Chapter 1: NATURE OF AUDITING 1.0 Financial Statements 1.1 Meaning of Auditing 1.2 Aspects to be covered in Audit or Functions of Audit 1.3 The Auditor 1.4 Scope of Audit 1.5 Inherent Limitations of Audit 1.6 Advantages of an Audit 1.7 Relationship of Auditing with other Disciplines 1.8 Basic Principles Governing an Audit 1.9 Objectives of Auditing 1.10 Auditing and Investigation 1.11 Auditing and Accounting Annexures 1 SA 200 (Revised) — Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing 2 SA 240 (Revised) — The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements 3 Case Studies 4 Questions from Past Exams Chapter 2: CORE CONCEPTS IN AUDITING 2.1 Auditor’s Independence 2.2 Materiality 2.3 Concept of True and Fair 2.4 Disclosure of Accounting Policies 2.5 Audit Evidence Annexures 1 SA 320 (Revised) — Materiality in Planning and Performing an Audit 2 SA 500 (Revised) — Audit Evidence 3 SA 501 (Revised) — Audit Evidence - Specific Considerations for Selected Items 4 SA 505 (Revised) — External Confirmations 5 SA 520 (Revised) — Analytical Procedures 6 SA 570 (Revised) — Going Concern 7 Case Studies 8 Questions from Past Exams Chapter 3: TYPES OF AUDIT 3.1 Independent Audit 3.2 Statutory Audit 3.3 Internal Audit 3.4 Government Audit 3.5 Tax Audit 3.6 Interim Audit 3.7 Continuous Audit 3.8 Final/Completed Audit 3.9 Balance Sheet Audit 3.10 Concurrent Audit 3.11 Management Audit 3.12 Environmental Audit 3.13 Secretarial Audit 3.14 Operational Audit Annexures 1 Questions from Past Questions Chapter 4: PREPARATION FOR AUDIT 4.1 Auditor’s Engagement 4.2 Audit Process 4.3 Audit Techniques 4.4 Audit Procedures 4.5 Audit Planning 4.6 Audit Programme 4.7 Methods of Work 4.8 Audit Notebook 4.9 Audit Working Papers 4.10 Quality Control for Audit Work 4.11 Test Check 4.12 Judgmental v Statistical Sampling 4.13 Selecting the Sample 4.14 Surprise Check 4.15 Examination in Depth 4.16 Obtaining Certificate from Management Annexures 1 SA 210 (Revised) — Agreeing the Terms of Audit Engagements 2 SA 220 (Revised) — Quality Control for an Audit of Financial Statements 3 SA 230 (Revised) — Audit Documentation 4 SA 300 (Revised) — Planning an Audit of Financial Statements 5 SA 530 (Revised) — Audit Sampling 6 SA 580 (Revised) — Written Representations 7 Questions from Past Exams Chapter 5: INTERNAL CONTROL 5.1 Internal Control 5.2 Internal Audit 5.3 Internal Check 5.4 Audit Risk Annexures 1 SA 315 — Identifying and Assessing the Risk of Material Misstatement through Understanding the Entity and Its Environment 2 SA 330 — The Auditor’s Responses to Assessed Risks 3 SA 610 (Revised) — Using the work of Internal Auditors 4 Questions from Past Exams Chapter 6: VOUCHING 6.1 Meaning of Vouching 6.2 Objectives of Vouching 6.3 Routine Checking and Vouching 6.4 Audit of Sales 6.5 Audit of Purchases 6.6 Vouching of Receipts 6.7 Vouching of Payments 6.8 Remuneration to the Managerial Personnel 6.9 Transactions with Related Parties 6.10 Audit of Ledgers Annexures 1 Case Studies 2 Questions from Past Exams Chapter 7: VERIFICATION 7.1 Meaning of Verification 7.2 Vouching v Verification 7.3 Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure 7.4 Objectives of Verification of Assets 7.5 Verification of Assets 7.6 Verification of Liabilities 7.7 Contingent Liabilities Annexure 1 Questions form Past Questions Chapter 8: COMPANY AUDIT – I 8.1 Eligibility to be Appointed as an Auditor of a Company 8.2 Disqualifications for Appointment as an Auditor 8.3 Appointment of an Auditor 8.4 Audit Committee 8.5 Rotation of Auditor 8.6 Auditor’s Remuneration 8.7 Removal of Auditor 8.8 Ceiling on Number of Audits 8.9 Powers and Rights of Auditors 8.10 Duties of Auditors 8.11 Basic Elements of the Auditor’s Report 8.12 Types of Audit Reports 8.13 Disclosures in Auditor’s Report 8.14 Joint Audit 8.15 Audit of Branch Office Accounts 8.16 Cost Audit 8.17 Punishment for Non Compliance Annexures 1 SA 299: Responsibility of Joint Auditors 2 SA 700 (Revised): Forming an Opinion and Reporting on Financial Statements 3 SA 705: Modifications to the Opinion in the Independent Auditor’s Report 4 SA 706: Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report 5 Case Studies 6 Questions from Past Examinations Chapter 9: COMPANY AUDIT – II 9.1 Books of Accounts 9.2 Financial Statements 9.3 Board’s Report 9.4 Special Requirements of Company Audit 9.5 Audit of Share Capital 9.6 Option on Share Capital 9.7 Share Transfer Audit 9.8 Verification of Bonus Shares 9.9 Audit of Debentures 9.10 Audit of Dividends 9.11 Payment of Interest Out of Capital During Construction Annexures: 1 Questions from Past Examinations Chapter 10: GOVERNMENT AUDIT 10.1 Meaning of Government Auditing 10.2 Legal Framework and Comptroller & Auditor General (C&AG) 10.3 Duties of Comptroller & Auditor General 10.4 Powers of Comptroller & Auditor General 10.5 Expenditure Audit 10.6 Audit of Receipts 10.7 Audit of Stores and Stocks 10.8 Audit of Commercial Accounts 10.9 Reporting Procedures Annexures 1 Questions from Past Examinations Chapter 11: E.D.P. AUDIT 11.1 EDP Environment 11.2 Organisation Structure in an EDP Environment 11.3 Internal Controls in EDP Environment 11.4 Review of Internal Controls 11.5 Internal Controls in Service Bureau 11.6 Approaches to EDP Auditing Annexures 1 Questions from Past Exams Chapter 12: SPECIAL AUDITS 12.1 Audit of Hotels 12.2 Audit of Hospitals 12.3 Audit of Club 12.4 Audit of Cinemas 12.5 Audit of Educational Institution (School, College or University) 12.6 Audit of Incomplete Records 12.7 Audit of Sole Trader’s Accounts 12.8 Audit of Charitable Institutions 12.9 Audit of Publishers/Publishing company 12.10 Audit of Hire Purchase Companies 12.11 Audit of Leasing Companies 12.12 Audit of Non-Government Organisations (NGOs’) 12.13 Audit of a Partnership Firm 12.14 Audit of Local Bodies Annexure 1 Questions from Past Exams Chapter 13: MISCELLANEOUS 13.1 Cut-Off Arrangements/Procedures 13.2 Miscellaneous Annexure 1 Questions from Past Exams Chapter 14: AUDITING, REVIEW AND OTHER STANDARDS Chapter 15: COMPANIES (AUDITOR’S REPORT) ORDER, 2015 Chapter 16: ACCOUNTING STANDARDS Annexure: Case Studies TRUE/FALSE COMMENT |