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ACCA Audit P7 class 1

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  • Transcript

    • 1. P7
    • 2. P7• Senior Audit team member
    • 3. P7• Senior Audit team member• Advisory / Consultancy role
    • 4. P7• Senior Audit team member• Advisory / Consultancy role• Real life scenarios
    • 5. P7• Senior Audit team member• Advisory / Consultancy role• Real life scenarios• Application of knowledge
    • 6. P7• Senior Audit team member• Advisory / Consultancy role• Real life scenarios• Application of knowledge• Practical & Commercial decisions
    • 7. P7 - SyllabusSection A - Regulatory Environment
    • 8. P7 - SyllabusSection A - Regulatory Environment • Money Laundering
    • 9. P7 - SyllabusSection A - Regulatory Environment • Money Laundering • REgulations
    • 10. P7 - SyllabusSection B - Ethics
    • 11. P7 - SyllabusSection B - Ethics• Important
    • 12. P7 - Syllabus Section B - Ethics• Important• Apply to scenario
    • 13. P7 - Syllabus Section B - Ethics• Important• Apply to scenario• fraud
    • 14. P7 - SyllabusSection C - Practice Management
    • 15. P7 - SyllabusSection C - Practice Management• Commercial & Business head
    • 16. P7 - SyllabusSection C - Practice Management• Commercial & Business head• Tenders / advertising
    • 17. P7 - SyllabusSection C - Practice Management• Commercial & Business head• Tenders / advertising• acceptance of clients
    • 18. P7 - SyllabusSection C - Practice Management• Commercial & Business head• Tenders / advertising• acceptance of clients• Monitoring
    • 19. P7 - SyllabusSection D - Audit of Historic Info
    • 20. P7 - SyllabusSection D - Audit of Historic Info• Audit processes
    • 21. P7 - SyllabusSection D - Audit of Historic Info• Audit processes• In every exam
    • 22. P7 - SyllabusSection D - Audit of Historic Info• Audit processes• In every exam• Planning to gathering evidence
    • 23. P7 - SyllabusSection D - Audit of Historic Info• Audit processes• In every exam• Planning to gathering evidence• Review
    • 24. P7 - SyllabusSection E - Other Assignments
    • 25. P7 - Syllabus Section E - Other Assignments• Of prospective information
    • 26. P7 - Syllabus Section E - Other Assignments• Of prospective information• outsourcing
    • 27. P7 - Syllabus Section E - Other Assignments• Of prospective information• outsourcing• forensic audits
    • 28. P7 - Syllabus Section E - Other Assignments• Of prospective information• outsourcing• forensic audits• impact of these on external audit
    • 29. P7 - SyllabusSection F - Reporting
    • 30. P7 - SyllabusSection F - Reporting • conclude on work performed
    • 31. P7 - SyllabusSection F - Reporting • conclude on work performed • communicate opinion
    • 32. P7 - SyllabusSection G - Current Developments
    • 33. P7 - SyllabusSection G - Current Developments• not tested in isolation
    • 34. P7 - SyllabusSection G - Current Developments• not tested in isolation• impact on assignment
    • 35. The Exam
    • 36. The Exam• Section A: 2 Case Studies (50 - 70 marks)
    • 37. The Exam• Section A: 2 Case Studies (50 - 70 marks)• Covers many syllabus areas
    • 38. The Exam• Section A: 2 Case Studies (50 - 70 marks)• Covers many syllabus areas• Section B: 2 from 3 shorter scenario questions
    • 39. The Exam• Section A: 2 Case Studies (50 - 70 marks)• Covers many syllabus areas• Section B: 2 from 3 shorter scenario questions• More focussed on one area
    • 40. The Exam
    • 41. The Exam• Key Features
    • 42. The Exam• Key Features• Scenario based (application!)
    • 43. The Exam• Key Features• Scenario based (application!)• Professional Marks
    • 44. The Exam• Key Features• Scenario based (application!)• Professional Marks• Structure, tone, persuasiveness
    • 45. • Failing to answer the actual question requirements• Discussing too few points• Identifying points but failing to expand on them • Lack of knowledge on certain syllabus areas • Illegible handwriting and inadequate presentation
    • 46. • Answer the actual requirements • Discuss many points • expand on them • Know all syllabus areas•Write nicely with lots of gaps
    • 47. Get the KnowledgeKnow your P2 stuff Apply to scenario!
