Audit and Assurance

1. The Demand for Audit and Other Assurance Services: Definition of auditing, Nature of Auditing,
Distinction Between Auditing and Accounting, Economic Demand for Auditing, Assurance Services,
Types of Audits and Auditors.
2. The Auditing Profession: Chartered Accountant (CA) Firms and their Activities, Structure of CA
Firms, Role of BSEC in relation to auditing, BSEC’s Corporate Governance Guidelines and Audit vs.
Non-audit Activities, ICAB, US GAAS, International Standards on Auditing (ISA) and Bangladesh
Standards on Auditing (BSA), Statutory Cost Audit.
3. Audit Reports: Parts of the Audit Report, Categories of Audit Reports, Report on Internal Control
Over Financial Reporting, Unqualified Audit Report with Explanatory Paragraph or Modified
Wording, Conditions Requiring a Departure from Unqualified Opinion, Audit Reports Other Than
Unqualified: Qualified Auditors’ Reports (Qualified, Adverse and Disclaimer) and Auditors’ Reports
with emphasis on materiality.
4. Legal Liability: The legal environment of audit profession, Auditors’ Liability to clients, Auditors’
Liability to third parties under common law, Auditors’ Civil liability, Auditors’ Criminal liability,
Profession's response to liability.
5. The Audit Responsibilities and Objectives: Objective of Conducting an Audit of Financial
Statements, Steps to Develop Audit Objectives, Management’s Responsibilities, Objectives of the
Auditor, Auditor's Responsibilities, Financial Statement Cycles, Setting Audit Objectives,
Management Assertions, Transaction-Related Audit Objectives, Balance-Related Audit Objectives,
Presentation and Disclosure-Related Audit Objectives, How Audit Objectives are Met, Phases of a
Financial Statement Audit.
6. Audit Evidence: Definition of Evidence, Distinguishing among scientific, legal and audit evidence,
Audit Evidence Decisions, Audit Program, Persuasiveness of Evidence, Types of Audit Evidence,
Application of Types of evidence to the Evidence Decisions, Audit Documentation, Audit File
Contents and Organization.
7. Audit Planning and Analytical Procedures: Steps in Planning an Audit and Designing an Audit
Approach, Initial Audit Planning, Obtaining an Understanding with the Client, Developing Overall
Audit Strategy, Understanding of the Client’s Business and Industry, Assess Client Business Risk,
Preliminary Analytical Procedures, Analytical Procedures.
8. Audits of Internal Control and Control Risk: Internal Control Objectives, Management’s
Responsibilities for Establishing Internal Control, Management’s Assessment of Internal Controls,
Auditor Responsibilities for Understanding Internal Control and Testing Internal Control,
Components of Internal Control, Process for Understanding Internal Control and Assessing Control
Risk, Obtain and Document Understanding of Internal Control, Assessing Control Risk.
9. Overall Audit Plan and Audit Program: Audit Tests, Types of Audit Tests: Risk assessment
procedures and Further audit procedures, Relationship Between Further Audit Procedures and
Evidence, Audit Assurance at Different Levels of Internal Control Effectiveness, Impact of
Information Technology on Audit Testing, Audit Program.
10. Completing the Audit: Performing audit tests related to presentation and disclosure, Review for
contingent liabilities, Post-balance-sheet review for subsequent events, Issuing the Audit Report,
Communicate with the audit committee and management.
Books Reference:
1. Alvin A. Arens, Randal J. Elder and Mark S. Beasley. Auditing and Assurance Services (Latest
Edition). Upper Saddle River, New Jersey: Prentice Hall.
2. ICAB (Institute of Chartered Accountants of Bangladesh). Assurance–Study Manual, CA
Professional Stage Knowledge Level (Latest Edition). Dhaka: ICAB.
3. ICAB. Audit and Assurance–Study Manual, CA Professional Stage Application Level (Latest
Edition). Dhaka: ICAB.