AUDIT IMP FOR NOV 2009 EXAM
DEAR STUDENT,
I HAVE MADE MY BEST EFFORT TO PROVIDE THE AREAS IN ADVANCED
AUDITING WHICH ARE IMPORTANT FOR Nov.2009 EXAM. I HOPE THIS
MATERIAL WILL BE HELPFUL IN YOUR PREPARATION. IF YOU HAVE ANY
DOUBTS DO NOT HESISTATE TO CALL ME AT ANY TIME IN MY MOBILE NO.
9382741962. I WISH YOU ALL THE BEST FOR YOUR EXAM.
CA S.GANAPATHY
C.A. FINAL- ADVANCED AUDITING
(PREPARED BY S.GANAPATHY F.C.A. sgpathy_2007@rediffmail.com)
IMPORTANT AREAS FOR NOV. 2009 EXAM
(Areas in Block letters are very important)
MOST IMPORTANT: THE CHARTERED ACCOUNTANTS (AMENDMENT) ACT,
2006 MAY NOT APPLY FOR THE MAY 2007 EXAM BUT IT WILL BE PRUDENT
TO KNOW THE AMENDMENTS TO AVOID DISAPPOINTMENT IN THE EXAM.
AUDITING AND ASSSURANCE STANDARDS
a. AAS-1- Basic Principles Governing an Audit
b. AAS 6 (Revised)-Control Risk, Detection Risk
AAS 12 (Paras 5-12)-Joint Responsibilities and Individual Responsibilities
AAS 13 (Paras 5-12)- Audit Materiality
AAS 16 (FULL STANDARD)
AAS 26 (Paras 5-11)
AAS 28 (Paras 29-40)- Opinions, Disagreement, Emphasis of Matter
AAS-32 (Entire Standard)
AAS-33 (Entire Standard)
AAS-34 (Entire Standard)- PART A, PART B AND PART C
AS-1, 4, 5, 9, 10, AS-11 (Revised), 16, 18, 22, 23, 24, 25, 26, 29 (Revise previous years
exam questions on AS in the Institute Study Material- Question Bank since some of them
may be repeated)
Guidance Notes
Section 227(3) (e), (f) -Paras 4 to 9, 12 to 15
Proposed Dividend
Reporting on Revised Accounts before circulation to Shareholders
Audit of Miscellaneous Expenditure
Audit of Consolidated Financial Statements
Company AuditChapter 4Appointment by special resolution- DCA clarification
Ceiling on company audits- Notification under Code of Ethics
Can the scope of audit be restricted?
True and Fair-to be read with Page 5.16-Significance of True and Fair
Statutory Auditor in relation to Branch Accounts & Branch Auditor
Gist of CLB Circulars
Chapter 5Auditor’s Duty and Statutory books- Registers under sections 301, 303, 372A, 49- Page
5.7
Personal expenses of Directors (Important short note question)
Preparation and Presentation of Final Accounts (Section 211)
Divisible profits, dividends and reserves- Distribution of capital profits, Capital Reserve
(Reserves)-Pages 17 to 41 very important
Chapter 6Inquiry under section 227(1A)
Additional Reporting requirements under section 227(3) clauses (e), (f)
Statement on Qualifications in the Auditor’s Report
CARO Reporting Requirements- Statement on CARO is very important (clauses 4, 5, 7,
9, 11, 13, 17, 18, 21- Amendments to CARO in 2004 are very important)
Distinguish between Audit Report and Certificate
EDP Audit
Specific Problems relating to internal control
Problems in obtaining Audit Evidence
Internal controls in Computer based system and Evaluation
Special Audit Techniques- Audit Software
Controlling the CAAT Application- VERY IMPORTANT
Audit considerations for computer bureau – VERY IMPORTANT
Chapter – 8- Investigation – Special Issues in Investigation - Non-statutory Investigation
Investigation on behalf of an incoming partner
Investigation for proposal to acquire a limited company
Review of Profit forecasts/ Financial Forecasts
Due Diligence- what is Due Diligence? Types of Due Diligence
Contents of a Due Diligence Report
Chapter 10- Objective of Public Enterprises Audit, Comprehensive Audit of PSU,
Committees on Public Undertakings
Chapter 10- Propriety Audit- Propriety elements in 227(1A) Problems in Propriety Audit
Bank AuditAudit of Investments – Prudential Guidelines regarding market portfolio- Master circular
11th July 2002 (Held to Maturity, Held for Trading, Available for Sale)
Prudential norms for income recognition, asset classification and provision- Advances
under on-lending arrangement, Take-out Finance, Restructuring, Projects under
implementation, Stock exchange and other securities, Life Insurance Policies, Bank’s
Own Certificates, Third Party guarantees- Verification of Bills Purchased and
