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ACCA Audit and Assurance (AA) - Course Exam 1 - Questions - 2020
ACCA Audit and Assurance (AA) - Course Exam 1 - Questions - 2020
Achievement Ladder
Course Exam 1 Questions
Questions
SEP20/DEC20/MAR21/JUN21 EDITION
Effective planning
This exam is half the real exam.
Read the requirements carefully: focus on mark allocation, question words (see below) and
potential overlap between requirements.
Identify and make sure you pick up the easy marks available in each question.
Effective layout
Present your numerical solutions using the standard layouts you have seen. Show and
reference your workings clearly.
With written elements try to make a number of distinct points using headings and short
paragraphs. You should aim to make a separate point for each mark.
Ensure that you explain the points you are making ie why is the point a strength, criticism or
opportunity?
Give yourself plenty of space to add extra lines as necessary; it will also make it easier for the
examining team to mark.
Common terminology
Advise To counsel, inform or notify
Analyse Examine in detail the structure of
Calculate/compute To ascertain or reckon mathematically
Compare and contrast Show the similarities and/or differences
Define Give the exact meaning of
Describe Communicate the key features of
Discuss To examine in detail by argument
Distinguish Highlight the differences between
Evaluate To appraise or assess the value of
Explain Make clear or intelligible/state the meaning of
Identify Recognise, establish or select after consideration
Interpret Process information to explain its meaning
Justify To produce reasons in support of
List State short pieces of information on separate lines
Prepare To make or get ready for use
Recommend To advise on a course of action
Summarise To express the most important facts of
SEP20/DEC20/MAR21/JUN21 EDITION
SEP20/DEC20/MAR21/JUN21 EDITION
SEP20/DEC20/MAR21/JUN21 EDITION
During a telephone conversation the finance director informed you that the company had had a
good year, mainly due to securing a new contract to supply a number of major new customers in
the UK.
He also stated that there has been no revaluation of non-current assets but there has been
extensive refurbishment and improvement of the company's manufacturing facility and its plant and
machinery.
You have also learned that the company introduced a new accounting system three months before
the year end. All balances were transferred from the old system to the new one which will form the
basis of the numbers in the financial statements. Training for accounts staff on this new system is
ongoing.
Required
(b) Using the information provided, describe SIX audit risks and explain the auditor's response to each
risk in the planning of the audit of Jaffa Co.
Note. Prepare your answer using two columns headed Audit risk and Auditor's response
respectively. (12 marks)
SEP20/DEC20/MAR21/JUN21 EDITION
SEP20/DEC20/MAR21/JUN21 EDITION