Course Outline

Course Code: ACT 207 Course Title: Audit and Assurance

Course Credit: 3
Course Description:
The audit and assurance syllabus starts with the concept, process and need for audit and assurance
including the legal and ethical issues, accepting and managing engagements, planning and risk
assessment, internal audit and internal controls, audit evidence, and review and reporting. The objective
of this course is to provide students to develop knowledge and understanding of the process involved in
carrying out the assurance engagement and its application in the context of the professional regulatory
framework.
On completion of this course, students should be able to explain the basic terminologies, concepts and
contrast financial statement auditing and assurance services and how the financial statement auditing
process helps to reduce this risk, thereby increase the users’ confidence.
Intended Learning Objectives (ILOs):
After successful completion of the course, students should be able to:
1. Explain the concept of audit and assurance and the functions of audit, corporate governance,
including ethics and professional conduct, describing the scope and distinguishing between the
functions of internal and external audit;
2. Demonstrate how the auditor obtains and accepts audit engagements, obtains an understanding
of the entity and its environment, assesses the risk of material misstatement (whether arising
from fraud or other irregularities) and plans an audit of financial statements;
3. Describe and evaluate internal controls, techniques and audit tests, including IT systems to
identify and communicate control risks and their potential consequences, making appropriate
recommendations;
4. Identify and describe the work and evidence obtained by the auditor and others required to meet
the objectives of audit engagements and the application of the International Standards on
Auditing (ISAs);
5. Explain how consideration of subsequent events and the going concern principle can inform the
conclusions from audit work and are reflected in different types of auditor’s report, written
representations and the final review and report.
Course Learning Outcome (CLO):
Upon successful completion of the course, students should be able to:
6. Explain why audit and other types of assurance services are conducted
7. Identify the ethics and professional conduct, duties and legal liability of auditors and other
assurance providers.
8. Apply the processes involved in accepting and managing assurance engagements and explain
how quality assurance processes mitigate risks.
9. Evaluate the internal audit and control and apply the processes involved in auditing and other
assurance services to collect audit evidence.
10. Conclude and report on assurance engagements in accordance with the terms of the
engagements and appropriate standards.
Learning
Course content
Outcomes
CLO 1
The Concept, Process and Need for Audit and Assurance: Audit: Meaning and
Types of Audit, objectives and benefits of Audit, Qualification and Disqualification of
 Auditors, Appointment and Removal of Auditors; Rights and Duties of auditors;
Assurance Engagements, Elements, Types and Levels of Assurance; Distinction
between Auditing and Assurance. Development of Audit and other Assurance
Engagements.

Legal, ethical and audit issues: Statutory audits, Regulatory Environment and
Corporate Governance, Auditing Standards, Development and Status of International
Standards on Auditing, Relation between National and International Standard Setters,
CLO 2
Functions and Role of ICAB for Setting Audit Standards, Audit Profession in
Bangladesh, Ethical Standards, Fundamental Principles Underlying IFAC and ICAB
Code of Ethics, Ethical Conflict, Threats and Safeguard.

Accepting and Managing Engagements: Acceptance procedures of appointment,

legal professional and ethical considerations, terms of engagement and their
documentation.
CLO 3
Planning and Risk Assessment: Audit plan, planning process, audit strategy,
business risk and audit risk, component of audit risk, risks arising from error, fraud
and non-compliance with law and regulations, impact of risk and materiality on the
engagement, analytical procedures, Materiality, audit documentation.

Internal Audit and Internal Controls: Differences between external audit and
internal audit function, scope and limitation of the internal audit, internal audit
assignment; Internal control systems, use of internal control systems by auditors,
component of internal control including both manual and IT environment, Effective
Internal Control Systems, internal control questionnaire (ICQ) internal control
CLO 4 evaluation questionnaire (ICE), Tests of control vs. substantive procedure, The
revenue cycle, communication on internal control.

Audit Evidence: Need for Evidence, Financial Statement Assertions, Audit

Procedures, Sufficient Appropriate Audit Evidence, Audit Sampling, Methods of Audit
Sampling, Audit of Specific Items, Relying the Work of Others Computer-Aided Audit
Technique CAAT).

