

The Audit and Assurance subject provides knowledge to understand the nature and diversity of audit and assurance engagements. The subject provides an insight view of audit and assurance processes, the methodologies and its procedures. It examines the objectives of assurance engagements, current and future developments in assurance engagements. The environment in which the auditor/assurance practitioner operates, and the roles of the private and public sector auditors as well as internal audit will be discussed.
This paper aims to provide the quality control standards for audit and assurance engagements and the fundamental principles of ethics applied in the auditing profession. This paper adopts a risk-based approach to audit and assurance services, viewing the practice and the theoretic aspect of auditing which is applicable in a global environment. Application of auditing concepts to financial statement audits is one of the key aim.
The Audit and Assurance syllabus can be broken down into five broad areas. The syllabus commences with internal & external nature, purpose and scope of assurance engagements including the statutory audit, its regulatory environment, with the introduction of governance and professional ethics in relation to audit and assurance. It then moves into audit planning and performing risk assessment procedures. The syllabus then gives insight to a range of areas in relation to the audit of financial statements which also includes the scope of internal control. This is further broken down into the evaluation of internal controls, audit evidence, and a review of the financial statements. In addition to the final review procedures undertaken, the final section concentrates on the reporting of the conducted audit, which includes the form and content of an independent auditor’s report.
Linking with other papers:
It assumes some knowledge from paper F4 Corporate & Business Law & F7 Financial reporting. Further it sets the basics for the papers SBL Strategic Business Leader, P7 Advanced Audit & Assurance.
Key areas of paper:
This paper will ensure a full understanding of the procedures for carrying out the assurance engagement which will provide information to the related contexts of the professional regulatory framework.
Upon successful completion of this subject, students should:
The candidates should be able to:
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