Discounted, Inter-office adjustments, Audit Procedures regarding Contingent liabilities
Capital Adequacy norms- Annexure V
Concurrent Audit system in Commercial banks-Coverage of branches and Reporting
systems
General Insurance Companies
Definition of Indian Insurance company, Conditions for Registration- Licensing
requirements, Obligation to Rural and social sector, Minimum paid-up capital, Deposits
Requirements of Schedule B to the IRDA Regulations, 2000- Part-I (Accounting
Principles) and Part-IV (Contents of Management Report)
Schedule-C-Form of Auditor’s Report
Verification of Premiums
Verification of Claims Provision
Verification of Operating expenses of the Management
Verification of Investments - sections 27B, 27C, 27D
Unexpired Risks Reserve
Co-insurance – Incoming and Outgoing
Audit of Members of Stock exchangesMargins
Rolling settlement
Proprietory trading
Circuit Filters and Circuit Breakers
Audit of Non-Banking Financial Companies –
Classification of NBFC
Registration with RBI
NBFC Public Deposits Directions
Audit Check List- Loan company, Hire purchase company
Obligation to Report to RBI
Audit of Indirect Taxes- Scope, Methodology and Excise Audit 2000- Steps
Energy Audit- Key Functions of Energy Auditor- Approach to Energy Audit
Peer Review- Definition, Objective, Technical Standards, Reporting
Professional Ethics
Section 2(2) (Revised Definition of Management Consultancy Services in 2004) and
Sections 7, 8, 24 – Other Misconduct
First Schedule- Part-I- clauses 6 (Council decisions in 2004 under Paras (b) and (d) very
important) clauses 7, 8, 9, 10, 11 (Regulation 191 and Regulation 190A (Revised in
2004-VERY VERY IMPORTANT),
Second Schedule-Part-I-clauses- Role of C.A. in relation to Unlawful acts of his clients,
clauses 4, 5, 6, 9
Second Schedule-Part-II-clause (ii)- All notifications are important.
Management Audit and Operational Audit
What is Management Audit Questionnaire?
Behavioural Problems in conducting Management audit & solutions to overcome such
problems
18.
PROBABLE SHORT NOTES QUESTIONS
(Certain short notes questions, which are already covered in the respective chapters given
above have not been repeated here)
Report on Agreed Upon Procedures Engagement (AAS- 32-Paras 17 & 18)
Professional Skepticism (AAS-4- Paras 18 & 19)
Detection Risk (AAS-6- Paras 42 to 48)
Terms of Audit Engagement (AAS-26-Paras 2 to 11)
Emphasis of Matter paragraph (AAS-28-Paras 32 & 33)
Management Representation letter (AAS-11- Paras 3, 4 & 9 to 13)
Type-A and Type-B Reports- (AAS-24-Para 12)
Chapter- 5- Personal expenses of Directors, Capital Reserves, Interim Dividend, Nonprovision for Proposed Dividend, Non-provision for tax liability
Chapter-15-Audit Committee u/s 292A, Special Report to the Registrar of Co-operative
societies (Point No.8 in Special Features in Co-operative Audit)
Chapter-8- Audit and Investigation- last Para in Page-1 continued next page
General Notes:
All the above areas are based on LATEST EDITION of Institute Study Material
Do not answer the compulsory questions 1 and 2 at the beginning of the exam.
Present the answers point-wise and avoid paragraph-wise presentation.
Examples and illustrations given in Chapters are important for practical questions.
In AAS and Guidance Notes only “Audit Procedures” and “Reporting Considerations”
are important.
Paper 8 – Indirect Taxes,
(Most Important Questions for Nov’2009 Exams)
Professor Mukesh (WIRC 07-Oct-09)
EXCISE
1. Definition of India.
2. Definition of Deemed Manufacture.
3. Definition of Manufacture- Sec2(f)(i)(ii)(iii).
4. Is packing, labeling, Branding Manufacture.
5. Is Assembly Manufacture.
6. Rule 10-A, Manufacture through a Job Worker.
7. Short Note: Trade Parlance Theory (VVVVV Imp)
8. What is Assessable Value. Principles in Determining AV. (SRS Conditions)
9. Place of Removal. (Metro Shoes Case)
10. Deduction allowed for Valuation of Excisable Goods.
11. Rule 6- Price is not the sole consideration . Is Raw Material Supplied added
to AV. (VVV Imp)
