On behalf of all those students who failed in recent attempt of Audit & Assurance by obtaining 40+ marks, I have written the following mail to ICAP highlighting my concerns about our education, examination and training system. You may find it relevant to read it out! Sir, I am a member of the Institute and teach to the students of ICAP in an educational institution as a permanent faculty member. This email is in continuation of my previous emails to you on identification of weaknesses in your education, examination and training systems which are adversely affecting career of our students. 1. EDUCATION SYSTEM: When study packs were initially launched, instructors (throughout the country) identified and communicated a lot of deficiencies in these packs. In reply, instructors were informed that ICAP has noted these deficiencies and will revise its study packs in near future. Apparently, no progress has been made in this regard. In my opinion, current version of ICAP’s study pack “CAF 09 – Audit & Assurance” contains 3rd class study material on the subject. For example: 1. Virtually all concepts are discussed superficially. Not even a single concept is in sufficient detail according to International Standards on Auditing or Companies Ordinance 1984. 2. Some concepts are wrongly included in book e.g. “small company audit exemption” on page # 9 (section # 3.1). As per my understanding, there is no exemption from audit to any company in Pakistan. 3. 25% of the book contains substantive procedures, but for every audit program (except audit program of fixed assets) there is only a list of procedures to be performed in the area without mentioning of any link between procedure and relevant assertion on which procedure is being performed. ISAs requires that auditor performs audit procedures specific to satisfy each assertion relevant to audit area. (refer ISA 315 para 5, ISA 330 para 4 and para 28, ISA 500 para A30). Practically, no audit program is prepared without linking procedures to assertions being addressed. 4. Question Bank is just a copy-paste exercise from past papers and their suggested solutions with little practice on many areas e.g. there is only 1 practice question on the topics of Fraud and IT Concepts. Kindly, inform when will revisions in study packs be finalized??? 2. EXAMINATION SYSTEM: I would remind you about your two statements about examination system and how recent paper of auditing went against them: 1. Earlier students used to study from International Standards on Auditing but, under new scheme, you forced students to read ICAP’s Study Text. I, being a professional, taught my students as much from ISAs as was possible while remaining within the boundaries of the syllabus. You told me in an earlier email that “concepts should be same but words may be different” but unfortunately in the exam ICAP has played unfairly by asking concepts in the exact wording of book e.g. Independence of Mind and Independence in appearance are two terms discussed in IFAC’s Code of Ethics and ICAP’s Code of Ethics. However, in paper of CAF -09 ICAP asked students to discuss about ‘actual independence’ and ‘perceived independence’ (for 03 marks). These terms are used in Study Text and are discussed no where in IFAC/ICAP Code of Ethics. A lot of students got confused and could not answer to this question. Does this mean that study text supersedes ISAs? Are students DISCOURAGED to study ISAs? 2. Refer to your “General Examination Guidance” point # b which states “If a topic is in syllabus and learning outcomes related thereto are in place but for any reason the said topic is not discussed in study text it would not be examined.” Now have a look at following facts: Topic in syllabus: LO4.6.1: Describe preventative, detective and corrective controls using simple examples. Discussion in study text?: Not Available (as per my review) Examined in Paper?Yes, for 6 marks (Q. # 9 of CAF – 09 Autumn 2014). Please tell me where is this learning objective discussed in the study text. If you don’t find it, please answer my following questions: a) Did you intentionally misstated the fact (to give a shock to students in exam) or it was an unintentional mistake? b) If it was mistake, why your internal quality control review could not find out such mistake? c) In my opinion, the person who set the paper has not read the examination guidance before setting the paper and has violated the fundamental ethical principles of “professional competence and due care”. Do you have any disciplinary mechanism against such attitude? Many of my good students have failed with 40+ marks. Auditing and Assurance is the last subject at CAF stage and failing this subject simply means wastage of 6 months of life. Above referred two questions are of 9 marks in aggregate. Please tell me, who is responsible for all those students who have failed within region of 41 – 49 marks because of above faults at ICAP-end? 3. TRAINING SYSTEM: Some of my qualified students (who passed every paper of CAF in 1st attempt and one of them even got 2 certificate of merits) are failed to get induction in the top CA firms of Pakistan. When I inquired, they replied that they were asked such questions in interview which were not included in syllabus and they did not know answers e.g. effect on audit report in a given scenario. New education scheme has created a huge expectation gap between requirements of CA firms and CAF-qualified students. Kindly tell me, did your department do anything to communicate CA firms about new education scheme and their implications (to remove such expectation gap)? Regards, Muhammad Asif, ACA R – 5277
Posted on: Mon, 15 Dec 2014 08:43:45 +0000
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