Complete Syllabus of Contemporary Auditing | ACC 687 | MBS 4th semester

Credits: 3
Lecture Hours: 48 

Course Objectives:

This course aims to develop student's capability in performing and reporting on audit and assurance to increase reliability of financial and non-financial information. It also aims to develop student's capability to identify, gather and assess evidences for sufficiency and appropriateness in performing audit. Course Description This course examines statutory requirement for audit, audit process, strategy and planning, special audit techniques and procedures, audit of organizations under computerized environment, audit types and auditors' report and trends in auditing 

Course Details:

Unit 1: Statutory Requirements LH 16 

Legal and professional requirements: Provisions of auditing in Company Act, BAFIA, Corporation Act, Social Organization Act, Education and Cooperative Acts and Nepal Standards on auditing (mandatory, voluntary and exposure drafts) including guidance notes and practice statements issued by the Institute of Chartered Accountants of Nepal and/or Auditing Standard Board. 

Unit 2: Auditing Processes, Audit Strategy and Planning LH 8 

Basic concept of Auditing, Understanding of business and assessing audit risks, review of internal and accounting control, consideration of error, fraud and misstatement in financial statements, development of overall audit plan and program, time and resource schedule, conducting audit, collection and evaluation of audit evidences, maintenance of working paper and permanent files, independent review of audit files and confidentiality of information obtained during the audit. 

Unit 3: Special Audit Techniques and Procedures LH 10 

Statistical Sampling in Auditing, ratio analysis and trend analysis, physical verification of fixed assets, inventory and cash, setting materiality level, enquiry, balance confirmation, inspection, drawing conclusion and steps to mitigate audit risks. 

Unit 4: Audits under Computerized Environment LH 4 

Concept and Specific issues related to Electronic Data Processing (EDP) audit; Techniques of EDP audit, Use of Computer and Computer Assisted Audit; Roles and risks of auditor. 

Unit 5: Auditor's Report LH 5 

Types of audit and auditor's report, management letter, disclosure requirement, difference between certificate and report, report related to commercial and government auditing, Modification to auditor's report. 

Unit 6: Trends in Auditing LH 5 

Financial forecasts, human resources auditing, reports on financial sickness, special requirements of different users, Risk based auditing and its significance. 

Basic References 

Company Act, Income Tax Act, Auditing Act, Banking and Financial Institution Act (BAFIA), Corporation Act, Cooperative Act, Education Act, Local Governance Act, Constitution of Nepal 

Gupta, K. Contemporary Auditing (New Edition), New Delhi: Tata McGraw Hill. Nepal Standards on Auditing, including preface, framework, guidelines, practice statements: Auditing Standards Board. 

Supplementary Readings:

Batra and Bagardia. Text Book of Auditing. (New Edition), New Delhi. Tata MCGraw-Hill Publishing Co. Ltd.
Dhakal, K.D., Bhattarai, I and Koirala, G.P. The Principles and Practice of Auditing (New Edition). Kathmandu, Asmita Books Publishers.
Millichamp, A.H. Auditing (New Edition). London: ELST
Prakash, J. Auditing Principles, Practices and Problems (New Edition). New Delhi: Kalyani Publishers.
Saxena, R.G. Principles of Auditing (New Edition). Mumbai, Himalayan Publishing House.
Tondon, B.N. Practicle Auditing. (New Edition). New Delhi: S.Chand, and Co.