AARS Revision Classes (ICAP House) - What to do in the last month

CFAP AARS Revision Classes (ICAP House)
What to do in the last month

AUDIT ASSURANCE & RELATED SERVICES (AARS)
- PAST PAPERS ANALYSIS

- BUILDING APPROACH FOR THE PAPER
- IDEAL SCHEDULE TO STUDY
- SUGGESTED PAST PAPERS TO DO
- HOW TO PLAN TIME
- IDEAL TIME TO PREP IN RAMAZAN
- WHY GIVE MOCK
- HOW TO PLAN & SPEND 3 HOURS OF EXAMS
- HOW TO ATTEMPT DIFFERENT TYPE OF QUESTIONS IN EXAMS
- GENERAL TIPS & TECHNIQUES
- SUMMER 2019
What to Do
What to do – In the last month of Preparation
Stages of Preparation
 Make up your Mind
 Identify Important Areas
 Prepare a Schedule
 Make a Routine
 Start Studying
 Watch, re-watch and Monitor your Schedule vs. Actual Course completion
 Take breaks
 Give Full Length Mock (3 Hours)
 Go for ICAP Exam

Make up Your Mind
Make up your Mind

 Make a Routine
 Start Studying
 Take breaks

Make up Your Mind
Am I doing Right ? ? ?
Main Issues with AARS
Identify Important Areas
Identify Important Areas

 Make a Routine
 Start Studying
 Take breaks

PAST PAPERS ANALYSIS (AARS)
ICAP Papers - Last 10 Attempts ! ! !
Specific Areas Auditing Standards
Risk Assessment 200 Series

3%
(240,315,520,550,570) 27% 300 Series
Implication on Audit Report 6%
400 Series
(700 Series) 15% 2%
500 Series
Code of Ethics 14% 5%
Appointment 600 Series
3%
(ISA 210, 220, Co.Act, Code) 2% 800 Series
Audit Procedures on specific 1%
accounting areas 8% 20%
Misc 4%
70% Assurance & Non Assurance Standards
ISRE, ISAE, ISQC, ISRS 10%

Super Important Areas Very Important Areas
Risk Assessment (240,315,520,550,570)
27%
Audit Procedures on specific accounting areas 8%
Implication on Audit Report (700 Series) 15%
Misc 4%
Code of Ethics 14% 3%
ISAE 3000
56% ISA 315 & Controls (Theory) 3%
ISA 330 & Substantive Procedures 3%
ISRS 4400 2%
22%
Moderately Important Areas Only asked once in Last 10 Attempts
ISA 600 2.3% ISA 540

ISA 402 1.5%
2.3%
ISAE 3400 2.2% Framework for Assurance Engagements 1.1%
ISA 500 2.1% ISA 320
1.0%
Appointment (ISA 210, 220, Co.Act, ISA 610
Code) 1.8% 0.8%
ISA 250 1.8% ISA 810 0.7%
ISA 510 1.5% ISA 265
0.7%
14.0%
ISAE 3410 0.6%
ISAE 3402 0.6%
ISA 505
0.3%
7.3%
Not asked in Last 10 Attempts
IAPN ISA 570

ISA 200 ISA 580
ISA 230 ISA 620
ISA 240
ISA 800
ISA 260
ISA 805
ISA 300
ISAE 3420
ISA 450
ISQC 1
ISA 501
ISRE 2400
ISA 530
ISRE 2410
ISA 560
ISRS 4410
Prepare a Schedule
Prepare a Schedule
 Make a Routine
 Start Studying
 Take breaks

Prepare a Schedule
Day wise Time wise Topic wise
Prepare a Schedule
Standards/Topics to connect (A suggestion – not a Recommendation)
Ideal Sequence to Prepare AARS
 Appointment of Auditor (ISA 210 & 220)
 ISQC 1
 Appointment of Auditor (Legal considerations – Co.Act, Banking, Insurance, Code)
 ISA 700 & 701

