SECRETARIAL AUDIT AND DUE DILIGENCE

Paper Code: 
BCS 512
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Outcomes (COs):

Course Outcomes

Learning and teaching strategies

Assessment

Strategies

On completion of this course, the students will be able to;

CO 156:To evaluate and gain knowledge about  various types of audit and standards made for them

CO 157:To appraise in detail about Secretarial audit, Internal audit and process audit.

CO 158: Reviewing on the  scope of various audits and purpose of conducting them.

CO 159:Facilitate the concept of other audits like CSR audit, takeover audit, system audit, forensic audit etc. Assessing the types of due diligence.

CO 160

     
     
     

: Interpret various techniques of due diligence and risk assessment.

 

Class lectures

Seminars

Tutorials

Group discussions and

Workshops

Question preparation

Evaluation of PPT's, Quizzes, CA Test, Assignments, End Term Test

 

9.00
Unit I: 
Audit
  • Audits: Overview and Introduction of Various Audits; ICSI Auditing Standards.
  • Secretarial Audit: Overview & introduction: Concept; advantages; legal provisions; risk of Secretarial Auditor; code of conduct. Scope of Secretarial Audit.
    1. Corporate, Securities and Foreign Exchange Laws and Rules and Regulations made there under.
    2. Other Laws applicable to the Company.

 

9.00
Unit II: 
Secretarial Audit, Internal Audit and Others
  • Secretarial Audit:
  1. Board Processes, Adequacy of Systems and Processes, Compliance with Secretarial Standards and applicable Accounting Standards and Reporting of Major Events.
  2. Corporate conduct &practices.
  • Internal Audit & Performance Audit: Objective & Scope; Internal Audit Techniques; Appraisal of Management Decisions; Performance Assessment, Internal Control Mechanism.
  • Concepts and Principles of Other Audits
  1. Corporate Governance Audit
  2. CSR Audit
  3. Takeover Audit Insider Trading Audit
  4. Industrial and LabourLaws Audit
  5. Cyber Audit
  6. Environment Audit
  7. Systems Audit
  8. Forensic Audit
  9. Social Audit.

 

9.00
Unit III: 
Audit Engagements, Principles, Techniques, processes and Documentation
  • Audit Engagement:Audit engagement; Appointing authority; communication to previous Auditor; Terms & conditions; Audit fees & expenses; Independence & conflict of interest; confidentiality; Auditing standard on Audit engagement.
  • Audit Principles and Techniques :Audit Planning; Risk assessment; Collection of information/Records of Audit, Audit Checklist; Audit Techniques, Examination & its process;  Enquiry; Confirmation; Sampling; Compliance Test of Internal Control System; Substantive Checking; Dependence on other Expert, Verification of documents/records; Collection of audit evidences; Creation of Audit trails; Analysis of Audit findings; Documentation; materiality; recordkeeping;
  • Audit Process and Documentation :Preliminary Preparations; Questionnaire; Interaction; Audit program; Identification of applicable laws; creation of master checklist; Maintenance of Work-sheet, working papers and audit trails; Identification of events/ corporate actions; Verification; Board  composition; Board process; systems and process; identification of events having bearing on affairs of the Company, Auditing standard on Audit process & documentation

 

9.00
Unit IV: 
Reporting and Review

Forming an Opinion & Reporting : Process of forming an opinion; materiality; forming an opinion on report of third party/expert; modified/unmodified opinion/qualifications; Management Representation Letter, Opinion obtained by Management, Discussion with Management, Evaluating Audit Evidence and forming Opinion, Audit report and drafting of qualifications; Sharing Draft Report with Management with Category of Risk involved with each Remark and Qualification, Signing of Audit reports and its Submission, Auditing standards on forming of an Opinion.

Secretarial Audit: Fraud detection &Reporting,Duty to report fraud; Reporting of Fraud by Secretarial Auditor; Fraud vs. Noncompliance; speculation; suspicion; Reason to believe; knowledge; Reporting; Professional Responsibilities and Penalties; Recordkeeping; Reporting of fraud in Secretarial Audit Report.

Quality Review: Peer Review; Monitoring of Certification and Audit Work by Quality Review Board.

Values Ethics and Professional Conduct: Case Studies & Practical Aspects.

 

9.00
Unit V: 
Due Diligence

Due Diligence I: Overview and Introduction; Types of Due Diligence; Financial Due diligence; Tax Diligence; Legal Due Diligence; Commercial or Business Diligence – including operations, IT systems, IPRs; Human Resources Due Diligence; Due Diligence for Merger; Amalgamation; Slump Sale; Takeover; Issue of Securities; Depository Receipts; Competition Law Due Diligence; Labor Laws  Due Diligence; Due Diligence Report for Bank; FEMA Due Diligence; FCRA Due Diligence; Techniques of Due Diligence and Risk  Assessment;  Non-Disclosure Agreement.

Due Diligence II: Impact Assessment of Non Compliances and Reporting thereof.

 

Essential Readings: 

ESSENTIAL READINGS:

  • Study Material Published by ICSI

 

SUGGESTED READINGS:

  • Scanner-Arun Kumar(ShuchitaPrakashans(P) Ltd)

 

References: 

e-RESOURCES:

 

https://www.icsi.edu/media/webmodules/10112021_Module_2_Paper_4_SACMDD_Book.pdf

 

JOURNALS:

 

https://www.icsi.edu/e-journals/

 

Academic Year: 
2022-2023
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