FTC Exam tips Optional Papers

Paper 3.1
Q1 Risk appraisal, risk management and audit strategy
Q2 Assurance services - reporting on narrative statements egg environmental reports
Q3 Matters and evidence when reviewing files before signing audit reports
Q4 Audit reporting - application of ISA 700
Q5 Professional conduct and ethics
Q6 Current issues

Paper 3.2 – ADVANCED TAXATION PAPER
1 - IHT including lifetime and death gifts and the extended definition of domicile for IHT.DTR BPR and gift with reservation. Death Estate including valuation rules.
2 - CGT – Chattel rules, part disposals, principal private residence relief, gift relief, Incorporation relief.
3 - Income tax computation including property business profits, employment income Calculation of benefits – salary versus company car or mileage allowance versus company car. Share options and share incentive plans. Overseas aspects (including overseas aspects definitions of residency and ordinary residency) and DTR.
4 - National Insurance
5 - Financial planning – sources of finance, lease versus buy, investments including ISAs the Financial Services and Markets Act 2000. Pensions
7 - Close companies maybe a letter on this.
8 -Corporation tax including IBA, loss relief (S393A) and group and consortium relief. Overseas aspects of corporation tax including controlled foreign companies and transfer pricing.
9 - VAT – cash accounting scheme, annual accounting scheme, due date for registration.
10 - Stamp duty land tax

Paper 3.3
* Contribution based decision-making – possibly involving expected values, maximax, maximin & minimax regret.
* Practical aspects of pricing policy
* Performance evaluation - NFPIs
* The strategic framework – specifically a question based around the examiner’s article on “Business Strategy and Performance Models” (Student Accountant – April 2006). This is likely to focus on Porter’s 5 Forces

Paper 3.4

• Value of information systems
• Groupware
• Data warehousing and data mining
• Outsourcing
• SWOT
• Earls three legs
• Earls Grid
• Information strategy
• Virtual company
• Business and IT strategies