CPA 010: Auditing and Assurance
Categories: Certified Public Accountants (CPA)
About Course
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GENERAL OBJECTIVE
This paper is intended to equip the candidate with knowledge, skills, and attitudes that will enable him/her to conduct the audit of an entity
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STUDENTS ALSO BOUGHT
- CPA 011: Management Accounting
- CPA 012: Public Finance and Taxation
- CPA 013: Leadership and Management
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What Will You Learn?
- The regulatory framework governing the external audit
- of financial statements
- International Standards on Auditing where appropriate
- and the International Code of Ethics for Professional Accountants (including International Independence Standards)
- Planning an audit, audit programs, and conducting an audit
- Audit risk assessments (excluding group accounts)
- Application of the risk-based audit approach to the audit of limited companies
- Preparation of non - complex audit reports for audit engagements.
Course Content
NATURE AND PURPOSE OF AUDIT
-
Nature and objectives of an audit
09:44 -
Development of audit (early audit and modern audit)
25:16 -
Users of audited financial statements
23:13 -
Features of audits
11:04 -
Distinction between auditing and accounting
09:50 -
Types and classification of audits
44:24 -
Situations when different audits are performed (interim, continuous, final, operational)
36:51 -
Advantages and disadvantages of various types of audits
09:02 -
Nature of work done for different audits
20:22 -
Inherent limitations of an audit
17:51
ASSURANCE AND NON-ASSURANCE ENGAGEMENTS
-
Definition and objectives of assurance engagements
10:53 -
Audit as an assurance engagement
18:08 -
Elements of an assurance engagement
28:15 -
Types of assurance engagements (Audit, Review assignments)
52:13 -
Differences between audit and review engagements
17:15 -
International Standard on Assurance Engagement-ISAE 3000
27:11 -
Accepting appointment to perform assurance engagement
28:25 -
Review of interim financial information – ISRE 2410
33:53 -
Levels of assurance and reports issued on assurance engagements
35:45 -
Non-assurance engagements (Agreed upon procedures engagement -ISRS 4400 and compilation assignments-ISRS 4410
15:25 -
Attestation and direct reporting engagements
26:04
REGULATORY FRAMEWORKS FOR EXTERNAL AUDITS
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Appointment of the auditors
01:30:38 -
Qualifications and disqualifications of auditors
01:03:50 -
Removal and resignation of auditors
21:31 -
Remuneration of the auditors
33:28 -
Rights and duties of auditors
18:35 -
Mechanisms of regulations of auditors-role of professional bodies, Audit committee, rotation of audit firms
14:51
PLANNING AND RISK MANAGEMENT- OBTAINING, ACCEPTING AND RETENTION OF AN AUDIT ENGAGEMENT
-
Matters to consider before and after acceptance of nomination
00:00 -
Pre-conditions of an audit
17:46 -
Engagement letter, procedure of sending letter, purposes and contents of the letter-ISA 210
29:11 -
Circumstances for revision of engagement terms
44:38 -
Understanding the entity and its environment: Background information about the entity or client; Ways of gathering knowledge about the business; Reasons/importance of information gathered about the client; Reasons of review of previous audit files and communication with previous auditors
13:50 -
Overview of audit process
25:33
PROFESSIONAL ETHICS/CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS
-
Importance of the professional ethics
00:00 -
Basic/fundamental principles for Code of Ethics for accountants
00:00 -
Other professional guidelines on audit fees, conflict of interest, advertising and publicity and opinion shopping by clients
00:00 -
Auditors independence /objectivity and its importance
00:00 -
Threats to independence and safeguards
00:00 -
Threats on adherence to other fundamental principles and safeguards to the threats
00:00 -
Development and status of ISAs in execution of audits
00:00 -
Purposes/importance of adoption of ISA in the audit.
