Mahbub Ahmed Siddique FCA

3 July 2024

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 Exam Techniques: Audit and Assurance
Preparing for Audit and Assurance in Chartered Accountancy exams requires a strategic
approach that goes beyond mere memorization. Here’s a structured exam technique to
help you excel:
1. Understand the Exam Structure and Requirements
• Review Past Papers: Understand the format of questions, types of scenarios
presented, and the depth of knowledge required.
• Exam Weightage: Identify which topics carry more marks and prioritize your revision
accordingly.
2. Effective Time Management
• Allocate Time per Question: Practice managing your time in mock exams to ensure
you can answer all questions within the allocated time.
• Prioritize Questions: Start with questions you find easier or those that carry more
marks.
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 Exam Techniques: Audit and Assurance
3. Master the Content
• Comprehensive Revision: Ensure you have a thorough understanding of audit
concepts, standards, and practices.
• Focus on Problem Areas: Identify weak spots through practice exams and allocate
extra study time to these areas.
4. Practice Exam Technique
• Answer Structure: Practice structuring your answers according to the requirements
(e.g., headings for audit procedures, findings, recommendations).
• Use of Standards: Demonstrate familiarity with auditing standards by referencing
them appropriately in your answers.
5. Develop Critical Thinking
• Apply Knowledge to Scenarios: Practice analyzing case studies and applying audit
principles to real-world scenarios.
• Evaluate Alternatives: Be prepared to discuss different audit approaches and justify
your choices. 3
 Exam Techniques: Audit and Assurance
6. Effective Communication
• Clarity and Precision: Practice writing clearly and concisely to convey your points
effectively.
• Professional Tone: Maintain a professional tone and use terminology appropriate to
the subject.
7. Mock Exams and Feedback
• Simulate Exam Conditions: Take mock exams under timed conditions to build exam
stamina and improve time management.
• Seek Feedback: Review your answers and seek feedback from tutors or peers to
identify areas for improvement.
8. Stay Updated with Developments
• Current Affairs: Be aware of recent developments in auditing practices, regulations,
and standards.
• Case Studies: Familiarize yourself with recent audit failures or challenges to
understand practical implications. 4
 Exam Techniques: Audit and Assurance
9. Manage Exam Stress
• Practice Relaxation Techniques: Develop strategies to manage stress during the
exam period, such as deep breathing or mindfulness exercises.
• Maintain Balance: Ensure you get adequate rest and maintain a balanced diet to
support optimal cognitive function.
10. Review and Reflect
• Post-Exam Analysis: Reflect on your performance after each exam to identify
strengths and areas needing improvement.
• Continuous Learning: Use feedback to adjust your study approach and continuously
improve your exam technique.
• By following these steps, you can enhance your preparation and approach the
advanced audit and assurance exam with confidence and competence. Good luck!
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 Brief on ISAs
The International Standards on Auditing (ISAs) are a set of professional standards for
auditing developed by the International Auditing and Assurance Standards Board
(IAASB). These standards provide guidance on the responsibilities of auditors and the
conduct of audits, aiming to ensure consistency, reliability, and quality in auditing
practices globally. Here's a brief overview of each ISA:

1. ISA 200 - Overall Objectives of the Independent Auditor and the Conduct of an
Audit in Accordance with International Standards on Auditing
• Defines the overall objectives of the auditor and provides guidance on the
conduct of an audit in accordance with ISAs. Emphasizes independence, ethics,
and professional skepticism.
2. ISA 210 - Agreeing the Terms of Audit Engagements
• Provides guidance on the auditor's responsibilities in agreeing on the terms of the
audit engagement with management or those charged with governance.
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 Brief on ISAs
3. ISA 220 - Quality Control for an Audit of Financial Statements
• Sets out the requirements for the auditor to implement quality control procedures
throughout the audit process to ensure compliance with auditing standards and
relevant legal and regulatory requirements.
4. ISA 230 - Audit Documentation
• Specifies the requirements for the auditor to prepare and retain audit
documentation that provides sufficient and appropriate evidence to support the
audit opinion.
5. ISA 240 - The Auditor's Responsibilities Relating to Fraud in an Audit of Financial
Statements
• Provides guidance on how auditors should identify and assess the risks of material
misstatement due to fraud, and the auditor's response to such risks.
6. ISA 250 - Consideration of Laws and Regulations in an Audit of Financial Statements
• Guides auditors on their responsibilities to identify and assess the impact of laws
and regulations on the financial statements and the audit. 7
 Brief on ISAs
7. ISA 260 - Communication with Those Charged with Governance
• Sets out the requirements for the auditor to communicate effectively with those charged with
governance regarding significant matters arising from the audit.
8. ISA 265 - Communicating Deficiencies in Internal Control to Those Charged
with Governance and Management
• Specifies the auditor's responsibilities to communicate deficiencies in internal control identified
during the audit to management and those charged with governance.
9. ISA 300 - Planning an Audit of Financial Statements
• Provides guidance on the auditor's responsibilities to plan the audit in accordance with ISAs,
including assessing the entity's internal control and identifying significant audit areas.
10. ISA 315 - Identifying and Assessing the Risks of Material Misstatement
through Understanding the Entity and its Environment
• Guides auditors on how to assess and understand the risks of material misstatement in the
financial statements due to fraud or error, including understanding the entity's operations and
industry. 8
 Brief on ISAs
11. ISA 320 - Materiality in Planning and Performing an Audit
• Explains the concept of materiality in auditing and guides auditors on how to apply it throughout
the audit process.
12. ISA 330 - The Auditor's Responses to Assessed Risks
• Provides guidance on how auditors should respond to the risks of material misstatement
identified during the audit, including designing and implementing appropriate audit procedures.
13. ISA 402 - Audit Considerations Relating to an Entity Using a Service
Organization
• Provides guidance when an entity outsources certain functions to a service organization and the
implications for the audit of the entity's financial statements.
14. ISA 450 - Evaluation of Misstatements Identified during the Audit
• Guides auditors on their responsibilities to evaluate the effect of identified misstatements on the
audit and the financial statements.

