Final headings of Topic selected
401
IT Audit and Control of bestway cement
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Bestway cement.
Current Scenario.
Why are Controls and Audit Important?
IT Today and Tomorrow
Information Reliability
Integrity and Validity Importance
Control and Audit: A Global Concern
E-Commerce and EFT
Legal Issues Impacting IT
Privacy on the Info Superhighway
Security Privacy and Audit
Financial analysis.
Audit Standards
Importance of Audit Independence
GAAP
GAAS
IT Auditing
What is IT
Need for the IT Audit Function
Auditors must have Independence
Auditor: Knowledge, skills and Abilities
Role of IT Auditor
IT Auditor as a Counselor
IT Auditor as Investigator
Audit Universe
Risk Assessment
Audit Plan
Developing an Audit Schedule
Audit Budget
Audit Process
Design Audit Procedures
Fieldwork and Implementing Audit Methodology
Validation of Work Performed
Substantive Testing
Documenting results
Communication Strategy
Auditor Productivity Tools
Using CAAT in the Audit Process
Flowcharting Techniques
Flowcharting as an Analytical Tool
CAAT for Operational reviews
CAAT for Operational Reviews
Webmetrics
Web metrics as an Audit Tool
Computer Forensics
Controls .
Risks and exposures in computer-based information systems IT Control Frameworks
COBIT,ITCG,SysTrust,WebTrust,Effectiveness,efficiency,economy of operation
Reliability of financial reporting
Effectiveness of control
IT asset safeguarding
Compliance with applicable laws and regulations
System reliability
Data integrity
Societal Organizational environment Technology infrastructure Software Business process, External
regulatory controls
Board/audit committee governance
Management philosophy and operating style
Plans/structure of organization
Method to communicate the assignment of authority and responsibility
Management control methods,Economic, technical, operational behavioral
Main reason for failure of computer Projects
62. Error, fraud , vandalism/abuse, business interruption, competitive disadvantage, excessive cost, deficient
revenues, statutory sanctions, social costs, etc. Quantitative / qualitative, Monetary, non-monetary
63. Balancing costs of controls vs. costs of unmitigated risks )
64. IT Acquisition and Implementation
65. Research Objectives.
66. Organizing Projects; Project Planning
67. Project Management Body of Knowledge
68. Auditor’s Role in Project management Process
69. Importance of Project Planning and Control in SDLC
70. Approaches to Software development
71. SW Development Process
72. End-User Development
73. System Implementation Process
74. User Acceptance Testing
75. Auditor’s Role in the Development Process
76. SDLC; Application Risks
77. End-User Computing Application Risks
78. EDI Application Risks
79. Application Controls
80. ASLC
81. Change Control
82. Vulnerabilities in SW Development and Change Control
83. IT Change Management
84. Change Management System
85. Controls Over changes
86. Emergency Change Process
87. Organizational Change Management
88. Audit Involvement; Information Security Management; Logical Access Controls; Network Security
Controls; Environmental Controls; Physical Security Controls; Auditing Asset Protection
89. Advanced Topics. (IT Operation Issues in Network Installation; Types of WANs; Elements of WANS;
Tools of Network Monitoring; Feature of Intranets and other networks; Interconnected Systems and ECommerce; Exploiting the TCP/IP Holes; Recommendation to IT Auditors; Intranet/ Extranet Security;
Wireless Technology
90. Conclusions.
91. Recommendations.
92. References.
402
Advanced Taxation PSO
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PSO
Research Objectives.
Tax Structure in PSO.
Income Tax: A comprehensive and practical approach to ,Income Tax Laws Income Tax Ordinance 2001.
Sales Tax: A comprehensive and practical approach to ,Sales Tax Laws ,Sales Tax Act 1990.
Federal Excise Tax: Federal Excise Act 2005 Chapter I, II.
Conclusions.
Recommendations.
References.
403
APPLICATION OF ADVANCE ACCOUNTS IN MCB and HBL comparitively
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History of multinational stock exchange listed companies.
yearly development statistics of multinational stock exchange listed companies.
Per capita income of top 10 multinational stock exchange listed companies.
Research objectives.
