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ICAEW ACA Assurance and Risk Fundamentals — Information & Free Practice

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About ICAEW ACA Assurance and Risk Fundamentals

ICAEW ACA Assurance and Risk Fundamentals · GB

Key exam facts

Provider
ICAEW (Institute of Chartered Accountants in England and Wales) owns and sets this Next Generation ACA Certificate Level examination.
Format
Computer-based; multiple choice, multi-part multiple choice and multiple response. Available at an examination centre or remotely at home or in the office.
Exam questions
Total questions: 50.
Time limit
90 minutes of examination time. The additional optional five-minute survey after ending the exam is outside exam time; approved access arrangements may vary individual duration.
Passing score
55% pass mark.
Exam fee
GBP £103 per Certificate Level exam entry in 2027, payable when applying for each exam; separate from tuition, learning materials and annual student registration fees.

Topics covered

  • The concept, process and need for assurance (20%)

    • Recognise assurance on financial and non-financial information, including performance metrics and targets; compare reasonable and limited assurance
    • Recognise demand for assurance reports and examples of their benefits
    • Compare functions and responsibilities of parties in assurance work
    • Identify assurance expectations gaps and suggest how they can be overcome
    • Identify steps in obtaining, accepting and agreeing engagement terms
    • Identify the planning process for assurance engagements
    • Define materiality and identify its role in assurance
    • Identify reporting to the engaging party
    • Recognise professional scepticism and professional judgement
    • Recognise characteristics of fraud and distinguish fraud from error
    • Recognise the appropriate assurance level and benefits for sustainability reporting

  • Risk, internal controls and information flows (26%)

    • Identify assurance engagement risks, including audit risk components
    • Identify business risks and their impact on audit risk
    • Identify reasons for effective control systems
    • Identify fundamental control principles and risks of overdependence on IT
    • Identify main business processes and information flows needing effective controls
    • Identify internal control components, including governance and risk management
    • Define and classify internal controls, especially general IT and information processing controls; distinguish preventative and detective controls
    • Identify how specified internal controls mitigate cyber security, data security, supply-chain, digital transformation and disruption and emerging technology risks, and identify their limitations
    • Identify internal controls and deficiencies in a given organisational scenario
    • Identify the role of internal audit
    • Identify information sources for recording accounting or other systems and controls

  • Obtaining assurance evidence (34%)

    • Identify reasons to prepare and retain assurance documentation
    • Identify methods including remote auditing, tests of control, substantive and analytical procedures and data analytics software
    • Recognise evidence methods' strengths and weaknesses
    • Identify when evidence methods should and should not be used
    • Compare reliability of assurance evidence
    • Select tests of control and substantive procedures for a business scenario
    • Recognise sufficient and appropriate evidence quantity and quality, sample design and sampling risk for report conclusions
    • Identify when written management representations should be requested and their reliability
    • Recognise issues arising while obtaining assurance evidence that should be referred

  • Professional ethics and regulatory issues (20%)

    • Identify regulatory bodies and ethical codes and their importance
    • Distinguish rules-based and principles-based ethical codes
    • Identify fundamental principles of the ICAEW Code of Ethics
    • Recognise integrity, objectivity and independence and impairing or threatening situations
    • Select actions to resolve ethical conflicts
    • Respond to an employer's request for work outside individual expertise or experience
    • Recognise confidentiality and GDPR compliance and steps to prevent disclosure
    • Identify when confidential information may be disclosed, including money laundering suspicions
    • Identify self-interest, self-review, management, advocacy, familiarity and intimidation threats
    • Identify safeguards to eliminate or reduce threats to integrity, objectivity and independence
    • Identify ISSB aims and purpose and how sustainability reporting meets user needs

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

Computer-based; multiple choice, multi-part multiple choice and multiple response. Available at an examination centre or remotely at home or in the office.

How many questions are on the exam?

Total questions: 50.

How long is the exam?

90 minutes of examination time. The additional optional five-minute survey after ending the exam is outside exam time; approved access arrangements may vary individual duration.

What is the passing score?

55% pass mark.

How much does the exam cost?

GBP £103 per Certificate Level exam entry in 2027, payable when applying for each exam; separate from tuition, learning materials and annual student registration fees.

Official sources and references

Confirm current exam arrangements with the exam provider.