INTRODUCTION

Contents
Page

Syllabus Part A Framework

1 2 3 4 5 6 Audit and assurance services Rules of professional conduct Changes in professional appointment Professional responsibility and liability Practice management Regulatory environment 3 23 39 61 85 101

Part B Process
7 8 9 10 11 Audit planning Audit evidence Audit evaluation and review Internal control and evaluation of control risk Audit of financial statements 129 155 185 225 261

Part C Other service

12 13 Internal audit and other assurance engagements Environmental issues 293 341

Part D Reporting
14 Reports 351

Exam question bank Exam answer bank

ZICA Advanced Stage

INTRODUCTION

ZICA Advanced Stage

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INTRODUCTION

SYLLABUS
Purpose:
This paper covers the fundamental principles and concepts of auditing of financial statements. Students are required to have a good knowledge of the legal and professional framework governing the proper conduct of an audit. In addition, they are expected to have a thorough knowledge of the audit process of evidence accumulation and reporting. This process would ordinarily include planning, assessment of risk and materiality, performance of tests of control and substantive procedures and the final issuance of an auditors report. The paper will also ensure that candidates can exercise judgement and apply techniques in the analysis of matters relating to the provision of audit and assurance services, and can evaluate and comment on current practices and comments. ZICA Advanced Stage iii

INTRODUCTION

This paper also covers the principles and procedures relating to other assurance engagements, which include internal audit and other work where opinion is provided to interested parties who have participated in setting the scope of the engagement.

General Learning Objectives:

On completion of this paper, the student should be able to: Demonstrate ability to carry out Audit services as required under the Companies Act and Approved International Standards on Auditing. Undertake procedures of auditing and the provision of other forms of assurance services so as to enable them integrate this knowledge with training and work experience. Explain and evaluate the Auditors position in relation to the acceptance and retention of professional appointment. Evaluate and recommend quality control policies and procedures in operations. Identify and confirm the work required to meet the objectives of Audit Assignment. Evaluate findings and results of work performed and submit an appropriate Audit report.

Position of the Paper in the Overall syllabus:

Candidates need a thorough understanding of paper 2.4 Auditing, 1.1 Financial Accounting I and 2.1 Financial Accounting II. Knowledge of Management Information Systems will be needed considering its impact on assignments. Paper 3.3 develops further the knowledge gained in paper 2.4 Auditing by extending the basic awareness of professional codes of ethics and fundamental principles to a detailed understanding of rules of professional conduct. Practice management as also been introduced. Procedures involved in planning, conducting and reporting on audit assignments to audit related services and non-audit assignments. Current issues and developments have also been addressed.

Weights for Exams and Coverage purposes:

Overview of Audit Framework (5%) Legal and Professional Considerations (10%) Audit Committee and Functions (5%) ZICA Advanced Stage iv

INTRODUCTION

Audit Planning (10%) Internal Control and Evaluation of Control Risk (15%) Performance of Audit (15%) Internal Audit and Other Assurance Engagements (15%) Reporting and Communications (15%) New Developments in Auditing (10%)

LINKAGE OF THE COURSES

3.1

Advanced Financial Accounting and Reporting

3.3 Audit and Assurance 2.1 Financial Accounting II

1.1

Financial Accounting I

2.4 Auditing

Structure of Examination paper:

The Examination paper will be a Three (3) hour paper divided into TWO (2) sections; section A and section B. Questions in both sections will be almost entirely discursive. However, students may also be required to do some calculations where need arise for judgement purposes. Section A: This will be based on case study type scenarios, which address a range of topics, issues and requirements. It will comprise of TWO (2) COMPULSORY questions worth TWENTY FIVE (25) marks each. ZICA Advanced Stage v

INTRODUCTION Section B: In this section, there will be FOUR (4) questions each worth TWENTY FIVE (25) marks each. Candidates are required to attempt any TWO (2) questions. These are likely to be set on specific audit topics such as practice management, audit related services, non-audit assignments and new developments in auditing not examinable in paper 2.4-Advanced auditing. This does not preclude these topics from featuring in section A. they will have less scenario than in section A.

ZICA Advanced Stage

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