BPP ACCA p7 advance audit and assurance 2017

ACCA approved content provider k p s k o F F Paper P7 Advanced Audit and Assurance (International) This ACCA Study Text for Paper P7 Advanced Audit and Assurance (International) has been comprehensively reviewed by the ACCA examining team This review guarantees appropriate depth and breadth of content and comprehensive syllabus coverage b e e r • A user-friendly format for easy navigation • Exam focus points describing what the examining team will want you to • Regular Fast Forward summaries emphasising the key points in each chapter • Questions and quick quizzes to test your understanding • A practice question bank containing exam- standard questions with answers • A full index • All you need in one book o b e re Fre For exams in September 2016, December 2016, March 2017 and June 2017 BPP House 142-144 Uxbridge Road London W12 8AA United Kingdom T 0845 075 1100 (UK) T +44 (0)20 8740 2211 (Overseas) E Learningmedia@bpp.com bpp.com/learningmedia o b e re k p s ok o b e re F k p s ook eb e r F k p s ok o b e Fre Study Text ebo Contact us k p s ok F k p s ok k p s ok F In addition to ACCA examining team reviewed material you get: k p s ook F k p s k b ree Advanced Audit and Assurance (International) k p s k k p s ook BPP Learning Media is dedicated to supporting aspiring business professionals with top-quality learning material as they study for demanding professional exams, often whilst working full time BPP Learning Media’s commitment to student success is shown by our record of quality, innovation and market leadership in paper-based and e-learning materials BPP Learning Media’s study materials are written by professionally qualified specialists who know from personal experience the importance of top-quality materials for exam success o b e re ACCA P7 k p s k ACCA APPROVED CONTENT PROVIDER k p s ook b e Fre ACCA Approved Study Text k p s Paper P7 k o o b Advanced ree Audit and Assurance F (International) Free access to our Exam Success site s.pk k o o Look ebinside e r F For exams in September 2016, December 2016, March 2017 and June 2017 February 2016 £32.00 k p s k ACP7(INT)ST16 (RICOH).indd 1-3 o eb e r F k p s ok bo e e Fr k p s ok b e Fre k p s ook k p s ook b e Fre 04/02/2016 16:09 ACCA APPROVED CONTENT PROVIDER pk ks o o eb o b e re k p s ok re F F As the first accredited publisher of ACCA materials, BPP Learning Media has set the benchmark for producing exceptional study materials for students and tutors alike Our Study Texts, Practice & Revision Kits and i-Passes (for exams on demand) are reviewed by the ACCA examining team and are written by our in-house authors with industry and teaching experience who understand what is required for exam success EXAM SUCCESS SITE To help maximise your chances of succeeding in your exams, we’ve put together a suite of exclusive ACCA resources Our Exam Success site provides you with access to a free digital version of this publication, as well as extra resources designed to focus your efforts on exams and study methods k p s ok k p s ook To access the Exam Success site, please email learningmedia@bpp.com with the subject line “Access to Exam Success site - eBook”, including your order reference number and the name of the book you’ve bought (ie ACCA F5 Study Text) for your access code Once you have received your code, please follow the instructions below: o b e re F b e Fre To access the BPP ACCA Exam Success site for this material please go to: www.bpp.com/ExamSuccessSite n Create a user account if you don’t already have one Make sure you reply to the confirmation email n Log in using your registered username and password k p s ok k p s k o o eb Select the paper you wish to access o eb e r F n Enter the code you received when prompted You will only have to this once for each paper you are studying eb e r F k p s ook Fre e e r F b k p s ook Fre k p s k o o eb PAPER P7 b k p s ook e ADVANCED AUDIT AND Fre ASSURANCE o b e re F k p s ok S T U D Y T k E p s k o o b e X Fre T (INTERNATIONAL) BPP Learning Media is an ACCA Approved Content Provider This means we work closely with ACCA to ensure this Study Text contains the information you need to pass your exam In this Study Text, which has been reviewed by the ACCA examination team, we:  Highlight the most important elements in the syllabus and the key skills you need k p s ok k p s ok  Signpost how each chapter links to the syllabus and the Study Guide o b e re o b e re  Provide lots of exam focus points demonstrating what is expected of you in the exam  Emphasise key points in regular fast forward summaries F  Test your knowledge in quick quizzes F  Examine your understanding in our practice question bank  Reference all the important topics in our full index BPP's Practice & Revision Kit also supports this paper FOR EXAMS IN SEPTEMBER 2016, DECEMBER 2016, MARCH 2017 AND JUNE 2017 F o b e re k p s ok F o b e re k p s ok First edition 2007 s.pk Ninth edition February 2016 k o o eb ISBN 9781 4727 4434 (Previous ISBN 9781 4727 2685 8) Fre e-ISBN 9781 4727 4676 British Library Cataloguing-in-Publication Data A note about copyright Dear Customer o b e re k p s ok What does the little © mean and why does it matter? 