12. Rule 7- Depot
13. Rule 9.
14. Rule 10.
15. Samples, Prototypes – its liability for Excise Duty (VVVVV Imp)
16. Invoicing System (VVV Imp)
17. Penalty for non payment of ED (Monthly facility will be withdrawn).
18. Rule 21 (DULL)
19. Rule 17 – Abatement of 50% in rate of Basic ED.
20. SSI (VVVVV Imp)
21. Sec 4A- MRP/ RSP.
22. MRP Rules (New Amendment of Yr.2008)
23. Rule 18- Provisional Assessment.
24. Special Audit (Sec 14A- Valuation Audit & Sec 14AA- Cenvat Credit Audit)
25.What is Adjudicating Authority (Inspector to Commissioner except CBDT, CESTAT)
26. Do all Practical Questions of all Past Exams. (VVVV Imp)
27. Do all recent amendments &Case Laws from RTP & CA Student Journal+ other
sources.
CUSTOMS
1. Definitions of Customs Area.
2. What are Goods. Whether they include Storage, baggage.
3. What is Re-import of Goods ( First exported then received back for repair..)
4. If Basic Customs Duty is exempt then is ACD exempt – NO.
5. Date of Determination of Rate of Duty (Kiran- Garden Spinning- LML case)
6. Import Procedures (VVVV Imp)
7. Export Procedures (VVVV Imp)
8. Duty Drawback – Sec 74 (VVVVVV Imp)
9. Do all Practical Questions of all Past Exams. (VVVV Imp)
10.Do all recent amendments & Case Laws from RTP & CA Student Journal+ other
sources.
***********************************
C} SERVICE TAX
1. Sec 65- Classification of Goods.
2. Sec 67- Valuation of Goods
3. Revise Return ( Not 60 days but now 90 days) (VVVVV Imp)
4. Sec 72- Best Judgement Assessment
5. Sec 77- Penalty (VVVVV Imp)
6. Practical Question on Money Changer (Rate – 0.125%) (VVVV Imp)
7. Works Contract (Rate – 4.12% , NO Cenvat Credit)
8. Adjustment of Excess amount of Service Tax paid ( Upto Rs. 1 Lakhs per mth/ per
qrtr)
9. Renting of Immovable property (Property tax paid will be lessed from Rent Recvd &
on
balance ST will be charged).
10. R & D Cess- 5% paid is deducted from the rate of ST.
11. Business Auxuillary Services- Game of Chance, KBC (VVVV Imp)
12. Business Support Services.
13. CA Services (VVVVV Imp) , ST is not chargeable on what (representation
in response to a notice).
14. Construction of Residential Complex (Upto 12 Flats – NO ST, More than 12 Flatspay ST)
Case–S. Rangarajan (2008) Purchased 2 flats but constructed as one, held they are 2
flats.
15. Do all recent amendments &Case Laws from RTP & CA Student Journal+ other
D} CENVAT CREDIT
1. Sec 2(k)- Input.
2. Sec 2(l)- Input Services.
3. Sec 2(m)- Input Service Distributor.
4. Adjustment/ Set off of Cenvat Credit. (Ed cess against Ed cess,…)
5. Condition for availment of Cenvat Credit on Input Services (VVVVV Imp)
6. Rule 6. (Exempted / Taxable)
E} OTHERS- COMMON TOPICS
1. Advance Ruling (VVVV Imp).
2. Duty Drawback – Sec 74
3. Powers of person in connection with arrest.
4. Fine in lieu of Confiscation (Redemption fine) (VVVV Imp)
5. Sec 13- Arrest.
6. Definition of Smuggling ( Import Duty not paid)
7. Prosecution in case of Officers ( Co- Directors, P-ship – Partners,…)
8. Attachment of Property notice – Sec 73 C (sent along with SCN to recover ED)
Note: Professor Mukesh has recommended that on Exam Day first do all the above
questions and then do balance.
Our Godspeed Wishes are always with you. Do Remember, Indubitably, 100% you shall
be a Professional Chartered Accountant.
****************************************
C.A. FINAL – ADVANCED AUDITING
FACULTY: S.GANAPATHY B.Com., F.C.A., Grad. C.W.A.
Phone: 9382741962, 9382987415, 044-24728916
Email: ganapathy.swaminathan@yahoo.in
DEAR STUDENT,
I HAVE MADE MY BEST EFFORT TO PROVIDE THE AREAS IN ADVANCED
AUDITING WHICH ARE IMPORTANT FOR NOVEMBER 2009 EXAM. I HOPE
THIS MATERIAL WILL BE HELPFUL IN YOUR PREPARATION. IF YOU HAVE
ANY DOUBTS DO NOT HESISTATE TO MAIL ME AT ANY TIME IN MY E-MAIL
ID GIVEN ABOVE.
