Auditing

Course Outline

Aim

To develop knowledge and understanding of the audit process and its application in the context of the professional regulatory framework.

Course Objectives

On completion of this course, candidates should be able to:

* Understand the nature, purpose and scope of auditing, including the role of external audit and its regulatory and ethical framework.

* Discuss the preconditions, requirements of professional ethics and other regulatory requirements in relation to the acceptance or continuance of audit engagements.

* Obtain understanding of the entity and its environment, assess risks and plan audit of financial statements.

* Describe and evaluate accounting and internal control systems and identify and communicate control risks, potential consequences and recommendations thereon.

* Explain and evaluate sources of evidence, describe the nature, timing and extent of tests on class of transactions and account balances (including sampling and analytical procedures) and design programs for audit and review assignments.

* Evaluate findings, investigate inconsistencies and modify the work program as necessary.

* Explain how the conclusions from audit work are reflected in different types of audit report.

Session Wise Breakup

Week | Topics | Readings |

1. | INTRODUCTION * What is assurance? * Levels of assurance * Objective of audit * Materiality * True and fair view * Limitations of audit | IAASB frameworkISA 200 |

2. | LEGAL AND REGULATORY ENVIRONMENT * IFAC, IAASB, ISAs, ISREs, ISQCs * Standard setting procedures * Statutory requirement of audit and small co. exemption * Eligibility, appointment, removal, tenure, rights and obligations of auditors | CO 1984, Specimen auditor’s report |

3. | CORPORATE GOVERNANCE, INTERNAL AUDIT * Importance * Basic principles * Audit committees, role, function, advantages and disadvantages * External vs. internal, audit * Responsibilities of...