Arsi University, M.Sc.

in Accounting and Finance

(1st year, 2nd semester, 2012 E.C.)
Term Paper Assignment for Advanced Auditing and EDP (for Assignment# 4 to
6, you should download as needed to review in addition to the text book
contents related to the standard items)

1. Review and Report the Professional and Ethical Values of Accountants and Auditors
provided and published by the IFAC (Attached booklet named HANDBOOK OF THE
CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS – 16TH Ed) – Please review
and report only Part A and Part B from page 1 to 129

2. Review and Report the EDP Auditing (From the attached book: INFORMATION
TECHNOLOGY AUDITING and ASSURANCE – 3rdEd) – Please review and report Chapter
1, 2 and 3, i.e, CHAPTER 1 - Auditing and Internal Control; CHAPTER 2 - Auditing IT Governance
Controls and CHAPTER 3 - Security Part I: Auditing Operating Systems and Networks)

3. Review and Report the EDP Auditing (From the attached book: INFORMATION
TECHNOLOGY AUDITING and ASSURANCE – 3rdEd) – Please review and report Chapter
4, 7 and 12, i.e, CHAPTER 4 - Security Part II: Auditing Database Systems, CHAPTER 7 - Computer-
Assisted Audit Tools and Techniques, CHAPTER - 12 Business Ethics, Fraud, and Fraud Detection)

4. Review and Report the following Components of International Standards

on Auditing as published by IAASB:
 220 Quality control for an audit of financial statements
 230 Audit documentation
 240 The auditor's responsibilities relating to fraud in an audit of financial statements
 250 Consideration of laws and regulations in an audit of financial statements
 260 (Revised) Communication with those charged with governance
 265 Communicating deficiencies in internal control to those charged with governance
and management
 300 Planning an audit of financial statements
 315 (Revised) Identifying and assessing the risks of material misstatement through
understanding the entity and its environment
 320 Materiality in planning and performing an audit
 330 The auditor's responses to assessed risks

5. Review and Report the following Components of International Standards

on Auditing as published by IAASB:
 402 Audit considerations relating to an entity using a service organization
 450 Evaluation of misstatements identified during the audit
 500 Audit evidence
  501 Audit evidence – specific considerations for selected items
 505 External confirmations Title
 510 Initial audit engagements – opening balances
 520 Analytical procedures
 530 Audit sampling
 540 Auditing accounting estimates, including fair value accounting estimates, and
related disclosures

6. Review and Report the following Components of International Standards

on Auditing as published by IAASB:
 560 Subsequent events
 570 (Revised) Going concern
 580 Written representations
 610 (Revised) Using the work of internal auditors
 620 Using the work of an auditor's expert
 700 (Revised) Forming an opinion and reporting on financial statements
 701 Communicating key audit matters in the independent auditor’s report
 705 (Revised) Modifications to the opinion in the independent auditor's report
 706 Emphasis of matter paragraphs and other matter paragraphs in the independent
auditor's report
 720 (Revised) The auditor's responsibilities relating to other information

7. Review and Report the Auditing Processes and Approaches for Current Assets ( Cash,
Receivables, Inventory, and Other) in a merchandising company
8. Review and Report the Auditing Processes and Approaches for Non-Current Assets
(PPE, Lease, Intangibles, Investments on financial assets, and others) in manufacturing
or Construction Company.
9. Review and Report the Auditing Processes and Approaches for Current and Non-
Current Liabilities (Payables, Accruals, Deferrals, Bank ODs, Bank Borrowings – short
and long term, Lease Payables, and Other liabilities) in financial institution or related
Company.
10. Review and Report the Auditing Processes and Approaches for Revenue and
Expenditure Cycle a trading or service rendering company
11. *Review and Report the Auditing Processes and Approaches for EDP components in
a convenient merchandising companies.
12. *Review and Report the Auditing Processes and Approaches for EDP components in
a convenient manufacturing companies.
Instruction on Proper writing and reporting format:
1. Use proper English applicable for report writing including editions, page setting, & punctuation.
2. Suitable paragraph and table use with the annex indication as needed.
3. Fonts: Arial or Times New Roman; Size- Titles (14) and other contents (12)
4. Line and paragraph spacing: 1.5
5. Page margins: Left (1 out), Right (upto 6.5 in), Top(1 out), and Down (9 in),
6. Purpose of the work: that really gives you the opportunity to consider and appreciate the real auditing
processes and approaches.
7. Actual data obtained: witness for the reliability and validity of the actual works.
8. Each Number is allocated for a group, so identify yours and carry out the assignment as per the
instructions aligned to each assignment number accordingly.
9. For the total assignment of a group, the review report should not exceed 40 pages, but not less than
30 pages based on the instruction # 1 to 8 above of the word documents.
10. Attach the finalized work to the email of your instructor only through word document format.