Aim
To
develop knowledge and understanding of the audit
process and its application for both external
regulation and for business control and development
for a range of organisations.
Objectives
On completion of this paper candidates should
be able to:
-
understand the nature, purpose and scope
of auditing and internal review, the role
of external audit and its regulatory framework
and the role of internal audit in providing
assurance of the risk management and control
framework of the organisation
-
identify risks and plan work to meet the
objectives of the audit or review assignment
-
Identify and describe the work that will
be required and its method of execution
in order to draw appropriate conclusions
-
evaluate the outcome of an assignment and
prepare appropriate reports for users both
internal and external to the organisation
including making recommendations to enhance
business performance and
-
demonstrate the skills expected in Part
2.
Content
Audit framework nature of a statutory audit,
responsibility for fraud and error, consideration
of law in an external audit, codes of conduct,
fundamental principles.
Internal
audit and review role of internal audit
and its relation to corporate governance, internal
audit, risk management and organisational control,
internal audit and achieving corporate objectives.
Planning
and risk defining objectives for audit and
review assignments, risk assessment, materiality,
accounting and internal control systems, control
evaluation, audit plans, identifying opportunities
to add value to the business, administration
and control.
Performance
of audits and reviews financial statement
assertions, procedures for obtaining audit evidence
including balance and transaction testing, analytical
procedures, CAATs and management representations,
sampling techniques.
Reporting
communications to management, format of
reports (statutory and non-statutory), audit
opinions, reporting on assignment objectives. |