 ISA 705 & 706
 ISA 710, 510 & 720
 Code (Fundamental Principals, conceptual framework and other areas)

 Code (290 & 291)
 500 Series (Other than 510, 520, 550 & 570)
 ISA 315 & ISA 570

 ISA 240 & ISA 550
 ISA 520
 800 Series
 600 Series
 ISRE 2400 & 2410

 ISAE 3000 & Framework for Assurance engagements
 ISRS 4400 & 4410
 ISAE 3400, 3402, 3410 & 3420
Make a Routine
Make a Routine
 Start Studying
 Take breaks

Make a Routine
Create an environment of Your Choice – Ignore Discipline – Get out of Office
Make a Routine
Find your 2 Hours
Best Strategy ! ! !
Make a Routine
Best timings for study
in
Ramazan ! ! !
10:30 PM 4:30 AM
to to
2:30 AM 8:30 AM
Start Studying
 Make a Routine
Start Studying
 Take breaks

Start Studying
Approach for Study
• Attending Classes
Understanding • Reading Standards & ICAP book
• Road towards AARS

Mind Maps • Building Own notes
• Bound Volume by ICAP – Highlight properly
Reading • For Important Standards - All Core Para & Important Application Para
• For less Important Standards – Important Para only
• Past Papers (50% Questions)

• Reading Question
Basic Assessment • Understanding
• Develop an answer
• Match the answer
• Selected Past Papers (See upcoming slides)

