PAPER NO. 17 ADVANCED AUDITING AND ASSURANCE |
GENERAL OBJECTIVE |
| To develop the candidate’s knowledge of audit and assurance |
17.0 SPECIFIC OBJECTIVES |
A candidate who passes this paper should be able to:
- Plan and execute audit and assurance services
- Explain legal and professional requirements of an audit and assurance assignment
- Carry out risk assessment and review the client’s systems
- Discuss corporate governance issues
- Generate audit assurance reports
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CONTENT |
17.1 Assurance services and non assurance services
- Audit engagement
- Compilation engagement
- Agreed upon procedures
- Review of prospective financial statements
- Audit and assurance reports
- Accountants reports
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17.2 Management of professional accounting firms
- Structure of a professional accounting firm
- Multinational accounting firms
- Quality control and review
- Professional ethics( meaning of professional ethics, standards of conduct and personal integrity, independence and objectivity, prudence, due care, competence, diligence, honesty, confidentiality, good, faith, personal and professional relationships, audit fees, soliciting for clients and advertising)
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17.3 Legal liability
- Auditors liability under contract law
- Auditors liability under law of tort
- Civil and criminal liability
- Legal precedence
- Minimising auditors legal liability
- Current developments in respect of legal liability
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17.4 Risk assessment
- Audit risk
- Engagement risk
- Business risk
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17.5 Conduct of an audit
- Audit strategy
- Developing an audit plan and audit programme
- Audit documentation
- Review of accounting system and internal control system
- Errors and frauds
- Substantive procedures on financial statement item
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17.6 Review of an audit
- Going concern
- Post balance sheet events
- Audit of contingences
- Management representations
- Management letter
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17.7 Auditor’s report
- Purpose of auditors’report
- Contents and elements of auditor’s report
- Qualities of a good audit report
- Types of audit report
- Consequences of various audit reports
- Applicable cases
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17.8 Group audits
- Audit of holding and subsidiaries
- Audit of branches
- Joint audits
- Related party transactions
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17.9 Accounting and auditing standards<
- Standards setting process
- Presentation and disclosure of accounting standards
- Role of auditing standards, accounting standards and assurance standards in the audit
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17.10 Corporate governance
- Audit committees
- Reporting on corporate governance issues
- Internal audit
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17.11 Current issues and developments
- Forensic audit (whistle blowing, reporting unethical behaviour)
- Environmental audit
- Social reporting
- Value for money (VFM) audits
- Audit disengagement
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| Previous: Advanced Taxation Next: Advanced Financial Reporting | Index |