----- ABOUT THE AUTHOR -----

Author is a visiting faculty of WIRC of ICAI having practical

knowledge of Auditing and Corporate & Business Law. Being
well-versed with practical & theoretical knowledge she often
uses real life examples to explain several concepts in simple
manner. She is a high quality orator and has even won prizes for
presenting paper on various technical topics like “Corporate
Social Responsibility”, “E-Commerce Opportunities in India”, etc.
presented at Regional and National Conclave organised by ICAI.
She is an expert faculty for Law & Audit and is well known for
use of Mnemonics and various memory techniques which helps
in remembering and retaining the content. She strongly believes
that proper learning and understanding leads to expertise.

CA KHUSHBOO SANGHAVI
 INDEX

TOPICS

1. Audit Planning, Strategy and Execution

2. Risk Assessment and Internal Control

3. Special Aspects of Auditing in an Automated Environment

4. Audit of Limited Companies

5. Audit Reports

6. Audit Committee and Corporate Governance

7. Audit of Consolidated Financial Statements

8A. Audit of Banks (For New Course)

8B. Audit of Banks (For Old Course)

9. Audit of Insurance Companies

10. Audit of Non-Banking Financial Companies

11. Audit under Fiscal Laws

12. Audit Of Public Sector Undertaking

13. Liabilities of Auditor

14. Internal Audit, Management and Operational Audit

15. Due Diligence, Investigation and Forensic Audit

16. Peer Review and Quality Review

17. Code of Ethics (Professional Ethics)

18. Auditing Standards, Statements and Guidance Notes

19. AMENDMENTS AT GLANCE

20. REVISION TEST PAPER – MAY 2019 – NEW COURSE

21. REVISION TEST PAPER – NOV 2018 – OLD COURSE

CA KHUSHBOO SANGHAVI
 STUDY SEQUENCE

TOPICS CHAPTER NO.

1. AUDIT OF LIMITED COMPANIES

• Sec 139: Appointment of Auditor
• Sec 140: Removal of Auditor
• Sec 141: Eligibility, Qualification & Disqualification of Auditor
• Sec 142: Remuneration of Auditor
• Sec 143: Rights & Duties of Auditor 4
• Sec 144: Auditor not to render certain services
• Sec 145: Signing Audit Report
• Sec 148: Cost Audit
• CARO, 2016
• Responsibilities of a Joint Auditor

2. AUDIT COMMITTEE AND CORPORATE GOVERNANCE

• Corporate Governance
• Audit Committee Under LODR regulations
6
(QUALIFIED & INDEPENDENT AUDIT COMMITTEE)
• Audit Committee under Sec 177 of the Companies Act, 2013
• Board of Directors

3. AUDIT OF CONSOLIDATED FINANCIAL STATEMENTS

• Definition
• Responsibility of Parent
• Auditors Responsibilities
• Legal Requirements w.r.t. CFS u/s 129
• Rule 6 of the Companies Act, 2013
7
• Audit Considerations
• Auditing the Consolidation
• Special Considerations
• Management Representations
• Reporting
• Terms defined under AS & Ind AS

4. LIABILITIES OF AUDITOR
• Liabilities under Companies Act, 2013
o Professional Negligence
o Civil Liabilities
o Criminal Liabilities
13
• Liabilities under Income Tax Act
o Sec 288
o Sec 278
o Rule 12A
o Sec 271J

CA KHUSHBOO SANGHAVI
5. CODE OF ETHICS (PROFESSIONAL ETHICS)
• Chartered Accountants Act, 1949 An Overview
• Disciplinary Mechanism
• Misconducts
17
• The First Schedule
• The Second Schedule
• Some other Provisions of the Act
• Quality Review

6. PEER REVIEW AND QUALITY REVIEW

• Practice Unit
• Peer Review Process
• Inherent Limitation of Peer Review
• Objectives of Quality Review
• Quality Review Board (QRB)
• Selection of Audit Firms for Quality Review
16
• Quality Review Process
• Objectives of Technical Review
• Independence & Qualification of Technical Reviewers
• Empanelment of Technical Reviewer
• Stagewise Approach of Quality Review Process
• Basic Element of the Reviewer’s Report
• Types of Reports to be issued in Quality Review