Multinational stock exchange listed companies of Pakistan.
Current scenario.
Advanced Issues in Partnership Accounts (Dissolution of partnership firms including piecemeal distribution
of assets;
Amalgamation of partnership firms; )
7. Conversion into a company and Sale to a company
8. Formation of multinational stock exchange listed companies .
9. Company Accounts
10. Accounts structure in multinational stock exchange listed companies.
11. Financial Statements and reporting.(Preparation of financial statements including consolidated financial
statements and their disclosure, Accounting for investments in subsidiaries and associated undertakings
,Financial reporting on interests in joint venture ,Interim financial reporting ,Reporting on discontinued
operations )
12. Preparation of statutory and director report
13. Analysis of Financial Statements.(Needs of various users of financial statements and its importance
,Techniques for analysis ,Earnings per share (EPS) )
14. Business and share valuations
15. IAS (11, 12, 14, 17,18, 20, 21, 27, 29, 30, 33, 36, 38, 40)
16. How capital is raised.
17. Meetings.
18. Shareholders right ,powers and duties.
19. Depreciation on Assets.
20. Debentures.
21. Liabilities.
22. Investments.
23. Important documents.
24. Winding up of multinational stock exchange listed companies.
25. Conclusions.
26. Recommendations.
27. References.
404
Advance Auditing of Pakistan Railway
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Pakistan Railway.
Current financial anaylsis.
Audit strategy, planning and programming: Planning the flow of audit work; audit strategy,
planning programme and importance of supervision: review of audit notes and working papers;
drafting of reports; principal’s ultimate responsibility; extent of delegation; control over quality of
audit work; reliance on the work of other auditor, internal auditor or an expert.
4. Risk Assessment and Internal Control: Evaluation of internal control procedures; techniques
including questionnaire, flowchart; internal audit and external audit, coordination between the
two New engagements, the strategic design and planning of an audit and knowledge of the
client’s business, The review of financial statements to include analysis and critical assessment,
Quality control and recording of the audit, The evaluation and testing of control procedures and
audit evidence, The design and carrying out of tests of substance on specific audit areas,
Consideration of materiality, audit risk, reliance on other specialists, events after the reporting
period, contingencies, related parties, Use of experts, Characteristics of fraud and the
responsibility of auditors for detecting material misstatement due to fraud.
5. Special audit techniques: Selective verification; statistical sampling: Special audit procedures;
physical verification of assets, direct confirmation of debtors and creditors, Analytical review
procedures, Risk-based auditing
6. Audit of limited companies: Audit reports; qualifications, notes on accounts, distinction
between notes and qualifications, detailed observations by the statutory auditor to the
management vis-a-vis obligations of reporting to the members. Audit Committee and Corporate
Governance ,Audit of Consolidated Financial Statements, Audit Reports and Certificates for
Special Purpose engagements; Certificates under the Payment of Bonus Act, import/export con
troll authorities, etc.; Specific services to non-audit clients; Certificate on Corporate Governance
,Special features of audit of banks, insurance companies, co-operative societies and nonbanking financial companies ,Cost audit ,Special audit assignments like audit of bank borrowers,
audit of stock and commodity exchange intermediaries and depositories; inspection of special
entities like banks, financial institutions, mutual funds, stock brokers.
7. Sarbanes – Oxley Act, 2002: Salient features of Sarbanes – Oxley Act, 2002 with special
reference to reporting on internal control.
8. Evaluation of critical areas: Appropriateness of going concern assumption.
Evaluating the effects on reporting responsibilities of an auditor resulting from:
i. pending legal action;
ii. fraud and error;
iii. non-compliance with laws and regulations; and
iv. Taxation and tax related contingencies.
v. other post balance sheet events
vi. Audit of accounting estimates.
9. Special reports: Special purpose reports e.g. on forecasts and estimates etc. Reporting and
related services (compilation and review engagements).
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Reports on prospectuses.
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Certificates of auditors on statutory reports.
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Reports relating to bonus issues.
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Reports on prospective financial information.
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Audit reports on special purpose audit engagements.
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Special audit reports relating to forensic assignments.
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Reporting on due diligence engagements.
