Download working program - Almaty Management University

MINISTRY OF SCIENCE AND EDUCATION OF THE REPUBLIC OF KAZAKHSTAN
NEI «ALMATY MANAGEMENT UNIVERSITY»
DEPARTMENT: “VALUATION, ACCOUNTING AND AUDIT”
Approved
at the meeting of the Educational
and Methodic Council
Chairman
______________ N. Duysengulova
«_»____________ 2014., №__
Academic program: Bachelors
Specialty: 5B050900 - “Finance”
WORKING PROGRAM
on the course: « Basis audit »
Almaty, 2014
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Completed by: MBA, PhD candidate _____________________
Alma Karshalova
The working program has been developed on the basis of the Sample Program of the course (for
mandatory component): “Basis audit” for students of the specialty: 5B050900 - “Finance”
The working curriculum was reviewed at the meeting of the Department of “Valuation,
accounting and audit”
Protocol №1 from “25” August 2014.
Head of the department “Valuation, accounting and audit”
c.ec.s., Docent_____________________
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L.Nurgazieva
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1 Preface
This discipline considers and examines the fundamental themes in auditing, which
contribute to the development of professional thinking.
Methodology of teaching this discipline provides for:
- Lecturing;
- Practical classes conduction;
- IWST;
- IWS.
The purpose of discipline is to familiarize with the methodology and principles of internal
and external audit. It covers the following topics: reports, professional ethics, auditing standards,
analytical procedures and planning, materiality and risk, internal control and audit sampling,
audit evidence and working papers of the auditor, quality control, auditing. Showing
methodology of audit and approval cycles used in the implementation of the income, the
formation of production costs and selling expenses, audit of the production process, finance and
investment, implementation and formation of financial results and functions of the individual
cycles.
The objectives of teaching this discipline are: to acquire the required level and scope of
knowledge, skills and competencies for auditing.
Prerequisites: Economic theory, Micro- and Macroeconomics, Statistics, Accounting
Principles, Financial Accounting, Management Accounting, Management Analysis, Financial
Analysis.
Postrequisites: Practical audit, IFRS
Upon completion of this discipline students must:
master the following competencies according to the competence model of the bachelor
General competencies:
- to know theoretical principles of natural sciences (social, humanitarian, economic), which
contribute to the formation of a well-educated person with a spacious mind; Auditing,
Accounting, Foundations of Economics, Management, Marketing, Finance, Taxation; Basics of
the legal system of the Republic of Kazakhstan;
- to be able to adequately navigate various social situations; Work in team; to defend their
positions, and suggest new approaches; Reach compromise, correlate their opinions with the
opinions of the team members; Aim or professional and personal development; Use information
technologies in their professional work; Navigate information streams, and be able to face
challenges of the audit;
- to have skills in: research skills necessary for day-to-day professional activities and possible
study; Compliance with ethical and legal norms;
Subject-specialized:
- to know theoretical principles and basics of audit, its nature, purpose, basic terms and
definitions; Accounting methods to prepare financial reports in accordance with IFRS, namely:
auditing standards and audit reports;
- to be able to understand the provisions of audit; Analyze and interpret ISA provisions in
practical scenarios; Analyze basic financial statements in accordance with IFRS and ISA;
- to have skills in analyzing basic financial statements in accordance with IFRS and
preparation of auditing report;
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Economic and organizational and managerial competencies:
- to know objectives of the governmental regulation of the economy, and a role of public
sector; Business ethics and corporate governance;
- to be able to follow the common social and ethical norms in their professional life;
- to have skills in decision-making;
2 THEMATIC PLAN OF THE DISCIPLINE
FINANCIAL ACCOUNTING ACCORDING TO IFRS
№
Theme
In total
1
1
2
Content, nature and types of
audit
Regulatory system audit
activities in the Republic of
Kazakhstan
Control and Audit
Audit risk and materiality
The
organization
and
methods of obtaining audit
evidence
Organization and procedure
of audit
Quality Control Audit
Total
3
2
3
4
5
6
7
Contact hours
including
Practical
Lectures
classes
4
5
IWS/
IWU
IWST/
IWUT
7
8
20
4
2
2
12
16
4
2
2
8
15
30
4
5
2
3
2
3
7
19
23
4
2
2
15
19
5
2
2
10
12
135
4
30
2
15
2
15
4
75
3 Content of the discipline
Theme 1. The essence, the purpose and types of audit
Determination of the audit and its contents. The purpose and objectives of the audit. The
origin and development stages of the audit. Object, objects and functions of the audit. Formation
and development of audit in Kazakhstan, its current state. Principles, components, concepts and
postulates of auditing. ISA 200, "Objective and General Principles Governing an Audit of
Financial Statements". The financial statements as an information base audit. An overview of the
financial statements. Basic requirements for audit information database. Audit objective
elements of financial statements. Objective and cyclical audit approach. Types of auditors and
audit and internal audit service. Economic systems. Their relationship and differences. The
objectives of internal audit. Understanding, evaluation and testing of the internal auditor. ISA
610, "Consideration of the internal auditor."
