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Corporate Auditing syllabus

ACS 20510 units · 60 topicsAcademic year 2083/84
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Corporate Auditing

10 units

1. Introduction (4 LHs)

  1. Meaning, objectives, nature and scope of auditing
    1. Meaning, objectives, nature and scope of auditing
  2. Evolution of auditing practices
    1. Evolution of auditing practices
  3. Advantages and limitations of audit
    1. Advantages and limitations of audit
  4. Prevention and detection of error with practical dealings (rectification of error)
    1. Prevention and detection of error with practical dealings (rectification of error)
  5. Qualities of an auditor
    1. Qualities of an auditor
  6. Bookkeeping, accounting and auditing, auditing and investigation
    1. Bookkeeping, accounting and auditing, auditing and investigation
  7. Terms of audit engagement
    1. Terms of audit engagement.

2. Planning an Audit and Types of Audit (6 LHs)

  1. Knowledge and understanding of the organization
    1. Knowledge and understanding of the organization
  2. Audit program
    1. Audit program: Meaning, objectives, advantages and disadvantages
  3. Contents of audit program, techniques and preparation of audit program
    1. Contents of audit program, techniques and preparation of audit program
  4. Tolerable error, audit risks, sampling and determinants of sample size
    1. Tolerable error, audit risks, sampling and determinants of sample size
  5. Audit note books
    1. Audit note books: objectives, procedures and techniques and contents of audit notebooks
  6. Organization of audit staff
    1. Organization of audit staff: job description, responsibility assigned and liabilities defined
  7. Types of audit work
    1. Types of audit work: continuous audit, periodical audit, interim audit, partial audit, tax audit, cash audit, cost audit, management audit, data processing audit
  8. Scope of work to be determined
    1. Scope of work to be determined, instruction to the client, preparation by the auditor, division of work
  9. Audit files, audit working papers
    1. Audit files, audit working papers.

3. Internal Check and Control (6 LHs)

  1. Concept, objective, essential characteristics, advantages and disadvantages
    1. Concept, objective, essential characteristics, advantages and disadvantages
  2. Internal check and internal audit
    1. Internal check and internal audit: effects of internal control and internal audit, auditor's duties as regards internal check and internal control
  3. Use/adoption of distinctive ticks, routine checking, difference in balancing books
    1. Use/adoption of distinctive ticks, routine checking, difference in balancing books
  4. Concept of test checks, advantages and limitations
    1. Concept of test checks, advantages and limitations
  5. Difference between statutory audit and internal audit
    1. Difference between statutory audit and internal audit

4. Vouching (6 LHs)

  1. Concept, importance, objectives of vouching
    1. Concept, importance, objectives of vouching
  2. Vouching of cash transactions
    1. Vouching of cash transactions, vouching of payments, vouching of receipts, vouching of sales, credit and cash sales
  3. Internal checks as regard to cash sales, cash discount allowed and return
    1. Internal checks as regard to cash sales, cash discount allowed and return
  4. Credit sales
    1. Credit sales, review of internal check system as regard to credit sales, sales on approval basis, sales under hire purchases system, goods on consignment, goods sent on package and containers, return
  5. Vouching of purchase
    1. Vouching of purchase, cash purchase, internal check as regard to cash purchase, discount received and return, credit purchase, internal check as regard to credit purchase, discount received and return.

5. Audit of Impersonal Ledgers (2 LHs)

  1. Capital expenditure, revenue expenditure, and deferred expenditure
    1. Capital expenditure, revenue expenditure, and deferred expenditure
  2. Outstanding expenses and income
    1. Outstanding expenses and income
  3. Repairs and renewals
    1. repairs and renewals
  4. Prepaid expenses, contingent liabilities, and assets
    1. Prepaid expenses, contingent liabilities, and assets.

6. Verification and Valuation of Assets and Liabilities (6 LHs)

  1. Concept, importance
    1. Concept, importance
  2. Distinction between verification and vouching
    1. Distinction between verification and vouching, verification and valuation of assets, vouching and valuation, methods of valuation
  3. Valuation of fixed assets, current assets and wasting assets
    1. Valuation of fixed assets, current assets and wasting assets
  4. Auditor's position as regards to verification and valuation of assets
    1. Auditor's position as regards to verification and valuation of assets, Verification of liabilities, capital loans and long-term loans, trade creditors, outstanding liabilities for expenses, bills payable, contingent liabilities
  5. Confirmation and verification, concept of fair value measurement
    1. Confirmation and verification, concept of fair value measurement.

7. Audit of Limited Company (6 LHs)

  1. Nature of company audit
    1. Nature of company audit: preliminaries before company audit
    2. statutory audit
  2. Audit of preliminary expenses
    1. audit of preliminary expenses
  3. Audit of statutory general meetings
    1. audit of statutory general meetings
  4. Review of memorandum of association and articles of association. Audit of share capital
    1. review of memorandum of association and articles of association. Audit of share capital
  5. Issue of shares at par
    1. issue of shares at par
    2. premium
    3. and discount
  6. Issue of shares for other than cash
    1. issue of shares for other than cash
    2. bonus shares
  7. Calls in arrear and calls in advance
    1. calls in arrear and calls in advance
  8. Forfeiture and re-issue of forfeited shares
    1. forfeiture and re-issue of forfeited shares
  9. Transfer and conversion of shares
    1. transfer and conversion of shares
  10. Alteration of share capital
    1. alteration of share capital
  11. Audit of underwriting commission
    1. Audit of underwriting commission
    2. transfer fees
    3. brokerage
  12. Commission. audit of debentures
    1. and commission. Audit of debentures: Debentures issued at par
    2. discount
    3. and premium
  13. Redemption of debentures
    1. redemption of debentures
  14. Regular redemption and redemption at par
    1. regular redemption and redemption at par
    2. premium
    3. discount
  15. Redemption through purchase in open market
    1. redemption through purchase in open market
  16. Conversion of debentures into shares
    1. conversion of debentures into shares.

8. Audit Report (4 LHs)

  1. Meaning of audit report, content of audit report
    1. Meaning of audit report, content of audit report
  2. Types of audit report
    1. Types of audit report: statutory report, general report, qualified report, tax audit report
  3. Evaluation of audit evidence, adequacy, and appropriateness of audit evidence
    1. Evaluation of audit evidence, adequacy, and appropriateness of audit evidence.

9. Audit Programs and Procedures of different Classes of Audits (4 LHs)

  1. Audit of educational institutions
    1. Audit of educational institutions, co-operative societies, charitable institutions, NGO's and local government bodies
  2. Performance audit
    1. Performance audit: Concept, Objectives, and distinction between financial and performance auditing

10. Investigation (4 LHs)

  1. Concept of investigation
    1. Concept of investigation, difference between investigation and audit, causes for investigation and methods of investigation, identification of objectives of investigation
  2. Formulation of program, collection and examination of records and evidence
    1. Formulation of program, collection and examination of records and evidence
  3. Types of investigation
    1. Types of investigation: Investigation on behalf of incoming partners, prospective shareholders, prospective moneylenders and suspected frauds
  4. Duties and liabilities of an investigator
    1. Duties and liabilities of an investigator.