Level of Knowledge : Expert knowledge.
Objective . . .
To gain expert knowledge of current auditing practices and procedures and apply them in auditing engagements.
Contents . . .
- Audit strategy, planning and programming
Planning the flow of audit work; drafting of reports; audit strategy, planning, programme, and impor¬tance of super-vision; review of audit notes and working papers; principal's ultimate responsibility; extent of del¬egation; control over the quality of audit work; reliance on the work of other auditor, internal auditor or an expert.
- Internal control
Evaluation of internal control procedures; tech¬niques including questionnaire, flowchart; internal audit and external audit, coordination between the two.
- Special audit techniques
- Selective verification; statistical sampling.
- Special audit procedures; witnessing physical verification of assets, direct circularisation of debtors and creditors.
- Analytical review procedures.
- Improving the efficiency of auditing, systems auditing, risk-based auditing.
- Statements/Standards and Guidance Notes.
- Generally accepted accounting practices and auditing procedures. Statements on Standard Auditing Practices and Guidance Notes.
- Audit of limited companies: Statutory requirements under the Companies Act 1956; Audit of branches; joint audits. Concepts of true and fair and materiality and audit risk in the context of audit of companies.
- Audit reports; qualifications, notes on accounts, distinction between notes and qualifications, detailed observations by the statutory auditor to the management vis-a-vis obligations of reporting to the members; Special reports on offer documents.
- Dividends and divisible profits; financial, legal, and policy considerations with special reference to depreciation. 8. Special points in audit of public sector companies. Directions of Comptroller and Auditor General under Section 619; Concepts of propriety and efficiency audit.
- Rights, duties, and liabilities of auditors; Third party liability - nature and extent.
- Audit Committees and Corporate Governance.
- Investigation including Due Diligence.
- Cost audit, Environmental Audit, Energy Audit.
- Audit of public expenditure.
- Certificates under the Payment of Bonus Act, import/export control authorities, etc.; Distinction between certificates and reports; specific services to non-audit clients.
- Audit under different statutes, viz; income tax, other direct tax laws and indirect taxes.
- Special features of audit of banks, insurance companies, co-operative societies and non-banking financial companies.
- Special audit assignments like audit of bank borrowers, audit of stock exchange brokers and depositories; Inspection of special entities like banks, financial institutions, mutual funds, stock brokers.
- Professional Liability of Auditors: Code of Ethics with special reference to the relevant provisions of The Chartered Accountants Act, 1949 and the Regulations thereunder.
- Internal audit, management and operational audit: nature and purpose, organisation, audit programme; behavioural problems; Specific areas of management and operational audit involving review of internal control, purchasing opera-tions, manufacturing operations, selling and distri¬bution, personnel policies, systems and procedures. Aspects relating to concurrent audit.
- Audit under computerised environment: Computer auditing; specific problems of EDP audit, need for review of inter-nal control especially pro¬cedure controls and facility controls; techniques of audit of EDP output; use of computers for internal and man¬agement audit purposes; test packs, computerised audit programmes; involvement of the auditor at the time of setting up the computer system.
- Tata McGraw Book Co., New Delhi
- Contemporary Auditing
- Mcdonald & Evans, U.K.
- Advanced Auditing and Investigation
- Management Auditing: A questionnaire approach
- Auditing Today
- Compendium of Statements and Standards — Accounting and Auditing,
- Compendium of Guidance Notes Vol 1,11,111 and IV
John Wiley & Sons USA
- Modem Internal Auditing (A Ronald Press Publication)
- Victor Z. Brink and Herbert Witt
Other Relevant Books