Advanced Audit and Assurance (AAA)
Question Pack
S. No Question ACCA Exam Paper Topics Covered
1 Squire & Co Sep/Dec 2019 Planning and conducting an audit
2 Lifeson Co Sep/Dec 2019 Completion, review and reporting
3 Kaffe & Co Sep/Dec 2019 Completion, review and reporting
4 Snow & Co Mar/Jun 2019 Planning and conducting an audit
5 Kilmister Co Mar/Jun 2019 Completion, review and reporting
6 Awdry Co Mar/Jun 2019 Planning and conducting an audit
7 Huntsman & Co Dec 2018 Planning and conducting an audit
8 Daley Co Dec 2018 Planning and conducting an audit
9 Thomasson & Co Dec 2018 Professional and ethical considerations
10 Bison & Co Sep 2018 Planning and conducting an audit
11 Coram & Co Sep 2018 Completion, review and reporting
12 Jansen & Co Sep 2018 Professional and ethical considerations
13 Cathy & Co - Planning and conducting an audit
14 Red & Co - Planning and conducting an audit
15 Morgan & Co - Other assignments
16 Yes Co - Professional and ethical considerations
17 Circus & Co - Professional and ethical considerations
18 Friday & Co - Planning and conducting an audit
19 Mike Group - Professional and ethical considerations
20 Hook Co - Completion, review and reporting
21 Mint & Co - Professional and ethical considerations
22 Hello & Co - Completion, review and reporting
23 Orange Co - Planning and conducting an audit
24 Faster Jets Co - Other assignments
25 Paul Co - Professional and ethical considerations
26 Brick Co - Planning and conducting an audit
27 Tame & Co - Completion, review and reporting
28 Rockwell & Co - Completion, review and reporting
29 Nidge & Co - Completion, review and reporting
30 Cold & Co - Completion, review and reporting
31 Raphael & Co - Other assignments
32 James Ltd - Other assignments
, Squire & Co
It is 1 July 20X5. You are a manager in the audit department of Squire & Co, a firm of Chartered Certified
Accountants, responsible for the audit of the Ryder Group (the Group), which has a financial year ending
30 September 20X5. The Group, a listed entity, operates in the hospitality sector, running restaurants,
coffee shops and hotels.
Squire & Co audits the Group consolidated financial statements, and the individual financial statements
of each Group company. All companies in the Group use IFRS® Standards as their financial reporting
framework.
You are provided with the following exhibits:
1. An email which you have received from Mo Iqbal, the Group audit engagement partner.
2. Background information about the Group’s current structure and business activities.
3. Notes taken at a recent meeting between Mo Iqbal and the Group finance director.
4. Selected financial projections to 30 September 20X5 and comparative financial information.
5. Notes taken by Mo Iqbal during a phone call with a representative of the audit committee.
Required:
Respond to the instructions in the email from the audit engagement partner.
(46 marks)
Note: The split of the mark allocation is shown in the partner’s email (Exhibit 1). Professional marks will
be awarded for the presentation and logical flow of the briefing notes and the clarity of the explanations
provided.
(4 marks)
(Total: 50 marks)
,Exhibit 1 – Email from audit engagement partner
To: Audit manager
From: Mo Iqbal, Group audit engagement partner
Subject: Ryder Group audit planning
Date: 1 July 20X5
Hello
You need to start planning the Ryder Group (the Group) audit, and to help with this I have provided you
with some relevant information. I met with the Group finance director yesterday to discuss a number of
matters including some recent business developments. I also spoke with a representative from the
Group audit committee regarding several issues
Using all the information provided, I require you to prepare briefing notes for my own use, in which you:
(a) Evaluate the significant audit risks to be considered in planning the Group audit for the financial
year ending 30 September 20X5. Given the planned Group restructuring, you should evaluate
audit risks relating to disclosure issues at this stage in the audit planning.
(24 marks)
(b) Identify the additional information which should be requested from management in order to
effectively audit the disposal of Primal Burgers Co, and explain why this information is required.
(4 marks)
(c) Design the principal audit procedures to be performed in respect of:
(i) The classification of the $48 million investment in Peppers Co, and
(ii) The government grant of $20 million received in January 20X5.
(8 marks)
(d) Using the notes from the audit committee phone call in Exhibit 5, discuss any ethical issues
relevant to the Group audit, and recommend appropriate actions to be taken by our firm.
(10 marks)
Thank you.
, Exhibit 2 – Background information about the Group
The Ryder Group is one of the country’s leading hospitality providers. Over the last 15 years, the Group
has grown steadily and has a range of successful hospitality brands, each brand being operated by a
separate, wholly owned, subsidiary of the Group.
The Group is planning some restructuring, which is discussed in the notes from the client meeting
(Exhibit 3). The Group structure shown below is the Group’s existing structure, before any restructuring
takes place.
Existing Group structure:
Ryder Co
Mondays Primal Inspiral
Coffee Co Burgers Co Hotels Co
Information about each of the Group companies is given below:
Ryder Co is the parent company of the group, a listed company, which does not trade, and holds the
shares in each subsidiary company.
Mondays Coffee Co operates one of the leading coffee shop chains in the country under the ‘Mondays
Coffee’ brand. It enjoys a strong market share and operates more than 1,200 coffee shops across the
country.
Primal Burgers Co operates over 150 fast food restaurants. In recent years, revenue from Primal
Burgers Co has declined, but it still provides approximately 30% of Group revenue.
Inspiral Hotels Co is a successful hotel business, with over 75 hotels across the country. The Group
acquired Inspiral Hotels Co three years ago, as part of a growth strategy based on diversification.