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 Brief on ISAs
15. ISA 500 - Audit Evidence
• Specifies the nature and scope of audit evidence and guides auditors on obtaining sufficient
appropriate evidence to support the audit opinion.
16. ISA 501 - Audit Evidence - Specific Considerations for Selected Items
• Provides guidance on obtaining audit evidence for specific items in the financial statements, such
as inventory, litigation, and segment information.
17. ISA 505 - External Confirmations
• Guides auditors on the use of external confirmations as audit evidence and the procedures for
requesting and evaluating external confirmations.
18. ISA 510 - Initial Audit Engagements - Opening Balances
• Provides guidance on the auditor's responsibilities when conducting an initial audit engagement,
particularly regarding opening balances in the financial statements.

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 Brief on ISAs
19. ISA 520 - Analytical Procedures
• Provides guidance on the use of analytical procedures as substantive tests in the audit process,
including their design, implementation, and evaluation.
20. ISA 530 - Audit Sampling
• Provides guidance on the use of audit sampling as a means of obtaining audit evidence.
21. ISA 540 - Auditing Accounting Estimates, Including Fair Value Accounting
Estimates, and Related Disclosures
• Provides guidance on auditing accounting estimates made by management, including fair value
measurements and disclosures.
22. ISA 550 - Related Parties
• Provides guidance on the auditor's responsibilities regarding related party transactions and
balances in the financial statements.
23. ISA 560 - Subsequent Events
• Guides auditors on their responsibilities regarding subsequent events occurring between the
date of the financial statements and the date of the auditor's report. 11
 Brief on ISAs
24. ISA 570 - Going Concern
• Provides guidance on the auditor's responsibilities to assess the entity's ability to continue as a
going concern and the implications for the audit.
25. ISA 580 - Written Representations
• Guides auditors on the use of written representations obtained from management as audit
evidence.
26. ISA 600 - Special Considerations - Audits of Group Financial Statements
(Including the Work of Component Auditors)
• Addresses the unique considerations when auditing group financial statements, including the
work of component auditors and the consolidation process.
27. ISA 610 - Using the Work of Internal Auditors
• Guides auditors on how to use the work of internal auditors as part of the audit process.
28. ISA 620 - Using the Work of an Auditor's Expert
• Provides guidance on how auditors should use the work of an auditor's expert as audit evidence.
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 Brief on ISAs
29. ISA 700 - Forming an Opinion and Reporting on Financial Statements
• Specifies the requirements for auditors to form an opinion on the financial statements based on
their audit findings and the content and structure of the auditor's report.
30. ISA 705 - Modifications to the Opinion in the Independent Auditor's Report
• Guides auditors on when and how to modify their audit opinion in the auditor's report.
31. ISA 706 - Emphasis of Matter Paragraphs and Other Matter Paragraphs in the
Independent Auditor's Report
• Provides guidance on including emphasis of matter paragraphs and other matter paragraphs in
the auditor's report.
32. ISA 710 - Comparative Information - Corresponding Figures and Comparative
Financial Statements
• Guides auditors on the requirements for auditing comparative information presented in the
financial statements.
33. ISA 720 - The Auditor's Responsibilities Relating to Other Information
• Specifies the auditor's responsibilities regarding other information in documents containing audited financial
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statements, such as annual reports.
 Brief on ISAs
34. ISA 800 - Special Considerations - Audits of Financial Statements Prepared in
Accordance with Special Purpose Frameworks
• Provides guidance on auditing financial statements prepared using special purpose frameworks,
such as cash basis or regulatory basis.
35. ISA 805 - Special Considerations - Audits of Single Financial Statements and
Specific Elements, Accounts or Items of a Financial Statement
• Provides guidance on auditing single financial statements or specific elements, accounts, or items
of a financial statement.
36. ISA 810 - Engagements to Report on Summary Financial Statements
• Guides auditors on engagements to report on summary financial statements derived from
audited financial statements.
These ISAs collectively provide a comprehensive framework for auditors to
conduct audits effectively and report their findings accurately. Understanding
these standards is crucial for auditors, accounting professionals, and students
preparing for Audit and Assurance exams. 14
 Marks Allocation
Total Time 210 minutes Per marks: 2.1 minutes 5 or 6 questions

Questions 1 2 3 4 5 6 Total

March-April 2024 10 10 15 15 25 25 100

Nov-Dec 2023 20 15 16 24 25 0 100

July-Aug 2023 20 15 15 25 16 9 100

March-April 2024 20 15 14 26 25 0 100

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 Way Forward: Exam Time
How to Answer the Questions in Audit and Assurance Exam:
Answering questions in an advanced-level audit and assurance exam requires a thorough understanding of
auditing principles, standards, and practices.

Here are some strategies to help you effectively tackle such questions:
 Read Question carefully with full attentiveness
 Understand the Question
 Plan Your Answer
 Outline the main points you need to cover
 Use professional language
 Use Relevant Standards and Frameworks
 Reference specific auditing standards (e.g., ISA, GAAS) and frameworks
 Provide a Balanced Analysis
 Avoid unnecessary jargon and keep your explanation straightforward
 Check your answer for completeness and accuracy
 Review and revise as necessary
 TIME Management
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Thank you

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