Review and Reporting: File Review, Opening Balances and Comparatives,

CLO 5 Subsequent Events, Going Concern, Written Representation, Audit Report, Contents of
Audit Report, Modified Audit Report, Additional Paragraph.
Teaching-learning strategy:
 Lecture/Exercise
 Presentation/Open discussion/Debates
 Attendance
Assessment Strategy:
 Attendance (10);
 In course Examination/ Tutorial/ Quiz/ Class Test (as per ordinance) (20); and
 Final Examination (70).
Books Recommended:
1. The Institute of Chartered Accountants of Bangladesh : Audit and assurance (Study Manual)
2. The Association of Chartered Certified Accountants : Audit and assurance (Study Text)
3. The Institute of Chartered Accountants in England and Wales : Audit and assurance (Study Manual)
 4. Sayed Khaja Amjad : Auditing
5. Tandon B. N. : A Hand Book of Practical Auditing
6. Government of Bangladesh : The Companies Act. 1994

Course Outline
Course Code: ACT 310 Course Title: Advanced Audit and Assurance
Course Credit: 3
Course Description:
The objective of this course is to provide students with an overview on assurance of financial reporting
taking into accounting the current audit and assurance practices. The course introduces students to the
major conceptual and technical aspects of auditing. Emphasis is placed on financial statement audits
conducted under the Corporations Law. The course also provides insight into other types of audit and
assurance activities and emphasizes the risk-based approach to auditing.
On completion of this course, students should be able to apply the audit and assurance knowledge in
financial statements auditing and assurance services to reduce the investors risk and increase confidence.
Intended Learning Objectives (ILOs):
After successful completion of the course, students should be able to:
1. Define information risk and explain how the financial statement auditing process helps to reduce
this risk, thereby reducing the cost of capital for a company.
2. Define and contrast financial statement auditing, attestation, and assurance services.
3. Describe and define the assertions that management makes about the recognition,
measurement, presentation, and disclosure of the financial statements and explain why auditors
use them as the focal point of the audit.
4. Define professional skepticism and explain its key characteristics.
5. Describe the organization of public accounting firms and identify the various services that they
offer.
6. Describe the audits and auditors in governmental, internal, and operational auditing.
7. List and explain the requirements for becoming a professional accountants.
Course Learning Outcome (CLO):
Upon successful completion of the course, students should be able to:
1. Demonstrate the ability to work effectively on an assurance or other service engagement
within a professional and ethical framework;
2. Identify and formulate the work required to meet the objectives of audit assignments and
apply the International Standards on Auditing;
3. Identify and assess the audit risk in the modern audit process using the risk assessment
procedures;
4. Discuss the issue of legal liability arising from audits and other assurance services;
5. Evaluate findings and the results of work performed and draft suitable reports on
assignments;
6. Understand the current issues and developments relating to the provision of audit-related
and assurance services.
Learning
Course content
Outcomes
 Professional Practice and Auditing Standard: Role and Context of Modern
Auditing, Legal Responsibilities, Bangladesh Standards on Auditing, Quality control,
CLO 1, 2 & 4 Documentation, Advertising, Publicity, Obtaining Professional Work and Fees, Ethics-
Ethical Codes and Standards, Duty to Report Misconduct, Making Ethical Judgments,
Evaluation of Corporate Governance Mechanisms, Financial Reporting Council (FRC).
The Modern Audit Process: Understanding the entity, Business risk model, Audit
risk model, Creative Accounting, Responding to Assessed Risks, Other Audit
Methodologies; Audit evidence- Risk and Assertions, Sufficient Appropriate Audit
CLO 3
Evidence, Sources of Audit Confidence, Audit procedures, Analytical Procedures,
Provisions and Contingencies, Audit of Accounting Estimates, Related Parties,
Management Representations, Service Organisations.
Reporting: Review and Audit Completion, Opening Balances and Comparatives,
CLO 5 Subsequent Events, Going Concern, Internal Reporting, External Reporting – Audit
Report, Other Reporting Responsibilities.
Other services: Assurance and Related Services, Due diligence, Reporting on
CLO 6 Prospective Information, Engagements to Compile Financial Information,
Environmental and Social Auditing, Forensic Audit, Internal Auditing, Outsourcing.
Audit issues: Fraud and Auditor Liability, Law and regulation, Money laundering,
CLO 6 Auditor liability, Auditing in an IT Environment, Information Technology and Risk,
Impact on Controls, Electronic Commerce.
Business scenarios: Small Company Audits, Group audits, Joint audits, Global
CLO 6 enterprises, Audit of banks, Insolvency, Role and Liability of Auditors and Directors in
Winding up, Insolvency Legislation.
Teaching-learning strategy:
 Lecture/Exercise
 Presentation/Open discussion/Debates
 Attendance
Assessment Strategy:
 Attendance (10);
 In course Examination/ Tutorial/ Quiz/ Class Test (as per ordinance) (20); and
 Final Examination (70).
Books Recommended:
1. The Institute of Chartered Accountants of : Advanced Audit and assurance (Study
Bangladesh Manual)
2. The Association of Chartered Certified : Advanced Audit and assurance (Study Text)
Accountants
3. The Institute of Chartered Accountants in : Audit and assurance (Study Manual)
England and Wales
4. Sayed Khaja Amjad : Auditing
5. Tandon B. N. : A Hand Book of Practical Auditing
6. Government of Bangladesh : The Companies Act. 1994