IMPORTANT TOPICS

1. CHAPTER 1: NATURE, OBJECTIVE AND SCOPE OF AUDIT

Objectives of Audit

Nature of Audit Procedures

Timeliness of Financial Reporting and the Balance between Benefit and Cost

Other Matters that affect the Limitation of an Audit

Standards on Auditing Vs. Standards on Review Engagements

Name of elements of a system of quality control

Leadership Responsibilities for Quality on Audits

Name of ethical requirements relating to an audit of financial statements

Two Interlinked perspectives of Independence of Auditors

Threats to Independence – Learn for only Correct/Incorrect

Safeguards to Independence

Professional Skepticism

Human Resources

Engagement Performance

Monitoring

Preconditions for an Audit

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2. CHAPTER 2: AUDIT STRATEGY, AUDIT PLANNING AND AUDIT PROGRAMME

Audit Plan to conduct an effective audit

Benefits of Planning in the Audit of Financial Statements

Overall Audit Strategy – Assistance to Auditor

Establishment of Overall Audit Strategy including examples of point (a) and (b)

Description of Audit Plan

Knowledge of Client’s Business [only example point (d)]

Direction, Supervision and Review

Documentation including example

Constructing an Audit Programme

Disadvantages of Audit Programme

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3. CHAPTER 3: AUDIT DOCUMENTATION AND AUDIT EVIDENCE

Definition, Objective and Nature of Audit Documentation

Form, Content and Extent of Audit Documentation [RTP November 2022]

Assembly of the Final Audit File

Examples of Significant Matters

Definition of Audit Evidence [RTP November 2023]

Information to be used as Audit Evidence

Inconsistency in or Doubts over Reliability of Audit Evidence

Factors affecting auditor’s judgement as to sufficiency of audit evidence

Inquiry

Using Audit Evidence Obtained in Previous Audits

External Confirmation as Substantive Procedures

Reliability

Objectives of Auditor regarding written representation

Management from whom Written Representation requested [RTP November 2023]

Requested Written Representations Not Provided

Inventory

Litigation and Claims

Understanding of the methods used by management

Objective of Auditor with respect to Opening Balances

Audit Procedures regarding Opening Balances

Going Concern Basis of Accounting

Objective of the auditor regarding going concern

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4. CHAPTER 4: RISK ASSESSMENT AND INTERNAL CONTROL

Risks of Material Misstatements at two levels

Control risk assessment when control deficiencies are identified

Identify and assess the Risks of Material Misstatements

Inquiries of Management and Others within the entity

Analytical Procedures

Limitations of Internal Control

Controls relevant to the audit

Name of components of internal control

Entity’s Risk Assessment Process

Information System including related business processes

Monitoring of Controls

Benefits of evaluation of Internal Control

Examples for Procedure for Sales

IT benefits an entity’s internal control by enabling an entity

Materiality and Audit Risk [RTP May 2022]

Definition and Activities relating to Internal Audit

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5. CHAPTER 5: FRAUD AND RESPONSIBILITIES OF THE AUDITOR

Fraud whether fraudulent financial reporting or misappropriation of assets

Manipulation of Accounts

Fraudulent financial reporting often involves management override of controls

Misappropriation of Assets

Suppressing cash receipts

Problematic or unusual relationships between auditor and management

Manner of reporting of fraud to central government

6. CHAPTER 6: AUDIT IN AN AUDTOMATED ENVIRONEMENT

Relevance of IT in an Audit

Situations in which IT will be relevant to an audit

Understanding and Documenting Automated Environment

Impact of IT related risks

Program Change

Internal Financial Controls as per regulatory requirements

Assess and report audit findings

Glossary – Applications, Automated, CAAT, Data Analytics, Data Processing,

Database, General (IT) Controls, Information Systems, Material Weakness,

Priviledged access

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7. CHAPTER 7: AUDIT SAMPLING

Statistical Sampling – More scientific

Advantages of Statistical Sampling

Random Sampling

Projecting Misstatements

Evaluating results of audit sampling [RTP November 2023]

8. CHAPTER 8: ANALYTICAL PROCEDURES

Purpose of Analytical Procedures

Techniques available as substantive analytical procedures

Analytical Procedures used as substantive tests

Suitability of particular analytical procedures

Evaluation of whether the expectation is sufficiency precise

Investigating results of Analytical Procedures

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9. CHAPTER 10: THE COMPANY AUDIT

Section 139 (6)

Section 139 (7)

Section 139 (1)

Section 139 (5)

Section 139 (8)

Other Important Provisions regarding Appointment of Auditors

Section 140 (1)

Section 140 (4)

Section 141(3)(d)

Section 143 (1)(d)

Section 143 (3)(i),(j)

Section 143 (12) [Only Point A]

Section 144

Audit Committee

CARO – (i), (ii), (v), (vii), (xiii), (xiv)

AS 1 [MTP May 2022 Series 1]

Advantages and Disadvantages of Joint Audit

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10. CHAPTER 11: AUDIT REPORT

Evaluations by the Auditor [RTP May 2022]

Qualitative aspects of the entity’s accounting practices [RTP May 2023]

Specific evaluations by the auditor

Auditor’s Opinion

Basis for Opinion

Responsibilities for the financial statements [RTP May 2023]

Consequences of an inability to obtain sufficient appropriate audit evidence

Basis for Opinion [RTP November 2023]

Description of Auditor’s responsibilities for the audit of FS when the auditor

disclaims an opinion on the FS

Definition of Emphasis of Matter Paragraph

Examples of circumstances where the auditor may consider it necessary to include an

emphasis of matter paragraph

Communicating Key Audit Matters – not a substitute

When corresponding figures are presented [May 2022]

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11. CHAPTER 12: AUDIT OF BANKS

Engagement Team Discussion

Understanding the Risk Management Process

Pledge

Hypothecation

Assignment

Set Off

Advances to Staff

Agricultural Advances

Bank Duties

Computation of DP

Stock Audit

Audit of Advances

Evaluation of Internal Controls over Advances

Audit Approach and Procedures

Audit of Provisions and Contingencies

Auditing the Operating Expenses of a Bank [RTP May 2023]