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Copyright © IFRS Foundation All rights reserved Reproduction and use rights are strictly limited No part of this publication may be translated, reprinted or reproduced or utilised in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system, without prior permission in writing from the IFRS Foundation Contact the IFRS Foundation for further details k p s ok The IFRS Foundation logo, the IASB logo, the IFRS for SMEs logo, the “Hexagon Device”, “IFRS Foundation”, “eIFRS”, “IAS”, “IASB”, “IFRS for SMEs”, “IASs”, “IFRS”, “IFRSs”, “International Accounting Standards” and “International Financial Reporting Standards”, “IFRIC” “SIC” and “IFRS Taxonomy” are Trade Marks of the IFRS Foundation o b e re F Further details of the Trade Marks including details of countries where the Trade Marks are registered or applied for are available from the Licensor on request The International Accounting Standards Board (IASB) 30 Cannon Street, London, EC4M 6XH, United Kingdom Email: info@ifrs.org Web: www.ifrs.org Disclaimer: The IASB, the International Financial Reporting Standards (IFRS) Foundation, the authors and the publishers not accept responsibility for any loss caused by acting or refraining from acting in reliance on the material in this publication, whether such loss is caused by negligence or otherwise to the maximum extent permitted by law © BPP Learning Media Ltd 2016 ii F o b e re k p s ok k p s ok F o b e re Contents k p s k o o eb re FIntroduction o b e re F k p s ok Page Helping you to pass v Studying P7 vii The exam paper xv Syllabus and study guide xvi Part A Regulatory environment International regulatory environments for audit and assurance services Part B Professional and ethical considerations Code of ethics and conduct 39 Professional liability 75 Part C Practice management k p s ook b e Fre Part D Audit of historical financial information 10 11 k p s ook Quality control 105 Obtaining and accepting professional appointments 119 b e Fre Planning and risk assessment 143 Evidence 193 Evaluation and review (I) 229 Evaluation and review (II) – matters relating to specific accounting issues 267 Evaluation and review (III) – matters relating to specific accounting issues 293 Group audits and transnational audits 333 Part E Other assignments 12 13 14 15 16 Audit-related services and other assurance services 365 Prospective financial information (PFI) 397 Forensic audits 411 Social, environmental and public sector auditing 423 Internal audit and outsourcing 453 k p s ok k p s ok Part F Reporting 17 Reporting 471 o b e re Part G Current issues and developments F 18 o b e re F Current issues 507 List of articles by the examining team 519 Practice question bank 525 Practice answer bank 547 Index 607 Review form F o b e re k p s ok k p s ok F o b e re Contents iii Fre k p s k o o eb k p s ook b e Fre o b e re iv F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re Helping you to pass k k p p s s kMedia – ACCA Approved Content Provider ook o o BPP Learning eb eb e e r r F F As an ACCA Approved Content Provider, BPP Learning Media gives you the opportunity to use study materials reviewed by the ACCA examination team By incorporating the examination team’s comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media Study Text provides excellent, ACCA-approved support for your studies The PER alert Before you can qualify as an ACCA member, you not only have to pass all your exams but also fulfil a three year practical experience requirement (PER) To help you to recognise areas of the syllabus that you might be able to apply in the workplace to achieve different performance objectives, we have introduced the 'PER alert' feature You will find this feature throughout the Study Text to remind you that what you are learning to pass your ACCA exams is equally useful to the fulfilment of the PER requirement k p s ook k p s ook Your achievement of the PER should now be recorded in your online My Experience record b e Fre Tackling studying b e Fre Studying can be a daunting prospect, particularly