Audit and assurance focuses on the independent examination of financial statements to provide stakeholders with an opinion on their truth and fairness. It emphasizes risk assessment, internal control evaluation, and the systematic collection of evidence to ensure compliance with professional standards.
The Audit and Assurance course at the Application Level of ICAN develops practical knowledge and skills required to conduct audits, evaluate internal controls, and provide assurance on financial statements. The course focuses on professional standards, ethical requirements, and real-world application of auditing principles, preparing students for roles in auditing, assurance, and advisory services.
Definition, objectives, and types of audit
Scope of auditing in business and professional practice
Relationship between accounting and auditing
Users of audit reports and their needs
Learning Outcome:
Students will understand the fundamental purpose and role of auditing and assurance in enhancing reliability of financial information.
Nepal Standards on Auditing (NSA) and International Standards on Auditing (ISA) overview
Legal and regulatory framework: Companies Act, tax laws, and professional regulations
Role of ICAN in regulating audit practice
Code of Ethics for professional accountants
Learning Outcome:
Ability to apply professional and ethical standards in auditing assignments.
Understanding the client and industry
Engagement planning and acceptance
Risk assessment: inherent risk, control risk, and detection risk
Materiality and audit strategy
Learning Outcome:
Students will develop skills to plan audits effectively, identify risks, and design audit procedures.
Components and objectives of internal control
Control environment, risk assessment, control activities, information and communication, monitoring
Evaluation and testing of internal controls
Internal control weaknesses and reporting
Learning Outcome:
Ability to assess internal control systems and determine their impact on audit procedures.
Nature and sources of audit evidence
Procedures for obtaining sufficient and appropriate evidence
Documentation and working papers
Audit sampling and analytical procedures
Learning Outcome:
Students will be able to gather, evaluate, and document audit evidence effectively.
Audit of cash, receivables, inventories, fixed assets, and liabilities
Audit of revenue, expenses, and payroll
Audit of banks, investments, and other specialized areas
Emphasis on fraud detection and management
Learning Outcome:
Ability to perform detailed audit procedures for various financial statement areas.
Types of audit opinions (unqualified, qualified, adverse, disclaimer)
Structure and content of audit reports
Assurance engagements beyond audit (review, compilation, agreed-upon procedures)
Communicating findings to management and stakeholders
Learning Outcome:
Students will learn to prepare audit and assurance reports in compliance with standards.
Statutory audits for companies and partnerships
Government audits and compliance audits
Internal audits and operational audits
Audit considerations for small and medium enterprises
Learning Outcome:
Understand different types of audits and their application across organizations.
Real-life audit scenarios
Preparation of audit working papers and schedules
Identification of audit risks and recommendations
Interpretation of audit results for decision-making
Learning Outcome:
Enhance practical auditing skills, professional judgment, and ability to provide assurance services.
By the end of this course, students will be able to:
Plan and conduct audits in accordance with professional standards
Evaluate internal controls and identify risks of material misstatement
Gather and analyze audit evidence effectively
Prepare audit reports and provide assurance on financial statements
Apply ethical principles and professional judgment in auditing engagements
Introduction to Auditing and Assurance
Regulatory Framework and Professional Standards
Audit Planning and Risk Assessment
Internal Control and Control Testing
Audit Evidence and Documentation
Audit of Specific Areas (Cash, Receivables, Inventory, etc.)
Audit Reports and Assurance Services
Audit of Entities and Specialized Audits
Practical Application & Case Studies