AA Exam Preparation Material | Audit & Insurance

Prepare for the AA with reliable study materials, practice questions, and key exam insights.

Prepare for the AA Audit & Insurance exam with CertQueen's independently developed study resources. Review important concepts, practice scenario-based questions, and use clear explanations to identify areas that require further study.

Question#1

Rostar Ltd develops games for X-box and PCs. The unique gaming experience made the company outstandingly popular among the local customers and its last game release outperform its expectation. This popularity leads to sudden growth in revenues that quadrupled during the last period. As a result, Rostar Ltd is now obliged to have a statutory audit for the first time.
Which of the following is not a benefit that Rostar Ltd may obtain from the statutory audit?

A. Assurance of compliance with Companies Act

B. Recommendations on systems via management letter

C. Increased accountability of the IT department

D. Independent confirmation of profits earned/net assets

Question#2

Internal auditors must exercise due care if they are to meet their responsibilities for fraud detection. Thus, the existence of certain conditions should raise auditor’s professional scepticism concerning possible fraud .
Which of the following is most likely to be considered as an indication of possible fraud?

A. A new management team installed as the result of a takeover.

B. Rapid turnover of financial executives.

C. Rapid expansion into new markets.

D. Tax authorities’ audit of tax returns.

Question#3

Grey Ltd has recently discovered that it has been paying invoices in respect of goods which had been returned as faulty prior to acceptance. It is company policy to record goods only if they have been accepted.
Which of the following controls would be useful in preventing such incidence in future?

A. Matching of purchase invoices with goods received notes

B. Matching of purchase invoices with orders

C. Comparison of supplier statements with payables ledger accounts

D. Date stamping purchase invoices on receipt

Question#4

Jones & Co is the external auditor of Blue plc, a listed company. The directors of Blue plc have requested that Jones & Co carry out a review engagement assessing the effectiveness of its corporate governance policies against the UK Corporate Governance Code.
For the above review engagement, select which part of the engagement description constitutes the subject matter?

A. Blue plc’s corporate governance policies

B. The UK Corporate Governance Code

C. Jones & Co

D. The directors of Blue plc

Question#5

Saturn Ltd has offered Jack Lee to be the head of their treasury department during the audit of Saturn Ltd. Jack Lee is the audit manager who is currently in charge of Saturn Ltd. Jack Lee discussed the role with Saturn Ltd and intends to accept the appointment.
Which of the following is a safeguard that the audit firm of Jack Lee should adopt?

A. Objectivity and independence could be compromised

B. Manager will be carrying out work whilst negotiating position: might overlook errors

C. Possible intimidation of audit team by manager once position taken up

D. Re-review any work of the team previously reviewed by manager/ independent partner review

Exam Code: AA
Q & A: 80 Q&As Updated: Oct 17,2026

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What This AA Study Resource Helps You Do

Review Key Concepts

Review the technologies, products, processes, and practical skills covered by the current AA exam objectives.

Practice Scenario-Based Questions

Work through independently developed questions designed to strengthen your understanding of technical scenarios and decision-making.

Identify Knowledge Gaps

Use your results and the provided explanations to find weaker areas and focus your study more effectively.

How to Use This AA Preparation Material

Review the Exam Scope

Start by reviewing the topics covered by the AA exam. Compare them with the official exam objectives to understand the required technologies, operational tasks, and practical skills, then identify the areas that deserve the most attention.

Practice Independently

Complete a focused set of practice questions for each topic. On your first attempt, avoid referring to notes, answers, or other study resources so that you can evaluate your current understanding more accurately.

Study the Explanations

Review the answers and explanations after completing each practice session. Understand why the correct option is appropriate for the given scenario and why the other options may be incorrect or less suitable.

Close Knowledge Gaps

Keep track of incorrect answers, unfamiliar concepts, and weaker knowledge areas. Review these topics using official documentation and practical experience, then answer the related questions again to reinforce your understanding and monitor your progress.

Independent AA Preparation Resource

CertQueen independently develops its certification study materials for educational purposes. The practice questions are not copied from, recalled from, or presented as live or official exam questions.

CertQueen is not affiliated with, endorsed by, sponsored by, or authorized by any certification provider. Certification names, exam codes, product names, and related trademarks are the property of their respective owners and are referenced only for identification and educational purposes.

Exam Code: AA
Q & A: 80 Q&As
Updated: Oct 17,2026

Access Complete AA Preparation Material