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ACCA
ACCAACCA AAA Cheat Sheet: Quality Management, Ethics and Advanced Audit Reporting
ExpertMinds Editorial·3 June 2026·8 min read
Practice ACCA questions while you read →Key fact:AAA exam: 3 hours 15 minutes · 100 marks · Section A (1 compulsory question, 35 marks) + Section B (choose 2 of 3 × 25 marks + 1 × 15 marks). Pass rate March 2026: 42% — heavy emphasis on professional scepticism and evaluative answers.
ISQM 1 — Quality Management System
| Component | Key requirement |
|---|---|
| Risk assessment | Firm must assess quality risks and design responses (replaces ISA 220's simpler controls) |
| Governance and leadership | Tone at the top commitment to quality; ultimate responsibility with firm's leadership |
| Relevant ethical requirements | Compliance with IESBA Code; independence policies and procedures |
| Engagement performance | Direction, supervision, review — engagement partner responsibility |
| Resources | Human, technological, intellectual — sufficient and competent resources |
| Monitoring and remediation | Annual evaluation; deficiencies identified and remediated proactively |
Ethical Threats (IESBA Code — SSAFI)
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Questions graded, hints, and explained.
| Threat | Example | Typical safeguard |
|---|---|---|
| Self-interest | Financial dependence on client; unpaid fees | Fee cap rules; rotate engagement partner |
| Self-review | Auditing own work (e.g., prepared the financial statements) | Separate teams; independent review partner |
| Advocacy | Representing client in tax dispute or litigation | Decline if advocacy materially compromises objectivity |
| Familiarity | Long association with client; close personal relationship | Partner rotation (mandatory after 7 years, public interest entities) |
| Intimidation | Client threatens to change auditors; aggressive management | Document; escalate to ethics partner; consider resignation |
Going Concern — Indicators, Procedures, Reporting
| Category | Examples |
|---|---|
| Financial indicators | Net current liabilities; loan covenants breached; negative operating cash flows; significant losses; reliance on short-term borrowings for long-term assets |
| Operational indicators | Loss of key management; loss of major customer; labour strikes; shortage of key supplies |
| Other indicators | Legal proceedings; regulatory changes threatening operations; uninsured catastrophe |
| Audit procedures | Review cash flow forecasts; inspect bank correspondence; confirm facilities; obtain written representations; review post-balance sheet events |
| Reporting — material uncertainty properly disclosed | Unmodified opinion with Material Uncertainty Related to Going Concern (MUGC) paragraph |
| Reporting — material uncertainty NOT adequately disclosed | Qualified or adverse opinion |
Tip:AAA professional marks: the examiner awards marks for sceptical evaluation — challenge management's assumptions, not just describe them. For going concern, do not just list indicators — evaluate whether management's assessment is plausible given the evidence available.
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