April 2023
Brigita Petrova has some sage advice on how to pass an exam that some students seem to
underestimate.
Always âas expectedâ, always ânot too badâ, yet always bottom of the list for Skills level pass rates. Here is why and how you can come out successful in your next attempt.
| Reason for failure | How to win |
| Thinking AA is a âtheoryâ paper, due to only 30% objective testing (OT) marks, as opposed to 60% in most Skills papers. | Prepare for a âwrittenâ but âpracticalâ paper, where most (around 70%) of the marks in the whole exam come from application of core knowledge. |
| Spending too much time trying to learn the knowledge, doing very little question practice and often starting it too late. | Learn well the core knowledge needed (tutor written condensed notes work well) but spend more time on doing past exam questions and donât wait till revision starts to attack them. |
| Focusing on Section A type of questions due to being familiar and comfortable with this type of practice from other subjects. Having some good ideas re Section B questions but not trying to put them down in writing. | Given the split of written to OT marks is 70:30, ensure you split your question practice at least in the same proportion. Maybe even try 80:20, if writing has always been too challenging in other subjects and you often left those marks out in the past. |
| Not understanding the subject matter, attempting to memorize loads of tests and sample answers. The exam result of this is often a big mess and having to re-sit multiple times. | Ensure you understand the audit process with its main stages, think about the meaning of what you learn and the purpose of the procedures you do. Once you understand something, it is much easier to remember and explain it, and what is critical to AA â to apply it in context. You donât need an audit background, but if struggling with understanding, then having a good audit tutor helps a lot! |
| Not understanding the question requirements and going off-tangent, providing the right answer but to the wrong question. For example, in a question asking the following: âExplain the steps the auditor should take to confirm the accuracy of the purchases and payables flowcharts and systems notes currently held on file.â The number of students providing substantive procedures on purchases/payables is usually much higher than those applying it to the companyâs internal controls. | Do not rush when reading requirements. Think carefully about what is actually being asked as opposed to what you wish/expect to be asked. Pay attention to the verbs used and donât provide a list of a few words per point, when you are required to explain something. |
| Not explaining otherwise good points, resulting in scoring only half of the marks on offer. Most requirements ask to âexplainâ/âidentify and explainâ etc. and yet many students do the âidentifyâ but not the âexplainâ bit. | Think about the âwhatâ and the âwhyâ in your answer. For example, in a requirement asking to âidentify and explain N deficiencies in the clientâs internal control systemâ, so⊠âidentifyâ needs you to say what their control weakness is (taken straight from the scenario) and âexplainâ needs you to say why this is a weakness (your understanding of how this could harm the company). |
| Trying to explain âwhyâ but being vague or not going far enough. E.g. âOrders for unavailable items might be accepted and subsequently cancelledâ is not good enough, as it does not show the potential harm for the company. Or saying âThe auditor will check documentation to confirm if development cost is correct in the FSâ does not make it clear what documentation and how exactly it will be checked, neither does it make clear what the correct treatment of the cost should be. | Be precise and specific. The deficiency explanation works if you go a tiny bit further, saying something like âorders for unavailable items might be accepted and subsequently cancelled, leading to upset customers and lost goodwillâ. The test on development cost could say âObtain a breakdown of the development cost and inspect some invoices, to assess the nature of the expenditure and confirm whether any of them relate to research and should be expensedâ. |
| Poor time management, spending too long on the OT section and not having enough time for the 70 marks in the written part of the exam. | At home, practise under time pressure (one mark = two minutes), especially during revision. In the exam, watch the clock and always go for the easy marks first! |