Theme 2. The system of regulatory audit activities in the Republic of Kazakhstan
Regulatory experience auditing activities abroad. Structure and function of regulating
auditing activities in the Republic of Kazakhstan. Law on auditing and review of other normative
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legal acts regulating the activities of the audit in the Republic of Kazakhstan. Certification and
licensing of auditing. Auditing standards and professional ethics of auditors.
International Standards on Auditing and their characteristics. Code of professional ethics
of auditors. Ethical standards (principles) of the auditor. Intra auditing standards. International
experience in auditing.
Theme 3. Control and Audit
Economic control and its place in the management of the company. The role of the
independent audit of the system of financial and economic control. Control objectives and their
relationship to the overall objectives of the audit. Internal control. The elements of the internal
control structure. Features of the internal control system, its functions. Terms of control. Audit of
electronic data processing. The control environment. Limitations of internal control. Evaluation
of CRS documented. ISA 315, "Knowledge of the entity and its environment, risk assessment of
material misstatement."
Theme 4. The audit risk and materiality
The concept of materiality in the audit. Determining the level of significance in the world.
Application principles materiality when analyzing the results of the audit. Errors and detect
fraud. Actions of the auditor in identifying distortion. ISA 240, "The auditor's responsibility in
relation to fraud in an audit of financial statements."
Audit risk and its components. Inherent risk and its evaluation. Risk monitoring and
evaluation. Detection risk and level identification. The relationship between the level of
materiality and audit risk. Strategy to reduce audit risk. ISA 200, "Objective and General
Principles Governing an Audit of Financial Statements".
Theme 5. The organization and methods of obtaining audit evidence
Methodical features of audit research. Classification techniques and control methods
applied in the audit. Instructional techniques documentary control. Classification of documents
by attributes. Methods of testing. Instructional techniques actual control. Classification of audit
methods.
Audit evidence and their views. Sources and methods of obtaining audit evidence.
System of criteria of evidence. Audit procedures (methods) and audit evidence. Classification of
evidence. ISA 500, "Audit Evidence." Audit procedures. Analytical procedures. ISA 330, "Audit
procedures regarding the assessed risks." ISA 520, "Analytical Procedures".
Theme 6. The organization and procedure of audit
Audit sampling. Sampling method of audit. Expediency conducting of sampling and
stages of a spot check. Defining a data set (stratification) are sampled. Determination of the most
cost elements and key elements. Methods of selection of samples (random and systematic). ISA
530, "Audit sampling and other selective testing procedures."
Stages of the audit. The planning process. ISA 300, "Planning an Audit of Financial
Statements". Auditor's preliminary acquaintance with the client (pre-planning). Letter of
commitment and execution of audit. MSA 210 "Conditions of the audit agreement." General
requirements for the preparation of the plan and the audit program. Preparation of the overall
audit plan. Preparation of the audit program. Formation tests control and program audit
substantive procedures.
General requirements for the preparation of the audit report and the procedure for its
preparation. ISA 700P "report (conclusion) Independent Auditor's complete set of financial
statements." Form audit report (the conclusion). ISA 701, "Modification of the report
(conclusion) of the independent auditor."
Theme 7. Quality Control Audit
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Quality control system. The basic principles of quality control auditor. Policies and
procedures for quality control audit. . External and internal control. Responsibility for the quality
of the audit. ISA 220, "Quality control audit of financial statements."
Audit documentation and their types. The role and importance of working papers of the
auditor. Types, forms, content and extent of audit documentation. Typical working papers of the
auditor. ISA 230P "Audit Documentation".
4 Themes for practical classes
Theme 1. The essence, the purpose and types of audit
Questions to review:
1. The purpose and significance of the audit.
2. Subject of the objects and principles of auditing.
3. Classification of species and audit functions
4. Main requirements to information-based audit.
5. Elements of financial statements. Stages of disaggregation financial statements.
6. Objective and cyclical audit approach.
Theme 2. The system regulatory audit activities in the Republic of Kazakhstan
Questions to review:
1. System of regulatory audit in Kazakhstan.
2. The Law on auditing
3 Civil liability insurance of auditors and auditors' Code of Ethics
4. International Standards on Auditing and their characteristics.
5. Professional codeof ethics of auditors.
6. Internal auditing standards.
Theme 3. Monitoring and Audit
Questions to review:
1. The organization of work of auditors in the audit firms, quality control of the audit
organization.
