Acca aaa s21 Notes

2. The ‘maturity’ of answers required
Consider this: During attendance at a physical inventory count at a client who makes jars of preserved 
food, a pack of 12 jars falls from its shelf in the warehouse and the jars shatter. The contents smell 
awful and it is obvious that pack contained food that had gone bad. What audit issues does this 
incident cause and how should the auditors respond?
At the AA level you might simply have said that the pack had to be written off. At AAA, the incident 
raises many more issues. See if you can think what they might be. This is discussed in the lecture for 
Chapter 12.
September 2021 to June 2022 exams
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3. Topics in AAA, not in AA
The main additions are:
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Money laundering and professional liability
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Business risk (audit risk, but not business risk, was in AA)
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The audit of groups
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Specific assignments (due diligence, prospective financial information and forensic audits)
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Social, environmental and integrated reporting
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The audit of performance information in the public sector (INT Syllabus only)
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Auditing aspects of insolvency (UK Syllabus only)
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Current issues
Most AA topics appear again in AAA but to a more detailed level. Professional ethics remain very 
important. You will not be asked to evaluate an accounting system to identify weaknesses in internal 
control.
4. Syllabus
4.1. Aim
To analyse, evaluate and conclude on the assurance engagement and other audit and assurance 
issues in the context of best practice and current developments.
4.2. Objectives
On successful completion of this paper, candidates should be able to:
A.
Recognise the legal and regulatory environment and its impact on audit and assurance practice.
B.
Demonstrate the ability to work effectively on an assurance or other service engagement within 
a professional and ethical framework
C.
Assess and recommend appropriate quality control policies and procedures in practice 
management and recognise the auditor’s position in relation to the acceptance and retention of 
professional appointments.
D.
Identify and formulate the work required to meet the objectives of audit assignments and apply 
the International Standards on Auditing.
E.
Evaluate findings and the results of work performed and draft suitable reports on assignments.
F.
Identify and formulate the work required to meet the objectives of non-audit assignments.
G.
Understand the current issues and developments relating to the provision of audit-related and 
assurance services. 
H.
Demonstrate employability and technology skills.