Final Assessment • Write it down
• Give your solution to a colleague for marking
Start Studying
Important Paras of Different Standards
INTERNATIONAL STANDARDS ON AUDITING (ISA)
ISA-200 14-24, A2, A18, A23, A43, A45, A49, A51
ISA-210 6, 10, 17-21, A4, A8, A23, A24, A25, A28, A33,
ISA-220 11,15-20, 24, A2, A11, A13, A15, A17, A28
ISA-230 8, 9, 13, 16, A2, A3, A7, A8, A12, A22
ISA-240 15, 17, 20, 24, 29, 32, 38, 39 ,41, A3, A4, A5, A10, A11, A36, A37, A43, A48, A54, A64
ISA-250 12, 14, 18, 22, A2, A7, A11, A13, A14
ISA-260 14, 16, 17, A1, A5, A7, A9, A13, A14, A21, A22, A24, A38, A43, A47, A53
ISA-265 10, 11, A2, A6, A7, A15, A29
ISA-300 6, 8, 9, 12, A9, A8, A12, A14, A20
ISA-315 6,11,14,15,18,28,32,A7,A9,A18,A19,A21,A24,A26,A30,A31,A35,A39,A45,A61,A62,A63,A64,A77,A89,A104,A133
ISA-320 10, 14, A3, A10, A12
ISA-330 7, 8, 10,13, 14, 17, 20, 22, 28, A1, A22, A28, A33, A38, A48, A51, A56, A57, A60, A62
ISA-402 8B, 8C, 8D,8H, 8I, 9, 12, 14, 16, 17, A4, A8, A15, A22, A23, A26, A41, A42
ISA-450 6,11,15, A1, A3, A16
ISA-500 8, 11, A14-A25, A31, A36, A38, A40, A45, A46, A48, A53, A54
ISA-501 4, 8 , 9 ,11 ,13, A3, A4, A11, A12, A16, A23, A24, A27
ISA-505 7, 8, 13, 15, A4, A8, A11, A13, A18, A20
ISA-510 6, 7, 8, 12, 13, A3, A6, A8
ISA-520 5,7, A1, A12, A15
ISA-530 5C, 5I, 5J, A3, A12, A23, APPENDIX 1, APPENDIX 4
ISA-540 8, 12, 13, 15, 17, 21, 22, 23, A2, A6, A7, A13, A17, A19, A23, A27, A31, A38, A39, A45, A47, A59, A72, A76, A79,
A80, A87, A111, A120, A121, A126
ISA-550 13,14, 15, 22, 23, 25, 26, A5, A9, A17, A18, A22, A23, A36, A38, A50
ISA-560 7, 10 -15, A8, A9, A12, A18
ISA-570 5, 10, 13, 16, 18, 22, 23, 25, 26, A3, A14, A16, A35
ISA-580 10, 11, 16, 19, 20, A8, A10, A12, A27
Start Studying
Important Paras of Different Standards
ISA-600 12, 13, 17, 19, 21, 26-29, 40,41, 46,49,50, A11, A12, A20, A26, A27, A29, A33, A35, A51, A55
ISA-610 15,16, 18, 23,24,28-30,33, 34, 36, 37, A1, A7, A8, A11, A16, A24, A25, A32
ISA-620 8, 11, 12, 14, 15, A4, A7-A10, A13, A15, A20, A24, A33, A34
ISA-700 13, 24, 28, 34, 38, 39, 41, A4, A6, A44, A73, A74, A79, A83
ISA-701 11-18, A7, A12, A29, A41, A45, A46, A54, A58
ISA-705 6-28, A1, A3, A4, A6, A7, A11, A16, A27
ISA-706 8-12, A5, A7, A16
ISA-710 7, 11, 13, 14, 17, A1, A3, A8, A11
ISA-720 13, 14, 16, 17-19, 21, 24 , A5, A13, A30, A31, A35, A38, A43, A51
ISA-800 8, 13, A1, A6, A8, A14, A15
ISA-805 8, 12-17, A8, A9, A15, A17
ISA-810 6, 8, 9, 10, 14, 17, 19, 23, 26, A4, A6, A8
INTERNATIONAL STANDARDS ON REVIEW ENGAGEMENTS (ISRE)
ISRE-2400 48
ISRE-2410 3,4,15,17,21, ALL APPENDICES
INTERNATIONAL STANDARDS ON RELATED SERVICES (ISRS)
ISRS-4400 1, 18
ISRS-4410 1, 5, 6, 17, 24, 29-40
INTERNATIONAL STANDARDS ON QUALITY CONTROL (ISQC)
ISQC-1 16,21,26,29,30,34,35,37,39,42,48,49,51,53,55, A18,A19,A24,A32,A34,A35,A41,A45
For the purpose of clarity, it is important to note that all the paragraphs given in any
standard are important for developing the complete understanding of the entire text.
Examiner may ask any question relating to any paragraph
Tutor’s Note (whether considered important or not by the student)
Start Studying
Selected Past Papers to Practice in writing after basic assessment
 Appointment of Auditor (ISA 210 & 220) [Q.5(i) - Summer 12] & [Q.3b - Summer 13]
 ISQC 1 [Q.5 – Winter 09]
 Appointment of Auditor (Legal considerations) [Q.8(iii) - Summer 09]
 ISA 700 & 701 [Q.1 - Winter 16] & [Q.5 - Winter 17]
 ISA 705 & 706 [Q.2b - Winter 17], [Q.2b - Winter 14]
[Q.7 - Summer 13] & [Q.2 - Summer 12]
 ISA 710, 510 & 720 [Q.5 - Win 12], [Q.4c - Sum 15] & [Q.5b Sum 16]
 Code (Fundamental Principals and other areas) [Q.7.a - Winter 13] & [Q.6 – Summer 09]
 Code (290 & 291) [Q.3 Sum 17], [Q.3 Sum 16], [Q.3 - Win 15],
[Q.3 - Win 14], [Q.2 - Sum 14] & [Q.3 - Sum 12]
 500 Series (Other than 510, 520, 550 & 570) [Q.2(ii) – Sum13], [Q.7 - Win12] & [Q3a - Win12]
 ISA 315 & ISA 570 [Q.1 - Win 17], [Q.2.a - Win 16], [Q.1 Win 15],
[Q.6 - Win 13], [Q.1 Sum 12] & [Q.1 Win 11]
 ISA 240 & ISA 550 [Q.5.b Winter 15] & [Q.1.b Winter 14]
 ISA 520 [Q.4 Summer 16] & [Q.6 Winter 14]
 800 Series [Q.4 Winter 12] & [Q.5 - Winter 11]