Question Pack
S. No Question ACCA Exam Paper Topics Covered
1 Squire & Co Sep/Dec 2019 Planning and conducting an audit
2 Lifeson Co Sep/Dec 2019 Completion, review and reporting
3 Kaffe & Co Sep/Dec 2019 Completion, review and reporting
4 Snow & Co Mar/Jun 2019 Planning and conducting an audit
5 Kilmister Co Mar/Jun 2019 Completion, review and reporting
6 Awdry Co Mar/Jun 2019 Planning and conducting an audit
7 Huntsman & Co Dec 2018 Planning and conducting an audit
8 Daley Co Dec 2018 Planning and conducting an audit
9 Thomasson & Co Dec 2018 Professional and ethical considerations
10 Bison & Co Sep 2018 Planning and conducting an audit
11 Coram & Co Sep 2018 Completion, review and reporting
12 Jansen & Co Sep 2018 Professional and ethical considerations
13 Cathy & Co - Planning and conducting an audit
14 Red & Co - Planning and conducting an audit
15 Morgan & Co - Other assignments
16 Yes Co - Professional and ethical considerations
17 Circus & Co - Professional and ethical considerations
18 Friday & Co - Planning and conducting an audit
19 Mike Group - Professional and ethical considerations
20 Hook Co - Completion, review and reporting
21 Mint & Co - Professional and ethical considerations
22 Hello & Co - Completion, review and reporting
23 Orange Co - Planning and conducting an audit
24 Faster Jets Co - Other assignments
25 Paul Co - Professional and ethical considerations
26 Brick Co - Planning and conducting an audit
27 Tame & Co - Completion, review and reporting
28 Rockwell & Co - Completion, review and reporting
29 Nidge & Co - Completion, review and reporting
30 Cold & Co - Completion, review and reporting
31 Raphael & Co - Other assignments
32 James Ltd - Other assignments
, Squire & Co
It is 1 July 20X5. You are a manager in the audit department of Squire & Co, a firm of Chartered Certified
Accountants, responsible for the audit of the Ryder Group (the Group), which has a financial year ending
30 September 20X5. The Group, a listed entity, operates in the hospitality sector, running restaurants,
coffee shops and hotels.
Squire & Co audits the Group consolidated financial statements, and the individual financial statements
of each Group company. All companies in the Group use IFRS® Standards as their financial reporting
framework.
You are provided with the following exhibits:
1. An email which you have received from Mo Iqbal, the Group audit engagement partner.
2. Background information about the Group’s current structure and business activities.
3. Notes taken at a recent meeting between Mo Iqbal and the Group finance director.
4. Selected financial projections to 30 September 20X5 and comparative financial information.
5. Notes taken by Mo Iqbal during a phone call with a representative of the audit committee.
Required:
Respond to the instructions in the email from the audit engagement partner.
(46 marks)
Note: The split of the mark allocation is shown in the partner’s email (Exhibit 1). Professional marks will
be awarded for the presentation and logical flow of the briefing notes and the clarity of the explanations
provided.
(4 marks)
(Total: 50 marks)
,Exhibit 1 – Email from audit engagement partner
To: Audit manager
From: Mo Iqbal, Group audit engagement partner
Subject: Ryder Group audit planning
Date: 1 July 20X5
Hello
You need to start planning the Ryder Group (the Group) audit, and to help with this I have provided you
with some relevant information. I met with the Group finance director yesterday to discuss a number of
matters including some recent business developments. I also spoke with a representative from the
Group audit committee regarding several issues
Using all the information provided, I require you to prepare briefing notes for my own use, in which you:
(a) Evaluate the significant audit risks to be considered in planning the Group audit for the financial
year ending 30 September 20X5. Given the planned Group restructuring, you should evaluate
audit risks relating to disclosure issues at this stage in the audit planning.
(24 marks)
(b) Identify the additional information which should be requested from management in order to
effectively audit the disposal of Primal Burgers Co, and explain why this information is required.
(4 marks)
(c) Design the principal audit procedures to be performed in respect of:
(i) The classification of the $48 million investment in Peppers Co, and
(ii) The government grant of $20 million received in January 20X5.
(8 marks)
(d) Using the notes from the audit committee phone call in Exhibit 5, discuss any ethical issues
relevant to the Group audit, and recommend appropriate actions to be taken by our firm.
(10 marks)
Thank you.
, Exhibit 2 – Background information about the Group
The Ryder Group is one of the country’s leading hospitality providers. Over the last 15 years, the Group
has grown steadily and has a range of successful hospitality brands, each brand being operated by a
separate, wholly owned, subsidiary of the Group.
The Group is planning some restructuring, which is discussed in the notes from the client meeting
(Exhibit 3). The Group structure shown below is the Group’s existing structure, before any restructuring
takes place.
Existing Group structure:
Ryder Co
Mondays Primal Inspiral
Coffee Co Burgers Co Hotels Co
Information about each of the Group companies is given below:
Ryder Co is the parent company of the group, a listed company, which does not trade, and holds the
shares in each subsidiary company.
Mondays Coffee Co operates one of the leading coffee shop chains in the country under the ‘Mondays
Coffee’ brand. It enjoys a strong market share and operates more than 1,200 coffee shops across the
country.
Primal Burgers Co operates over 150 fast food restaurants. In recent years, revenue from Primal
Burgers Co has declined, but it still provides approximately 30% of Group revenue.
Inspiral Hotels Co is a successful hotel business, with over 75 hotels across the country. The Group
acquired Inspiral Hotels Co three years ago, as part of a growth strategy based on diversification.
