Department Accounting & Finance

Course Title Auditing principles & Practice II

ETCTS Credits/CH 5/3
Course Contents
1. Testing and Audit Sampling
1.1 Audit Sampling Concepts
1.2 Sampling for Tests of Controls
1.3 Sampling for Substantive Tests
2. Audit of the Sales and Collection Cycle
2.1 Overview of the cycle
2.2 Key Internal Control
2.3 Tests of Controls & Substantive Tests of Transactions
2.4 Tests of Details of Balances
3. Audit of Payroll and Personnel cycle
3.1 Overview of the cycle
3.2 Key Internal Control
3.3 Tests of Controls & Substantive Tests of Transactions
3.4 Tests of Details of Balances
4. Audit of Acquisition and Payment Cycle
4.1 Overview of the cycle
4.2 Key Internal Control
4.3 Tests of Controls & Substantive Tests of Transactions
4.4 Tests of Details of Balances of Accounts payable
4.5 Tests of Details of Property, Plant and Equipment
4.6 Tests of Details of Other accounts
5. Audit of Inventory and Warehouse Cycle
5.1 Nature of inventory
5.2 Control activities and Tests of Controls
5.3 Auditing Cost accounting
5.4 Observing physical inventory
5.5 Tests of pricing and compilation
6. Audit of the Capital and Repayment Cycle
6.1 Overview of the cycle
6.2 Key Internal Control
6.3 Auditing Long-term debt
6.4 Auditing Capital stock
6.5 Auditing Dividends
6.6 Auditing Retained Earnings
7. Audit of Cash Balances
7.1 Cash in the Bank and transaction Cycles
7.2 Audit of the General Cash Account
7.3 Audit of Imprest Bank account and Petty Cash
8. Completing the Audit
8.1 Review of Contingent Liabilities and Commitments
8.2 Review of Subsequent Events
8.3 Communication with the Audit Committee and Management
8.4 Management Letter
9.Auditing Computerized Accounting Systems: An Overview
9.1 Impact of Information Technology on the Audit Process
9.2 Controls in a computerized environment
9.3 Computer assisted techniques (CAATS) in gathering audit evidence
References
 Arens, Elder and Beasley, Auditing and Assurance Service, Global Edition, 16th Edition, 2016
 Hayes R., Wallage P., and Gortemake H., Principles of Auditing: An Introduction to International
Standards on Auditing, 3rd Edition, 2014
 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services
Pronouncements (the handbook),2012.
 Leung P., Coram P., et. all., Modern Auditing and Assurance Services, 6th Edition, Wiley 2015