FAE Audit Elective 2014

Chris Partlow wrote: »

Hey, so AUP has come up in 2010, 2011, 2012. Only in 2012 was ES 5 mentioned as something which should be considered before accepting an AUP Non Audit Engagement.

In 2010, ES 1 was referenced saying we should consider our independence (as a one liner).
In 2011, no references to ES' as it is not an audit client of ours.
In 2012, ES 5 is an indicator on it's own.

I'm inclined to think that ES 5 should have been mentioned in the solution to 2010 as Soap suggests. Specifically mentioning the "reasonable and informed 3rd party" test prior to accepting.

Yes, absolutely mention ES5. Just don't mention ES PASE in relation to ES 5 unless you're saying it doesn't apply (which is what the original query was in relation to).

You can see from the suggested solutions that the answers vary, some include more, some include less. Cover your ass by putting in everything but make sure what you're saying isn't incorrect (eg. applying the ES PASE to AUP). If you said you were taking advantage of the ES PASE in the 2010 case as Soap suggested, you would be straight up wrong.

Complete reliance on past papers is dangerous without having a good grasp of the actual area it relates to cos as you can see from your post, the answers vary from paper to paper. Also you won't be able to spot changes in the standards from looking at old solutions.

Also, 2011 makes perfect sense, if we're not the auditor then why would we be concerned with the ethical standards?

EDudder wrote: »

I'm resitting the audit elective, so the version of the APB book I have is 2011.

Does anyone know a way to find out which standards etc. I'd need to print out seperately as they've been updated?

I've been using the text book but I know there will be some standards updated.

Thanks for any help

Print off the addendum to the current year competency statement on the chartered website, it lists which version of standard is examinable. Compare it to what's in your book. Anything you don't have up to date, print off from chariot.

EDudder wrote: »

That's great thanks very much!!

I haven't had much time off for my repeat unfortunately. Only really getting into it now. Still staying positive and think I'll be ok (hopefully not being delusional there).

What do people think are the key areas to focus on? My approach at the minute is working through the textbook with past papers but I'm trying to remember the areas I should be giving more time to.

I've no idea of what's likely tbh, I know ISA 600 was tipped last year as being likely but didn't appear but it's examinable at core too this year so they won't examine it at both you'd imagine.

Reports to 3rd parties/other reports didn't appear last year but Sean Murray said that was unusual and would expect to see one of them this year, so make sure u cover those.

LOccitane wrote: »

Great points there WomanDriver.

I would note also; there is a significant part of the AAE Competency Statement in terms of Corporate Governance not yet examined. The Auditors' Review of the Corporate Governance Statement is examinable at the ''I'' level together with the related APB Standards... I'd be expecting at least part of a SIM to hit on this later next week.... Just my 2C..

God I hope if CG does come up it'll be straightforward. That area is kind of intimidating to me and there's not much in the past papers to draw from in relation to it.

Soap_Soup wrote: »

So, who's all repeating??

How have you been approaching it, and how are you feeling so far?

I've been mainly using the text book and past papers to get an overall understanding. Think there were too many areas I hadn't covered last year as I concentrated 95% on the core (using the textbook as Sean Murray's notes are useless in my opinion - I know that divides people, but they just don't work for me).

I think I'm definitely in a better position than last year (and I was close to passing) but I still don't feel confident. There's the horrible feeling that if a Q with something you hadn't thought much about came up (say Money Laundering), and then a separate Q with an awkward audit section came up, I might freak out. I really think the question about the software companies revenue section ruined me last year- And if I'm honest, if it came up this year I probably wouldn't fare much better.

Have to say I feel very similar. I feel better prepared this year, wasn't a million miles away last year and passed this years mock but I'm still not confident.

If an awkward internal control area came up coupled with reviewing a junior's working paper (which I seem to be useless at) and maybe corporate governance, I could very well be in serious trouble.

Currently re watching the lectures on reports to 3rd parties cos I ain't too hot on those either.

Guess just have to be positive, I wasn't far away last year and was a lot less prepared for it.

I'm actually kinda concerned about the updated accounting standards, have you looked at those? I'm only doing elective so have old versions etc. not sure if it's worth printing the new ones.

Soap_Soup wrote: »

No, haven't looked at that. Was planning on checking which ISA's I need to update tomorrow actually, but hadn't even thought of accounting standards. Is there a list of updated accounting standards? Has anything significant changed? God I would hope not.

I'm definitely trying to take the view of 'I wasn't far off last year and I've prepared more this year' as well. I do think if it was to go wrong I'll have been very unlucky. And to be honest I don't think I'd even be worried if it wasn't for the fact that they only hold the exam once a year. More of an inconvenience than anything else.

On the addendum to the competency statement there appears to be a number of updated IAS and IFRS but I have no idea what's changed in the standards as have the old versions and haven't looked at the new ones. It does slightly concern me tho.

How are people approaching planing and time Thursday? Read and plan all 3 and then start writing or read, plan and answer one by one.

I'm a bit conflicted, I know when I read all 3 together that I have to read 2 and 3 again anyway as I've forgotten them by time I get to them. But if don't read all 3 first won't know what's ahead and which to do first.

I've printed those decision notice things but I've no idea what they're for, they don't appear to be examinable from the competency statement.