WISH YOU ALL THE BEST FOR YOUR EXAM.
CA S.GANAPATHY
FACULTY- AUDITING
IMPORTANT AREAS FOR NOVEMBER 2009 EXAM
(COMMON TO BOTH OLD SYLLABUS AND NEW SYLLABUS)
MOST IMPORTANT:
1)
THE CHARTERED ACCOUNTANTS (AMENDMENT) ACT, 2006 IS VERY
IMPORTANT FOR THE EXAM. REFER LATEST INSTITUTE SUPPLIMENTARY
STUDY MATERIAL ON CHAPTER 17
PRACTICAL QUESTIONS ON COMPANY AUDIT AND ACCOUNTING
STANDARDS ARE VERY IMPORTANT
RECLASSIFICATION OF AAS IN TO SA, SRE, SRS IS EXPECTED IN NOVEMBER
2009 EXAM BUT THE STUDENTS WILL BE EXPECTED TO KNOW ONLY THE
CORRESPONDING NEW NUMBERS FOR EACH AAS NUMBER. THE
PRINCIPLES AND PROCEDURES LAID DOWN IN AAS ARE STILL THE SAME
AND THEREFORE STUDENTS CAN STILL EXPLAIN THE SAID PRINCIPLES
AND PROCEDURES WITH NEW NUMBERS. I HAVE ATTACHED TWO FILES
WHICH WILL HELP YOU TO KNOW THE NEW NUMBERS FOR EACH AAS
NUMBER.
AUDITING AND ASSSURANCE STANDARDS
(NOW STANDARDS ON AUDITING, STANDARDS ON REVIEW ENGAGEMENTS
AND STANDARDS ON RELATED SERVICES)
a.
AAS-1- Basic Principles Governing an Audit
AAS 10 Using the Work of Another Auditor
AAS 12 Joint Responsibilities and Individual Responsibilities
AAS 13 Audit Materiality
AAS 16 Going concern
AAS 19 Subsequent events
AAS 26 Terms of Audit Engagement
AAS 28 Auditor’s Report on Financial Statements
AAS 31 Compilation of Financial Information
AAS-32 Agreed Upon Procedures Engagements
AAS-33 Review of Financial Statements
AAS-34 Audit Evidence – Special Considerations
AAS-35 Examination of Prospective Financial Information
AS-1, 4, 5, 9, 10, 11, 12, 13, 16, 18, 22, 26 (Revise previous years exam questions on AS
since some of them may be repeated)
Guidance Notes
Section 227(3) (e), (f)
Auditor’s Report on Revised Accounts before circulation to shareholders
Proposed Dividend
Independence of Auditors
Audit of CAAT
Company AuditChapter 4- (Chapters 4 & 5 of old syllabus are consolidated in Chapter 6 of New
Syllabus)
Appointment by special resolution- DCA clarification
Ceiling on company audits- Notification under Code of Ethics
Can the scope of audit be restricted?
True and Fair-to be read with Significance of True and Fair
Statutory Auditor in relation to Branch Accounts & Branch Auditor
Gist of CLB Circulars
Chapter 5Auditor’s Duty and Statutory books- Registers under sections 301, 303, 372A, 49
Preparation and Presentation of Final Accounts (Section 211)
Divisible profits, dividends and reserves- Distribution of capital profits, Capital Reserve
(Reserves)
Chapter 6- (Chapter 8 of New Syllabus)
Inquiry under section 227(1A)
CARO Reporting Requirements- Statement on CARO is very important (clauses 1, 2, 4,
5, 7, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21- Amendments to CARO are very important)
Distinguish between Audit Report and Certificate
EDP Audit (Audit in a CIS Environment)
Specific Problems relating to internal control
Internal controls in Computer based system and Evaluation
Special Audit Techniques- Audit Software, Considerations in the use of CAAT
Controlling the CAAT Application
Black Box Approach and White Box Approach
INVESTIGATION – Special Issues in Investigation - Non-statutory Investigations
Investigation on behalf of an incoming partner
Investigation for proposal to acquire a limited company or proprietory business
Investigation on behalf of a bank proposing to advance a loan
Due DiligenceWhat is Due Diligence?
Full fledged Financial Due Diligence
Contents of Due Diligence Report
AUDIT OF PSU – C&AG Powers u/s 619(3) & (4) -Comprehensive Audit of PSU,
Committees on Public Undertakings
PROPRIETY AUDIT- Propriety elements in 227(1A), Propriety elements in CARO
2003, Problems in Propriety Audit
Bank AuditAudit of Investments – Prudential Guidelines regarding market portfolio- Master circular
(Held to Maturity, Held for Trading, Available for Sale)
Prudential norms for income recognition, asset classification (New classification
regarding Agriculture advances) and provision (New provision norms for Doubtful assets
and Sub-standard assets) Advances under on-lending arrangement, Take-out Finance,
Stock exchange and other securities, Life Insurance Policies, Bank’s Own Certificates,
Third Party guarantees- Verification of Bills Purchased and Discounted, Inter-office
adjustments, Contingent liabilities
Concurrent Audit system in Commercial banks-Coverage of branches and Reporting
systems
Capital Adequacy norms- Annexure III
General Insurance Companies
Definition of Indian Insurance company - Licensing requirements, Obligation to Rural
and social sector, Minimum paid-up capital, Deposits
Requirements of Schedule B to the IRDA Regulations, 2000- Part-I (Accounting
Principles) – Part-III-Contents of Management Report - Audit Considerations
Schedule-C-Form of Auditor’s Report
Verification of Claims Provision, Verification of claims paid
Verification of Operating expenses of the Management
Verification of Investments - sections 27B, 27C, 27D
Treaty Re-insurance
Co-insurance – Incoming and Outgoing
Solvency Margin
Audit of Members of Stock exchanges-SHORT NOTES QUESTIONS
Margin Deposits
Rolling Settlement
Books of Accounts to be maintained under Rule 15 by a member
Contract Notes
Audit of Non-Banking Financial Companies
Classification of NBFC
Registration with RBI
NBFC Public Deposits Directions
Audit Check List
Obligation to Report to RBI
Audit of Co-operative societies -Special Features of Co-operative Audit, Audit of MultiState Co-operative Societies, Rights and Duties of Co-operative Auditors
Audit Committee and Corporate Governance – new clause 49 of the listing agreement–
SEBI Circulars- Entire Chapter-9 in New Syllabus Material is Important (Chapter 15 in
Old Syllabus Material)
Tax Audit- Audit u/s 44AB- Audit Reports, Form 3CD - Audit under VAT very
important
Peer Review- Definition, Objectives, Technical Standards, Reporting
Management Audit and Operational Audit Management Audit and Operational Audit
Scope of Management Audit and Operational Audit
What is Management Audit Questionnaire? (Measuring performance through MAQ)
Behavioural Problems in conducting Management audit & solutions to overcome such
problems
Objectives of Operational Audit
Professional Ethics (INSTITUTE MATERIAL WITH CA AMENDMENT ACT 2006
VERY IMPORTANT)
Section 2(2) (Revised Definition of Management Consultancy Services in 2004) and
Sections 7, 8, 24 – Other Misconduct (Very important – as per CA Amdt. Act, 2006)
First Schedule- Part-I- clauses 2, 3, 4, 6 7, 8, 9, 11 (Regulation 191 and Regulation 190A
(Revised in 2004- VERY IMPORTANT),
First Schedule- Part-II- clause 2
First Schedule- Part-III- clauses 2, 3
Second Schedule-Part-I-clause 1- Role of C.A. in relation to Unlawful acts of his clients,
clauses 4, 5, 6, 7, 10
Second Schedule-Part-II-clauses 1, 3, 4
Latest Council notifications are important in the Institute study material. (Starting from
Notification No. 53/2001 till Notification no. 93/2006) which is given under General
Guidelines of the Council
Latest Council guidelines regarding advertisement through write up issued in May 2008
Latest Council Notification No.116 of 2008 issued on 25th September 2008 which
includes new Regulation 53A and Regulation 53B which is relevant for clauses 2,3,4,5 of
Part-I of First Schedule
Sarbanes Oxley Act, 2002 (Only for New syllabus) –Titles under SOX, Section 302 and
Section 404, June 15th Final Rules, PCAOB Overview and Functions, Internal Control
over Financial Reporting
20.
