I want to share the experience of preparing 3.1 paper to you all.I knew everyone feel that the 3.1paper is more difficult and the pass rate is alway the lowerest,but I passed this papere at my first attempt at 61% in Dec 2005.
At first when I was preparing this paper I have the same feeling with you ,but after I reviewed over and over the revision I found it should not be difficult,'coz it always ask the similiar questions in the paper,then I summarized the main ideas to answer the questions and I'm posting them here . I wish it helpful to the people that is gonna take 3.1 paper in 2006.

Audit work:

Vouch: agree with the original
Discuss with the management…
Verify:
Examine
Review
Re-perform
Recalculate
Observe the situation
Physical inspection
Confirmation
Sample test

Evidence:

Recalculation’
Visit (mainly for the none-current asset)
Prior year statement or working paper
Representation
Contract
Board minute
Accounting record etc
Correspondence
Agree the disclosure


Matter considered

Materiality
IAS etc standard
Standard treatment or alternative treatment
Risk: disclosure, presentation, valuation, completeness

Consideration in the audit planning
Risk
Materiality
Audit approach\strategy
Rely on expert and internal auditor

Analytical procedure

Profit trend
Identify risk
Compare between similar company divisions
Gross margin constant
Compare with the budget or prior year
Proof in total test
Ratios compare
Performance indicator compare


Financial statement related risk

Going concern
Misstatement
Disclosure
Non-compliance with IFRS