Course Outline
Topic Learning Outcomes Topic
1. Define assurance engagements I. The fundamental principles of assurance services
2. Identify and explain the elements of A. The assurance services
assurance engagements 1. Definition
3. Discuss the concepts of materiality, 2. Objective
assurance engagement risk, cost- 3. Elements
benefit consideration, and 4. Types
professional skepticism. B. Non-assurance service
4. Differentiate assurance and non-
assurance engagements.
1. Identify and discuss the different II. Introduction to audit services and financial statement audit
types of audit engagement A. Different types of audit
2. Discuss the nature and objective of B. Financial statement audit
financial statement audit 1. Definition and key concepts
3. Identify the elements of FS audit and 2. Objective
relate them to the elements of an 3. Theoretical framework
assurance engagement. 4. Elements
4. Discuss the concept of reasonable 5. Level of Assurance
assurance 6. Demand for FS audit
5. Explain the circumstance creating the 7. Value of FS Audit
demand for FS audit
6. Identify and discuss the value of FS
audit
1. Discuss a general overview of the III. Overview of the Audit Process and Preliminary Activities
audit process A. The activities conducted in performing a financial statement audit
2. Identify and discuss the assertions B. Categories and types of assertions
made by the entity through the C. Major preliminary engagement activities
financial statements D. Activities involved in client acceptance
3. Describe the major and specific audit E. Agreeing to the terms of the audit engagement
procedures
4. Discuss the auditor’s consideration in
accepting or rejecting a client
5. Discuss the form and content of an
audit engagement letter.
1. State the general objective in IV. Planning an Audit of Financial Statements
planning an audit A. Factors affecting the nature and extent of planning activities
2. Topic
Identify Learning
and discussOutcomes
the main output B. Output of audit planning Topic
of audit planning. C. Documentation requirement
3. Discuss the significance of risk D. Major audit planning activities
assessment procedures 1. Risk assessment procedures
4. Define materiality and discuss its 2. Consideration of materiality
three levels. 3. Consideration of audit risk and its components
5. Explain the relationship of the 4. Establishing the overall audit strategy
components of audit risk E. Developing an audit plan
1. Discuss the controls relevant to the V. Study and Evaluation of Internal Control
audit of financial statements. A. The definition, characteristics, and scope of internal control
2. Identify and discuss the components B. The different controls related to audit
of internal control. C. The components of internal control
3. Identify the outcomes of the D. Audit procedures to be performed related to internal control
preliminary assessment of control 1. Risk assessment procedures
risk. 2. Further audit procedures
4. Describe the two types of further
audit procedures.
5. Discuss the documentation and
communication requirements related
to the study and evaluation of internal
control.
1. Describe the five major categories of VI. Transaction Cycles – Test of Controls
transaction cycles. A. Categories of transaction cycles
2. Describe the primary objectives of 1. Revenue and receipt cycle
each transaction cycle. 2. Expenditure and disbursement cycle
3. Identify the accounts affected by 3. Conversion cycle
each transaction cycle. 4. Investing and financing cycle
B. Business process elements associated with the different transaction cycles
C. Forms or documents used in the different departments involved in each transaction cycle.
1. Define fraud, error, and non- VII. Consideration of Fraud, Error, and Non-compliance
compliance A. Fraud and error definition
2. Describe the two types of fraud B. Types of fraud
relevant to the audit of financial C. Characteristics of fraud
statements D. Responsibilities of the auditor
3. Describe the communication and E. Communication and documentation
documentation requirements F. Non-compliance definition
G. Reporting of non-compliance
1. Identify and describe the VIII. Evidence and Performance of Substantive Testing
classification of audit evidence A. Audit evidence and its classifications
2. Discuss the relationship between B. The objective of the auditor in gathering evidence
Topic Learning
assertions, Outcomes
audit objectives, and audit C. Sufficiency and appropriateness of evidence Topic
procedures D. Use of assertions in obtaining evidence
3. Explain the sufficiency and E. Auditor’s procedures in obtaining evidence
appropriateness of evidence F. The performance of substantive testing
4. Identify and explain the audit 1. Test of details
procedures conducted by the auditor 2. Substantive analytical procedures
5. Explain the confirmation process
1. Define audit sampling IX. Selecting Items for Testing and Audit Sampling
2. Explain the different risks A. The objective of the auditor when using audit sampling
consideration in obtaining audit B. The risks involved in audit sampling
evidence C. Audit sampling plans and procedures
3. Discuss sampling techniques D. Factors affecting the determination of sample size
4. Illustrate sampling for test of controls E. Methods or techniques used to select samples
and substantive tests
1. Identify the different procedures to X. Completing the Audit and Audit Documentation
complete an audit engagement A. General procedures at the completion phase
2. Describe the purpose and content of 1. Identifying liabilities
communication with management 2. Addressing required disclosures
and those charged with governance 3. Overall review of the audit engagement
3. Describe the classification of audit 4. Other wrap-up procedures
documentation. B. Audit documentation
C. Communication with those charged with governance
1. Describe the nature of and need for XI. Audit Reporting
the auditor’s report A. Nature of and the need for auditor’s report
2. Determine the basic elements of the B. Formation and expression of opinion
standard unqualified audit report C. Elements of a standards unqualified audit report
3. Explain the circumstances that would D. Modifications to the opinion on the auditor’s report
require modifications of the standard E. Additional paragraphs to the auditor’s report
auditor’s report and the effect on the
auditor’s opinion.
