Complete Guide to CPA Canada Assurance Module

Let’s take a look at CPA Canada’s Assurance elective module. In this post, you’ll learn about the module’s: format, assignments, topics, exams, how it’s assessed, and study tips to help you pass.

Related readings:

What’s Assurance elective?

After completing both Core modules in the CPA Canada Professional Education Program (PEP), you will select two elective modules from four possible choices: Assurance, Taxation, Performance Management (PM) and Finance. Completing two electives is required before completing the Capstones 1 and 2, and the Common Final Exam (CFE). Your two chosen electives can be completed in any order.

Assurance module is designed to test on the competencies required by internal audit projects and external assurance engagements. Although this elective is taken mostly by those working in public practice, or those wishing to become sole practitioners, anyone can take it and I encourage most students to choose this module over others (you’ll know in a moment why).

The technical topics covered in Assurance are mostly Assurance and Audit (AS) and Financial Reporting (FR), and very little Finance (FN) and Strategy & Governance (SG). Of these, AS is the biggest part of the module and the exam.

Examples of AS topics include:

Audit planning memo (Risk, Approach, Materiality, Procedures)
Substantive procedures
Test of control procedures
Audit opinion / audit report
Special reports
WIR
Use of internal audit
Use of audit expert
Going concern
Fraud

Similar to Core modules, Assurance is held in online format, with all assignments, readings and quizzes taken on the website Desire 2 Learn (D2L). You’ll get access to D2L a week before the module start date.

How long is it?

The normal Assurance module that most students take is 8 weeks long. However, an extended version is available, allowing you to complete the module over a 5 -month period. This is good for students who have commitments or those who prefer a slower pace of study.

You can also challenge the Assurance module, where you skip the entire module and just take the exam. This is allowed only in special circumstances, such as for internationally trained accountants under MRA/MOU.

Is there an instructor?

Similar to Core modules, there is an online facilitator. Their main duties are to help you via email, provide feedback on your assignments, assist in finding information, and moderate the forums.

Assurance module has a Module Workshop (MWS). This mandatory two-day event has presentations and activities by a session leader. The activities include review of technicals and case writing. I previously worked as a session leader with CPA Canada.

Before attending the workshop, you must complete and submit pre-work to D2L dropbox.

What are the assignments?

Assurance module has weekly assignments that consist of:

Multiple-choice questions (MCQs)
Integrative problems (IPs)
Practice cases (PCs)

MCQs are small problem-based questions that test on technicals.

Below is an example of Assurance MCQ:

The IPs are short-answer problems that test the technical material learned in the weekly unit.

Below is an example of Assurance IP:

The PCs range from 80-minute to 120-minutes, they are designed to simulate the actual Assurance elective exam.

Below is an example of Assurance PC:

Majority of students find the Assurance exam to be harder than the PCs, so I suggest practicing with retired exam cases (discussed below) and mock exam simulations.

The IPs and PCs are to be completed using Microsoft Word and Excel, and uploaded to D2L weekly. The deadline is typically Friday night.

You will also be provided with retired exam cases (actual cases from past module exams). I recommend to practice them under time-constraint to see how ready you are for the final exam.

How is it graded?

Unlike Core modules, where you had 5 AOs, Assurance module cases will have 6 to 8 AOs.

To be eligible to write the exam (discussed below), you need to get at least 75% total grade from your weekly assignments. The course is weighed as follows:

IPs: 30%
PCs: 30%
Unit quizzes and MWS pre-work: 30%
MWS participation: 10%

You should not worry about getting this 75% threshold. Most student reach the 75% mark and get to write the exam; the real challenge is passing the exam.

What’s module syllabus?

The syllabus lists the weekly readings and assignments. You can use the syllabus as a checklist and narrow down topics to study. To download the syllabus, click here.

What is the Assurance exam like?

The Assurance elective exam is 4 hours and consists of 15 MCQs and two cases for a total of 200 minutes. The maximum time for any one case will not be more than 120 minutes and the minimum will not be any less than 80 minutes.

All four electives (Assurance, PM, Finance, Tax) have this examination format (15 MCQ, 2 cases), which is different from Core modules, where you had 75 MCQs and one case. As you can see, the focus is being shifted from MCQs to case writing. In the CFE, it’s only cases.

Below is the exam blueprint that shows the weighing of the 4 technical competencies tested in Assurance MCQs, which is similar to the AOs tested in the case:

Minimum of 50% of AOs will be Assurance, and you will get 1 or 2 other competency areas (ie FR and possibly one other).