 600 Series [Q.7 - Summer 15]
 ISRE 2400 & 2410 [Q.4 - Winter 10]
 ISAE 3000 & Framework for Assurance engagements [Q.5 - Summer 14] & [Q.6 - Winter 16]
 ISRS 4400 & 4410 [Q.4 – Summer 17] & [Q.7 - Summer 09]
 ISAE 3400, 3402, 3410 & 3420 [Q.2 - Winter 13] & [Q.5 - Winter 16]
Monitor Your Progress
 Make a Routine
 Start Studying
Watch, re-watch and Monitor your Schedule vs. Actual completion

 Take breaks

Monitor Your Progress
Take a Break
 Make a Routine
 Start Studying
Take breaks

Give Full Length Mock (3 Hours)
 Make a Routine
 Start Studying
 Take breaks
Give Full Length Mock (3 Hours)

Benefits of Giving Full Length Mock
 Writing Practice
 Self Assessment
 Body Exercise (A must activity for students appearing in CFAP for the first time)
 Practicing time management
 Know your weaknesses at least 2 weeks before exam
Many institutes prepares, conducts and publically make available their mocks along with
solution. Also you can watch for www.canotes.net for any 2 latest mocks.
Note: Whether you are prepared for a full fledge mock or not; Do give it a try
 Make a Routine
 Start Studying
 Take breaks
Go for ICAP Exam

Go for ICAP Exam
How to Attempt the paper (A suggestion – not a Recommendation)
Before the Paper
 Take proper sleep in the last night

 Have a good breakfast
 Reach ICAP Exam Centre at least 20 to 25 minutes before exam
 Get seated well before time
 Have a glass of water before start of reading time
During Reading Time
 Skim the paper quickly to get an idea of total questions and relevant topics
 Then see the questions in detail and underline the requirements
 Plan your paper sequence and timelines
 Select your first, second, third and so on choices
 Mark the relevant number at left of Question with lead pencil
 Mention estimated starting and ending time with lead pencil (including hard upper cap)
 Don’t multiply every question with 1.8
 Well known and good marks giving questions can be given 2 to 2.5 min per mark
 Average questions can be given 1.8 min per mark
 Below average questions can be given 1 min per mark
Go for ICAP Exam
How to Attempt the paper (A suggestion – not a Recommendation)
1st Hour (App 25% to 30%)
 Search for Code of Ethics Question for your very first question
 Then go for any other OPEN BOOK supported question(s)
2nd Hour (App 30% to 35%)
 ISA 705/706 Pattern Question

 Other Standards Question (ISRE, ISRS, ISAE)
 Question requiring research
3rd Hour (App 35% to 40%)
 Risk Assessment Question (App 30 to 35 minutes)

 Any difficult question
 Any remaining / unidentified question
HOW TO DEAL WITH
DIFFERENT TYPE OF QUESTIONS

- Code
- 705/706 Type
- Risk Assessment
HOW TO DEAL WITH QUESTIONS
ISA 705/706 ! ! !
• Identification of Materiality (if any
benchmarks are given in question)
Step 1 • Divide the amount involved with all
benchmarks (except loss before tax)
• Discuss the issue and auditor’s procedures

Step 2 for verification
• Discuss auditor’s action in case of scope

Step 3 limitation or material misstatement
• Management Response and Effect on

Step 4 Opinion (see next slide)
ISA 705/706 ! ! ! Audit Report
Modified Unmodified
Modification Other Key Audit

of Opinion Modification Matter (701)
Matters Matters not

Material Scope
disclosed in disclosed in
Misstatement Limitation
F/S F/S
Relates to Relates to
Material Pervasive Material Pervasive
Accounts Audit
Qualified Adverse Qualified Withdrawal Emphasis of

