Course

Unit 1

Regulatory environment

International regulatoservices;rks for audit and assurance services – Current issues and developments; need for laws, regulations, standards and other guidance relating to audit, assurance and related services; the need for the legal and professional framework including:

(i) public oversight of audit and assurance practice (ii) the impact of corporate governance principles on audit and assurance practice (UK: the impact of the UK Corporate Governance Code on audit and assurance practice) (iii) the role of audit committees and impact on audit and assurance practice.

Unit 2

Code of ethics and conduct and Professional responsibilities and liability

Code of Ethics for Professional Accountants – Professional and ethical developments – Laws and regulations – Fraud and error – Professional liability, Identify and respond to threats to the fundamental principles, conflict of interest, Ethical implications of the external auditor providing non-audit services to a client including an internal audit service; responsibilities of management and auditors for fraud and error; Describe the factors to determine whether or not an auditor is negligent and discuss the auditor’s potential liability in given situations. – Compare and contrast liability owed to client with liability owed to third parties (i.e. contract vs establishing a duty of care); ways in which liability may be restricted including the use of liability limitation agreements; Discuss and appraise the principal causes of audit failure and other factors that contribute to the ‘expectation gap.’

Unit 3

Quality control and Practice Management

Quality control (firm-wide) Explain the principles and purpose of quality control of audit and other assurance engagements, Describe the elements of a system of quality control relevant to a given firm. – Evaluate the quality control procedures that are in place for a given firm – Advertising, tendering and obtaining professional work and fees – Professional appointments

– Discuss current developments in business practices, practice management and audit methodology and evaluate the potential impact on the conduct of an audit and audit quality.

Unit 4

Planning, materiality and assessing the risk of misstatement and Evidence

Planning, materiality and assessing the risk of misstatement, define materiality and performance materiality and demonstrate how it should be applied in financial reporting and auditing. – Evaluate business risks, audit risks and risks of material misstatement for a given assignment. – Discuss and demonstrate the use of analytical procedures in the planning of an assignment – Evidence and testing considerations – Audit procedures and obtaining evidence

– Using the work of others – Discuss current developments in emerging technologies,

including big data and the use of data analytics and the potential impact on the conduct of an audit and audit quality.

Unit 5

Completion and review and Reporting

Subsequent events and going concern – Completion and final review; Use of analytical procedures in evaluation and review; Assess whether an engagement has been planned and performed in accordance with professional standards and whether reports issued are appropriate in the circumstances – Auditor’s reports – Reports to those charged with governance and management – Determine the form and content of an unmodified auditor’s report and assess the appropriateness of the contents of an unmodified auditor’s report – Recognise and evaluate the factors to be taken into account when forming an audit opinion in a given situation and justify audit opinions that are consistent with the results of audit procedures. – Critically appraise the form and content of an auditor’s report in a given situation. – Assess whether or not a proposed audit opinion is appropriate.

24COM351 ADVANCED AUDIT AND ASSURANCE – I 3 0 0 3

Course outcome:

Students will be able to

CO1: Understand the legal and regulatory environment and framework and its impact on audit and assurance practice.

CO2: Demonstrate the ability to work effectively and efficiently on assurance and other service engagement within a professional and ethical framework and develop the knowledge, competence, skepticism and skills of an auditor.

CO3: Assess and recommend appropriate quality control policies and procedures in practice management and recognise the auditor’s position in relation to the acceptance and retention of professional appointments.

CO4: Identify and formulate the work required to meet the objectives of audit assignments and apply the International Standards on Auditing.

CO5: Evaluate findings and the results of work performed and draft suitable reports on assignments.

• ACCA Strategic Professional – Advanced Audit and Assurance (AAA) Study Text of BPP/Kaplan/Becker
• K Basu: Auditing principles and Techniques, Pearson Education

• Aruna Jha : Elements of Auditing, Taxmann