[We're working to add the prerequisite for 'Audit and Assurance-I' as soon as possible.]

[We're working to add the motivation for 'Audit and Assurance-I' as soon as possible.]

(i) To introduce „Auditing” as an independent discipline; (ii) To give exposure about various auditing concepts and theories and (iii) To give a complete idea of an auditing cycle.

[We're working to add the outcomes for 'Audit and Assurance-I' as soon as possible.]

1. Introduction: Nature of Auditing —Distinction between Auditing and Accounting —Types of Auditing Operational Audit- Financial Statements Audit-Compliance Audit-Interim Audit-Final Audit Complete Audit-Internal Audit-External Audit-Government Audit-Types of Auditors: Internal and External - Chartered Accountants —Government Auditor. Economics of Auditing —Reduction of Information Risk. Objectives of an Audit: Primary objectives-Secondary objectives - Errors and Defalcations Reporting on Internal Control— Constructive advice - How to achieve objectives? The Accounting Framework: Fundamental Accounting concepts: Going concern, Accruals. Consistency Prudence - Accounting bases- Accounting Policies —Accounting Conventions — Accounting Rules. 2. Auditing Theory: Auditing Theory-Conceptual Framework —Axioms of a Theory of Auditing—Auditing Concepts: Evidence, Due care, Fair presentation, Independence- Ethical conduct; Auditing Standards: General Standards-Field work standards- Reporting Standards - Judgment in Auditing — Quality Control-Auditing procedures: Substantive test and Compliance procedure. 3. Accounting Profession in Bangladesh: Bangladesh Chartered Accountants by Laws 1973 - Certificate of Practice - Certificate of Admissions and Practice — fees - Standing Committees - Executive Committee - Examination Committee -Investigation & Disciplinary Committee-Articled Students Committee-Technical & Research Committee - Admission to Articleship – Service under Article ship - Examination & Training. 4. Professional Ethics: Definition— Need for Ethics- Independence - Integrity and Objectivity— Competence- Responsibility to Clients Confidentiality- Contingent fee - Responsibility to colleagues - Other responsibilities and practices - Acts discreditable - Advertising and solicitation — Commissions - Incompatible occupations. 5. Internal Control Concepts: Introduction: Definition of Internal Control - Classification of Internal Controls - Extent and Limitations of Internal control * Essential features of Internal Control - Organizational arrangements- Principles of Internal Control System Design - Internal Accounting controls - Objectives and types: Basic Controls and Disciplines over basic controls - Internal check — Internal audit as a Control Factor - Internal control and the Auditor. 6. Internal Control: Study & Evaluation: Introduction - Internal Control Questionnaires - Ascertaining and evaluating the system - Flow Charting or Flow Diagram - Flow Charting Techniques- Principles of Flow Charting - One Dimensional Flow Charting - Two Dimensional Flow Charting - Rules for Flow Charting Benefits of Flow Charting - Overview Flowcharts- Specimen documents - Notes on accounting procedures -Transaction reviews. Principles of evaluation of internal control -Internal Control Questionnaire - Form of ICQ - Completion of Internal Control Questionnaire-Methods of answering question in ICQ - Assessment of Answers -Relationship of ICQ to compliance tests - Record of Control weakness - Modification procedure -Reporting to clients on internal control weaknesses. 7. Audit Approach: Introduction - Overall concept of the audit approach - Determination of the audit strategy - Auditor‘s responsibility in accordance with the terms of the engagement - Familiarization with the client‘s business - Documentation of Audit Strategy - Detailed understanding of the recording system - Audit evidence - Audit evidence decisions - Persuasiveness of evidence —Types of evidence - Audit tests -Reliance on internal control. 8. Administration and Conduct of an Audit: Introduction - Planning for new audits - Acceptance of nomination as an auditor - Reliance on the Accounts for preceding period - Letter of Engagement - Documentation of Audit strategy - Computer matters - Audit budget - Staff selection - Briefing Audit staff-Timing of Audit work— arrangements for Final audit - Planning for Continuing audits-Controlling audits-Audit files-Audit Programmers - Design of the audit programme - Audit Planning and Analytical procedures - Vouching & Verification. 9. Materiality and Risk: Materiality- Set Preliminary Judgment about Materiality - Estimate Error – Risk - Desired audit risk - Inherent Risk-Control Risk-Detection Risk. 10. Testing Internal Control Procedures: Principles of compliance tests-Testing Internal Control Procedures of Purchases, wages and salaries, Cheque payments, Petty cash, Postage and similar funds-Fixed Assets - Stocks & Work- in-progress, Sales, Receipts-Bank Reconciliation‘s-Nominal Ledgers. 11. Auditing Transactions and Accounting Balances: (a) Introduction: Compliance Testing- Substantive testing- Relationship between Compliance & Substantive testing-Analytical review procedures-Tests of Balance Sheet account balances Tests of Profit and Loss Account balances. (b) Auditing the Revenue and Receipts Cycle: Review of Internal control-Compliance tests Final evaluation of internal control-Substantive audit procedure. (c) Auditing the Purchases and Payment cycle: Review of Internal control-Compliance tests Substantive audit procedures. (d) Auditing Inventory: Review of Internal Control-Compliance tests-Substantive tests of inventory account balances. (e) Auditing the Payroll System: Review of Internal control-Compliance tests of Control in the Payroll system- Substantive tests of payroll balances. (f) Auditing other Assets, Equities and Liabilities: Fixed assets-Other asset balances-Tests of owner‘s equity and liabilities-Accounting estimates. (g) Profit and Loss Account balances and completing the audit-Substantive tests of Profit and Loss Account balances-Completing audit. 12. The Audit Report: Introduction - General considerations: Terminology-Basic Legal requirements—Reference to Accounting Conventions - Signing & Dating Audit report - Distinction between Reports and Certificate - Profit, losses and results - Information discovered after the Audit Report is issued Report Review. Short form report - Long form report - Report drafting - Report comments - Audit Report on Group Accounts - Report on special types of accounts - Reliance on other Auditor. Types of Audit Reports - Standard Unqualified Audit Report-Unqualified Audit Report with explanatory paragraph or modified paragraph. Qualifications in Audit Report: Introduction - Definition of a Qualified Audit report - Structure of a Qualified Audit Report - Conditions requiring a Departure - Types of Opinion - Qualifications on Uncertainty - Qualifications on disagreement - Guidance on Qualified Report - Reference on Notes to the Accounts - Representation by Management.

[We're working to add the references for 'Audit and Assurance-I' as soon as possible.]