when you have lots of other commitments The different features of the Study Text, the purposes of which are explained fully on the Chapter features page, will help you while studying and improve your chances of exam success Developing exam awareness Our Study Texts are completely focused on helping you pass your exam Our advice on Studying P7 outlines the content of the paper, the necessary skills you are expected to be able to demonstrate and any brought forward knowledge you are expected to have Exam focus points are included within the chapters to highlight when and how specific topics have been examined, or how they might be examined in the future o b e re k p s ok k p s ok o b e re Using the Syllabus and Study Guide F F You can find the syllabus and study guide on page xvi to xxvii of this Study Text Testing what you can Testing yourself helps you develop the skills you need to pass the exam and also confirms that you can recall what you have learnt We include Questions – lots of them – both within chapters and in the Practice Question Bank, as well as Quick Quizzes at the end of each chapter to test your knowledge of the chapter content F o b e re k p s ok k p s ok F o b e re Introduction v Chapter features k p s k o o eb Each chapter contains a number of helpful features to guide you through each topic Topic list Fre Topic list Syllabus reference Puts the chapter content in the context of the syllabus as a whole Study guide Links the chapter content with ACCA guidance Exam guide Highlights how examinable the chapter content is likely to be and the ways in which it could be examined k p s ook FAST FORWARD b e Fre What you are assumed to know from previous studies/exams k p s ook Summarises the content of main chapter headings, allowing you to preview and review each section easily b e Fre Examples Demonstrate how to apply key knowledge and techniques Key terms Definitions of important concepts that can often earn you easy marks in exams Exam focus points Tell you when and how specific topics have been examined, or how they may be examined in the future Formula to learn Formulae that are not given in the exam but which have to be learnt k p s ok o b Question e re F Case Study This is a new feature that gives you a useful indication of syllabus areas that closely relate to performance objectives in your Practical Experience Requirement (PER) k p s ok o b e re Essential practice of techniques covered in the chapter F Real world examples of theories and techniques Chapter Roundup A full list of the Fast Forwards included in the chapter, providing an easy source of review Quick Quiz A quick test of your knowledge of the main topics in the chapter Practice Question Bank Found at the back of the Study Text with more comprehensive chapter questions Cross referenced for easy navigation o b e re F Introduction F Tells you what you will be studying in this chapter and the relevant section numbers, together with ACCA syllabus references Introduction Knowledge brought forward from earlier studies vi o b e re k p s ok k p s ok k p s ok F o b e re Studying P7 k p s k o o eb k p s ok As the name suggests, this paper examines advanced audit and assurance topics Paper P7 is one of the professional level Options papers and as such candidates must consider carefully whether they have the required competencies reP7 examination team FThe o b e re F The examination team expects you to demonstrate a highly professional approach to all questions – not just presenting information in a professional manner, but also integrating knowledge and understanding of topics from across the syllabus The examination team is also very keen for students to demonstrate evidence of wider reading and to demonstrate an understanding of current issues as they affect audit and assurance At the absolute minimum you should read Student Accountant The examination team often examines topics that it has written about in Student Accountant Syllabus update The P7 syllabus has been updated for the September 2016 sitting onwards The full syllabus and Study Guide can be found in this Study Text on pages xvi to xxvii What P7 is about k p s k oo k p s ook The aim of the syllabus is to analyse, evaluate and conclude on the assurance engagement and other audit and assurance issues in the context of best practice and current developments b e Fre b e Fre The paper builds on the topics covered in Paper F8 Audit and Assurance but as an advanced paper it tests much more than just your knowledge of ISAs and your ability to list standard audit procedures You must be able to apply your knowledge to more complex audit and assurance