COURSE GUIDE & COURSE OVERVIEW

COURSE GUIDE OUTLINE

o Course Description
o Course Objectives
o Learning Outcomes
o Graduate Attributes
o Pre-requisites
o Course Outline
 COURSE OUTLINE
AUDITING & ASSURANCE PRINCIPLES
o Basic or Fundamental Audit Considerations 
o Fundamentals of Assurance & Non-assurance Services 
o Introduction to Independent Audit of FS 
o Audit Evidence and Documentation 
o Quality Control Standards 
o Preliminary Engagement Activities 
o Audit Planning, Materiality and Risks 
o Understanding the Entity and Its Environment 
o Understanding and Evaluating Internal Control 
o Transaction Cycles, audit procedures and controls 
o Responding to assessed risks 
o Fraud, errors & non-compliance 
o Audit opinion expression and report writing 
o Audit sampling and post audit responsibilities 
o  Synchronous lecture  Asynchronous Lectures
 COURSE OUTLINE
BASIC AUDIT CONSIDERATIONS
o Maintaining Skeptical Attitude
o Objective of Auditors
o Rationale or Philosophy of Auditing
o Ethical Considerations
o Framework of Auditing
o Inherent limitations
o Responsibilities until the end
o Exercise of Professional judgement
o Application of PSA
AUDIT CONSIDERATIONS
BASIC CONSIDERATIONS
ADVANCED CONSIDERATIONS
AUDIT CONSIDERATIONS
PERPETUAL (GENERIC)
PERIODIC (SPECIFIC)
 BASIC CONSIDERATIONS
MAINTAIN SKEPTICAL ATTITUDE
OBJECTIVES OF AUDITOR
RATIONALE OF FS AUDITING
ETHICAL REQUIREMENTS
FRAMEWORK OF AUDITING
INHERENT LIMITATIONS
RESPONSIBILITIES
EXERCISE OF PROF. JUDGEMENT
APPLICATION OF PSA
 SKEPTICAL ATTITUDE
NATURE APPLICATIONS
 A questioning mind;  Audit evidence that contradicts
 Being alert to conditions other audit evidence obtained;
which may indicate  Conditions that may indicate
possible misstatement; possible fraud;
 Information that brings into
 A critical assessment of
question previously obtained
audit evidence documents and responses to
 Recognition of existing inquiries;
circumstances that may  Circumstances suggest the
cause misstatement of need to perform additional
FS audit procedures.
 Objectives of the Auditor
 To be reasonably assured that the FS are
free from material misstatement;
 Enable the auditor to express an opinion
on the FS, disclaim an opinion or
withdraw from the engagement, if
legally permissible;
 To report on the FSs, and communicate
as required by the PSAs, in accordance
with the auditor’s findings.
 Rationale of F.S. Auditing
 Complexities of TIPS;
 Remoteness of the company;
 Interests conflict (potential bias);
 Management of risks (minimize it);
 Expertise of auditors (Perceived);
 Significant consequences of errors.
 Ethical Considerations
 Professional behavior;
 Integrity;
 Confidentiality of information;
 Professional competence & due care;
 Objectivity (independence);
 Framework of Auditing
 Audit benefits the public;
 Independence from constraints;
 Data audited are verifiable;
 Consistent application of PFRS;
 Effective IC reduces the ROMM;
 No existing long-term conflicts;
 Trend will continue in the future.
 Inherent Limitations
 Failures of internal control;
 Evidential nature (persuasive);
 Associated bias & SMN;
 Representation of management;
 Sampling & Non-sampling risks.
 Responsibilities-Auditor
 Assess whether FS is free from MM;
 Identify and assess ROMM;
 Reduce risks to acceptably low level;
 Formulate opinion or disclaim;
 Issue the opinion or disclaimer;
 Report the findings to users;
 Express opinion.
 Responsibilities-Management
 Preparation & presentation of FS;
 Design, implement & maintain IC;
 Provide access to all information
relevant to the audit;
 Provide additional information the
auditor may request;
 Provide unrestricted access to persons;
 PROFESSIONAL JUDGEMENT
 NATURE  APPLICATIONS
 Application of relevant  Materiality and Audit Risk;
training, knowledge and  Extent, nature and timing of
experience; audit procedures;
 Making informed  Evaluation of sufficiency of
decision in the context of appropriate audit evidence;
accounting, auditing and  Evaluation of management’s
ethical standards; judgment in applying
 Proper interpretation of applicable FRF;
relevant ethical  Drawing conclusions on the
requirements & PSAs. reasonableness of estimate.
ADVANCED CONSIDERATIONS
PRE-ENGAGEMENT
ENGAGEMENT (PROCESS)
POST-ENGAGEMENT
 PRE-ENGAGEMENT
AUDIT BASIS
PRE-CONDITIONS OF AUDIT
AUDIT QUALITY
TERMS OF ENGAGEMENT
 AUDIT BASIS
PRE-CONDITIONS OF AUDIT
TERMS OF ENGAGEMENT
 PRE-CONDITIONS
APPLICABLE F. R. FRAMEWORK
MANAGEMENT’S ACKNOWLEDGEMENT
ASSOCIATED RESPONSIBILITIES
 QUALITY CONTROL
AUDITOR’S QUALIFICATIONS
CLIENT’S INTEGRITY
ETHICAL REQUIREMENTS
 AUDITOR’S QUALIFICATIONS
COMPETENT, CAPABLE
UNIQUE OR DIFFERENT
TIME & OTHER RESOURCES
ETHICAL REQUIREMENTS
 ENGAGEMENT CONSIDERATIONS
GENERAL CONSIDERATIONS
SPECIFIC CONSIDERATIONS
 GENERAL CONSIDERATIONS
FRAUD, ERRORS & NON-COMPLIANCE
EVIDENCE GATHERING & DOCUMENTS
QUALITY CONTROL CONSIDERATIONS
 SPECIFIC CONSIDERATIONS
GENERAL RESPONSES TO AUDIT RISKS
SPECIFIC RESPONSES TO AUDIT RISKS
PRELIM. & SUBSEQUENT ASSESSMENTS
 GENERAL RESPONSES
ASSIGN MORE EXPERIENCED STAFF
MORE SKILLED OR EXPERTS
APPLY UNPREDICTABLE PROCEDURES
CLOSER SUPERVISION
 SPECIFIC RESPONSES
TESTING OF CONTROLS
SUBSEQUENT TESTS/PROCEDURES
OPTIONAL VS. MANDATED STEPS
 OPTIONAL PROCEDURE
TESTING OF CONTROLS
ANALYTICAL REVIEW PROCEDURES
 MANDATED PROCEDURES
TESTING OF TRANSACTIONS &
ACCOUNT BALANCES
CONCLUDING ANALYTICAL TESTS
Father. Entrepreneur. Auditor. Researcher

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