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AUDITING STUDY PLAN

May 2019 Exam Recap

1. The exam was composed of 42 theory and 28 computation questions. The

questions were evenly distributed among the topics in the Test of
Specification.

2. Theory questions were tricky but reasonable. Concept-based. As expected,

many questions related to Computerized Auditing.

3. Situational problems were long as expected, focusing on audit of bonds and

audit of shareholders’ equity, correction of errors, an audit of PPE. Are there
typo errors in the problem? Maybe but unlikely.

4. The study strategy is “paramihan ng nasagutan.” Try answering in Hoppy

and www.icpa.ph test website.

5. VIP Premium iCPA Customers: The reconstructed May 2019 exam will be
emailed to you May 23 midnight.

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AUDITING

Number of Date Date

TOPIC Hours Started Ended
Fundamentals of auditing and assurance 2
Assurance engagements 1
Introduction to Auditing 1

Audit Client Acceptance 2

Pre-engagement procedures 2

Audit Planning 6
Essential planning requirements 1
Knowledge of the business 1
Preliminary analytical procedures 1
Materiality 1
Assessing and managing audit risks 1
Audit plan and program 1

Audit Supervision and Monitoring 4

Understanding the entity and its environment 6

Nature of the entity 2
Objectives, strategies and business risks 2
Measurement and review of financial performance 2
Internal control 20
Concepts and elements of internal control 2
Understanding of internal control systems 4
Test of controls 8
Documentation 4

Risk Assessment 10
Risk assessment procedures 2
Discussion among team 2
Significant risks that require special audit consideration 2
Risks for which substantive procedures alone do not
provide sufficient appropriate audit evidence 2
Revision of risk assessment 2

Fraud accounting 2

Audit Evidence 8
Nature and significance 2
Evidential matters 2
Audit procedures and techniques 2
Audit working papers 2

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Number of Date Date

TOPIC Hours Started Ended
Audit Sampling (not included in TOS)
Completing the audit and audit report preparation 10
Analytical procedures for an overall review 1
Related party transactions 1
Subsequent events review 2
Assessment of going concern assumption 2
Representation Letter 2
Evaluating findings, formulating an opinion and drafting 2
audit report
Post audit responsibilities 2
The subsequent discovery of facts 1
The subsequent discovery of omitted procedures 1

Audit Reporting 12
Unqualified report and basic elements 4
Modified auditor’s report (matters that do (not) affect
auditor’s opinion 4
Report on comparatives 4

Computerized Auditing 10
Internal control in a CIS environment (general controls, 6
application controls, stand alone, online, database system)
Computer assisted audit techniques 4
Other assurance and non assurance services 6
Special purpose audit engagements 2
Non-audit engagements 2
Non-assurance engagements 2
Forensic Accounting
TOTAL HOURS 100

AUDITING PROBLEM
Number of Date Date
TOPIC Hours Started Ended
Audit of:
Revenue and Receipt Cycle (sales, revenue, receivables) 20
Expenditure and Disbursement Cycle (acquisitions, payroll,
inventory, trade payable and prepaid expenses and accrued
liabilities) 20
Production Cycle (conversion activities, inventories,
COGS) 20
Financing cycle (non-trade liability, interest expense,
finance cost, equity) 20
Investing Cycle (investment, property, plant and equipment,
intangible assets) 10
Cash balances (cash receipts and disbursements) 10
TOTAL HOURS 100

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