scenarios, identifying and formulating the work required to meet the objectives of audit and non-audit assignments and to evaluate the findings and results of work performed Accounting knowledge examined in Paper P2 Corporate Reporting is also assumed Therefore, candidates studying for P7 should refer to the Accounting Standards listed under P2 The syllabus is divided into seven main sections: (a) Regulatory environment This section introduces the legal and regulatory environment including corporate governance issues It also examines the topics of money laundering and the consideration of laws and regulations (b) (c) k p s ok The details of the various ethical codes should be familiar to you from your earlier studies, however the importance of this topic should not be underestimated The examination team has indicated that ethical and professional issues are likely to feature in every sitting This section also covers fraud and professional liability, both of which are topical issues o b e re F k p s ok Professional and ethical considerations o b e re F Practice management This part of the syllabus covers quality control, tendering and professional appointments It also covers advertising, publicity, obtaining professional work and fees (d) Audit of historical financial information This is the largest section of the syllabus looking in detail at the procedures involved in a range of audit and assurance assignments The examination team has indicated that evidence gathering is a key part of the syllabus and is likely to feature at each sitting Requirements are likely to focus on specific assertions, balances or transactions (e) Other assignments k p s ok k p s ok This section also covers a range of audit-related and assurance services The examination team has stressed the need for candidates to be able to tackle these types of scenario F o b e re F o b e re Introduction vii (f) Fre (g) Reporting k p s k o o eb k p s ok The detail of audit reports should be familiar to you from your earlier studies At this level you will be expected to apply this knowledge to more complex scenarios The examination team has also stressed the importance of the relationship between financial reporting and auditing This will be particularly important when forming an appropriate audit opinion This section of the syllabus also includes reports to management and other reports o b e re F Current issues and developments Current issues and developments includes a wide range of topics including the IAASB clarity project, professional, ethical and corporate governance, information technology, going concern, transnational audits and social and environmental auditing The examination team has indicated that this is likely to be examined at each sitting, and that candidates are expected to have read around the issues for themselves You will need to be able to discuss current issues topics in the context of a client scenario Skills you have to demonstrate 2.1 Knowledge and application k p s ook k p s ook Even with exams you've previously taken, you'll remember that passing didn't only mean reproducing knowledge You also had to apply what you knew At Professional level, the balance is tilted much more towards application You will need a sound basis of technical knowledge The exams will detect whether you have the necessary knowledge However, you won't pass if you just spend your time acquiring knowledge Developing application skills is vital b e Fre b e Fre 2.2 Application skills • A thorough understanding of the relevant audit, assurance and financial reporting regulations that fall within the syllabus • The ability to apply knowledge to specific client scenarios • The ability to have an independent opinion, backed by reasoned argument • An appreciation of commercial factors which influence practice management • An appreciation of fast-moving developments in audit and assurance practices The P7 examination team made very similar comments in a number of recent examiner's reports which is so important that we will quote it here These pitfalls tend not to change from year to year: k p s ok k p s ok 'Similar factors as detailed in previous examiner's reports continue to contribute to the unsatisfactory pass rate: o b e re • • • • • F Failing to answer the specific question requirements Not applying knowledge to question scenarios Not explaining or developing points in enough detail Lack of knowledge on certain syllabus areas Illegible handwriting' o b e re F 'As seen in previous sittings, what makes the difference between a pass and a fail script is usually the level of application skills which have been demonstrated Candidates