Which ACCA Exam to Take First: FR or AA

Are you confused in choosing between the Financial Reporting and Audit and Assurance ACCA exams which exam to take first? Stay tuned to make the right choice.  

ACCA (Association of Chartered Certified Accountants) is an internationally recognized professional accounting credential. The ACCA syllabus includes both the FR and AA exams, which are significant papers that cover various facets of accounting and finance. Selecting the right introductory exam is a crucial step in this professional journey. 

Exam for Financial Reporting (FR)

The FR exam aims to produce and present the financial accounts for both single and group organizations. It addresses the application of International Financial Reporting Standards (IFRSs) as well as the ideas, values, and procedures of financial reporting. You will have a solid foundation in financial reporting after passing the FR exam, and you will be ready for further ACCA exams as well as a job in financial accounting.

Benefits of Taking the FR Exam First

The fundamentals of financial reporting are covered in the FR exam, which is helpful for subsequent ACCA exams.

The exam can increase your confidence in taking subsequent ACCA exams because it is comparatively easier than other papers.

Drawbacks of Beginning with the FR Exam

The exam could not push you sufficiently because it is easier than other papers.

Given its theoretical nature, the exam might not be as applicable to your line of work as other papers.

Audit and Assurance (AA) Exam

The concepts of auditing and assurance, including the legal framework and the usage of International Standards on Auditing (ISAs), are the key topics of the AA exam. It goes over the ideas and methods needed to organize, carry out, and document an assurance engagement. You will be well-prepared for a career in auditing or assurance after passing the AA exam and will have a solid foundation in auditing and assurance.

Benefits of Taking the AA Exam First

The fundamentals of audit and assurance are covered in the AA exam, which helps with subsequent ACCA exams.

This exam is really difficult, but it might help you be ready for subsequent exams.

Drawbacks of Beginning with the AA Exam

This is a rather difficult exam, and if you don’t do well, you can get discouraged.

Given its theoretical nature, the exam might not be as applicable to your line of work as other papers.

Comparing Audit and Assurance Exam with Financial Reporting Exam

In the ACCA syllabus, the FR and AA exams are both significant papers. The FR exam concentrates on financial reporting, while the AA exam focuses on audit and assurance. They address various facets of accounting and finance. Nonetheless, compliance is a consistent theme across the two exams.

The issue of compliance with accounting rules and laws, however, is present in both exams.

The key factors to consider when deciding between the two exams are:

  • Training and background in finance and accounting
  • Hobbies and desired career path
  • Examinations’ degree of difficulty
  • Exam’s applicability to your present or potential career

Bottom Line 

Deciding which ACCA exam to take first is a crucial choice. It is critical to do your homework and come to a well-informed judgment about your background, interests, and career goals. Keep in mind that your initial exam selection will have an impact on your subsequent ACCA steps.

It is advised that if you are new to accounting and finance, take the FR exam first, as it covers the fundamentals of financial reporting and will help you in subsequent ACCA exams. However, the AA exam, which covers the fundamentals of audit and assurance and is helpful for subsequent ACCA exams, can be a better option if you have previous expertise in accounting and finance and are interested in a career in audit or assurance. It’s also critical to remember that selecting your first exam will have an impact on the subsequent levels in your ACCA career.  

If you are looking for professional guidance for your learning journey, Mirchawala can be your one-stop destination. 

Recent Blogs: