Auditing and Assurance

Paper Code: 
BCP-215
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
9.00
Unit I: 

Auditing Concepts: Nature, objective and scope of Audit; Relationship of auditing with other disciplines;

Standard Setting Process: Overview, Standard-setting process, Role of International Auditing and Assurance Standards Board (IAASB) & Auditing and Assurance Standards Board (AASB); Standards on Auditing, Guidance Note(s) issued by the ICAI;

Engagement Standards: Qualities of Auditor, Elements of System of Quality Control (SQC 1 )

Audit Strategy, Audit Planning and Audit Programme

Development of Audit Plan and Programme, Control of quality of audit work - Delegation and supervision of audit work; Materiality and Audit Plan; Revision of Materiality; Documenting the Materiality; Performance Materiality (SA 320) .

 Audit Documentation and Audit Evidence

 

9.00
Unit II: 

Risk Assessment and Internal Control: Audit Risk, Identifying and Assessing the Risk of Material Misstatement, Risk Assessment procedures; Understanding the entity and its environment; Internal control ,Documenting the Risks; Evaluation of internal control system; Testing of Internal control; Internal Control and IT Environment. SA 315,SA 320,  Basics of Internal Financial Control and reporting requirements; Distinction between Internal Financial Control and Internal Control over Financial Reporting.

Fraud and Responsibilities of the Auditor in this Regard: Responsibility for the Prevention and Detection of Fraud; Fraud Risk Factors; Risks of Material Misstatement Due to Fraud; Communication of Fraud (SA 240 ) Provisions of the Companies Act 2013 relating to fraud and rules there under including reporting requirements under CARO.

Audit in an Automated Environment: Key features, Impact of IT related Risks, Impact on Controls, Internal Financial Controls as per Regulatory requirements, Types of Controls, Audit approach, Understanding and documenting Automated environment, Testing methods, data analytics for audit, assessing and reporting audit findings.

 

9.00
Unit III: 

Audit Sampling: Meaning of Audit Sampling; Designing an audit sample; Types of sampling; Sample Size and selection of items for testing; Sample selection method (SA 530).

Analytical Procedure: Meaning, nature, purpose and timing of analytical procedures; Substantive analytical procedures, Designing and performing analytical procedures prior to Audit; investigating the results (SA 520 Analytical Procedures).

Audit of Items of Financial Statements: Audit of sale of Products and Services; Audit of Interest Income, Rental Income, Dividend Income, Net gain/loss on sale of Investments etc.

Audit of Purchases, Employee benefits expenses, Depreciation, Interest expense, Expenditure on Power & Fuel, Rent, Repair to building, Repair to Machinery, Insurance, Taxes, Travelling Expenses, Miscellaneous Expenses etc.

 

5. Business Level Strategies

(i) Competitive Strategies at Business Level

(ii) Michael Porter’s Generic Strategies

(iii) Best-Cost Provider Strategy

 

 

9.00
Unit IV: 

The Company Audit: Eligibility, Qualifications and Disqualifications of Auditors; Appointment of auditors; Removal of auditors; Remuneration of Auditors; Powers and duties of auditors; Branch audit; Joint audit; Reporting requirements under the Companies Act, 2013 including CARO; Other Important Provisions under the Companies Act, 2013 relating to Audit and Auditors and Rules made thereunder.

Audit Report: Forming an opinion on the Financial Statements; Auditor's Report- basic elements (SA 700 ) Types of Modified Opinion; Circumstances When a Modification to the Auditor’s Opinion is Required (SA 705, 706, 710)

 

9.00
Unit V: 

Audit of Banks: Understanding of accounting system in Banks, Audit Approach, Audit of Revenue items, Special Consideration in Bank Audit with emphasis on Advances and NPAs.

Audit of Different Types of Entities: Appointment of Auditor, Audit Procedure. Audit Report in respect of different Category of Entities mentioned below: government; Local bodies and not-for-profit organizations; Partnership Firms, Audit of different type of undertakings, i.e., Educational institutions, Hotels, Clubs, Hospitals Basics of Limited Liability Partnerships (LLPs) audit and Co-operative Societies Audit.

 

References: 

Reference Books

  1. Contemporary Auditing: Kamal Gupta(Tata Mc-Graw Hill)
  2. Students Guide to Auditing: Aruna Jha(Taxmann)
  3. Study Material Published by Institute of Chartered Accountants of India
  4. Auditing Theory & Practice: A.K Singh ( Galgotia Publishing Company New Delhi)
  5. Auditing: Principle and Practice, S.D Sharma(Taxmann)
  6. Auditing Principles and Problems: T.R Sharma (Sahitya Bhawan Agra)
  7. Practical Auditing: Spicer& Pegler
  8. Fundamental of Auditing: Gupta & Arora(Tata Mc Graw Hill)
  9. Scanner-Arun Kumar(Suchitra Prakashan (P) Ltd)

Note: Candidates are expected to have working knowledge of relevant Auditing and Assurance Standards issued by the ICAI with reference to above-mentioned topics.

Academic Year: 
2018-2019
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