who answer the specific question requirement, and tailor their answers to the scenarios provided are likely to well.' (Examiner's Report, June 2011) viii F o b e re Introduction k p s ok k p s ok F o b e re Fre k p s k o o eb k p s ook b e Fre o b e re 606 F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re k p s k o o eb Note Key Terms and their page references are given in bold ACCA Technical Factsheet 145 Anti-money Fre laundering for the accounting sector, 23 Accounting estimate, 269 Accounting policies, 187 Actuarial assumptions, 316 Adverse opinion, 485 Advertising and fees, 125 Advocacy, 42 Advocacy threat, 58 Agreed-upon procedures assignment, 379 Agriculture, 276 Analytical procedures, 181, 232 Anomaly, 197 Appropriateness, 196 Assertions, 194 Associate, 335, 341 Assurance engagement, 380 Attestation engagement, 380 Audit agreement, 136 Audit committees, 12 Audit firms, 358 Audit interrogation software, 201 Audit risk, 167 Audit sampling, 197 Auditor's expert, 216 Audit-related services, 366 k p s ook b e Fre Borrowing costs, 315 Brands, 280 BS 7750 Environmental Management System, 431 Bulletin 2006/5 The Combined Code on Corporate Governance: Requirements of Auditors Under the Listing Rules of the Financial Services Authority, 19 Business risk, 171 o b e e Fr k p s ok Capital, 232 Capping liability, 87 Cash-generating unit, 274 Civil Procedure Rules, 414 Client screening, 134 Close business relationships, 51 Cold review, 109 Combined Code, 13 Comparative financial statements, 239 Comparative information, 238 Compliance risk, 171 Component, 344 Component auditor, 344 F o b e re k p s ok o b e re k p s ok Component materiality, 344 Computer assisted audit techniques, 201, 202 Confidentiality, 41, 65 Conflicts of interest, 68 Contingent consideration, 335 Contingent fee, 53 Contract, 295 Contracting-out, 457 Control, 335, 337 Control risk, 168, 169 Corporate finance, 57 Corresponding figures, 239 Customer, 295 F D eferred taxation, 306 Deficiencies, 499 Deficiency in internal control, 498 Defined benefit liability, 317 Derivative, 281 Detection risk, 168, 170 Development costs, 279 Direct assistance, 221 Direct engagement, 380 Disciplinary procedures, 43 Disclaimer of opinion, 485 Disclaimers, 82 Disclosures, 164 Discontinued operations, 323 Dividend cover, 233 Due diligence, 376 Duty of care, 77, 78 Duty of confidence, 65 k p s ook b e Fre k p s ok E arnings per share, 321 Eco-audit, 431 Eco-labelling, 431 Embedded audit facilities, 202 Emphasis of matter, 483 Emphasis of Matter paragraph, 483 Engagement letter, 135 Environmental audits, 431 Environmental Impact Assessments (EIAs), 431 Environmental management system (EMS), 427 Environmental Quality Management (EQM), 431 Environmental SWOT analysis, 431 Equity method, 342 Expectations gap, 98 Expert, 215 Expert witness reports, 415 o b e re F k p s ok F o b e re Index 607 Fair value, 268, 281, 335 k p s k o o eb Familiarity, 42, 58 Family and personal relationships, 52 Fidelity guarantee insurance, 85 Financial asset, 277, 282 Financial instrument, 280 Financial interest, 49 Financial liability, 282, 283 Financial Reporting Council, Financial risks, 171 Financial statement assertions, 194 First year audit, 186 Forecast, 399 Forensic accounting, 412 Forensic auditing, 412 Forensic investigation, 412 Fraud, 89 FRC Guidance on risk management, internal control and related financial and business reporting ('Risk Guidance'), 456 Fre k p s ook b Gre ifts e and hospitality, 52 F Going concern, 248 Auditor's report, 489 Key audit matter (KAM), 481 Going concern assumption, 252 Going concern statements, 257 Goodwill, 279 Government grants and assistance, 302 Group, 344 Group audit, 344 Group-wide controls, 351 Hedge accounting, 282, 283 Hot review, 109 k p s ok IAASB ED: Project o on Addressing disclosures in b ree the audit of financial statements, 512 IAASB Practice Alert Audit Considerations in Respect of Going Concern in the Current Economic Environment, 508, 513 IAASB Practice Alert Challenges in Auditing Fair Value Accounting Estimates in the Current Market Environment, 509 IAASB Q&A Paper Auditor Considerations Regarding Significant, Unusual or Highly Complex Transactions, 509 IAASB Q&A Paper Professional scepticism in an Audit of Financial Statements, 510 IAASB Q&A paper XBRL: The Emerging landscape, 509 IAPN 1000 Special considerations in auditing financial instruments, 280 F 608 Index F o b e re k p s ok IAS Presentation of financial statements, 374 IAS Statements of cash flows, 324 IAS Accounting policies, changes in accounting estimates and errors, 328 IAS 10 Events after the reporting period, 247 IAS 12 Income taxes, 