BECOMING A STATUTORY AUDITOR

Transcription

1 BECOMING A STATUTORY AUDITOR Edition 12/02 Association of International Accountants 1

2 Association of International Accountants

3 BECOMING A STATUTORY AUDITOR 1 CONTENTS 2 WELCOME Statutory Audit Audit Careers 7 Skills 7 Rewards AIA Audit Scholarship AIA Audit Training Apply for Student Membership Apply for Exemptions Pass the Exams EXAM STRUCTURE STUDY MATERIALS AIA ACHIEVE AUDIT COURSE OF STUDY E-BOOKS STUDY SUPPORT TEAM & E-TUTORS RECOMMENDED READING SYLLABUS Association of International Accountants 3

4 7.8 EXAMINER FEEDBACK APPROVED STUDY PROVIDERS Pass the Multi-Disciplinary Case Study Work experience RPQ Audit Route Training options 19 WORK EXPERIENCE RPQ AUDIT TRAINING OPTIONS Apply for Associate Membership Pass the Oral Test Receive your RPQ Certificate Register with a Recognised Supervisory Body Take the First Step Association of International Accountants

5 The AIA is a Recognised Qualifying Body (RQB) for Statutory Auditors under the Companies Act 2006, and as such is eligible to train you to become a qualified Statutory Auditor. The AIA Statutory Auditor Training Programme will provide you with a Recognised Professional Qualification (RPQ) and will ensure that you are equipped with the relevant skills and competencies required to work confidently and efficiently in this challenging profession. This guide will take you through the AIA Statutory Auditor Training Programme step-by-step to ensure that you fully understand what will be required of you. You must inform the AIA that you wish to undertake the Statutory Auditor Training Programme at the earliest possible time, either by completing the appropriate section on the Student Application Form, or by contacting Membership Services Association of International Accountants 5

6 1.0 STATUTORY AUDIT Statutory Auditors are specially qualified accountants who produce independent, professional reviews, making sure that information collated and submitted provides a true and fair view of the organisation s past financial performance and current financial position. Statutory audits are designed to provide confidence to shareholders and investors, giving all the vital information needed in a written statement to make an informed investment judgement. Statutory Auditors don t purely audit commercial organisations; they may also review public service organisations, such as charities, colleges and universities, or government departments. Audit firms may offer a range of services in addition to financial verification. This includes checking that organisations are meeting legal and voluntary obligations in such areas as corporate and social responsibility, IT and general business risks and health and safety. It will then be the role of the organisation s management to review compliance and ensure that the organisation is adhering to rules, codes of practice, business ethics, internal guidelines and principles. The AIA Statutory Auditor Training Programme is recognised by the UK government; undertaking the programme will provide you with a Recognised Professional Qualification (RPQ) and will ensure that you are equipped with the relevant skills and competencies required to work confidently and efficiently in this challenging profession Association of International Accountants

7 2.0 AUDIT CAREERS A career in audit is challenging, interesting, stimulating and rewarding. As a Statutory Auditor you will assess companies accounts to ensure that they show an accurate and fair picture of the business. Today s auditors look beyond finances and make key decisions on the processes, operation and objectives of a business and interpret that information in the interests of shareholders, investors and the public. SKILLS Auditors perform many tasks, which are vital to the efficiency of an organisation. The essential skills required by a professional auditor are listed below. Strong IT and numeracy skills and the ability to analyse evaluate and interpret facts and figures rapidly. The ability to communicate effectively both verbally and in writing and be able to understand, apply and explain technical auditing and accounting standards. Demonstrate excellent interpersonal skills demonstrating diplomacy and tact when giving constructive feedback to clients and show respect for client confidentiality. Show business acumen, sound judgement and an objective, logical and enquiring mind and act ethically at all times. Demonstrate a good team work ethic; flexibility and resilience under pressure Association of International Accountants 7

8 REWARDS A career in audit has many rewards, including: Diversity; Progression; Client interaction; Remuneration; A greater understanding of business operations and risk analysis. With the right experience, qualifications and skills you could progress to management roles. Salaries will vary considerably based on location and employer Association of International Accountants

