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GUIDE TO THE ORAL TEST RECOGNISED PROFESSIONAL
QUALIFICATION (RPQ)
2 © Association of International Accountants 2016
© Association of International Accountants 2016 3
GUIDE TO THE ORAL TEST 1
CONTENTS 3
INTRODUCTION 5
1.0 OVERVIEW 6
2.0 ORAL TEST STRUCTURE 10
2.1 An audit-based case study with a focus on ethical issues 10
2.2 Ethical dilemmas faced by the candidate in their practical
training 10
2.3 Emerging practice issues in the audit environment 11
3.0 PREPARING FOR THE ORAL TEST 12
3.1 An Audit-Based Case Study with a focus on Ethical Issues 12
3.2 Ethical Dilemmas faced by the Candidate in their Practical
Training 13
3.3 Emerging Professional Issues in the Audit Environment 13
4.0 TOP TIPS FOR SUCCESS 15
4.1 Prepare adequately 15
4.2 Practice Oral Test questions 15
4.3 Understand the Command Words 16
4.4 Listen carefully and answer directly 16
4 © Association of International Accountants 2016
5.0 REASONS FOR FAILING 17
6.0 EQUAL OPPORTUNITIES & DATA PROTECTION 18
7.0 ENTERING THE ORAL TEST 19
8.0 EXAM RESULTS 20
9.0 REFERENCE MATERIAL 21
10.0 CONTACT AIA 22
© Association of International Accountants 2016 5
This guide provides information for members in respect of the skills
assessed in the Oral Test, how to prepare for the test, and what to expect
in the test itself.
The AIA Oral Test emphasises the importance of articulating ideas,
problem-solving skills and the ability of the audit professional to
communicate with colleagues and clients. It assesses interpersonal skills
and aspects of professionalism in depth, and in a context that is not
possible using other modes of assessment. It is a final test of competency
to assess your application of professional skills.
The Oral Test complements the Multi-Disciplinary Case Study (MDCS) and
is intended to test your ability to apply theoretical knowledge in practice,
demonstrate your professional competence and show your verbal
communication skills. It requires you to be able to think on your feet, deal
with unexpected inputs and demonstrate your wider professional acumen
gained through work experience. The test enables your compliance with
ethical principles and your ethical values to be explored, whilst interacting
in a professional situation.
The Oral Test is an opportunity for you to demonstrate your professional
knowledge and communication skills; it is examined at Master’s Level, and
is the culmination of your undertaking of the AIA Statutory Auditor Training
Programme and the Registered Professional Qualification (RPQ).
The Oral Test is recorded to ensure an accurate record of proceedings is
retained.
The recording is retained during the appeal period and then destroyed
using a confidential service.
6 © Association of International Accountants 2016
1.0 OVERVIEW
The objectives of the Oral Test are to ensure that Candidates can apply
professional judgment relating to external audit and associated accounting
and business disciplines. The test combines and consolidates the aims of
the other papers in the syllabus for those students who are following the
RPQ route.
Successful completion of the Oral Test indicates your ability to:
Apply knowledge gained from the AIA curriculum to a practical
case study;
Integrate diverse knowledge and skills gained from practical
experience;
Express and justify your professional judgment;
Demonstrate the appropriate application of professional and ethical
judgment in the audit environment;
Demonstrate an understanding of audit quality procedures and
practice management; and
Demonstrate ‘soft skills’ and communicate in a clear, concise and
professional manner to the Panel.
This test requires existing skills, which have been assessed earlier in the
curriculum, to be applied in a more practical and professional setting than is
possible in a more traditional exam.
The case study and initial questions are standardised, but the panel will be
able to use its discretion to explore aspects of the Candidate’s answers in
further depth, to increase their understanding of the Candidate’s
professional experience and opinions.
© Association of International Accountants 2016 7
Candidates are reminded that questions in the Oral Test may assume
knowledge of the subject matter of other papers in earlier parts of the
syllabus. This means knowledge requirements from each level, including
from different subject-based papers, where relevant, are automatically
included.
The test comprises a two hour oral assessment by a panel made up of
professional accountants, statutory auditors and an academic. 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 faced by the you during your practical training
Emerging practice issues in the audit environment
Knowledge gained throughout the Foundation, Professional 1, Professional
2 and your practical training is applied in context during assessment for the
Oral Test.
8 © Association of International Accountants 2016
PRACTICAL TRAINING
Undertaken during or after the
completion of the exams
ORAL TEST
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The Oral Test involves the application of professional auditing skills,
taxation and financial reporting knowledge, and in acknowledgement of the
fact that issues faced by auditing practitioners require an in-depth
understanding and appreciation of all aspects of business, it also draws
upon all other areas of the AIA Syllabus which are implicit in the structure
of the Oral Test case study.
