SYLLABUS To test candidates appreciation of the nature and purpose of internal audit and internal review

Transcription

1 SYLLABUS 2017 DIPLOMA IN AUDITING AIMS To test candidates understanding of the audit of individual limited companies, in terms of the planning of audit work, the implementation of audit tests and the expression of opinion on the results To test candidates appreciation of the nature and purpose of internal audit and internal review LEARNING OUTCOMES After successfully completing this section candidates should be able to: understand the nature and purpose of auditing describe the regulatory framework governing the external audit of financial statements, including an understanding of International Standards of Auditing where appropriate and Professional Ethics and codes of conduct describe the rights, duties and professional obligations of an auditor explain the process of planning an audit and the necessity for an appropriate audit programme taking into account audit evidence and audit risk (excluding group accounts) explain the risk based approach to audit of limited companies describe the audit evidence required in specified situations describe the audit work required at the final review and report stage of an audit explain the role of internal audit STRUCTURE OF THE PAPER A written, closed-book three-hour 15 minute paper exam, the exam paper includes two sections: A and B. SECTION A This section contains two 25 mark questions, both of which must be answered. These questions will focus on section 2 of the syllabus - Outline of the Audit Process the steps in the audit process. SECTION B Candidates must answer two questions from three. Each question carries 25 marks. The questions in this section will be drawn from the

2 whole syllabus, with the intention that sections A and B together will offer a reasonable coverage of the whole syllabus. SYLLABUS THE AUDIT CONTEXT Section Topic Weighting 15% THE NATURE PURPOSE AND SCOPE OF THE AUDIT AND EXTERNAL - INTERNAL REVIEW The need for audit The requirement for audit The role of the internal auditor and external auditor THE REGULATORY FRAMEWORK OF AUDITORS General legal framework duties and rights of auditors, appointment, removal, resignation for external auditors (certified auditors-accountants and auditors of Company Law 2190/20 article 36) Professional framework independence (provision of management services, tenure, audit fees) and professional ethics Auditors liability, auditor s responsibility for fraud detection International Standards on Auditing THE REGULATORY FRAMEWORK OF INTERNAL REVIEW Corporate governance mechanisms Audit committees Elements of best practice of the internal audit department OUTLINE OF THE AUDIT PROCESS THE STEPS IN THE AUDIT PROCESS Section Topic Weighting 65% PLANNING THE AUDIT (TOPIC WEIGHTING 20%) Ascertain, record and confirm the system Evaluation of the system Risk (audit and business) and materiality judgments Auditing standards and audit quality v quantity 2 Association of International Accountants 2017

3 INTERNAL CONTROL SYSTEM (TOPIC WEIGHTING 20%) Objectives Control environment and control procedures The cycles (sales, purchases, wages, cash) Computerized environment Compliance tests Reporting to management or audit committees (letter of weakness) AUDIT EVIDENCE AND SUBSTANTIVE TESTING (TOPIC WEIGHTING 20%) Sources and merits of different types of evidence Sampling techniques Use of experts Management representations Analytical review procedures Audit of statement of profit or loss and statement of financial position figures (inventory, tangible and intangible non-current assets, receivables, payables, provisions, bank, loans and cash, long and short term liabilities, equity) AUDIT FINALIZATION STAGE (TOPIC WEIGHTING 5%) Types of audit report Overall review Going concern Events after the reporting period Opening balances and comparatives REPORTING Section Topic Weighting 10% Format and content of audit reports Types of reports Association of International Accountants

4 INTERNAL AUDIT AND INTERNAL REVIEW Section Topic Weighting 10% Nature and purpose of internal review assignments Structure and operations of internal audit department Scope of internal audit work and the limitations of the internal audit functions RECOMMENDED READING LIST AIA Study Text: Paper 7 Auditing (2016) BPP Learning Media ISBN: The Audit Process: Principles, Practice and Cases (6 th Edition) Author: Gray, I,Manson, S and Crawford, L Cengage Learning EMEA ISBN: Modern Auditing (3rd Edition) Author: Cosserat, G and Rodda, N Wiley ISBN: Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements published by the International Federation of Accountants (IFAC) International Federation of Accountants (IFAC) ISBN: Association of International Accountants 2017

5 This Handbook can either be purchased as a printed book or downloaded free of charge as a PDF file. GREECE ONLY Contemporary Issues in Auditing & Internal Control - according to the International Standards on Auditing Greek title: "ΣΥΓΧΡΟΝΑ ΘΕΜΑΤΑ ΕΛΕΓΚΤΙΚΗΣ & ΕΣΩΤΕΡΙΚΟΥ ΕΛΕΓΧΟΥ - ΣΎΜΦΩΝΑ ΜΕ ΤΑ ΔΙΕΘΝΉ ΠΡΌΤΥΠΑ ΕΛΈΓΧΟΥ" Author: Negkakis I. C. and Tahinakis D. P. (Νεγκάκης I. Χ.και Ταχυνάκης Δ. Π.) Diplographia - Διπλογραφία ISBN: NOTE A detailed knowledge of individual standards of auditing will not be required. However, candidates should be aware of the broad principles of the standards that relate to the topics covered in the syllabus. Association of International Accountants