9 3.0 AIA AUDIT SCHOLARSHIP The AIA is committed to ensuring that a career as a Statutory Auditor is open to people of talent, regardless of their background, and has therefore launched the AIA Audit Scholarship for Students accepted* onto the AIA Statutory Auditor Training Programme. Students accepted onto the programme will receive: Access to a dedicated Study Support Team; Free AIA e-books; Free AIA Achieve: Audit, distance learning course of study; Free attendance at AIA Continuing Professional Development (CPD) events; No exam fees to pay; No exemption fees to pay; Student application processed within one month. If you are eligible, all you pay is the student registration fee, which includes your first year's annual subscription and thereafter, your student annual subscription payable on 1 October. Current fee information can be found on the Students page of the AIA website To apply, please contact AIA s Membership Services department using the contact details at the back of this guide, or complete the online enquiry form which can be found on the Join AIA page of the AIA website *You must be resident in the UK/EU and meet the minimum entry requirements 2017 Association of International Accountants 9

10 4.0 AIA AUDIT TRAINING The AIA is recognised by the UK Government to train you to become a Statutory Auditor. The AIA is a Recognised Qualifying Body (RQB) for Statutory Auditors under the Companies Act AIA Audit Training is one of the most challenging and satisfying components of an accountancy professional's education, and is designed to equip you with the skills, technical knowledge and understanding to succeed in this specialist sector. AIA Chief Executive, Philip Turnbull Through a combination of study, exam and work experience, the AIA Statutory Auditor Training Programme will provide you with a Recognised Professional Qualification (RPQ). If you wish to undertake the AIA Statutory Auditor Training Programme, you must inform us at the earliest possible time, either by completing the appropriate section on the Student Application Form, or by contacting Membership Services Association of International Accountants

11 5.0 APPLY FOR STUDENT MEMBERSHIP To register as a student on the AIA Statutory Auditor Training Programme you must: Be a UK/EU resident. Hold a minimum of two A Level passes and three GCSE passes; including English and Mathematics, or an equivalent UK or overseas qualification accepted for university entrance. Provide references to ensure you are a fit and proper person. Be either a full-time student on an approved accountancy or business studies course, or in accountancy employment. Commit to abide by IESBA Code of Ethics for Professional Accountants* Commit to abide by the Ethical Standard (2016) published by the Financial Reporting Council Confirm your intention to pursue the RPQ route by signing the Audit Trainee Scholarship Agreement *A copy of the IESBA Code of Ethics can be downloaded from the About AIA page of the AIA website Association of International Accountants 11

12 6.0 APPLY FOR EXEMPTIONS The AIA operates a policy of exemptions designed to reduce repetition for students who have already attained a relevant qualification of an acceptable standard. We recognise accountancy and finance degrees for this purpose and exams passed with the other Recognised Qualifying Bodies (RQBs) in the UK. Exemptions are awarded on registration as an AIA Student and are assessed on an individual basis. The AIA will consider relevant qualifications that have been completed in the last five years. You should submit photocopies of all relevant qualifications to AIA with your application documents. AIA will consider relevant qualifications attained within the five years preceding student registration and advise you on your eligibility for any exemptions from the exams. We will make an exemption offer in line with professional and regulatory requirements. Please note that you must complete Paper 7 Auditing and Paper 8 Company Law by exam. Exemptions are not granted at the final Professional Level 2 or from the Multi-disciplinary case study and Oral Test Association of International Accountants

13 7.0 PASS THE EXAMS The exams for the RPQ Route are structured in four blocks, each of which builds on the knowledge and skills achieved in the previous level. The exams are based on International Financial Reporting Standards (IFRS) and the UK Syllabus for Company Law and Taxation. For RPQ Students, the relevant UK accounting standards are Financial Reporting Standards (FRS) and ISAs (UK) issued by the Financial Reporting Council (FRC). You must complete all eighteen exams, including the Oral Test and the Multi-Disciplinary Case Study (MDCS), either by exam or exemption. Paper 7 Auditing and Paper 8 Company Law, all papers at Professional Level 2, the Oral Test, and the MDCS must be completed by exam. Two exam sessions are held each year in May and November. More information about the exams can be found in the Syllabus and on the AIA website in the Student Guide and in the Teaching & Learning Guide. AIA encourages employers to make provision for exam candidates to have three to five days study leave prior to the exams and additional leave to attend the exams. This is at the discretion of the employer Association of International Accountants 13

14 7.1 EXAM STRUCTURE FOUNDATION LEVEL Certificate in Accountancy Modules A & B, Papers 1-6 PROFESSIONAL LEVEL 1 Diploma in Accountancy Modules C & D, Papers 7-12 PROFESSIONAL LEVEL 2 Diploma in Professional Accountancy Modules E & F, Papers MULTI-DISCIPLINARY CASE STUDY PROFESSIONAL ACCOUNTANCY QUALIFICATION/ASSOCIATE MEMBERSHIP 3 YEARS PRACTICAL AUDIT TRAINING ORAL TEST RECOGNISED PROFESSIONAL QUALIFICATION (RPQ) Association of International Accountants

