Auditing and assurance concepts and definitions.pptx

Meaning and Definition of Auditing- Objective – Types of audits- Basic Principles governing an audit, Auditor- Qualification - Rights and Duties - Independence, Auditing and Assurance Standards – Overview, Standard setting process, Role Auditing and Assurance Standards Board in India.

1. Auditing and Assurance

2. UNIT I Auditing Concepts  Meaning and Definition of Auditing- Objective – Types of audits- Basic Principles governing an audit, Auditor- Qualification - Rights and Duties - Independence, Auditing and Assurance Standards – Overview, Standard setting process, Role Auditing and Assurance Standards Board in India.

3. UNIT II   Auditing Engagement, Planning & Programme Auditing engagement–Audit planning, Audit programme , Control of quality of audit work–Delegation and supervision of audit work. Documentation –Audit working papers Ownership and custody of working papers, Audit files: Permanent and current audit files 

4. UNIT III    Audit Evidence Audit evidence–procedures, Sources of evidence- Reliability - Methods of obtaining audit evidence – Documentation, Direct confirmation Re–computation, Analytical review techniques, Representation by management.   Audit Sampling–Types of sampling, Test checking, Techniques of test checks. 

5. UNIT IV Internal Control  Internal control – Elements of Internal control, Review and documentation, Evaluation of internal control system - questionnaire, internal checklist, Tests of control, Application of concept of materiality and audit risk, Concept of internal audit.

6. UNIT V Analytical Review Procedures  Analytical review procedures- Audit of payments –General considerations, Wages, Capital Expenditure, Other payments and expenses, Petty cash payments, Bank payments, Bank reconciliation.  Auditor’s report- kinds of audit report.

7. UNIT I Meaning and Definition of Auditing Auditing is the independent examination of financial records to ensure accuracy and compliance. Objective of Auditing The primary objective is to express an opinion on the truth and fairness of financial statements. Types of Audits Audit can be classified as statutory, internal, government, tax, or management audits based on their purpose and scope. Basic Principles Governing an Audit These are fundamental guidelines like integrity, objectivity, confidentiality, and professional behavior followed by auditors.

8. Auditor – Qualification A person must be a qualified Chartered Accountant (CA) to be appointed as an auditor under law. Rights and Duties of an Auditor Auditors have legal rights (like accessing books) and duties (like reporting fraud) while conducting audits. Auditor’s Independence Auditors must maintain objectivity and be free from any influence or bias in their work.

9. Auditing and Assurance Standards – Overview These are authoritative guidelines that define how audits should be planned, performed, and reported. Standard Setting Process Refers to the systematic development and issuance of auditing standards through expert consultation and due process. Role of the Auditing and Assurance Standards Board (AASB) in India AASB formulates auditing standards to ensure quality and consistency in the audit profession in India.