For example, your case may have 4 Assurance AOs (eg. WIR, Special Reports, Audit memo – risk/approach/materiality, Audit memo – procedures), 2 FR AOs (eg. Revenue recognition, Discontinued operations) and 1 S&G AO (eg. strategic advice).

Or it may have 4 Assurance AOs (eg. CAS 620, WIR, Special reports, Fraud) and 3 FR AOs (eg. PPE, Sale leaseback, Impairment). This changes every semester and I can provide you tips and estimates on what I think will come up in my Assurance Lessons course.

All prior learnings from Core 1 and Core 2 are still testable in your exam.

You will be provided with the CPA Canada Handbook (ASPE and IFRS), the Canadian Auditing Standards (CAS) and the Income Tax Act (ITA) during the exam.

How many tries do I get?

Similar to Core 1/2 modules, you have 3 attempts to pass. However, unlike core modules, after 3 unsuccessful tries, you don’t get de-registered from the elective. Instead, you can switch your elective and try 3 more times in a different elective.

What are the textbooks?

The Assurance module follows the same Learning EBooks as in Core modules. Here is more information on how to download the CPA Canada Learning eBooks.

Unlike Core modules, the “cheat sheet” given in the exam will NOT have the common ratios. You can download and compare Core and Elective cheat sheets (“Examination Reference Schedules”) here.

The EBook teaches Assurance topics in planning stages. You’ll find it helpful to learn directly the CAS standards as these are tested often.

What should I study?

Because this is an elective exam, the biggest portion is corresponding to that elective. I suggest spending most of your time studying the Assurance topics, including all EBook Assurance chapters and all CAS standards. This is necessary because electives test depth of knowledge, so the complexity of the AOs is higher than what you’ve seen in Cores.

Another large component is FR. You will want to spend plenty of time here, studying mostly the complex FR topics (see below).

What’s the Assurance pass rate?

The Assurance pass rate is around 89%.

Why do students fail Assurance?

Statistically, more students pass Assurance than the Core modules (see pass rate above). However, some components of Assurance can be more challenging, depending on your strengths and weaknesses. Here are the top challenges must students get:

1) Procedures are a heavily tested topic. In can be as part of an Audit Planning Memo or separate required. Getting your procedures to a C level will require a lot of practice and understanding of the case. Here are some tips:

Use the RAP method: Risk – Assertion – Procedure.
Be specific. Explain what audit evidence is needed, from who, and what this information will be used for to address the risk.
Integrate case facts. Use case information like dollars, dates, quantity, users.
Write at least 2 procedures per FR issue.
Use complete sentences to ensure your procedure is clear.

2) Complex FR topics. While FR was tested at routine level in Core 1, there is more challenging, non-routine FR topics in Assurance. These topics take more time to understanding. Some examples of complex FR topics include:

Business combinations
Sale and leaseback
Biological assets
Share-based compensation
Financial instruments
Hedge Accounting

3) Assurance is a very qualitative subject. Since qual has more ambiguity/subjectivity in how to integrate case facts and how much depth to write, you’ll find it challenging to understand why you’re not getting Cs. My recommendation is to format your answer well (e.g. use bullet points) and use “connectors” like: this means, which means, therefore, to ensure, as such, as a result. This will help to add depth.

Additionally, being a qual heavy module, your typing speed will be a key factor to successfully answering all AOs within the time limit.

4) Applying templates. Assurance has several common topics that require a structured approach to receive full marks (e.g. RAP and VOOP for procedures, RAMP for Audit Planning Memo, WIR for control weaknesses, SAPPY for special reports). Applying these templates correctly can be challenging for many students.

5) Time management. Like other modules, Assurance is a self-lead course, which means you are responsible for managing your time, planning your readings, and understanding the material. Because the exam will have two cases, you must monitor your time effectively. My recommendation is to start with the FR and then write Assurance and any other areas afterwards. This is a good strategy because FR topics can impact certain Assurance AOs (e.g. materiality calculation and procedures)

Overall, poor procedures, complex FR AOs, lack of structure in approach, not applying templates correctly, slow typing in a qual heavy exam, and time management are the biggest reasons students fail.

You find additional Assurance elective tips here.

Do I need a tutor?

Hiring a tutor is a personal preference and it depends on your circumstances. A CPA tutor brings their expertise, helping to identify your weaknesses, reinforce your strengths, teach complex topics, reveal what topics are most tested through analyses of the Competency Map and exam blueprint, thus helping you speed up your study time and increase your chances of passing the exam.

If you attempt Assurance by yourself and don’t pass it, I suggest that you consider getting a tutor. But if you are successful, then you can keep doing what works for you.

Extra resources

Extra Assurance resources are available at Assurance Lessons course.