15 7.2 STUDY MATERIALS The AIA works with BPP Learning Media to provide a comprehensive range of cutting-edge study materials to help and support students in preparation for the AIA exams. 7.3 AIA ACHIEVE AUDIT COURSE OF STUDY AIA Achieve distance learning course of study covers all levels of the AIA exams. Each Course of Study covers one exam paper, and is designed to be completed over a maximum period of six months, preparing you for the exams. AIA Achieve is mandatory for RPQ Students and includes: A dedicated Study Support Team A comprehensive suite of free e-books A complementary range of subject-specific study texts to guide you through revising for the exams A mock exam with feedback Assistance from a dedicated Study Support Team Test Questions and feedback Webinars covering specific subjects Technical and exam queries answered by a specialist team of e-tutors 2017 Association of International Accountants 15

16 7.4 E-BOOKS E-Books are a quick and innovative way to study, giving you instant access to the study material you need; revolutionising the way that you study. E- books are portable, space-saving and can be downloaded in minutes from any location with internet access. They are readable on PCs, laptops, smart phones (Mac, Windows, Linux, Android) and will also work on Apple devices (iphone, ipad). 7.5 STUDY SUPPORT TEAM & E-TUTORS The Study Support Team will be your first port of call for assistance with any queries you may have about the exams or specific problems you are experiencing. Expert advice is available for the AIA e-tutors, who will provide you with feedback on marked work and your mock exam for each paper. Additional information on study support and materials can be found on the Achieve page of the AIA website. 7.6 RECOMMENDED READING We provide a reading list for each exam paper, comprising leading texts on accountancy topics. A recommended reading list for each paper can be found on the Student/Study page of the website. 7.7 SYLLABUS Familiarity with the AIA syllabus is essential and it should be reviewed regularly as part of your study programme. The latest copy of the AIA syllabus can be downloaded from the Student/Exams page of the website Association of International Accountants

17 7.8 EXAMINER FEEDBACK Examiner Feedback and any specific additional guidance are available after each exam session. Students must log in to the Document Library to access the feedback. The library is in the secure area of the AIA website. 7.9 APPROVED STUDY PROVIDERS You also have the option to enrol on a study course with an AIA Approved Study Provider; this can be by full- or part-time study, or through distance learning. Studying with an Approved Study Provider will ensure that you have covered the syllabus in sufficient depth to enable you to approach each exam with confidence. Approved Study Providers are of an appropriate high standard to teach AIA qualifications and must adhere to AIA s quality control procedures. A list of current study providers can be accessed via the Students/Study page of the website Association of International Accountants 17

18 8.0 PASS THE MULTI-DISCIPLINARY CASE STUDY After you have completed the Professional Level 2 exams you must also undertake a Multi-Disciplinary Case Study (MDCS). The MDCS tests that you are able to apply professional judgement to practical audit, accounting and business scenarios. The MDCS is a four hour, closed book exam, which comprises a pre-seen scenario, made available via the AIA website six weeks before. You are free to read and study the materials provided, to research the background to the entity s circumstances, and to discuss the materials with colleagues. The pre-seen materials are supplemented by an unseen component, which will not be made available until the exam itself Association of International Accountants

19 9.0 WORK EXPERIENCE RPQ AUDIT ROUTE TRAINING OPTIONS If you are intending to pursue the RPQ audit training route, you are required to obtain prior approval from AIA, to ensure that the eligibility criteria are being met and to allow the AIA to advise the Financial Reporting Council (FRC). You should consider this guidance in conjunction with the RPQ Practical Training Office Information and the RPQ Training Options. Both documents are available from: During the training period AIA refers to students/members as trainees. There is flexibility in the way you can undertake the training, and AIA would be pleased to provide further guidance. You should consider the work experience RPQ audit training options 1-3, and decide which career pathway you wish to pursue: Option 1 This route allows trainees to complete the three years audit training prior to admission to membership. The training is undertaken whilst sitting the AIA exams. If this route is a consideration, trainees are required to sit the auditing exam (Paper 7) and company law (paper 8) and exemptions are restricted to subjects at the Foundation and Professional 1 levels, for existing qualifications attained within the five years preceding student registration. The training must be undertaken with an AIA approved Statutory Auditor/Firm and this approval should be obtained in advance. Option 2 This route allows trainees to combine two years IPD and one year audit training (with the remaining two years of audit training completed as member) prior to admission to membership. The training is undertaken whilst sitting the AIA exams. If this route is a consideration, you are required to sit the auditing exam (Paper 7) and company law (paper 8) and exemptions are restricted to subjects at the Foundation and Professional 1 levels, for existing qualifications attained within the five years preceding 2017 Association of International Accountants 19