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Reporting on compliance with the Code of Corporate Governance.
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Report on component of financial statements
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Certificates on break-up value, net worth, right issue, other matters as specified
from time to time by Regulating Authorities.
Special audits: Non statutory audits, cost audits, management audit, systems audits,
operational audits, forensic assignments (including money laundering aspects), due diligence
reviews, internal audit functions (in house and outsourced).
Audits of specialized enterprises e.g. banks, insurance companies, investment companies,
housing finance companies, employees» retirement funds
Quality control for audit work: Quality control policies and procedures:
i. at audit firms (peer reviews); and
ii. at individual audits Specifying quality control procedures:
i. the independence of the audit firm and audit personnel;
ii. The skills and competence of audit personnel;
iii. Procedures for review of the audit documentation
iv. Handling and safeguarding the audit documentation
Management of audit clients and client relationships: Managing the audit clients, including
compiling and reviewing information on clients throughout the year.
Managing the audit relationship including negotiating the fee for services and discussion of
administration and results of audit
c. Confidentiality.
d. Independence.
International standards and Ethical Aspects: International Standards on Assurance, Auditing
& Related Services, and International Auditing Practice Statements Professional and ethical
considerations
Conclusions.
Recommendations.
References.
501
Fraud Audit and Forensic Accounting of Enron
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Enron
History
Event creating the situation.
Background of Fraud Audit and Forensic Accounting: The Fraud Cycle
Forensic Accountant and Audits
Forensic Accountants
Fraud Auditors
Fraud Principles What is Fraud?
Fraud Triangle
Scope of Fraud
Fraud Taxonomies
Fraud Tree
Evolution of Typical fraud
Fraud Schemes ACFE Fraud Tree
Financial Statement Schemes
Corruption schemes
Asset Misappropriation schemes
Red Flags Common Red Flags
Specific Red Flags
Fraud detection model
Red Flags of following Schemes: Cheque Fraud, Credit Card Fraud, Internet Fraud, Cyber
Fraud, Transactions Fraud, Insurance fraud, Property fraud, Purchases fraud, Sales Fraud
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Fraud Risk Assessment Risk Assessment Factors
Risk Assessment Best practices
Risk Management Checklists and documentation
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Fraud Prevention Prevention environment
Perception of Deception
Classic Approaches
Accounting Cycles
10. Fraud Detection Fraud Detection Axioms
Common Detection Methods
Specific Detection Methods
11. Fraud Response Fraud Policy
Fraud response Team
Recovery
12. Computer Crime History and Evolution of Computer Crime
Characteristics of the Computer Crime
INFOSEC
Profiling Internet Fraudsters
13. Gathering Evidence Rules of Evidence
Hearsay Exceptions
Other Rules of Evidence
14. Fraud and the Public Accounting Profession History of the Fraud and the Auditor
Fraud and The Auditor’s Liability
Fraud and the Auditors’ Responsibility
15. Fraud and The Auditor’s Role
16. Conclusions.
17. Recommendations.
18. References.
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Internal Auditing Role in Risk and Control of KSE
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KSE
Biggest slum in KSE
Results of the event.
Internal Audit Charter, Independence and Objectivity Internal
auditing,
Scope and Nature of Internal Audit,
Internal Audit Charter,
IAA Independence,
Internal Auditor Objectivity,
Impairment of Independence and Objectivity
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Internal Audit Roles Nature of Work
Governance,
Compliance,
Risk Management,
BCM,
Information Reliability, integrity and Privacy
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Control Knowledge elements Control,
Classifications of Control,
Internal Audit’s Role in assessing Risks,
COSO,
COCO Model,
The COBIT Model,
ERM
Specific Controls Accounting Cycles and Associated Controls
A/R/A Cycle, Cash receipts Cycle, A/P/A Cycle, Cash Disbursement
Cycle, Payroll Cycle,
Management Controls,
7 Means of Control explained by Sawyer
Control Aspects of Management Control Implication of
Organizational Culture,
Departmentalization Vs Matrix Structure,
Mechanistic Vs Organic,
Virtual Organizations, Control Implication of Leadership styles,
Conflict management,
Managing the Internal Audit Activity Planning, Communication of
Plans,
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Reporting to Senior Management and the Board,
Relationship with the Audit Committee,
Resource management,
Policies and Procedures, Coordination,
QAIP, Internal Assessments, External Assessments, Reporting to the
QAIP
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Planning and Supervising the Engagement Engagement Planning,
Preliminary Survey,
Risk Assessment,
Coordination,
Objectives and Scope, Engagement Procedures, Resources and
Supervision, Work Program
Internal Audit Responsibilities of Fraud Fraud Nature and
Prevention,
Fraud Detection,
Fraud Investigation and Reporting,
Indicator’s of fraud,
Engagement Procedures, Fraud Controls
Conclusions.
