AAT Level 4 Audit and Assurance study plan
AAT Level 4 Audit and Assurance · Give each week a clear focus.
8 weeks · About 7 hours per week
The purpose, scope and regulation of external audit and assurance engagements & Professional ethics, independence and the auditor's responsibilities
Explain the purpose and scope of external audit and distinguish it from other assurance engagements
Identify the regulatory framework governing external audit, including the role of professional bodies and ethical standards
Describe the fundamental principles of professional ethics and apply them to simple scenarios
Outline the auditor's responsibilities regarding independence and objectivity
Your checkpoint
Write a 500-word summary explaining the difference between audit and assurance, and list the five fundamental ethical principles with an example of each.
Professional ethics, independence and the auditor's responsibilities & Audit planning, risk assessment and materiality
Evaluate threats to independence and recommend appropriate safeguards
Explain the auditor's responsibilities regarding fraud, laws and regulations, and going concern
Describe the audit planning process and the role of risk assessment
Define materiality and performance materiality and calculate them using given benchmarks
Your checkpoint
Complete a set of 10 multiple-choice questions on ethics and planning, achieving at least 80% correct.
Audit planning, risk assessment and materiality & Internal control, systems documentation and control testing
Perform a risk assessment for a given scenario, identifying significant risks and designing appropriate audit procedures
Document an understanding of internal controls using narrative notes, flowcharts and questionnaires
Distinguish between tests of controls and substantive procedures
Design tests of controls for key business cycles (sales, purchases, payroll)
Your checkpoint
Produce a risk register for a fictional company with at least five risks, their impact, likelihood and planned audit response.
Internal control, systems documentation and control testing & Audit evidence, procedures and substantive testing of balances and transactions
Evaluate the design and implementation of internal controls and identify control weaknesses
Explain the use of audit sampling and select samples using appropriate methods
Describe the audit procedures for obtaining evidence (inspection, observation, inquiry, confirmation, recalculation, re-performance, analytical procedures)
Apply substantive procedures to test balances and transactions for key areas (receivables, payables, inventory)
Your checkpoint
Prepare a control deficiency report for a fictional company, recommending improvements for at least three weaknesses.
Audit evidence, procedures and substantive testing of balances and transactions
Design substantive tests for revenue, purchases, payroll and inventory transactions
Perform analytical procedures and interpret the results
Evaluate the sufficiency and appropriateness of audit evidence
Apply audit procedures to non-current assets, provisions and contingencies
Your checkpoint
Complete a practice case study on substantive testing, correctly answering 15 out of 20 questions.
Audit evidence, procedures and substantive testing of balances and transactions & Completing the audit, review of financial statements and audit reporting
Describe the procedures for completing an audit, including subsequent events review and going concern assessment
Explain the purpose and content of the management letter and the audit report
Evaluate the different types of audit opinion and the circumstances leading to modification
Review financial statements for compliance with reporting standards
Your checkpoint
Draft an audit report for a given scenario, including the appropriate opinion and key audit matters.
Completing the audit, review of financial statements and audit reporting & Internal audit, value-for-money and other assurance engagements
Distinguish between internal audit and external audit in terms of scope, objectives and reporting
Explain the nature and purpose of value-for-money audits and other assurance engagements
Describe the role of internal audit in risk management and corporate governance
Apply the concepts of economy, efficiency and effectiveness to a public sector scenario
Your checkpoint
Write a comparison table of internal vs external audit and a 300-word explanation of value-for-money audit.
The purpose, scope and regulation of external audit and assurance engagements & Professional ethics, independence and the auditor's responsibilities & Audit planning, risk assessment and materiality & Internal control, systems documentation and control testing & Audit evidence, procedures and substantive testing of balances and transactions & Completing the audit, review of financial statements and audit reporting & Internal audit, value-for-money and other assurance engagements
Revise all domains using summary notes and flashcards
Complete a full mock exam under timed conditions
Review incorrect answers and revisit weak areas
Practice exam technique for scenario-based questions
Your checkpoint
Achieve at least 70% on a full mock exam and produce a list of weak topics with a plan to address them.
Milestones
Week 2: Score at least 80% on a 20-question quiz covering domains 1 and 2.
Week 4: Complete a risk assessment and control documentation exercise for a fictional company, reviewed against model answers.
Week 6: Draft an audit report with the correct opinion for a given scenario, achieving at least 70% on a marking rubric.
Week 8: Pass a full mock exam with a score of 70% or above.