This course equips learners with the knowledge and practical skills required to understand the principles, processes, and standards of auditing and assurance engagements. It introduces learners to audit planning, risk assessment, internal controls, audit evidence, audit reporting, and professional ethics. The course prepares learners to conduct audit assignments in accordance with auditing standards while promoting accountability, transparency, and good corporate governance.

Key Topics Covered

Nature and purpose of an audit
Nature and objectives of an audit
Development of audit (early audit and modern audit)
Users of audited financial statements
Features of audits
Distinction between auditing and accounting
Types and classification of audits
Situations when different audits are performed (interim, continuous, final, operational)
Advantages and disadvantages of various types of audits
Nature of work done for different audits
Inherent limitations of an audit

Assurance and non- assurance engagements
Definition and objectives of assurance engagements
Audit as an assurance engagement
Elements of an assurance engagement
Types of assurance engagements (Audit, Review assignments)
Differences between audit and review engagements
International Standard on Assurance Engagement-ISAE 3000
Accepting appointment to perform assurance engagement
Review of interim financial information - ISRE 2410
Levels of assurance and reports issued on assurance engagements
Non-assurance engagements (Agreed upon procedures engagement -ISRS 4400 and compilation assignments-ISRS 4410
Attestation and direct reporting engagements

Legal and professional framework
Regulatory framework for external audits
Appointment of the auditors
Qualifications and disqualifications of auditors
Removal and resignation of auditors
Remuneration of the auditors
Rights and duties of auditors
Mechanisms of regulations of auditors-role of professional bodies, Audit committee, rotation of audit firms
Professional ethics/code of ethics for professional accountants
Importance of the professional ethics
Basic/fundamental principles for Code of Ethics for accountants
Other professional guidelines on audit fees, conflict of interest, advertising and publicity and opinion shopping by clients
Auditors independence /objectivity and its importance
Threats to independence and safeguards.
Threats on adherence to other fundamental principles and safeguards to the threats
Development and status of ISAs in execution of audits
Relationship between International Standards of Auditing and National Auditing Standards
Purposes/importance of adoption of ISA in the audit.

Planning and Risk Assessment
Obtaining, accepting and retention of an audit engagement
Matters to consider before and after acceptance of nomination
Pre-conditions of an audit
Engagement letter, procedure of sending letter, purposes and contents of the letter-ISA 210
Circumstances for revision of engagement terms
Understanding the entity and its environment
Background information about the entity or client.
Ways of gathering knowledge about the business

Reasons/importance of information gathered about the client
Reasons of review of previous audit files and communication with previous auditors
Overview of audit process

Audit risk assessment
Components of audit risk (Inherent, Control and Inherent risks)
Assessment of different types of audit risks
Factors leading to increase or decrease of inherent, control and detection Risks
Adoption of risk based audit, reasons and procedure
Advantages and Disadvantages of the approach
Evaluating and prioritising risk and control factors
Mechanisms to minimise the risks associated with client audits.

Audit planning
Purpose and challenges in audit planning
Planning for new and existing clients
Development of the overall audit strategy
Contents of audit planning memorandum/ overall plan
Relationship between audit strategy and audit plan
Design of audit programs, importance and problems of the programs
Impact of material misstatements on audit strategy and degree of work done
Influence of interim audit work on the year end/final audit.

Audit documentation
Reasons and importance of audit documentation
Sources, features and purposes of working papers
Storage of working papers-permanent audit file and current audit file, auditors note book or diary
Lien or custody on working papers
Standardisation of working papers - advantages and disadvantages
Safe custody and retention of working papers
Form and content of working papers
Automated working papers
Quality control policies and procedures implemented by audit firm
Objectives of quality controls to the audit firm/ auditors
Peer review and its objectives
Internal control systems and Internal Audit Function
Internal control systems (ICS)
Objectives of internal control system
Component of internal control system
Features of Internal control system
Designing of internal control system.
Auditors and management responsibility over ICS
Advantages and disadvantages /inherent limitations of ICS
Indicators of weaknesses in ICS and actions taken by management
The evaluation of internal control systems by auditors using Internal Control Questionnaire, Flow charts and narrative notes
Tests of controls on specific control environments
Internal controls theory and practice-sales and debtors, purchases and creditors, inventories and work in progress, fixed assets, salaries and wages
Communication of improvements on ICS weaknesses/ risks associated
- Management letter.