Recommendations.
References.
503
Advanced Performance Management in Engro foods
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Engro foods
Financial analysis.
Pricing and Product Decisions Relevant cash flows and their use in short-term decisions, typically
concerning acceptance/rejection of contracts, pricing and cost/benefit comparisons
The importance of strategic, intangible and non-financial judgments in decision-making
Relevant costs and revenues in decision-making and their relation to accounting concepts
Marginal and full cost recovery as bases for pricing decisions in the short and long-term
Simple product mix analysis in situations where there are limitations on product/service demand and
one other production constraint.
Multi-product break-even analysis, including break-even and profit/volume charts, contribution/sales
ratio, margin of safety etc.
Linear programming for more complex situations involving multiple constraints. Solution by graphical
methods of two variable problems,
Sensitivity analysis of CVP-based decision models.
Pricing decisions for profit maximizing in imperfect markets.
Pricing strategies and the financial consequences of market skimming, premium pricing, penetration
pricing, loss leaders, product bundling/optional extras and product differentiation to appeal to different
market segments.
The allocation of joint costs and decisions concerning process and product viability.
Cost Planning and Analysis for Competitive Advantage Value analysis and quality function
deployment.
The benefits of just-in-time production, total quality management and theory of constraints and the
implications of these methods for decision-making in the ‘new manufacturing environment’.
Kaizen costing, continuous improvement and cost of quality reporting.
Learning curves and their use in predicting product/service costs, including derivation of the learning
rate and the learning index.
Activity-based management in the analysis of overhead and its use in improving the efficiency of
repetitive overhead activities.
Target costing.
Life cycle costing and implications for marketing strategies.
The value chain and supply chain management, including the trend to outsource manufacturing
operations to transition and developing economies.
The use of direct and activity-based cost methods in tracing costs to ‘cost objects’, such as customers
or distribution channels, and the comparison of such costs with appropriate revenues to establish
‘tiered’ contribution levels, as in the activity-based cost hierarchy.
Pareto analysis.
Budgeting and Management Control Control system concepts.
The use of budgets in planning: ‘rolling budgets’ for adaptive planning.
Responsibility accounting and the use of budgets for control: controllable costs and; treatment of
uncontrollable costs; the conceptual link between standard costing and budget flexing.
Assessing the financial consequences of projected performance through key metrics including
profitability, liquidity and asset turnover ratios.
What-if analysis based on alternate projections of volumes, prices and cost structures and the use of
spreadsheets in facilitating these analyses.
The evaluation of out-turn performance using variances based on ‘fixed’ and ‘flexed’ budgets.
Behavioural issues in budgeting: participation in budgeting and its possible beneficial consequences
for ownership and motivation; participation in budgeting and its possible adverse consequences for
‘budget padding’ and manipulation; setting budget targets for motivation; implications of setting
standard costs etc.
Non-financial performance indicators.
Criticisms of budgeting and the recommendations of the advocates of the balanced scorecard and
‘beyond budgeting’.
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Control and Performance Measurement of Responsibility Centres Organisation structure and its
implications for responsibility accounting.
Presentation of financial information representing performance and recognizing issues of
controllable/uncontrollable costs, variable/fixed costs and tracing revenues and costs to particular
cost objects.
Return on investment and its deficiencies; the emergence of residual income and economic value
added to address these.
The behavioural consequences of performance management and control.
The theory of transfer pricing, including perfect, imperfect and no market for the intermediate good.
Conclusions.
Recommendations.
References.