PROBABLE SHORT NOTES QUESTIONS
(Certain short notes questions, which are already covered in the respective chapters given
above have not been repeated here)
Report on Agreed Upon Procedures Engagement (AAS- 32-Paras 17 & 18)
Professional Skepticism (AAS-4- Paras 18 & 19)
Audit Risk, Inherent Risk, Control Risk, Detection Risk, Audit in a Risk based
Environment (Chapter 5 in the New Syllabus Material)
Management Representation letter (AAS-11- Paras 3, 4 & 9 to 13)
Qualified Opinion, Disclaimer of Opinion (AAS-28 Paras 38, 39)
Company Audit- Personal expenses of Directors, Capital Reserves, Interim Dividend,
Non-provision for tax liability
Audit Committee u/s 292A,
Special Report to the Registrar of Co-operative societies (Point No.8 in Special Features
in Co-operative Audit)
Audit and Investigation
Audit of Members of Stock Exchange – refer to points given earlier
AAS-16- Financial, Operating and Other Indications
AAS-34- Part-A- Cut-off Procedures, Tagging and Tracing
EDP Audit- Black Box and White Box Approach
NOTE: In recent exams there is a trend of asking Drafting of Letters, Audit Programmes,
Questionnaires, Qualifications, Opinions etc. In the Institute Study Material, in the
Chapters and in AAS, CARO etc where drafting of illustrative letters, qualifications,
adverse remarks etc are given you should learn the basic requirements of drafting such
letters, Letters, Audit Programmes, Questionnaires, Qualifications, Opinions etc
General Notes:
All the areas given in this attachment are based on LATEST EDITION of Institute Study
Material
Do not answer the compulsory questions 1 and 2 at the beginning of the exam. First
answer two or three direct and simple questions before attempting questions 1 and 2
which are practical.
Present the answers point-wise and avoid paragraph-wise presentation.
Examples and illustrations given in Chapters are important for practical questions.
FOR STUDENTS WHO ARE WRITING CA FINAL NEW SYLLABUS
You have to prepare the following topics in the New Syllabus Institute study material
Volumes I and II fully for new syllabus alone.
Chapter – 9 – Corporate Governance (Partially covered in Chapter-15 in Old Syllabus)
Chapter – 22 – Sarbanes Oxley Act, 2002 (Not covered under Old Syllabus)
Guidance Notes on
Capital and Reserves (Covered in Chapter-5 in Old Syllabus)
Payment of Dividends (Covered in Chapter-5 in Old Syllabus)
Reports in Company Prospectuses (Covered in Chapter-6 in Old Syllabus)
ONCE AGAIN I WISH YOU THE VERY BEST FOR YOUR EXAMS. I REQUEST
YOU TO CONTACT ME THROUGH EMAIL REGARDING YOUR MAJOR
DOUBTS IN AUDITING AND YOUR EXPERIENCE IN ATTENDING THE
EXAMINATION AND PARTICUARLY THE AUDITING QUESTION PAPER.
CA S.GANAPATHY
ANNEXURE-I AND ANNEXURE-II FOLLOWS:
ANNEXURE - I
Important Announcement ( Standards on Auditing) - (10-09-2009)
The following list contains the details of the Standards on Auditing (SAs). For the
purposes of November, 2009 examinations the students are advised to refer to
the Standards on Auditing (SAs).
The details of the Standards on Auditing (SAs) with full text are being hosted for the
guidance of the students.
S.No.
Standards on Auditing and Number
1.
Basic Principles Governing an Audit (SA 200)*
2.
Objectives and Scope of the Audit of Financial
Statements (SA 200A)*
3.
Terms of Audit Engagement (SA 210)
4.
Quality Control for Audit Work (SA 220)
5.
Audit Documentation (230) (Revised)
6.
The Auditor’s Responsibility to Consider Fraud
and Error in an Audit of Financial Statements
(SA 240)(Revised)
7.
Consideration of Laws and Regulations in an
Audit of Financial Statements (SA 250) (Revised)
8.
Communication of Audit Matters with Those
Charged with Governance (SA 260) (Revised)
9.
Responsibility of Joint Auditors (SA 299)
10.
Planning an Audit of Financial Statements (300)
11.
Identifying and Assessing the Risk of Material
Misstatement Through Understanding the Entity
and its Environment (SA 315) (Newly issued)**
12.
Audit Materiality (SA 320) (Revised)
13.
The Auditor’s Responses to Assessed Risks
(SA 330) (Newly issued)**
14.
Audit Considerations Relating to Entities Using
Service Organisations (SA 402) (Revised)
15.
Evaluation of Misstatements Identified during the
Audit (SA 450) (Newly issued)
16.
Audit Evidence (SA 500)
17
Audit Evidence - Additional Considerations for
Specific Items (SA 501)
18.
External Confirmations (SA 505)
19.
Initial Engagements – Opening Balances
(SA 510) (Revised)
20.
Analytical Procedures (SA 520)
21.
Audit Sampling (SA 530) (Revised)
22.
Auditing of Accounting Estimates, Including
Fair Value Accounting Estimates and Related
Disclosures (SA 540) (Revised)
23.
Related Parties (SA 550) (Revised)
24.
Subsequent Events (SA 560) (Revised)
25.
