Corporate Auditing

• Meaning, objectives, nature and scope of auditing
• Evolution of auditing practices
• Advantages and limitations of audit
• Prevention and detection of error with practical dealings (rectification of error)
• Qualities of an auditor
• Bookkeeping, accounting and auditing, auditing and investigation
• Terms of audit engagement.

• Knowledge and understanding of the organization
• Audit program: Meaning, objectives, advantages and disadvantages
• Contents of audit program, techniques and preparation of audit program
• Tolerable error, audit risks, sampling and determinants of sample size
• Audit note books: objectives, procedures and techniques and contents of audit notebooks
• Organization of audit staff: job description, responsibility assigned and liabilities defined
• Types of audit work: continuous audit, periodical audit, interim audit, partial audit, tax audit, cash audit, cost audit, management audit, data processing audit
• Scope of work to be determined, instruction to the client, preparation by the auditor, division of work
• Audit files, audit working papers.

• Concept, objective, essential characteristics, advantages and disadvantages
• Internal check and internal audit: effects of internal control and internal audit, auditor’s duties as regards internal check and internal control
• Use/adoption of distinctive ticks, routine checking, difference in balancing books
• Concept of test checks, advantages and limitations
• Difference between statutory audit and internal audit

• Concept, importance, objectives of vouching
• Vouching of cash transactions, vouching of payments, vouching of receipts, vouching of sales, credit and cash sales
• Internal checks as regard to cash sales, cash discount allowed and return
• Credit sales, review of internal check system as regard to credit sales, sales on approval basis, sales under hire purchases system, goods on consignment, goods sent on package and containers, return
• Vouching of purchase, cash purchase, internal check as regard to cash purchase, discount received and return, credit purchase, internal check as regard to credit purchase, discount received and return.

• Capital expenditure, revenue expenditure, and deferred expenditure
• Outstanding expenses and income
• repairs and renewals
• Prepaid expenses, contingent liabilities, and assets.

• Concept, importance
• Distinction between verification and vouching, verification and valuation of assets, vouching and valuation, methods of valuation
• Valuation of fixed assets, current assets and wasting assets
• Auditor’s position as regards to verification and valuation of assets, Verification of liabilities, capital loans and long-term loans, trade creditors, outstanding liabilities for expenses, bills payable, contingent liabilities
• Confirmation and verification, concept of fair value measurement.

Nature of company audit: preliminaries before company audit, statutory audit, audit of preliminary expenses, audit of statutory general meetings, review of memorandum of association and articles of association. Audit of share capital, issue of shares at par, premium, and discount, issue of shares for other than cash, bonus shares, calls in arrear and calls in advance, forfeiture and re-issue of forfeited shares, transfer and conversion of shares, alteration of share capital, Audit of underwriting commission, transfer fees, brokerage, and commission. Audit of debentures: Debentures issued at par, discount, and premium, redemption of debentures, regular redemption and redemption at par, premium, discount, redemption through purchase in open market, conversion of debentures into shares.

• Meaning of audit report, content of audit report
• Types of audit report: statutory report, general report, qualified report, tax audit report
• Evaluation of audit evidence, adequacy, and appropriateness of audit evidence.

Audit of educational institutions, co-operative societies, charitable institutions, NGO’s and local government bodies; Performance audit: Concept, Objectives, and distinction between financial and performance auditing

• Concept of investigation, difference between investigation and audit, causes for investigation and methods of investigation, identification of objectives of investigation
• Formulation of program, collection and examination of records and evidence
• Types of investigation: Investigation on behalf of incoming partners, prospective shareholders, prospective moneylenders and suspected frauds
• Duties and liabilities of an investigator.