20 student registration. You should obtain approval from AIA for the IPD training you are undertaking in advance and AIA must approve the Statutory Auditor/Firm. Option 3 - This route allows trainees to complete three years IPD prior to admission to membership. On this route the IPD can be gained in industry, commerce, public practice and the public sector. As a member the RPQ audit training is then undertaken with an approved Statutory Auditor/Firm. If this route is a consideration, you are required to sit the auditing exam (Paper 7) and company law (paper 8) and exemptions are restricted to subjects at the Foundation and Professional 1 levels, for existing qualifications attained within the five years preceding student registration. Please refer to the Training Options diagram on page 21 of this guide Association of International Accountants

21 WORK EXPERIENCE RPQ AUDIT TRAINING OPTIONS Exams Option 1 Option 2 Option 3 Foundation Level Certificate in Accountancy Modules A & B Papers Years Training Professional Level Accountancy Modules C & D Papers Years Audit Training 2 Years IPD 3 Years IPD Professional 2 Level Diploma in Professional Accountancy Modules E & F Papers Year Audit Training Multi-Disciplinary Case Study AIA Associate Membership AIA Associate Membership AIA Associate Membership 2 Years Audit Training 3 Years Audit Training Oral Test Oral Test Oral Test Oral Test Recognised Professional Qualification (RPQ) 2017 Association of International Accountants 21

22 10.0 APPLY FOR ASSOCIATE MEMBERSHIP On completion of the exams, you become an AIA Graduate and once you have completed your three years IPD or statutory audit training, you are eligible to apply for Associate membership. In addition to being part of a growing and forward-thinking professional body, AIA membership entitles you to a range of benefits, including: Access to a wealth of information and online resources; Access to an international network of Branches; Technical support and guidance; Bi-monthly magazine: International Accountant; Accountancy e-news; Manage your membership online quickly and securely; Involvement in surveys and consultations to help shape the profession; Career advice and professional development; Dedicated business support and insolvency helpline; Qualification for entry on to MBA and degree pathways Association of International Accountants

23 11.0 PASS THE ORAL TEST Following successful completion of your exams and practical work experience, you will complete an Oral Test. The Oral Test is designed to test your ability to apply your theoretical knowledge of the AIA syllabus to practical situations, in light of experience obtained during your practical audit training. The test comprises a two hour oral assessment, with a panel of professional accountants, auditors and academics. The test is made up of three main components: An audit-based case study with a focus on professional competence and ethical issues; Ethical dilemmas you have faced in your practical training; Emerging practice issues in the audit environment. The Oral Test commences with a discussion based on the case study, where the panel assumes the role of an audit team and questions you on the issues raised in the case study. The questions will include aspects of audit assessment, practice management, application of professional skills, with a particular focus on ethics. Following this the panel will question you on ethical dilemmas which you have faced during your practical work experience. You will be required to articulate key elements of your practical training and demonstrate your understanding of the audit process and ethical framework through engaging in professional discussion. You will also be asked to explore emerging professional issues in the audit environment, such as issues of corporate governance, advice on approaches to financial reporting and issues in connection with current legislation Association of International Accountants 23

24 The case study and initial questions will have a standard format, but the panel will be able to use its discretion to explore aspects of your answers, and their understanding of your professional experience, in greater depth. For further guidance please contact AIA Membership Services at membership.services@aiaworldwide.com Association of International Accountants

25 12.0 RECEIVE YOUR RPQ CERTIFICATE Upon successful completion of the exams and audit training (including the oral test), you will be issued with an AIA Certificate of Recognised Professional Qualification (RPQ) REGISTER WITH A RECOGNISED SUPERVISORY BODY Following successful completion of the AIA Statutory Auditor Training Programme, and issue of your certificate of Recognised Professional Qualification, you will then be required to seek registration with a Recognised Supervisory Body (RSB) responsible for registering and supervising statutory auditors in practice Association of International Accountants 25

26 14.0 TAKE THE FIRST STEP For further information, career advice or to discuss your eligibility to train as a Statutory Auditor, please contact Membership Services or complete the Student Application Form, ensuring that you indicate your intention to follow the audit training route by ticking the Statutory Audit box. Membership Services Association of International Accountants Staithes 3, The Watermark Metro Riverside Newcastle upon Tyne NE11 9SN United Kingdom T: F: E: membership.services@aiaworldwide.com W: Association of International Accountants

27 NOTES 2017 Association of International Accountants 27

28 Association of International Accountants version 11/01