306 IAS 17 Leases, 303 IAS 19 Employee benefits, 315 IAS 20 Accounting for government grants and disclosure of government assistance, 302 IAS 23 Borrowing costs, 315 IAS 31 Interests in joint ventures, 342 IAS 33 Earnings per share, 321, 493 IAS 37 Provisions, contingent liabilities and contingent assets, 310 IAS 38 Intangible assets, 278, 279 IAS 40 Investment property, 287 IAS 41 Agriculture, 276 IESBA Code of Ethics for Professional Accountants, 40 IESBA Responding to a Suspected Illegal Act, 67 IESBA Responding to Non-compliance with laws and regulations, 68 IFRS Share-based payment, 318 IFRS Business combinations, 278 IFRS Non-current assets held for sale and discontinued operations, 323 IFRS Operating segments, 320 IFRS 15 Revenue from contracts with customers, 294 Impairment review, 275 Income, 295 Incorporation, 86 Independence, 44 Independence in appearance, 46 Independence of mind, 46 Inherent risk, 168 Initial audit engagements, 186 Insider dealing, 77 Insolvency, 77 Insourcing, 457 Insurance claims, 413 Integrated Test Facility (ITF), 202 Integrity, 41 Internal audit, 219, 460 Internal auditors, 17 Internal control effectiveness, 18 International Auditing and Assurance Standards Board, International Education Standards (IESs), 360 Intimidation, 42, 61 Investment, 335 Investment property, 287 ISA 200 Overall objectives of the independent auditor and the conduct of an audit in o b e re k p s ok F k p s ook b e Fre k p s ok o b e re F k p s ok F o b e re accordance with international standards on auditing, 145, 167 ISA 210 Terms of audit engagements, 134 ISA 220 Quality control for an audit of financial statements, 110, 230 ISA 230 Audit documentation, 224 ISA 240 The auditor's responsibilities relating to fraud in an audit of financial statements, 90, 298 ISA 250 Consideration of laws and regulations in an audit of financial statements, 28, 435 ISA 260 Communication with those charged with governance, 495 ISA 300 Planning an audit of financial statements, 145 ISA 315 Identifying and assessing the risks of material misstatement through understanding the entity and its environment, 91 ISA 330 The auditor's responses to assessed risks, 149 ISA 402 Audit considerations relating to entities using service organisations, 462 ISA 450 Evaluation of misstatements identified during the audit, 166 ISA 501 Audit evidence – additional considerations for specific items, 312 ISA 510 Initial engagements – opening balances, 236 ISA 520 Analytical procedures, 181, 202, 232 ISA 540 Auditing accounting estimates, including fair value accounting estimates and related disclosures, 269, 280 ISA 550 Related parties, 203 ISA 560 Subsequent events, 247 ISA 570 Going concern, 252 ISA 580 Written representations, 212 ISA 600 Special considerations – audit of group financial statements (including the work of component auditors), 352 ISA 610 Using the work of internal auditors, 219 ISA 620 Using the work of an expert, 216 ISA 701 Communicating key audit matters in the independent auditor’s report, 477 ISA 706 Emphasis of matter paragraphs and other matter paragraphs in the independent auditor's report, 483 ISA 720 The auditor's responsibility in relation to other information in documents containing audited financial statements, 243 ISAE 3400 The examination of prospective financial information, 398 ISQC Quality control for firms that perform audits and reviews of financial statements, and other assurance and related services engagements, 64, 130 ISRE 2400 Engagements to review financial statements, 368 Fre k p s k o o eb k p s ook b ree F o b e re k p s ok F F o b e re k p s ok ISRE 2410 Review of interim financial information performed by the independent auditor of the entity, 372 ISRS 4400 Engagements to perform agreed upon procedures regarding financial information, 379 ISRS 4410 Compilation engagements, 390 o b e re k p s ok F J oint arrangement, 335, 342 Joint audit, 357 Joint control, 335, 342 Joint venture, 335, 342 Key audit matters, 477 Key audit partner, 61 Know your client, 134 Knowledge, 26 k p s ook Laws and regulations, 68 Leases, 303 Legal action, 135 Legal liability, 76 Liabilities, 303 Limited assurance, 402 Limited assurance engagement, 381 Limited liability partnerships, 86 Litigation avoidance, 83 Loans and guarantees, 52 Lowballing, 54, 128 b e Fre Management responsibilities, 47 Management's expert, 216, 286 Management's point estimate, 270 Material misstatement, 486 Materiality, 162 Misstatement of the other information, 243 Modified opinions, 485 Money laundering, 20, 133 k p s ok o b e re F Negligence, 77, 413 New audit, 186 Non-sampling risk, 197 Objectivity, 41 Opening