2. Control the quality of an audit.
3. Audit documentation and their types. The role and importance of working papers of the
auditor.
4. External and internal control.
5. Internal Control System (ICS) and its elements.
6. Methods of assessment the reliability of the system of internal control. Tests of controls.
Theme 4. Audit risk and materiality
Questions to review:
1. Audit risk and its components.
2. Market risk and its evaluation.
3. Risk monitoring and evaluation.
4. Risk Undetected and level identification.
5. Relationship between the level of materiality and audit risk.
6. Errors and fraud.
7. Determination of the level of importance in the world. Application of materiality
principle when analyzing the results of the audit.
Theme 5. The organization and methods of obtaining audit evidence
Questions to review:
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1. Classification of methods and control methods applied in the audit.
2. Teaching methods documentary control.
3. Methodological techniques of actual control. Classification of audit methods.
4. Audit evidence and their views.
5. Sources and methods of obtaining audit evidence. System of criteria of evidence.
6. Audit procedures (methods) and audit evidence.
Theme 6. The organization and procedure of audit
Questions to review:
1. Basic principles of sampling in the audit.
2. Stages of a spot check.
3. Determination of the data set (stratification) are sampled.
4. Methods of selection of samples (random and systematic).
5. Letter of commitment and the contract for audit
6. Preparation of the overall audit plan. Preparation of the audit program.
7.Audit report and order of its preparation and presentation to the client.
Theme 7. Quality Control Audit
Questions to review:
1. The organization of work of auditors in the audit firms, quality control of the audit organization.
2. Control the quality of an audit.
3.Auditor documentation and their types. The role and importance of working papers of the auditor.
4. External and internal control.
5. Methods for assessing the reliability of the internal control system. Tests of controls.
5 Themes, questions and assignments to fulfill IWS
Theme 1. The essence, the purpose and types of audit
1. Write the essay on "The History of the audit"
2. Draw a block diagram of the Audit
Theme 2. The system regulatory audit activities in the Republic of Kazakhstan
1. Write notes on the Law of the Republic of Kazakhstan "On Auditing"
2. Examine the code of ethics of auditors
3. To study the structure of international standards
Theme 3. Monitoring and Audit
1. To study the quality control system for MQCS
2. Summary of monitoring the quality of audits of financial tatements for ISA 220
Theme 4. Audit risk and materiality
1.Audit procedures on the risks of material misstatement (Explore ISA 330)
2.ISA 320 "Materiality and Audit" - Abstract
3.Solving problems by defining an acceptable audit risk on the example of a specific enterprise
data to determine the level of significance
Theme 5. The organization and methods of obtaining audit evidence
1. Notes of ISA 500
2.Additional questions studied in ISA 501
Theme 6. The organization and procedure of audit
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1. Notes for ISA 530
2. Practical aspects of sampling problems
3. Examine the ISA 200
4. The terms of the agreement by the Audit ISA 210-abstract
5. Examine the ACI 300-399 "Planning"
6. Summary of ACI 700-799 on "Audit conclusions and reporting"
7. Create one type of report
Theme 7. Quality Control Audit
1.Summary of ACI 400-499 on "Internal Control"
2.Create tests to determine the reliability of internal control
6 List of main and additional literature
Main literature
1.
Arens, A.A. Auditting and assurance services 12 ed.*
2.
Arens, A. Auditing and Assurance: Ninth Edition / A. Arens.- Canada: "Prentice Hall",
2003.- 763 p.*
3.
Camus, B. Audit Marketing/ B. Camus.- Paris: Les Editions d'Organistion, 1988.- 157
p. *
4.
Gallegos, F. Audit and control of information systems/ F. Gallegos, D.R. Richardson.USA: South - western publishing co., 1987.- 708 p.*
5.
Handbook of International Auditing, Assurance, and Ethics Pronouncements 2005
Edition.- New-York: IFAC, 2005.- 974 p. *
Additional literature
1.
The Civil Code of the Republic of Kazakhstan. - Almaty, Borken, 2004g.-236.
2.
On Joint Stock Companies Law of the Republic of Kazakhstan from 13.05.2003y
3.
Law of the Republic of Kazakhstan "On compulsory insurance of civil liability of
auditors and audit firms", 2003
4.
Henriet, B. Audit de la Communication Interne .- Les Editions d"Organisation, 1990.201 p.*
5.
Stettler, H.F. Systems based independent audits:.- Second Edition.- Prentice-Hall, 1974.784 p.*
6.
Soltani, B. Auditing. An international Approach - Great Britain: Pearson Education
Limited, 2007.- 660p. *
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