Acca aaa s21 Notes

September 2021 to June 2022 exams
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Chapter 3
APPOINTMENT AS AN AUDITOR
1. Overview of the audit process
Plan the audit
Understand entity
Assess risk of material misstatement
Respond to risk
Expect effective controls
Expect ineffective controls
Unsatisfactory
Tests of controls
Report significant deficiencies 
to those charged with 
governance
Satisfactory
Full substantive 
procedures
Reduced substantive 
procedures
Overall review of FS
Report to management
Auditor’s report
Appointment
This is an important and useful diagram and it sets out the stages or approach to an audit.
September 2021 to June 2022 exams
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2. Marketing professional services
The ACCA 's Code of Ethics and Conduct states that professional accountants can inform the public 
about their services using advertising and other form of promotion, subject to the general 
requirement that the medium shall 
not reflect adversely
on the professional accountant, ACCA or 
the accountancy profession. 
It is recognised that there can be a conflict between some of the ethical principles, for example, a self-
interest threat and complying with the principle of professional behaviour.
The professional accountant in public practice must be honest and truthful and must not:
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Make exaggerated claims for services, experience etc or be misleading in other ways.
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Make disparaging references or unsubstantiated comparisons to the work of another.
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Bring the ACCA, the accountancy profession or other accountants into disrepute.
If fees are mentioned, promotional material must state the basis of charging and great care has to be 
taken that readers are not mislead about the services offered and the fees that will be charged. It is 
possible to compare fees with those of other firms provided the comparison is not misleading. 
If commissions are paid or received (for example, by recommending software package), full disclosure 
of the commercial arrangement must be made.