Other Matter
(Except for) (Do not) (Except for) or Disclaimer Matter
HOW TO DEAL WITH QUESTIONS – ISA 705 / 706
Worked Example
Question
You are audit partner of the firm and your manager has highlighted the following matters:
a) The profit before tax of Tariq Limited (TL) for the year ended 30 June 2017 is
Rs. 790 million. TL provides three year warranty to its customers and has made provision
of Rs. 80 million in this regard. The management carries out the computation internally.
The process is complex and based on various assumptions. Therefore, your firm has
appointed an expert after following all the necessary procedures for assessing the
competence, capability and objectivity of the expert. (08)
b) Your firm has been appointed as the auditor of Yaqoob Limited for the audit of the
year ended 30 June 2017. The audit team was not able to perform the inventory count at
year end because the appointment was made on 15 July 2017. (07)
Required:
Describe the steps that will be performed in each of the above situation and discuss the
possible implications of the above on the audit report. (Drafting of opinion not required)
Worked Example – Solved (a)
Provision of warranty is 10% of the PBT and therefore it is material to the
financial statements Materiality
Since expert has been appointed and matters related to his appointment have already
been considered, we may need to perform following:
• Evaluate the reasonableness of significant assumptions and methods used
• Evaluate the relevance, completeness and accuracy of source data
• Evaluate the reasonableness of the expert’s conclusions Issue
• Carry out analytical procedures to assess the reasonableness of the provision as & Actions
compared to other relevant items
• Confirm that the accounting provisions of IAS 37 have been complied with, in
making the provision
• In case there is a difference between the valuation of the auditor’s expert and the
valuation of the management, discuss the difference with the management.
Reporting implication
In case the difference between the valuation of the auditor’s expert and the
valuation of the management is material and cannot be resolved, we will have to
give a qualified opinion. Implications
However, if we have obtained sufficient appropriate evidence regarding the

valuation and presentation of the warranty provision, then we will have to
include relevant details under the heading of key audit matters in our audit
report, because it is an area of higher assessed risk of material misstatement due
to involvement of high degree of uncertainty and significant auditor judgment.
Worked Example – Solved (b)
Our firm was not appointed as auditors of the YL until 30 June 2017 and Issue &
thus did not observe the counting of physical inventories as the end of Actions
year 30 June 2017. In this situation, we may perform the following
procedures:
• Conduct physical inventory count after the date of the financial
statements.
• Check whether the changes in inventory between the count date
and the date of the financial statements are properly recorded.
• Investigate the reason for significant differences between the
information obtained during the physical count and the inventory
records.
• Assess the reliability of inventory records.
Reporting implication
If the auditor concludes that it would be impracticable or not possible to
work back the inventory then this would be a scope limitation and
depending upon the material and pervasiveness of the amount of
Implications
inventory, the auditor should qualify or disclaim his opinion.
Furthermore, the auditor should include other matter paragraph and

mention that the prior period financial statements were audited by
another auditor.
Risk Assessment ! ! !
Commonly the requirement is to identify some risks in
Identify Risk a given scenario with or without analytical working
• A64 of ISA 315 Specific risks relating to use of IT in entity’s Internal control
• A141 of ISA 315 Specific risks relating to significant non routine transactions
• A129 of ISA 315 List of Assertions to be used in paper while quoting risks
• Appendix 1 Para 4 Specific risks relating to new personnel, system, technology etc
• Appendix 2 of ISA 315 Conditions and Events that may indicate Risk of Material Misstatement
• A3 of ISA 570 Specific risks relating to Going concern
• Appendix 1 of ISA 240 Examples of Fraud risk factors (Only skim once before exam to get idea
• Appendix 3 of ISA 240 Circumstances indicating possibility of fraud
• Think like Accountant What can go wrong with accounting treatment in the given situation
They ask you for giving your responses on each of the

