You are on page 1of 20

CAEA 3205/CAEA3228 ADVANCE AUDITING

Introductory lecture

||
E learning
x Access e learning at the following link
http://adec.um.edu.my/sem2/main
Key in the username and password similar to
your email

You can assess all lecture notes, announcement,


tutorial question from there

|
Course Content and Requirement
- Refer to your handbook

|
ÿain textbook

|
Tutorial Slots
Tue 10am ʹ 12noon ʹ BSB 5
Tue 2pm to 4pm ʹ BSB 5
Wednesday 10am to 12pm ʹ BSB 05
Thursday 10 am -12noon ʹ BSB 04
Thursday 2pm to 4pm ʹ BSB 04
Thursday 5pm to 7pm ʹ to be determined

|
Important Dates
ÿid semester exam ʹ
10 February 2.00pm to 4.00pm
Venue ;Dewan Peperiksaan

There wont be replacement exam if you fail to


attend this !

|
* 

Understand why studying auditing can be valuable to you and why it is different from
studying accounting.
Understand why there is a demand for auditing and assurance.
Understand intuitively the demand for auditing and the desired characteristics of
auditors and audit services through an analogy to a house inspector and a house
inspection service.
Understand the meaning of assurance services.
Understand auditing as a form of assurance services and the objective of an audit of
financial statements.
Understand the inherent limitations of an audit and concept of reasonable assurance.
Understand the basic definition and 3 fundamental concepts of a financial statement.
Understand why on most engagements and auditor tests only a sample of transactions
that occurred.
Understand the basic financial statement auditing process and the phases in which an
audit is carried out.
Know the requirements for financial statement audits under the Companies Act 1965.
Learn the basic elements of audit reporting.

|
* |

The Study of Auditing


@  
       
  



 


  



  
 
 
 
 

 
   

   
 

   !  "
   "   "

    
|
* 

The Demand for Auditing and


Assurance
@    
  
 
 
  
 


   

    
 


 
 

|#
* 

Principals and Agents


 
 


 
       

   
 
  
 


ÿ

  

     

| |$
* 

The Role of Auditing

| ||
* 

Auditing, Attest, and Assurance


Services Defined
%

%   % 
& 



  ! 




   

 
  
  

  
 

 
     
 
  

  
 

 
  
 
| |
* 

Auditing, Attest, and Assurance


Services Defined
%

%   % 
& 


   


    
 

 !



  
!

 
      
 


| |
* 

Auditing, Attest, and Assurance


Services Defined
%

%   % 
& 


`     


 

 "
   
  
     


| |
* 

Averview of the Financial Statement Audit


Process

| |
ÿajor Phases of the Audit

  

#
    m 

$@@
%$#%

| |
* 

Audit Risk
%         
  ' "     "  
   " 
      
 (
@ 
  

 )  ! 



 
    


    !  

 
 


     



  


 

 


  
  

 
   
| |
* 

Auditor͛s Reporting

  * +   ,    



"  (
   - " +
  ,    

   "   (

| |
Example of audit report

| |#
| $