auditors.