    • 48. Markets
    • 49. Markets
    • 50. Markets Confidence
    • 51. Markets Confidence
    • 52. Markets ConfidenceReduce Risk
    • 53. Markets ConfidenceReduce Risk
    • 54. MarketsAssurance Confidence Reduce Risk
    • 55. MarketsAssurance Confidence Reduce Risk
    • 56. Want MarketsAssurance Confidence Reduce Risk
    • 57. Want Markets NeedAssurance Confidence Reduce Risk
    • 58. Want Markets Need SeekAssurance Confidence Reduce Risk
    • 59. Markets Need Seek WantAssurance Confidence Reduce Risk
    • 60. Markets Seek WantAssurance Confidence Need Reduce Risk
    • 61. Markets WantAssurance Confidence Need Seek Reduce Risk
    • 62. Markets WantAssurance Assurance Confidence Virtuous Circle Need Seek Reduce Risk
    • 63. Failure
    • 64. Failure
    • 65. Failure Less Confidence
    • 66. Failure Less Confidence
    • 67. Failure Less ConfidenceMoreRisk
    • 68. Failure Less ConfidenceMoreRisk
    • 69. FailureIncreased LessRegulation Confidence More Risk
    • 70. FailureIncreased LessRegulation Confidence More Risk
    • 71. FailureIncreased Regulation Less ConfidenceRegulation Vicious Circle More Risk
    • 72. Self - Regulation
    • 73. Co rp or ate Self - Regulation Fa ilu re s
    • 74. Co rp Gl or ob ate ali Self - Regulation sa Fa tio ilu n re s
    • 75. Co rp Gl or ob ate ali Self - Regulation sa Fa tio ilu n re s IFAC cant impose ISAs globally
    • 76. Co rp Gl or ob ate ali Self - Regulation sa Fa tio ilu n re s IFAC cant impose ISAs globally Locally adapted ISAs
    • 77. Co rp Gl or ob ate ali Self - Regulation sa Fa tio ilu n re s IFAC cant impose ISAs globally Locally adapted ISAs Clarity Project
    • 78. Corporate Governance Audit Committees
    • 79. Corporate Governance Audit CommitteesHelps Public Confidence
    • 80. Corporate Governance Audit CommitteesHelps Public Confidence Helps Directors with FR
    • 81. Corporate Governance Audit CommitteesHelps Public Confidence Helps Directors with FR Helps keep external audit independent
    • 82. Corporate Governance Independent, NEDs Audit CommitteesHelps Public Confidence Helps Directors with FR Helps keep external audit independent
    • 83. Corporate Governance Audit Committees
    • 84. Corporate Governance Audit CommitteesReview IC
    • 85. Corporate Governance Audit CommitteesReview IC Review IA
    • 86. Corporate Governance Audit CommitteesReview IC Review IA Review accounts
    • 87. Corporate Governance Audit CommitteesReview IC Review IA Review accounts Recommend Auditors
    • 88. Corporate Governance Audit CommitteesReview IC Review IA Review accounts Recommend Auditors Ensure Compliance
    • 89. Money Laundering
    • 90. Money Laundering Concealing true origin of illegal proceeds
    • 91. Money Laundering Concealing true origin of illegal proceedsFinancial action task force
    • 92. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence
    • 93. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence Customer due diligence
    • 94. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence Customer due diligence Record Keeping
    • 95. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence Customer due diligence Record Keeping Suspicious transactions reported
    • 96. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence Customer due diligence Record Keeping Suspicious transactions reported International Cooperation
    • 97. Money Laundering Offences
    • 98. Money Laundering OffencesDisguising criminal property
    • 99. Money Laundering OffencesDisguising criminal propertyAcquiring criminal property
    • 100. Money Laundering OffencesDisguising criminal propertyAcquiring criminal property Tipping off
    • 101. Money Laundering OffencesDisguising criminal propertyAcquiring criminal property Tipping off No procedures
    • 102. Money Laundering OffencesDisguising criminal propertyAcquiring criminal property Tipping off No procedures Not following procedures
    • 103. Money Laundering OffencesDisguising criminal property Tax evasionAcquiring criminal property cash Tipping off No procedures Not following procedures
    • 104. Money Laundering Offences Disguising criminal property Tax evasionCash saved from notcriminal property Acquiring cash complying with regulations Tipping off No procedures Not following procedures
    • 105. Money Laundering & ETHICS
    • 106. Money Laundering & ETHICSClient confidentiality v Legal responsibility
    • 107. Money Laundering & ETHICS Client confidentiality v Legal responsibilityNo breach of professional duty to report in good faith
    • 108. Money Laundering & ETHICS Client confidentiality v Legal responsibilityNo breach of professional duty to report in good faith Statutory protection given too
    • 109. Procedures recommended by FATF
    • 110. Procedures recommended by FATF Identifying customers
    • 111. Procedures recommended by FATF Identifying customers Good record keeping
    • 112. Procedures recommended by FATF Identifying customers Good record keeping Reporting suspicious transactions
    • 113. Procedures recommended by FATF Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO
    • 114. Procedures recommended by FATF Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training