Going Concern (SA 570) (Revised)
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
Written Representations (SA 580) (Revised)
Using the Work of Another Auditor (SA 600)
Relying Upon the Work of an Internal Auditor
(SA 610) (Revised)
Using the Work of an Expert (SA 620)
The Auditor's Report on Financial Statements (SA 700)
Comparatives (SA 710)
Engagements to Compile Financial Information (SRS 4410)
Engagements to Perform Agreed- upon
Procedures Regarding Financial Information (SRS 4400)
Engagements to Review Financial Statements (SRE 2400)
The Examination of Prospective Financial Information
(SRE 3400)
NOTE: 1
* Presently, SA 200, “Basic Principles Governing an Audit” and SA 200A, “Objective
and Scope of an Audit of Financial Statements” correspond to International Standard on
Auditing (ISA) 200 (Revised and Redrafted). Both the SAs are currently being revised
in the light of the ISA 200 (Revised and Redrafted). Post revision, the principles covered
by SA 200 (erstwhile AAS 1) and SA 200A (erstwhile AAS 2) will be merged into one
Standard, i.e. SA 200.)
** SA 315 & SA 330 – become effective in April, 2008. For November 2009 Final (Old)
Examination 34 standards on Auditing as given in the Annexure – I. The Standard on
Auditing (SA) 400, “Risk Assessments and Internal Control”, SA 310, “Knowledge of
the Business”, and SA 401, “Auditing in a Computer Information Systems Environment”,
issued in June 2002, April 2000 and January 2003, respectively, would stand withdrawn.
NOTE: 2
Newly issued SA 450 “Evaluation of Misstatements Identified during the Audit”
effective for all audits relating to accounting periods beginning on or after April 1, 2010.
It is not applicable for the November 2009 examination.
Last Updated on 8th September, 2009
ANNEXURE- II
Engagement and Quality Control Standards along with complete text (Formerly known as
Auditing and Assurance Standards)
Standards on Quality Control (SQCs)
SQC 1, “Quality Control for Firms that Perform Audit and Reviews of Historical
Financial Information, and other Assurance and Related Services Engagements”
Audits and Reviews of Historical Financial Information
100-999 Standards on Auditing (SAs)
100-199 Introductory Matters
200-299 General Principles and Responsibilities
SA 200 (AAS 1), “Basic Principles Governing an Audit”
SA 200A (AAS 2), “Objective and Scope of the Audit of Financial Statements”
SA 210 (AAS 26), “Terms of Audit Engagement”
SA 210 (Revised) under the Clarity Project, “Agreeing the Terms of Audit Engagements”
SA 220 (AAS 17), “Quality Control for Audit Work”
SA 230 (AAS 3), “Documentation”
SA 230 (Revised) under the Clarity Project, “Audit Documentation”
SA 240 (AAS 4), “The Auditor’s Responsibility to Consider Fraud and Error in an Audit
of Financial Statements”
SA 240 (Revised) under the Clarity Project, “The Auditor’s Responsibilities Relating to
Fraud in an Audit of Financial Statements”
SA 250 (AAS 21), “Consideration of Laws and Regulations in an Audit of Financial
Statements”
SA 250 (Revised) under the Clarity Project, “Consideration of Laws and Regulations in
an Audit of Financial Statements”
SA 260 (AAS 27), “Communications of Audit Matters with Those Charged with
Governance”
SA 260 (Revised) under the Clarity Project, “Communication with Those Charged with
Governance”
SA 265 issued under the Clarity Project, “Communicating Deficiencies in Internal
Control to Those Charged With Governance and Management”
SA 299 (AAS 12), “Responsibility of Joint Auditors”
300-499 Risk Assessment and Response to Assessed Risks
SA 300 (AAS 8), “Audit Planning”
SA 300 (Revised) under the Clarity Project, “Planning an Audit of Financial Statements”
•
SA 315 under the Clarity Project, “Identifying and Assessing the Risks of Material
Misstatement through Understanding the Entity and Its Environment”
SA 320 (AAS 13), “Audit Materiality”
SA 320 (Revised) issued under the Clarity Project, “Materiality in Planning and
Performing an Audit”
SA 330 under the Clarity Project, “The Auditor’s Responses to Assessed Risks”
SA 402 (AAS 24), “Audit Considerations Relating to Entities Using Service
Organisations”
SA 402 (Revised) issued under the Clarity Project, “Audit Considerations Relating to an
Entity Using a Service Organisation”
SA 450 issued under the Clarity Project, “Evaluation of Misstatements Identified During
the Audit”
500-599 Audit Evidence
