Auditing And Ethics –II

Paper Code: 
24BCP315
Credits: 
03
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to develop an understanding of the concepts in auditing and of the generally accepted auditing procedures, techniques and skills and acquire the ability to apply the same in audit and attestation engagements and to understand and apply the concept of ethics while performing audit.

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

title

24BCP315

Auditing and Ethics II

(Theory)

 

CO 1Develop a comprehensive understanding of completion and review of audit as per SA 560, SA 570, SA 450, SA 580, SA 260 and SA 265.

CO 2Form an opinion on the Financial Statements and creation of Audit report as per SA 700, SA 701, SA 705, SA 706 and SA 707.

CO 3Examine special features of Audit in respect of audit of different types of Entities.

CO 4Perform Bankaudit andUnderstanding accounting system inbanks.

CO 5Develop an understanding of Ethics and Terms of Audit Engagements.

CO 6Contribute effectively in course specific interaction.

Approach in teaching:

Interactive Lectures, Discussions, Tutorials, Problem solving sessions, Presentations

 

Learning activities for the students:
Self-learning assignments, Case Study Analysis, Presentations, Group Discussions

 

 

Continuous Assessment Test, Semester End Examinations, Quiz, Solving Assignments, Class Presentations, Individual and group projects.

 

9.00
Unit I: 
Completion and Review
  • Completion and Review - Meaning of Subsequent Events; - Auditor’s obligations in different situations of subsequent events. - Procedures for subsequent events. (SA 560 Subsequent Events)- Responsibilities of the Auditor with regard to Going Concern Assumption; Objectives of the Auditor regarding Going Concern. - Events or Conditions that may cast doubt about Going Concern Assumption. - Audit Procedures when events or conditions are identified (SA 570 Going Concern). Overview and - Introduction of Evaluations of Misstatements identified during the audit (SA 450). - Written Representations as Audit Evidence. - Objective of Auditor regarding Written Representation. - Management from whom Written Representations may be requested. - Written Representations about Management’s Responsibilities (SA 580 Written Representations) - Overview and Introduction of SA 260: Communication with Those Charged with Governance. - Overview and Introduction of SA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management.

 

9.00
Unit II: 
Audit Report
  • Audit Report - Forming an opinion on the Financial Statements. - Auditor’s Report- basic elements (SA 700 Forming an Opinion and Reporting on Financial Statements). - Communicating key Audit Matters in the Independent Auditor’s Report (SA 701) Types of Modified Opinion, Circumstances When a Modification to the Auditor’s Opinion is Required, Qualified, Adverse Disclaimer of Opinion (SA 705 Modification to the Opinion in the Independent Auditor’s Report). - SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report.- Nature of Comparative Information- Corresponding Figure; Comparative Financial Statements (SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements)- Branch audit; Joint audit; Reporting requirements under the Companies Act, 2013 including CARO.

 

9.00
Unit III: 
Features of Audit of Different Type of Entities and auditor appointment
  • Special Features of Audit of Different Type of Entities
  • Appointment of Auditor, Audit Procedure and Audit Report in respect of different Category of Entities: Government; Local bodies; Not-for-profit organizations; Trust and Societies, Partnership Firms, Audit of different type of undertakings, i.e., Educational Institutions, Hotels, Clubs, Hospitals, etc., Basics of Limited Liability Partnerships (LLPs) Audit and Co-operative Societies Audit.

 

9.00
Unit IV: 
Audit of Banks
  • 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.

 

9.00
Unit V: 
Ethics and Terms of Audit Engagements
  • Ethics and Terms of Audit Engagements - Meaning of Ethics. - Ethics is a State of Mind, Need for Professional Ethics. - Principles based approach v Rules based approach (Ethical or Legal). - The fundamental principles of Professional Ethics: Integrity; Objectivity; Professional Competence and Due care; Confidentiality; Professional Behaviour. - Independence of Auditors. - Threats to Independence: Self Interest threats; Self Review threats; Advocacy threats; Familiarity threats; Intimidation threats. - Safeguards to Independence; Professional Skepticism,
  • Terms of Audit Engagements Preconditions for an audit; Audit Engagement. - Agreement on Audit Engagement Terms. - Terms of Engagement in Recurring Audits (SA 210 Agreeing the Terms of Audit Engagements). - Overview and Introduction of SQC 1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information and Other Assurance and Related Services Engagements. - Overview and Introduction of SA 220 - Quality Control for an Audit of Financial Statements)

 

Essential Readings: 

• CA Module issued by ICAI

References: 

SUGGESTED READINGS:

  • Arun Kumar Scanner, Suchitra Prakashan (P) Ltd
  • Auditing Principles and Problems: T.R Sharma (Sahitya Bhawan Agra)
  • Practical Auditing: Spicer& Pegler
  • Fundamental of Auditing: Gupta &Arora(Tata Mc Graw Hill)

 

E-RESOURCES:

JOURNALS:

  • The Chartered Accountant Journal /ICAI Student Journal

 

Academic Year: 
2024-2025
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