Internal Audit Function
Scope and objectives of internal audit
Criteria of using internal audit work
Areas of support on external auditors’ work
Internal audit review reports and actions by management and those charged with governance
Design of risk based internal audit plan

Internal audit key performance indicators
Managing and monitoring follow up of audit recommendations made to board/ management.
Outsourcing internal audit function-advantages and disadvantages.
Audit committee-functions, merits and demerits.
Internal check systems-scope, features, advantages and disadvantages
Information technology threats and control
Auditors duty on compliance with laws and regulations.

Overview of Forensic Accounting, Errors, Frauds and Irregularities
Overview of forensic accounting
Nature, purpose and scope of forensic accounting
Types of forensic investigations: corruption, asset misappropriation, financial statement fraud, others
Asset Recovery process and legal framework

Errors, Frauds and Irregularities
Differences between error and frauds
Types of errors-omission, commission, principle, reversal of entries
Types of Frauds-Teeming and lading, ghost employees, window dressing, misappropriation of goods and fraudulent financial reporting
Causes of frauds and fraud triangle
Indicators of errors and frauds
Detection and prevention of errors and frauds and deterrence-role of internal audit
Materiality and Implications of errors and frauds in the financial statements
Impact of errors and frauds on the audit plan
Reporting on error and frauds
External auditors and Management responsibility on error and frauds
Auditors professional skepticism.
Audit evidence
Financial statement assertions and audit evidence
Types and features of audit evidence (sufficiency, reliability and relevance)
Audit evidence gathering procedures/ techniques
Materiality and limitations of audit evidence
Financial statement assertions and audit evidence
Audit sampling techniques - statistical and non-statistical
Analytical reviews procedures- nature, objectives, timing and extent of support evidence
Types of analytical Procedures-Variance analysis, reasonableness tests, trend analysis
Using the work of experts- areas of support and considerations
Using management representations (importance, procedures adopted and matters covered).

Auditing in the public sector
Introduction to auditing in the public sector and regulatory provisions
Objective and scope of public sector audit (compliance, performance, financial, value for money)
Establishment, mandate and functions of public sector auditors
The parties to audit in public sector-auditor, responsible party and intended users
Role of internal audit function in public entities
Relationship between external and internal auditors in the public sector
Audit reports by office of Auditor General.
Functions of audit advisory board and executive committee in Auditor General office.
Auditors Reports
Purposes of auditors’ report and concept of true and fair view
Legal /Statutory provisions on audit reports
Basic elements contents of audit reports
Emphasis of the matter paragraph and key audit matters
Types and Consequences of different types of audit reports issued.
Features of unqualified and qualified audit reports
Reasons for qualifications of audit reports (Limitation of scope, inherent uncertainties, disagreements)
Types of qualifications-disclaimer, except for and adverse opinions.
Overall audit review and finalisation
Subsequent events/Post balance sheet events review (adjusting and non -
adjusting events, auditor’s responsibility and audit procedures)
Going concern review (Auditors and management responsibility, indicators of going concern difficulties, audit procedures, mitigation plans and reporting)
Management representations on contentious matters affecting financial statements like guarantees made, capital commitments, borrowings, unusual accounting adjustments.
Review of compliance with accounting policies, opening balances, prior period audits by other auditors
Format for presentation of independent auditor’s report.

Auditing in a computerised system
Audit objectives in computerised systems
Differences between computerised and manual systems
Benefits and drawbacks of computerised accounting systems
Types of controls in computerised systems (Administrative, system development, processing controls, application controls, master files and standing data
Auditors use of computers in the course of audit
Planning the audit in computerised systems
Audit approaches - audit around, with and through the computer and circumstances when each is applied
Loss of audit trail, causes and measures to mitigate the loss of audit trail
Computer Assisted Audit Techniques (CAATS) - Audit software and test data
Types of audit software and functions and types of test data
Factors considered before using CAATS and steps in CAATS application
Advantages and disadvantages of CAATS

Use of embedded audit modules and integrated test facilities
Information security controls (Encryption, Firewalls, Passwords, Antivirus)

Contemporary and emerging issues in audit
E- commerce auditing
Cloud documentation
Use of data analytics tools in audit (Anomaly detection, diagnostic analysis, predictive analysis.