00:00 -
Relationship between International Standards of Auditing and National Auditing Standards
00:00
AUDIT RISK ASSESSMENT
-
Components of audit risk (Inherent, Control and Inherent risks)
28:39 -
Assessment of different types of audit risks
20:56 -
Factors leading to increase or decrease of inherent, control and detection risks
30:00 -
Adoption of risk based audit, reasons and procedure
23:21 -
Advantages and Disadvantages of the approach
13:08 -
Evaluating and prioritising risk and control factors
21:34 -
Mechanisms to minimise the risks associated with client audits.
27:03
AUDIT PLANNING
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Purpose and challenges in audit planning
24:56 -
Planning for new and existing clients
32:44 -
Development of the overall audit strategy
23:35 -
Contents of audit planning memorandum/ overall plan
30:24 -
Relationship between audit strategy and audit plan
23:44 -
Design of audit programs, importance and problems of the programs
32:30 -
Impact of material misstatements on audit strategy and degree of work done
24:28 -
Influence of interim audit work on the year end/final audit.
27:28
AUDIT DOCUMENTATION
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Reasons and importance of audit documentation
24:19 -
Sources, features and purposes of working papers
19:24 -
Storage of working papers-permanent audit file and current audit file, auditors note book or diary
15:39 -
Lien or custody on working papers
15:29 -
Standardisation of working papers – advantages and disadvantages
15:14 -
Form and content of working papers
16:57 -
Automated working papers
16:44 -
Quality control policies and procedures implemented by audit firm
20:05 -
Objectives of quality controls to the audit firm/ auditors
16:20 -
Peer review and its objectives
14:06
INTERNAL CONTROL SYSTEMS (ICS)
-
Objectives of internal control system
18:20 -
Component of internal control system
10:56 -
Features of Internal control system
15:11 -
Designing of internal control system
14:54 -
Auditors and management responsibility over ICS
16:26 -
Advantages and disadvantages /inherent limitations of ICS
17:14 -
Indicators of weaknesses in ICS and actions taken by management
18:35 -
The evaluation of internal control systems by auditors using Internal Control Questionnaire, Flow charts and narrative notes
12:26 -
Tests of controls on specific control environments
16:05 -
Internal controls theory and practice-sales and debtors, purchases and creditors, inventories and work in progress, fixed assets, salaries and wages
22:51 -
Communication of improvements on ICS weaknesses/ risks associated – Management letter.
13:31
INTERNAL AUDIT FUNCTION
-
Scope and objectives of internal audit
19:38 -
Criteria of using internal audit work
14:21 -
Areas of support on external auditors’ work
16:48 -
Internal audit review reports and actions by management and those charged with governance
14:24 -
Design of risk based internal audit plan
16:29 -
Internal audit key performance indicators
11:29 -
Managing and monitoring follow up of audit recommendations made to board/ management.
19:00 -
Outsourcing internal audit function-advantages and disadvantages
24:27 -
Audit committee-functions, merits and demerits
13:34 -
Internal check systems-scope, features, advantages and disadvantages
12:40 -
Information technology threats and control
15:55 -
Auditors duty on compliance with laws and regulations.
13:42
OVERVIEW OF FORENSIC ACCOUNTING
-
Nature, purpose and scope of forensic accounting
14:48 -
Types of forensic investigations: corruption, asset misappropriation, financial statement fraud, others
11:56 -
Asset Recovery process and legal framework
15:48
ERRORS, FRAUDS AND IRREGULLARITIES
-
Differences between error and frauds
13:08 -
Types of errors-omission, commission, principle, reversal of entries
13:34 -
Types of Frauds-Teeming and lading, ghost employees, window dressing, misappropriation of goods and fraudulent financial reporting
22:06 -
Causes of frauds and fraud triangle
16:40 -
Indicators of errors and frauds
14:12 -
Detection and prevention of errors and frauds and deterrence-role of internal audit
19:48 -
Materiality and Implications of errors and frauds in the financial statements
12:10 -
Impact of errors and frauds on the audit plan
10:54 -
Reporting on error and frauds
15:31 -
External auditors and Management responsibility on error and frauds
22:45 -
Auditors professional skepticism.