The Code of Ethics for Professional Accountants issued by the
International Ethics Standards Board for Accountants (IESBA Code) is
implicit in, and examinable throughout, the Oral Test syllabus. Candidates
following the RPQ route will be expected to refer, where appropriate, to the
Ethical Standards for Auditors (ESs) published by the Financial Reporting
Council (FRC).
10 © Association of International Accountants 2016
2.0 ORAL TEST STRUCTURE
The test comprises a two hour oral assessment by a panel of professional
accountants, statutory auditors and an academic. The test is made up of
three main sections which are designed to test your auditing skills.
The case study and initial questions will be standardised but the panel will
use its discretion to explore aspects of your answers in further depth, or to
expand their understanding of your professional experience and opinions.
2.1 AN AUDIT-BASED CASE STUDY WITH A FOCUS
ON ETHICAL ISSUES
You will receive the case study 30 minutes prior to the test and have that
time to prepare for questions. The test commences with a discussion
based on the case study, where the panel takes on the role of relevant
members of an audit team and questions you on 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.
2.2 ETHICAL DILEMMAS FACED BY THE
CANDIDATE IN THEIR PRACTICAL TRAINING
The panel will then question you on ethical dilemmas which you have faced
during your practical work experience and ask you to articulate key
elements of your practical training and demonstrate your understanding of
the audit process and ethical framework as part of the ensuing professional
discussion. Your answers should comply with International Ethical
Standards issued by the International Ethics Standards Board (IESBA) and
the Ethical Standards (ESs) published by the FRC.
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2.3 EMERGING PRACTICE ISSUES IN THE AUDIT
ENVIRONMENT
You will subsequently 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.
This section presents an opportunity to demonstrate your understanding of
the wider accountancy profession and show that you take a keen interest
in, and can discuss, important emerging issues.
12 © Association of International Accountants 2016
3.0 PREPARING FOR THE ORAL TEST
3.1 AN AUDIT-BASED CASE STUDY WITH A FOCUS
ON ETHICAL ISSUES
Study the ethical guidance issued by IFAC and AIA
Study the texts on ethics listed under ‘Recommended Reading’
(paper 18 syllabus)
Practice answering case study questions
Discuss ethical issues with your colleagues
AIA guidance on values and ethics
The examination demands a demonstration of your ability to support and
advise professional staff and colleagues and show that you are competent
to provide relevant advice to clients.
The Oral Test examines your practical application of knowledge to your
professional practice with a particular focus on ethics. In this respect you
are practicing your assessment technique with any professional work you
do. Bring those skills of common sense and experience to your response
to the scenario. It is appropriate to think about what you would do at work
as a starting point for any answer.
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3.2 ETHICAL DILEMMAS FACED BY THE
CANDIDATE IN THEIR PRACTICAL TRAINING
Keep a note of any ethical dilemmas you have encountered during
your training.
Be prepared to justify your opinions with reference to the relevant
ethical codes
Be prepared to demonstrate your commitment to the ethical
standards articulated by FRC
FRC Codes and Standards
3.3 EMERGING PROFESSIONAL ISSUES IN THE
AUDIT ENVIRONMENT
As the examination aims to replicate your real life experiences of practice,
you need to ensure that you are familiar with practical aspects of practice
management as well technical accounting, finance, taxation and auditing
knowledge.
Research emerging issues in the audit environment
Ensure that you are up-to-date with technical developments in the
audit and accounting field.
Familiarise yourself with new International accounting and auditing
standards and discussions within the profession.
14 © Association of International Accountants 2016
Keep up-to-date with the technical pronouncements on the AIA
website and follow these up in the FRC and IFAC websites.
FRC home page
AIA home page
IFAC Home page
You are being assessed for your professional competence, and your ability
to stay informed is a key aspect to this.
You must ensure that you are up-to-date on current accountancy issues,
including International Standards on Auditing (ISAs) and International
Financial Reporting Standards (IFRS)/International Accounting Standards
(IAS) defined in the Syllabus. You should have an understanding of and
engagement with appropriate IFRS. Most IFRS contain definitions, criteria
and other requirements which can be learned and applied to the scenarios
in the exam papers; thereby demonstrating not only your knowledge of
IFRS but also your ability to apply that knowledge in practice.
Candidates are required to answer questions based on the UK regulatory
background including the UK standards: Financial Reporting Standards
(FRS) and Statement of Standard Accounting Practice (SSAP) issued by
the FRC board. In respect of auditing, the relevant UK standards are all
current Auditing Standards (ISAs (UK and Ireland)) issued by the FRC.