SA 500 (AAS 5), “Audit Evidence”
SA 500 (Revised) under the Clarity Project, “Audit Evidence”
SA 501 (AAS 34), “Audit Evidence – Additional Considerations for Specific Items”
SA 505 (AAS 30), “External Confirmations”
SA 510 (AAS 22), “Initial Engagements – Opening Balances”
SA 510 (Revised) under the Clarity Project, “Initial Audit Engagements – Opening
Balances”
SA 520 (AAS 14), “Analytical Procedures”
SA 530 (AAS 15), “Audit Sampling”
SA 530 (Revised) under the Clarity Project, “Audit Sampling”
SA 540 (AAS 18), “Auditing of Accounting Estimates”
SA 540 (Revised) under the Clarity Project, “Auditing Accounting Estimates, Including
Fair Value Accounting Estimates, and Related Disclosures”
SA 550 (AAS 23), “Related Parties”
SA 550 (Revised) under the Clarity Project, “Related Parties”
SA 560 (AAS 19), “Subsequent Events”
SA 560 (Revised) under the Clarity Project, “Subsequent Events”
SA 570 (AAS 16), “Going Concern”
SA 570 (Revised) under the Clarity Project, “Going Concern”
SA 580 (AAS 11), “Representations by Management”
SA 580 (Revised) under the Clarity Project, ”Written Representations”
600-699 Using Work of Others
SA 600 (AAS 10), “Using the Work of Another Auditor”
SA 610 (AAS 7), “Relying Upon the Work of an Internal Auditor”
SA 610 (Revised) issued under the Clarity Project, “Using The Work of Internal
Auditors”
SA 620 (AAS 9), “Using the Work of an Expert”
700-799 Audit Conclusions and Reporting
SA 700 (AAS 28), “The Auditor’s Report on Financial Statements”
SA 710 (AAS 25), “Comparatives”
SA 720 under the Clarity Project, “The Auditor’s Responsibility in Relation to Other
Information in Documents Containing Audited Financial Statements”
800-899 Specialized Areas
2000-2699 Standards on Review Engagements (SREs)
SRE 2400 (AAS 33), “Engagements to Review Financial Statements”
Assurance Engagements Other Than Audits or Reviews of Historical Financial
Information
3000-3699 Standards on Assurance Engagements (SAEs)
3000-3399 Applicable to All Assurance Engagements
3400-3699 Subject Specific Standards
SAE 3400 (AAS 35), “The Examination of Prospective Financial Information”
Related Services
4000-4699 Standards on Related Services (SRSs)
SRS 4400 (AAS 32), “Engagements to Perform Agreed-upon Procedures Regarding
Financial Information”
SRS 4410 (AAS 31), “Engagements to Compile Financial Information”
General Clarifications issued
General Clarification (GC)-AASB/2/2004 on SA 210
General Clarification (GC)-AASB/1/2002 on SA 620
FINAL-MICS
Lesson 1
1. Abstract and physical systems
2. Decomposition with example
3. Expert systems
Lesson 2
1. Components of TPS
Lesson 3
1. Limitations of MIS
2. Levels of management and their information requirements
3. Effect of computers on MIS
Lesson 4
1. Financial system & the different decisions
2. What is a model? Benefits of a computerized model
3. Personnel information system
Lesson 5
1. Characteristics of DSS
2. Difference between EIS & Traditional systems
3. Measures & indicators to be included in EIS
Lesson 6
1. Server centric model
2. Control techniques of C/S
3. Benefits of C/S
Lesson 7
1. Analysis of existing system
2. System development approaches
3. systems development tools
4. Roles of Users in SDLC
5. Systems development methodology
Lesson 8
1. Designing systems output
2. Form design
3. Designing data storage
Lesson 9
1. Steps in selection of a computer system
2. Check lists
3. PDLC
Lesson 10
1. Conversion activities
2. Systems evaluation
3. Training
Lesson 12
1. Evaluation of ERP
2. BPR & BE
3. Benefits of ERP
Lesson 13
1. O/S Security controls
2. Backup-controls
3. Encryption
4. Personal Computer controls
Lesson 14
1. Input controls
2. Processing controls
Lesson 15
1. Categories of computer frauds based on the data processing model
2. Computer forensic tools(Disk imaging and analysis)
Lesson 16
1. Powers of controller
2. Duties of subscribers
3. Suspension and revocation of digital signature certificate
Lesson 17
1. Concurrent audit techniques
2. Purpose of IS audit
3. Scope of IS audit
4. Reasons why manual audit is ineffective in computerized environment
Lesson 18
1. Core principles of information security
2. Security objectives
3. Roles & responsibilities of users in IS security
Lesson 19
1. levels of integration
2. Analysis & design work bench
Note: Thoroughly understand the introductory paragraph for each topic before preparing
the topic.