    • 115. Procedures recommended by FATF Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    • 116. Procedures recommended by FATF No high risk ones Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    • 117. Procedures recommended by FATFFull name and address (people) No high risk ones Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    • 118. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    • 119. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding (trusts) Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    • 120. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of above (trusts) Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    • 121. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of all Of above (trusts) Good record keeping transactions Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    • 122. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of all Of above (trusts) Good record keeping suspicious activity transactions reports Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    • 123. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of all Of above (trusts) Good record keeping suspicious activity transactions reports cash big Reporting suspicious transactions deposits Appointing MLRO Training Internal controls reducing risk
    • 124. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of all Of above (trusts) Good record keeping suspicious activity transactions reports cash big Reporting suspicious transactions depositsFreq. exch into diff currencies Appointing MLRO Training Internal controls reducing risk
    • 125. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits reason currencies Appointing MLRO Training Internal controls reducing risk
    • 126. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Training Internal controls reducing risk
    • 127. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Sole practitioners exempt Training Internal controls reducing risk
    • 128. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Sole practitioners exempt Communicate all regulations Training Internal controls reducing risk
    • 129. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Sole practitioners exempt Communicate all regulations Training How to recognise & deal Internal controls reducing risk
    • 130. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Sole practitioners exempt Communicate all regulations Training How to recognise & deal Internal controls reducing risk Tested periodically
    • 131. Placement
    • 132. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement
    • 133. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement
    • 134. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement Layering
    • 135. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement Layering disguise the source and ownership of the funds by creating complex layers of transactions
    • 136. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement Layering disguise the source and ownership of the funds by creating complex layers of transactions
    • 137. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement Layering disguise the source and ownership of the funds by creating complex layers of transactions Integration
    • 138. Compliance with laws and regulations in an audit of financial statements: ISA 250
    • 139. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:
    • 140. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance
    • 141. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance
    • 142. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance  
    • 143. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance:
    • 144. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance: -  Ask management about compliance
    • 145. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance: -  Ask management about compliance -  inspect any authority correspondence
    • 146. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance: -  Ask management about compliance -  inspect any authority correspondenceGet management written representations that all (suspected) non-compliance has been disclosed  
    • 147. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance: -  Ask management about compliance -  inspect any authority correspondenceGet management written representations that all (suspected) non-compliance has been disclosed  Document (suspected) non-compliance and discussions with management and/or other parties.
    • 148. Action if (suspected) non-compliance
    • 149. Action if (suspected) non-compliance Understand its nature and circumstances
    • 150. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS
    • 151. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS  
    • 152. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS  For suspected non-compliance, discuss with management. If compliance is not proved, take legal advice.
    • 153. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS   For suspected non-compliance, discuss with management. If compliance is not proved, take legal advice. If insufficient evidence re suspected non-compliance, consider impact on the audit report (“limitation on scope”)
    • 154. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS   For suspected non-compliance, discuss with management. If compliance is not proved, take legal advice. If insufficient evidence re suspected non-compliance, consider impact on the audit report (“limitation on scope”)  Does it impact on other areas of the audit (eg overall risk assessment)
    • 155. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS   For suspected non-compliance, discuss with management. If compliance is not proved, take legal advice. If insufficient evidence re suspected non-compliance, consider impact on the audit report (“limitation on scope”)  Does it impact on other areas of the audit (eg overall risk assessment)  Consider who to report it to - those charged with governance and/ or shareholders and/or to authorities.