Give Responses issue identified by you
• Appendix 2 of ISA 240 Specific responses for addressing risks due to Fraud
• A1 of ISA 330 Overall responses to Financial Statement level risks
• Assertions Give assertion by assertion responses (see next slides)
Assertion by Assertion Responses (Account Balances) ! ! !
• Physical verification
Existence • Third party confirmations
• Matching amounts to invoices

Accuracy, Valuation • Recalculation
and Allocation • Review of post year-end payments and invoices

• Expert valuation
• Cut-off testing
• Analytical review
Completeness • Confirmations
• Reconciliations to control accounts
• Reviewing invoices for proof that item belongs to company

Rights & Obligation • Confirmations with 3rd parties
• Confirming compliance with laws and AFRF

Classification & • Check the recording in proper account
Presentation • Reviewing notes for understandability
• Confirming accounting policy is consistent and reasonable
Assertion by Assertion Responses (Class of Transactions) ! ! !
• Inspection of supporting documentation

Occurrence • External Confirmations
• Recalculation of amounts
Accuracy • Third party confirmation
• Cut-off testing
Completeness • Confirmations
• Reconciliations to control accounts
• Cut-off testing
Cut-Off • Analytical review
• Confirming compliance with laws and AFRF

Classification & • Check the recording in proper account
Presentation • Reviewing notes for understandability
• Confirming accounting policy is consistent and reasonable

AARS Revision Classes (ICAP House) - What to do in the last month

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CFAP AARS Revision Classes (ICAP House)

What to do in the last month

- PAST PAPERS ANALYSIS

 Make up your Mind

 Identify Important Areas

 Give Full Length Mock (3 Hours)

 Go for ICAP Exam

Make up your Mind

 Give Full Length Mock (3 Hours)

 Go for ICAP Exam

 Make up your Mind

Identify Important Areas

 Give Full Length Mock (3 Hours)

 Go for ICAP Exam

Risk Assessment 200 Series

ISRE, ISAE, ISQC, ISRS 10%

ISA 600 2.3% ISA 540

IAPN ISA 570

 Make up your Mind

 Identify Important Areas

 Give Full Length Mock (3 Hours)

 Go for ICAP Exam

 ISA 700 & 701

 Code (Fundamental Principals, conceptual framework and other areas)

 500 Series (Other than 510, 520, 550 & 570)

 ISA 315 & ISA 570

 ISRE 2400 & 2410

 Make up your Mind

 Identify Important Areas

 Give Full Length Mock (3 Hours)

 Go for ICAP Exam

 Make up your Mind

 Identify Important Areas

 Give Full Length Mock (3 Hours)

 Go for ICAP Exam

• Road towards AARS

• Bound Volume by ICAP – Highlight properly

• Past Papers (50% Questions)

• Selected Past Papers (See upcoming slides)

 800 Series [Q.4 Winter 12] & [Q.5 - Winter 11]

 Make up your Mind

 Identify Important Areas

Watch, re-watch and Monitor your Schedule vs. Actual completion

 Give Full Length Mock (3 Hours)

 Go for ICAP Exam

 Make up your Mind

 Identify Important Areas

 Go for ICAP Exam

 Make up your Mind

 Identify Important Areas

Give Full Length Mock (3 Hours)

 Practicing time management

 Know your weaknesses at least 2 weeks before exam

 Make up your Mind

 Identify Important Areas

 Give Full Length Mock (3 Hours)

Go for ICAP Exam

 Take proper sleep in the last night

During Reading Time

2nd Hour (App 30% to 35%)

 ISA 705/706 Pattern Question

3rd Hour (App 35% to 40%)

 Risk Assessment Question (App 30 to 35 minutes)