ACC311 : Fundamentals of Auditing

Course Overview

Course Synopsis

In this subject student will be able to understand the fundamentals of auditing, objective & general principles governing, reasonable assurance, and legal consideration regarding Auditing Rights, duties and liabilities of auditor, books of account & financial statements and entity & its environment. Moreover, student will study different types of audit tests and verification approach of audit, assets, equity, bank balances, audit & statistical sampling, planning an Audit of Financial Statements, Audits of Small Entities, Auditor’s Report on a Complete Set of General Purpose Financial Statements and Modified Auditor’s Report will also learn by students at successful completion of this subject.

Course Learning Outcomes

At the end of this course, you should be able to:

  • Understand the nature, purpose and structure of an audit
  • Explain the role of both auditing and accounting standards
  • Identify the main features of an organization which will influence the audit plan
  • Understand the concept of internal control and its significance
  • Apply the techniques available for the evaluation of internal controls
  • Understand the range of audit procedures available as a means of generating audit evidence
  • Understand the general principles involved in verifying items that appear in a client’s financial statements
  • Understand the nature of audit sampling

Course Calendar

Fundamentals of auditing (An introduction)1,2,3Handouts1 - 8
Objective and General Principles Governing4Handouts9 - 12
Reasonable Assurance5Handouts13 - 14
Legal Consideration regarding Auditing6Handouts15 - 18
Rights, Duties and Liabilities of Auditor7Handouts19 - 20
Liabilities of an Auditor8Handouts21 - 22
Books of Account & Financial Statements9Handouts23 - 35
Quiz No. 1
Books of Account & Financial Statements10Handouts36 - 41
Understanding the Entity and Its Environment11,12,13,14,15Handouts42 - 56
GDB (Graded Discussion Board)
Documenting the Internal Control System17Handouts58 - 62
Evaluating the Internal Control System18Handouts63 - 67
Internal Control Questionnaire19Handouts68 - 73
Audit Tests20Handouts74 - 77
Quiz No. 2
Substantive Procedures21Handouts78 - 81
Audit Evidence22Handouts82 - 84
Mid Term Examination
Sufficient Appropriate Audit Evidence & Testing the Sales System23Handouts85 - 88
Testing The Sales System24Handouts89 - 90
Testing the Purchases System25Handouts91 - 92
Quiz No. 3
Testing the Purchases System26Handouts93 - 94
Testing the Payroll System27Handouts95 - 96
Testing the Cash System28Handouts97 - 98
Testing the Cash System29Handouts99 - 100
Testing Other Systems30Handouts101 - 102
Testing the Non-Current Assets31Handouts103
Verification Approach of Audit32Handouts104 - 107
Verification of Assets33Handouts108 - 110
Letter of Representation & Verification of Liabilities34Handouts111 - 114
Verification of Equity35Handouts115
Verification of Bank Balances36Handouts116 - 119
Verification of Stock-In-Trade and Store & Spares37Handouts120 - 121
Audit Sampling38Handouts122 - 124
Statistical Sampling39Handouts125 - 127
Quiz No. 4
Considering the Work of Internal Auditing40Handouts128 - 130
Audit Planning41Handouts131 - 133
Planning an Audit of Financial Statements42Handouts134 - 136
Audits of Small Entities43Handouts137 - 139
Auditor’s Report on a Complete Set of General Purpose Financial Statements44Handouts140 - 145
Modified Auditor’s Report45Handouts146 - 149
Final Term Examination
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