AUD1333 : Auditing Principles & Instructor: PROF.

MUHAMMAD
Practices (ADPF) ASAD JAVAID

Week Contents Tasks/Activities

What is Assurance?
 Why We Need Assurance?
 Assurance Engagements
 Types of Assurance Engagements
1  Stakeholders of a Company
 Concept of Stewardship, Accountability and
Agency
 Objective and General Principles of External
Audit Engagements
The Rules and Who Sets Them
 Conduct of Audit
2
 Setting Auditing Standards
 To be continued....
 Mechanisms for the regulation of Auditors
3  Statutory Regulations Governing the Assignment 1
Appointment, Removal and Resignation of Auditors
Corporate Governance and Internal Audit
 Objective, Relevance and Importance of
Corporate Governance
 The OECD Principles of Corporate Governance
 How Companies are Run
4 Quiz 1
 Structure and Roles of Audit Committees, Their
Drawbacks and Limitations
 Internal Audit and Corporate Governance
 Advantages and Disadvantages of Outsourcing
Internal Audit
Responsibilities
 Responsibilities of the External Auditors
 Communicating with Those Charged with
5 Governance
 Responsibilities of Auditors and Management for
the Design and Operation of Systems and Controls
 To be continued....
 Presentation and Detection of Fraud and Errors
 The Role of External and Internal Audit
Regarding Audit Planning and the Collection of
6 Assignment 2
Audit Evidence
 Importance of Internal Control; and Risk
Management
7 Planning Quiz 2
 The Need for Planning an Audit
  Audit Strategy and the Audit Plan
 The Impact of Fraud on the Audit Strategy
 Knowledge of the Business (KOB)
 Materiality and Tolerable Error
 The Nature and Purpose of Analytical Procedures
in Planning
Risk
 Risk-Based and Procedural Approaches to
Auditing
8  Importance of Risk Analysis
 Information Technology in Risk Analysis
 Components of Audit Risk
 Assessing the Risk
9 MID TERM Mid Term
Systems and Controls
 Client’s Systems
10  Key Components of an Internal Control System
 Importance of Internal Controls to Auditors
 To be continued....
 The ‘Nitty Gritty’ of Controls
 Examples of Computer System Controls and
11 General IT Controls Assignment 3
 Limitations of Internal Control Components in the
Context of Fraud and Error
Audit Evidence
 Assertions in Obtaining Audit Evidence
 Financial Statement Assertions
12  The Sources and Relative Merits of the Evidence Quiz 3
 Types of Evidence
 The Quality of Evidence
 Sampling and the Need for Sampling
Audit Procedures
 General Principles
 Substantive Procedures in Auditing
13  The Audit of Inventories
 The Audit of Payables and Accruals
 The Audit of Non-Current Liabilities
 Computer Assisted Audit Techniques (CAATs)
14 Completion and Review Assignment 4
 Overall Review of Evidence
 Procedures to be Undertaken in Performing a
Subsequent Events Review
 Going Concern
 Importance and the need for Going Concern
Reviews
 Management Representations
 Purpose and Procedures for Obtaining
Management Representations
  Quality and Reliability of Management
Representation
Reporting
 The Audit Opinion
 The Auditor’s Report of Financial Statements
15 Quiz 4
 Modified Audit Reports
 Qualified Opinion
 The Impact of Auditor’s Reports
16 Supplementary Exercises for Practice Project Presentation
17 Final Term Final Term