ACCA Past Exam Theory Questions

Explain the difference between an interim and a final audit. (5 marks)

Define the ‘three Es’ of a value for money audit. (3 marks)

Describe FOUR benefits of documenting audit work. (4 marks)

Define what is meant by ‘audit sampling’ and explain the need for this. (3 marks)

Explain the safeguards which your firm should implement to ensure that this conflict of interest is properly managed. (4 marks)

Describe auditor’s responsibilities in relation to the prevention and detection of fraud and error. (4 marks)

Describe the process Audit firm should have undertaken to assess whether PRECONDITIONS for an audit were present when accepting the audit of Client. (3 marks)

Identify THREE main areas, other than audit risks, which should be included within the audit strategy document for Prancer Construction Co, and for each area provide an example relevant to the audit. (3 marks)

Define audit risk and the components of audit risk.

Identify what a key audit matter (KAM) is and explain how the auditor determines and communicates KAM.