Deciding which ACCA Exam to Take First: Financial Reporting or Audit and Assurance (2024)

IntroductionIn this blog post, we will compare two ACCA exams, Financial Reporting (FR) and Audit and Assurance (AA), and help you decide which one to take first. ACCA, the Association of Chartered Certified Accountants, is a globally recognized professional accounting qualification. Choosing the right exam to start with is an important step in your ACCA journey.Financial Reporting (FR) ExamThe FR exam focuses on the preparation and presentation of financial statements for both single and group entities. It covers the concepts, principles and practices of financial reporting and the application of International Financial Reporting Standards (IFRSs). After passing the FR exam, you will have a strong foundation in financial reporting and be well-prepared for further ACCA exams and a career in financial accounting.Pros of starting with the FR exam:

• FR exam covers the basic concepts of financial reporting which are useful for further ACCA exams.
• The exam is relatively easier than other papers and can boost your confidence in taking other exams.

Cons of starting with the FR exam:

• The exam is relatively easier than other papers and may not challenge you enough.
• The exam is quite theoretical, so it may not be as relevant to your job as other papers.

Audit and Assurance (AA) ExamThe AA exam focuses on the principles of auditing and assurance, including the regulatory framework and the application of International Standards on Auditing (ISAs). It covers the concepts and techniques required for the planning, execution, and reporting of an assurance engagement. After passing the AA exam, you will have a strong foundation in auditing and assurance, and be well-prepared for a career in auditing or assurance.Pros of starting with the AA exam:

• AA exam covers the basic concepts of audit and assurance which are useful for further ACCA exams.
• The exam is relatively challenging and can prepare you well for other exams.

Cons of starting with the AA exam:

• The exam is relatively challenging and may discourage you if you don’t perform well.
• The exam is quite theoretical, so it may not be as relevant to your job as other papers.

Comparison of Financial Reporting and Audit and Assurance ExamsBoth the FR and AA exams are important papers in the ACCA syllabus. They cover different aspects of accounting and finance, with the FR exam focusing on financial reporting, and the AA exam focusing on audit and assurance. However, both exams share a common theme of compliance with accounting standards and regulations.Factors to consider when choosing between the two exams:

• Your background and experience in accounting and finance
• Your interests and career aspirations
• The difficulty level of the exams
• The relevance of the exams to your current or future job

ConclusionChoosing the right exam to start with is an important decision in your ACCA journey. Both the FR and AA exams are important papers in the ACCA syllabus and cover different aspects of accounting and finance. It’s crucial to research and make an informed decision based on your background, interests, and career aspirations. Remember, the choice of your first exam will affect the next steps in your ACCA journey.RecommendationIt is recommended that, If you are new to accounting and finance, starting with the FR exam may be a good choice as it covers the basic concepts of financial reporting which are useful for further ACCA exams. On the other hand, if you have prior experience in accounting and finance, and you are seeking a career in audit or assurance, starting with the AA exam may be a better choice as it covers the basic concepts of audit and assurance which are useful for further ACCA exams. Additionally, it’s important to keep in mind that the choice of your first exam will affect the next steps in your ACCA journey. For example, if you decide to start with the FR exam, you may find the Audit module in the Applied Knowledge level easier, and vice versa.