COURSE OUTLINE

Advanced Auditing & Assurance

M.Com. Part II (Annual System)
Course Objectives:
. !o e"ui# t$e student %it$ t$e latest &no%ledge o' auditing
(. !o #rovide student %it$ t$e s&ills and tec$ni"ues em#loyed in a
modern audit
). !o develo# an o' auditing in t$e student in line %it$ t$e International
standards
*. !o e"ui# t$e student %it$ latest tools and tec$ni"ues in internal and
e+ternal audit
Topic Source
AUDIT, ASSURANCE SERVICES & THEORY OF AUDITING
,volution o' Auditing- Major In.uences on Auditing-
/ield o' Auditing- 0asic Conce#ts o' Auditing-
,vidence in Auditing.
!$e nature o' assessing services- Audit- ISA (11-
Audit and small and medium si2ed entities- !$e
c$ronology o' an audit- !$e #ostulates o' auditing-
Agency t$eory- Im#orted t$eories.
C$a#ter 1 0oo&
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C$a#ter 1 0oo&

STATUTORY AUDIT & REGULATION

!$e statutory audit re"uirement- t$e structure o' t$e
accounting and auditing #ro'ession and t$e I/AC.
3egulation- monitoring and su#ervision- Auditor
rig$ts and duties- Cor#orate 4overnance in Pa&istan.
International standards on Auditing. Accounting
Standard 0oards
C$ 1)- boo&
LEGAL AND PROFESSIONAL CONSIDERATION:
Introduction- t$e Com#anies Ordinance- 56*.
A##ointment- "uali7cation and ineligibility o'
auditors- A##ointment #rocedures- Client Screening-
!$e engagement letter- ISA (1- 8egal status o' an
auditor- remuneration o' auditors- 3esignation and
removal o' auditors- 9uties- rig$ts and
res#onsibilities o' auditors- Consideration o' la%s
and regulations- ISA(:1.
C$a#ter 1* 0oo&

GROUP AUDITS.
4rou# accounting and $olding com#any auditors.
Princi#le auditors and ot$ers auditors. !$e
consolidation. ;oint audits. Auditing 'oreign
subsidiaries.
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ANALYTICAL PROCEDURES, ACCOUNTING ESTIMATES AND

AUDITING FAIR VALUES
Analytical Procedures- ISA :(1- Accounting
,stimates- ISA :*1- Auditing 'air value
measurements- and disclosure- ISA :*:.
C$a#ter 15 0oo&

COMPUTER IN AUDITING: ISA !", !#, IAPS "!!", "!!#,

"!!$, "!!% & "!!&.
A##roac$ to Com#uter Auditing- !y#es o' Com#uter
Systems- C$aracteristics o' a CIS ,nvironment-
Internal Controls in a CIS ,nvironment.
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Auditing in a CIS environment- ISA *1. 3is&
assessments and internal control in a CIS
environment- IAPS 116. Standalone
microcom#uters- IAPS 11. Online com#uter
systems- IAPS 11(- 9ata 0ase System- IAPS 11)-
8imitations o' accounting and control systems- =se
o' service organi2ations 'or com#uter 'acilities- ISA
*1(- Systems develo#ment- Com#uters in audit
management- Com#uter Security issues in
com#uterised systems.
C$a#ter 1 0oo&

FORMING AN AUDITING 'UDGMENT: ISA #(!, $!#, )!",

)"!, )(!, )*!, )%!, *"! & *#!.
Overall revie% o' 7nancial statements. O#ening
balances- ISA :1. Com#aratives- ISA >1. Ot$er
in'ormation in documents containing audited
7nancial statements- ISA >(1. Subse"uent events-
ISA :<1. Contingencies- ISA :1- 4oing Concern- ISA
:>1. Management 3es#onsibilities- ISA :61-
Communication o' audit matters %it$ t$ose c$arged
%it$ governance- ISA (<1. Com#letion o' t$e audit-
ISA )(1.
C$a#ter ( 0oo&

MANAGEMENT LETTERS
Management 8etters. !$e contract o' management
letters. Procedures 'or assembling and submitting
t$e management letter. Points to note %$en dra'ting
management letter ? #ossible re#orting items.
Management letters ? e+am#les o' layout.
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AUDIT REPORTING ISA *!!

Statutory re"uirement. !$e auditor@s re#ort on
7nancial statements- ISA >11. Auditors re#ort to
members o' li'e and non ? li'e insurance com#anies.
Modi7ed re#orts. !$e audit 3e#orts on sole
#ro#rietors$i# and #artners$i#. Audit #ractices
manual #ublis$ed by ICAP. 3e#orting on com#liance
%it$ international 7nancial re#orting standards- IAPS
1*.
C$a#ter ) 0oo&

IMPROVING AUDIT EFFECTIVENESS

Integrating Audit !ec$ni"ues- 3is& ? based Auditing-
Audit A##roac$ o' International /irms ? A Case
Study- In ? de#t$ Ano%ledge o' Auditee@s 0usiness
Model.
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3ecommended !e+ts:
. Advanced Auditing- CA ,+am study te+t by Pro'essional 0usiness
Publications 8a$ore
(. 4u#ta Aamal- Contem#orary Auditing- !A!A Mcgra% Bill Ce% 9el$i
India (8atest ,dition).
). International Standards on Auditing (8atest).
*. Ica#.org.#&
:. Sec#.gov.#&