7. INTERNAL AUDIT, MANAGEMENT AND OPERATIONAL AUDIT

• Internal Audit & Internal Audit Report
• Management & Operational Audit
• Difference between Operational Auditing and Internal Auditing
14
• Difference between Management Audit and Operational Audit
• Difference between Financial Audit and Operational Audit
• Significance of Quantitative Ratios in Management & Operational Audit.
• Review of Systems and Procedures

8. AUDIT OF BANKS
• Introduction
• Understanding of accounting system in banks
• Bank audit approach
• Income recognition policy (very important)
• Form and content of financial statements
• Eligibility, qualifications and disqualifications of auditor
• Appointment of auditor 8
• Remuneration of auditor
• Powers of auditor
• Auditor’s report
• Conducting a bank audit
• Advances
• Audit of advances
• Audit of revenue items

CA KHUSHBOO SANGHAVI
9. AUDIT OF INSURANCE COMPANIES
• Requirement of Schedule B to IRDA Regulations 2002
• Solvency Margin
• Corporate Governance Guidelines
• Investment Norms
9
• Reinsurance – At a Glance
• Contingent Liabilities
• Trade Credit Insurance
• Types of Life Insurance Products
• Audit of Accounts of Life Insurance Companies

10. AUDIT OF NON-BANKING FINANCIAL COMPANIES

• Non-Banking Financial Company
• Types of NBFC
• NBFC Public Deposit Directors
• NBFC Prudential Norms Directors
10
• Areas of Audit for NBFCs
• Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions,
2016
• Classification of Fraud
• Amendments in NBFC Companies

11. AUDIT UNDER FISCAL LAWS

• GST Audit
• Audit of Public Trusts 11
• Audit u/s 44AB of Income Tax Act
• Income Computation and Disclosure Standards (ICDS)

12. AUDIT OF PUBLIC SECTOR UNDERTAKING

• Audit of Government Companies
• Objectives & Scope of Public Enterprise Audit
• Basic Elements of PSU
• Principles of PSU Audit
• Audit Report of C&AG
12
• Financial Audit
• Compliance Audit
• Comprehensive Audit of Public Enterprise
• Propriety Audit
• Performance Audit
• Various Committees

13. AUDITING STANDARDS, STATEMENTS AND GUIDANCE NOTES 18

14. AUDIT PLANNING, STRATEGY AND EXECUTION 1

15. RISK ASSESSMENT AND INTERNAL CONTROL
• Internal Control System-Nature, Scope, Objective and Structure
• Components of Internal Control. 2
• Review of the systems of Internal Control.
• Risk Based Audit, Internal Control and Risk Assessment

CA KHUSHBOO SANGHAVI
 • Reporting to clients on Internal Control weaknesses
• Framework of Reporting of Internal Control

16. SPECIAL ASPECTS OF AUDITING IN AN AUTOMATED ENVIRONMENT

• Key features of an Automated Environment
• Real Time Environment
• Standards, Guidelines and Procedures towards it
• Evaluating Risk and Controls at Entity Level and Process Level
• Assessing IT Related Risk and Controls 3
o General IT Controls
o Application Controls
o IT Dependent Controls
• Enterprise Risk Management
• Analytical Procedures and Test using Data Analytics

17. AUDIT REPORTS

• Types of Audit Reports
• SA 700, SA 705, SA 706
• Distinction between audit report and certificate
5
• Self review threats
• Communicating key audit matters in the independent auditor’s report (SA 701)
• SA 710 - Comparative information corresponding figures and comparative
financial statements

18. DUE DILIGENCE, INVESTIGATION AND FORENSIC AUDIT

• Steps in Investigation
• Investigation on Behalf of Incoming Partners
• Investigation on Behalf of Bank Proposing to Advance Loan to a Company
• Investigation of Fraud 15
• Due Diligence
• Financial Due Diligence
• Contents of Due Diligence Report
• Forensic Audit

CA KHUSHBOO SANGHAVI