At a glance
Sitting: March, June, September and December
Location: Exam centre or remote invigilation
Duration: 3 hours
Format: The exam consists of five compulsory questions.
- One question focuses on audit planning and the identification and evaluation of audit risks in a practical business scenario.
- A second assurance question assesses the application of knowledge through shorter scenarios, often requiring explanation of audit issues and their impact on the audit report.
- Three questions assess financial reporting skills, typically including:
- preparation of a complete set of financial statements;
- preparation of a cash flow statement; and
- explanation and application of accounting treatment.
Pass mark: 55%
Syllabus weighting: The exam is balanced between assurance and risk and financial reporting. Marks will vary; students must demonstrate competence in both areas – neither can be ignored.
Part A – Assurance and risk
- Legal and other professional regulations, ethics and accepting and managing engagements (25-30%)
- Planning and performing engagements (55-60%)
- Concluding and reporting on engagements (10-15%)
Part B – Reporting
- Accounting and reporting concepts, sustainability and ethics (10-15%)
- Single entity financial statements (85-90%)
Need to know
This exam plays an important role in preparing you for corporate reporting and decision making and underpins much of the knowledge expected at Advanced Level. It’s designed to move you beyond learning rules in isolation and towards applying your understanding in realistic business situations. You’ll be asked to use both technical knowledge and professional judgement to analyse scenarios in a way that reflects the work you would do in practice.
From an assurance perspective, the exam builds on what you covered in the Certificate Level Assurance and Risk Fundamentals. The emphasis is on recognising the most significant audit risks within a scenario, judging why they matter and explaining their potential impact clearly. Success comes from being able to filter information, focus on what is truly important and communicate that effectively.
On the financial reporting side, the exam extends the principles introduced in the Certificate Level Accounting Fundamentals exam into more advanced and detailed areas. You’ll be expected not only to prepare financial information accurately, but also to justify accounting treatments and explain them clearly, often as if you were responding to a client query.
One area where students sometimes come unstuck is in how they allocate their revision time. Numerical questions can feel more comfortable, but this exam also places considerable weight on written assurance answers. Being equally prepared for both elements is key to performing well overall.
How to approach the exam
Strong exam performance comes from consistent, focused practice. In the weeks before the exam, try to complete a wide range of questions under timed conditions. Working through both assurance and financial reporting questions will help you spot patterns in your performance. You may notice that certain areas take longer than expected, which is a useful indicator of where your revision time should be spent.
While practising, it’s essential to think about how you write your answers, not just what you write. Aim for clearly organised, easy to follow answers with clear spacing and tidy formatting. For written questions, make one relevant point per mark and support it with a concise explanation. Rather than lifting wording directly from standards, focus on explaining ideas in your own words and applying them to the situation described.
Audit risk questions require a balanced approach. Marks are earned by identifying several appropriate risks and explaining why each one is important in the context of the scenario. Technical understanding underpins good answers, but it must be supported by sound exam technique and effective use of time.
When it comes to the exam itself, having a strategy for question order can make a real difference. Start where you feel most confident, whether that means tackling longer questions early or warming up with shorter ones. If a calculation does not work out, do not dwell on it. Move on and return later if time allows. The goal is not perfection but maximising marks across the exam. Even partial answers can score, so always attempt every question and stay open to unfamiliar topics.
Top tips for success
- Make sure to manage your time effectively.
- Make as many points as possible to match the marks available.
- Focus on application rather than reproducing technical guidance.
Read more about Assurance, Risk and Reporting in the ACA Syllabus Handbook.