Candidates will also be expected to refer, where appropriate, to the ESs
published by the FRC.
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4.0 TOP TIPS FOR SUCCESS
4.1 PREPARE ADEQUATELY
Preparing adequately before the Oral Test is the key to success on the day.
You should:
Review your training to consider any ethical dilemmas you have
encountered;
Have a thorough knowledge of UK and International Ethical
Standards, along with the IFAC Code of Ethics;
Keep up-to-date with emerging issues in the audit and accountancy
profession.
4.2 PRACTICE ORAL TEST QUESTIONS
You should practice answering oral test questions. A good answer to an
oral test question does not just cover the theoretical aspects of the topic but
addresses the answer in the context of the case study and demonstrates
the ability to apply that knowledge in practice. It also displays your
communication skills.
16 © Association of International Accountants 2016
4.3 UNDERSTAND THE COMMAND WORDS
To ensure you are familiar with the command words used in AIA’s
examinations, remember to request a copy of the Teaching and Learning
Guide which contains definitions.
Teaching and Learning Guide
4.4 LISTEN CAREFULLY AND ANSWER DIRECTLY
During the Oral Test itself you should listen carefully to the question and
answer in a direct and focused manner. Remember to give, clear distinct
responses and retain close eye contact with the panel members.
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5.0 REASONS FOR FAILING
Some Candidates are able to demonstrate they understand the basics of a
particular issue but then fail to apply that understanding to the scenario or
case study in the question. You must be able to apply that knowledge.
Another area of weakness concerns the common misunderstanding of a
question’s requirements. Some Candidates demonstrate a lack of
understanding in terms of what is meant by the command words and this in
turn affects how they answer the question.
You must ensure that you have a good understanding of the complete
syllabus as you will be tested on applying your knowledge in practice to
different and complex situations.
The main reason for failing is candidates not demonstrating clearly enough
their understanding and application of ethical issues in auditing and their
framework. You must be clear in your discussion of ethical issues in
auditing. An understanding and appreciation of ethical issues is therefore
essential.
18 © Association of International Accountants 2016
6.0 EQUAL OPPORTUNITIES & DATA
PROTECTION
AIA operates a policy which offers equality of opportunity regardless of
gender, ethnicity, colour, disability, religion, age, sexual orientation, or
marital status.
To ensure no Candidate is discriminated against on the grounds of
disability, AIA offers additional support to candidates during the exams if
required. For the Oral Test this means that an Internal Observer may be
used in place of audio recording. The circumstances in which permission
may be sought to employ an Internal Observer are:
If a panelist refuses to give assent to audio-recording and there is
no other suitable panelist available;
If audio-recording would present a member with difficulties on
medical or psychological grounds.
In order to provide effective support and services we need to collect your
personal data. In line with current Data Protection Legislation, AIA is
required to tell you that we will share this with other parts of the Association
and with those external agencies providing services to the organisation and
its members. We respect the privacy of individuals and only disclose
personal data outside of AIA as a necessary part of our service. Personal
data will not be passed to a third party without your explicit signed consent.
Information relating to the support available can be obtained by emailing
Exams
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7.0 ENTERING THE ORAL TEST
The Oral Test must be taken upon completion of the MDCS, at the
subsequent exam session. You are required to pay an examination fee
prior to sitting the exam. Membership Services will contact you to advise
you of the Oral Test date.
20 © Association of International Accountants 2016
8.0 EXAM RESULTS
Upon completion of the Oral Test, the panelists will discuss your
performance, concluding whether or not you have achieved a pass. You
will be advised after the test if you are successful.
As part of our Quality Assurance procedures, AIA places a strong
emphasis on ensuring the Oral Tests are marked to the highest standard.
You need to achieve fifty percent in the test to be awarded a pass.
It is appreciated that candidates awarded a fail may wish to appeal against
the marks given therefore all Oral Tests are recorded to ensure an accurate
record of proceedings is kept. All candidates have the right to make an
appeal; the appeal process is clearly defined in the Student Guide which
can be requested from the Exams department or downloaded from the AIA
website.
Study texts
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9.0 REFERENCE MATERIAL
Exam Scheme and Reading lists
Guide to becoming a Statutory Auditor
Teaching and Learning Guide
The Gide contains very useful study resource texts.
To request a copy of any of the AIA Guides/ Reading lists or if you
have any questions not answered in this guide, please contact
22 © Association of International Accountants 2016
10.0 CONTACT AIA
Association of International Accountants
Membership Services
Staithes 3
The Watermark
Metro Riverside
Newcastle upon Tyne
NE11 9SN
United Kingdom
NE11 9SN
+44 (0)191 493 0277 Fax: +44 (0)191 493 0278
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