balances, 236 Operational risks, 171 Other information, 243 Other Matter paragraph, 483 Outsourcing, 457 Overdue fees, 53 F o b e re k p s ok Index 609 Peer review, 109 k p s k o o eb Pension costs, 315 Performance information, 439 Performance materiality, 162, 163 Performance obligation, 295 Pervasiveness, 486 Politically exposed persons, 134 Population, 197 Preconditions for an audit, 134 Preface to International Standards on Quality Control, Auditing, Assurance and Related Services, Price/Earnings (P/E) ratio, 234 Professional behaviour, 41 Professional competence and due care, 41 Professional indemnity insurance (PII), 85 Professional scepticism, 46, 145 Projection, 399 Proportionate liability, 87 Prospective financial information (PFI), 398 Provisions and contingencies, 310 Public interest entity, 46 Fre k p s ook eeb Fr Qualified opinion, 485 Reasonable assurance engagement, 381 Recognised Supervisory Bodies, Recoverable amount, 274 Related party, 204 Revenue, 295 Review engagements, 367 Risk assessment, 391 Risk of material misstatement, 175 Risk-based auditing, 152 ROCE, 232 Royal Bank of Scotland v Bannerman Johnstone Maclay and Others, 82 o b e re k p s ok FS ampling, 162 Sampling risk, 197 Sampling units, 197 Sarbanes-Oxley Act, 55 Segment reporting, 320 Self-interest, 42 Self-interest threat, 49 Self-review, 42, 55 Service auditor, 462 610 Index F o b e re Service organisation, 462 Share-based payment, 318 Significant component, 346 Significant deficiency in internal control, 498 Significant influence, 335, 341 Significant risk, 148 Social audits, 430 Statements of cash flows, 324 Statistical sampling, 197 Stratification, 197 Subject matter information, 384 Subsequent events, 247 Subsidiaries, 341 Subsidiary, 335 Sufficiency, 196 Supplier audits, 431 Suspicion, 26 Systems Control and Review File (SCARF), 202 o b e re k p s ok F k p s ook Tendering, 128 Terrorist financing, 414 Test data, 202 The Forum of Firms, 359 Those charged with governance, 495 Tolerable misstatement, 197 Tolerable rate of deviation, 197 Top-down approach, 152 Transaction price, 295 Transnational audit, 358 Transnational Auditors Committee, 358 Trend analysis, 185 Type report, 462 Type report, 462 b e Fre U ncorrected misstatements, 234 Underlying subject matter, 384 User auditor, 462 User entity, 462 k p s ok o b e re Valuation, 56F Valuation of non-current assets, 272 Value in use, 274 Working papers, 225 Written representations, 212 k p s ok k p s ok F o b e re Fre k p s k o o eb k p s ook b e Fre o b e re F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re Notes Fre k p s k o o eb k p s ook b e Fre o b e re Notes F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re Fre k p s k o o eb k p s ook b e Fre o b e re F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re Notes Fre k p s k o o eb k p s ook b e Fre o b e re Notes F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re Fre k p s k o o eb k p s ook b e Fre o b e re F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re Notes Fre k p s k o o eb k p s ook b e Fre o b e re Notes F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re Fre k p s k o o eb k p s ook b e Fre o b e re F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re Notes Fre k p s k o o eb k p s ook b e Fre o b e re Notes F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok k p s ok o b e re F k p s ok k p s ok F o b e re k p s k o o eb Review Form – Paper P7 (International) Advanced Audit and Assurance (02/16) k p s ok Please help us to ensure that the ACCA learning materials we produce remain as accurate and user-friendly as possible We cannot promise to answer every submission we receive, but we promise that it will be read and taken into account when we update this Study Text Fre o b e re F Name: Address: During the past six months you recall seeing/receiving any of the following? 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Fre k p s ook b e Fre o b e re F F k p s ook b e Fre k p s ok F o b e re o b e re k p s ok o b e re F k p s ok k p s ok F o b e re ... for audit and assurance services (a) Explain the need for laws, regulations, standards and other guidance relating to audit, assurance and related services (b) Outline and explain the legal and. .. engagement and other audit and assurance issues in the context of best practice and current developments b e Fre b e Fre The paper builds on the topics covered in Paper F8 Audit and Assurance. .. environments for audit and assurance services b e Fre Topic list k p s ook Syllabus reference International regulatory frameworks for audit and assurance services A1 Corporate governance and audit committees