Auditing (AUD)

Course AA133 | Intermediate Level II

This study plan links the ACCA syllabus topics to page references in both the Kaplan Study Text and the AA133 Auditing Manual.

A. Introduction to Audit and Assurance (20 Marks)
A1. Fundamental concepts and scope (50% of this section)
  • Key Topics: Concept of Audit and Assurance; Objectives, nature, purpose and scope of assurance engagement; Internal and External audit.
  • Learning Outcome: Explain the concept of audit and assurance; understand the requirements and reasons for assurance engagements.
  • Required Skills: R, U
  • Page References:
A2. Responsibilities and Professional Liabilities (50% of this section)
  • Key Topics: Management and assurance providers responsibilities; Auditors' liabilities.
  • Learning Outcome: Understand the responsibilities of management and assurance providers; recognize circumstances in which professional accountants may have legal liability.
  • Required Skills: R, U, AP
  • Page References:
B. Internal Control and Audit Framework (30 Marks)
B1. Internal Control (40% of this section)
  • Key Topics: Meaning and Categories of Internal Control; Components of internal control; Weaknesses in the internal control system.
  • Learning Outcome: Explain the requirements and implications of effective control systems; evaluate and report on the effectiveness and efficiency of the internal control systems.
  • Required Skills: U, AP, E, D
  • Page References:
B2. Professional Ethics (30% of this section)
  • Key Topics: Need for professional ethics; Code of Ethics; Conflict of interest and suggested courses of action to resolve ethical conflicts.
  • Learning Outcome: Demonstrate the ethical approach in carrying out the assurance work.
  • Required Skills: R, U, AP
  • Page References:
B3. Framework and legal provision (30% of this section)
  • Key Topics: Legal provisions Under Companies Act, 1994; International Framework for Assurance Engagements; International Standards on Auditing.
  • Learning Outcome: Describe the legal framework of the Audit and Assurance engagement.
  • Required Skills: R, U, AP
  • Page References:
C. Assurance engagement and Reporting (40 Marks)
C1. Process of assurance engagement (80% of this section)
  • Key Topics: Obtaining the Engagement; Risk Assessment (ISA 315, ISA 330); Audit Planning; Obtaining evidence, Sampling and documentation.
  • Learning Outcome: Obtain an understanding of the entity and its environment; plan an audit considering the audit risk; apply ISA in formulating decisions.
  • Required Skills: R, U, AP, AN, E, C, D
  • Page References:
C2. Other relevant standards (20% of this section)
  • Key Topics: Auditor's Responsibility to Consider Fraud (ISA 240); Communication of Audit Matters (ISA 260, ISA 265); Related Parties (ISA 550).
  • Learning Outcome: Understand the auditor's responsibility as outlines in different ISA and law; treat issues relating to related parties, accounting estimates and others following ISA.
  • Required Skills: R, U, AP
  • Page References:
D. Auditors role in emerging areas (10 Marks)
D1. Information Technology and Information Systems Audit (70% of this section)
  • Key Topics: Audit in a computerized environment; Risks associated with a company's information assets in the IT environment; Computer-Aided Auditing Technique (CAAT).
  • Learning Outcome: Understand the basics of audit in a computerized environment; identify and manage the risks associated with an IT environment; sketch the fundamentals of CAAT.
  • Required Skills: U, AP, D
  • Page References:
D2. Public sector and special audit (30% of this section)
  • Key Topics: IFAC Guidelines for public sector audit; Special Audit.
  • Learning Outcome: Understand the process of public sector audit; outline requirements and considerations in the special audit.
  • Required Skills: R, U
  • Page References: