ACA SYLLABUS AUDIT & ASSURANCE MODULE

AUDIT AND ASSURANCE

Module aim
To develop your understanding of the critical aspects of managing an assurance engagement, including acceptance, planning, managing, concluding and reporting.

The key areas are:

1 Legal, ethical and current issues You will learn about the regulatory, professional and ethical issues relevant to those carrying out an assurance engagement, once completed you will be able to: a. identify and advise on the ethical issues that may arise on an assurance engagement b. judge when to raise legal and ethical matters with senior colleagues or external parties c. explain, in non-technical language, assurance issues being dealt with by the national standard-setting body and the IAASB and discuss the purpose of audit laws and standards d. explain the ways in which national legislation affects audit and assurance work e. explain the principles behind audit requirements and describe how national and international bodies are working to harmonise auditing requirements f. describe the principal causes of audit failure and the expectations of users of audit reports. 2 Accepting and managing engagements You will learn about the processes involved in accepting and managing assurance engagements and how quality assurance reduces the risks involved. Once completed you will be able to: a. identify the legal, professional and ethical matters that a firm must consider before accepting an audit or assurance engagement b. identify the sources of liability arising from an assurance engagement and their impact c. formulate a suitable approach for audit or assurance engagements d. discuss the principles and purpose of quality control on audit or assurance engagements e. demonstrate how the assurance function can be monitored through review procedures 3 Planning assurance engagements You will learn how to plan assurance engagements in accordance with appropriate standards. Once completed you will be able to: a. explain why its important to understand the business when planning an engagement and identify ways of gaining knowledge and understanding of a clients business b. identify the risks arising from, or affecting, a set of business processes and assess their implications for the audit or assurance engagement such as; error, fraud and noncompliance with law and regulations and assess their potential impact on an organisation c. identify the components of risk for a specified audit or assurance engagement, including the breakdown of audit risk into inherent risk, control risk and detection risk d. specify and explain the steps necessary to plan, perform and conclude and report on the audit of the financial statements in accordance with appropriate auditing standards. 4 Concluding and reporting on assurance engagements You will learn how to plan, perform, conclude and report on assurance engagements in accordance with the appropriate standards. Once completed you will be able to: a. evaluate the results and conclusions from assurance tests and procedures b. draw conclusions on an audit or assurance engagement which are consistent with the results found in the audit or assurance work c. draft suitable extracts for an audit or assurance report on the basis of information you have, including statements of facts, their potential effects, and recommendations for action d. advise on reports to be issued to those responsible in accordance with International Standards on Auditing, legislation, regulation and codes of corporate governance e. explain the elements of the auditors report in accordance with the International Standards on Auditing and statutory requirements.
ACA Audit & Assurance syllabus 2010 2