Auditing (Theory)

Paper Code: 
ATG/BSG/FSG/BSR/FSM/HRG/IBG 511
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to gain knowledge of auditing procedures and techniques and their application

COURSE OUTCOMES (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

ATG/BSG/FSG

/BSR/FSM/

HRG/IBG 511

Auditing

CO 1:Understand the basic working knowledge of the Audit and its terminology and to understand the Nature and Objective of Audit.

CO 2:Explain the objectives of conducting audits of financial statements and its internal controls system.

CO 3:Identify the auditor’s responsibilities in Verification and Valuation of Assets and Liabilities.

CO 4:Apply critical thinking skills and solve auditing problems through the use of case studies

CO 5:To understand or develop the knowledge of distribution of dividend and Profit among the shareholder and the reports prepared by the auditors.

 

Approach in teaching:

Explanations,

Discussion, Project work.

 

Learning activities for the students:

Field activities,  Presentation, Giving tasks

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.

 

9.00
Unit I: 
Auditing:
  • Meaning, Objects, Fraud, Errors,
  • Book-Keeping Accounting and Auditing,
  •  Classification of audits, Planning and procedure of audit,
  •  Audit Programmes; Auditors working papers, Test Checking and Routine Checking

 

9.00
Unit II: 
Internal Control and Internal Check System-
  • Meaning, Objectives and evaluation of internal control,
  •  Internal check and internal audit,
  • Internal Control regarding sales, purchases,
  • asset liabilities and salaries and wages.

 

9.00
Unit III: 
Audit Procedure-
  • Meaning, Objective and Importance of Vouching,
  •  Vouching and Routing Checking, General Principle of Vouching,
  •  Vouching of different item of transactions,
  • Verification and Valuation of Assets and Liabilities
  • With special reference to Plant & Machinery, Building, Goodwill, Patent, Copy Right, Investment, Debtors, Inventories, Share Capital and Loans,
  •  Contingent Liabilities and Contingent Assets ;
  • Rules laid down in Kingston Cotton Mills Co Ltd, Irish Woolen Co Ltd

 

9.00
Unit IV: 
Audit of Joint Stock Companies:
  • Appointment, removal and remuneration of company auditor,
  • Audit of share capital, debentures and managerial remuneration,
  • Audit for the purpose of statutory reports and prospectus
  •  Rights, duties and liabilities of an auditor laid down in London and General Bank Case, CIT v/s G.M Dandedkar,  Anupam Roy v/s P.K Mukharjee

 

9.00
Unit V: 
Divisible Profits and Dividends
  • Divisible Profits and Dividends with legal provisions of Companies Act(With special reference to (depreciation) and relevant Case Laws
  • Auditors Report: Definition, Distinction between Auditor’s Report and Auditor’ Certificate,
  • Contents of Auditor’s Report, Classification (Clean, Qualified ,Disclaimer )

 

References: 
  • Auditing: Jain, Khandelwal(Shivam Publisher)
  • Students Guide to Auditing: ArunaJha(Taxmann)
  • Auditing: Jain, Khandelwal, Pareek(Ramesh Book Depot)
  • Auditing Theory & Practice: A.K Singh ( Galgotia Publishing Company New Delhi)
  • Contemporary Auditing: Kamal Gupta(Tata Mc-Graw Hill)
  • Auditing: Principle and Practice, S.D Sharma(Taxmann)
  • Auditing Principles and Problems: T.R Sharma (Sahitya Bhawan Agra)
  • Practical Auditing: Spicer& Pegler
  • Fundamental of Auditing: Gupta &Arora(Tata Mc Graw Hill)

 

Academic Year: 
2020-2021
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