15:50
AUDIT EVIDENCE
-
Financial statement assertions and audit evidence
19:26 -
Types and features of audit evidence (sufficiency, reliability and relevance)
08:18 -
Audit evidence gathering procedures/ techniques
15:05 -
Materiality and limitations of audit evidence
14:57 -
Financial statement assertions and audit evidence
00:00 -
Audit sampling techniques – statistical and non-statistical
17:02 -
Analytical reviews procedures- nature, objectives, timing and extent of support evidence
15:20 -
Types of analytical Procedures-Variance analysis, reasonableness tests, trend analysis
12:33 -
Using the work of experts- areas of support and considerations
14:34 -
Using management representations (importance, procedures adopted and matters covered).
14:39
AUDITING IN THE PUBLIC SECTOR
-
Introduction to auditing in the public sector and regulatory provisions
19:54 -
Objective and scope of public sector audit (compliance, performance, financial, value for money)
12:18 -
Establishment, mandate and functions of public sector auditors
14:48 -
The parties to audit in public sector-auditor, responsible party and intended users
12:49 -
Role of internal audit function in public entities
12:11 -
Relationship between external and internal auditors in the public sector
13:48 -
Audit reports by office of Auditor General
14:43 -
Functions of audit advisory board and executive committee in Auditor General office
14:00
AUDIT REPORTS
-
Purposes of auditors’ report and concept of true and fair view
00:00 -
Legal /Statutory provisions on audit reports
00:00 -
Basic elements contents of audit reports
00:00 -
Emphasis of the matter paragraph and key audit matters
00:00 -
Types and Consequences of different types of audit reports issued
00:00 -
Features of unqualified and qualified audit reports
00:00 -
Reasons for qualifications of audit reports (Limitation of scope, inherent uncertainties, disagreements)
00:00 -
Types of qualifications-disclaimer, except for and adverse opinions
00:00 -
Overall audit review and finalisation
00:00 -
Subsequent events/Post balance sheet events review (adjusting and non – adjusting events, auditor’s responsibility and audit procedures)
00:00 -
Going concern review (Auditors and management responsibility, indicators of going concern difficulties, audit procedures, mitigation plans and reporting)
00:00 -
Management representations on contentious matters affecting financial statements like guarantees made, capital commitments, borrowings, unusual accounting adjustments
00:00 -
Review of compliance with accounting policies, opening balances, prior period audits by other auditors
00:00 -
Format for presentation of independent auditor’s report.
00:00
AUDITING IN A COMPUTERISED SYSTEM
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Audit objectives in computerised systems
00:00 -
Differences between computerised and manual systems
00:00 -
Benefits and drawbacks of computerised accounting systems
00:00 -
Types of controls in computerised systems (Administrative, system development, processing controls, application controls, master files and standing data
00:00 -
Auditors use of computers in the course of audit
00:00 -
Planning the audit in computerised systems
00:00 -
Audit approaches – audit around, with and through the computer and circumstances when each is applied
00:00 -
Loss of audit trail, causes and measures to mitigate the loss of audit trail
00:00 -
Computer Assisted Audit Techniques (CAATS) – Audit software and test data
00:00 -
Types of audit software and functions and types of test data
00:00 -
Factors considered before using CAATS and steps in CAATS application
00:00 -
Advantages and disadvantages of CAATS
00:00 -
Use of embedded audit modules and integrated test facilities
00:00 -
Information security controls (Encryption, Firewalls, Passwords, Antivirus)
00:00
CONTEMPORARY AND EMERGING ISSUES IN AUDIT
-
E- commerce auditing
00:00 -
Cloud documentation
00:00 -
Use of data analytics tools in audit (Anomaly detection, diagnostic analysis, predictive analysis.
00:00
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