Introduction of the Course: Globally the concept of Auditing has undergone a radical change especially with respect to its approaches, principles and procedures. At the same time auditors of 21st Century must be prepared to “audit” virtually anything. All these elements have made the subject quite dynamic and at the same time complicated too. The constant changes in the regulatory framework relevant to its conduct further add to the complexity of the subject. Keeping this in mind, the course content is designed in such a way that it gives the students an overall view of the subject in a student-friendly manner.
· To provide an in-depth analysis of the fundamental principles, concept, tools and techniques of Auditing while emphasising the practical aspect.
· Students will know the concepts and principles of audit.
· Students will know the ways errors and frauds are committed in financial statements.
· Students will have clear understanding of cost audit, tax audit and management audit.
· Students will also know the procedure of Audit in special entities.
Unit-I: Introduction to Auditing:
· Definition of Audit, Essential Characteristics of Auditing, objectives and Scope of Audit, Qualifications and Qualities of an Auditor, Advantages and Limitations of Audit.
· Classification of Audit: Classification based on organizational structure, Classification based on the timing and scope of audit procedure, Classification on the basis of specific objectives.
· Audit Planning
Unit-II: Internal check and control:
· Internal Check-Definition, Objective, Preparation of check-lists.
· Internal Control-Definition, Objectives, Techniques for Evaluation.
· Internal Audit-Definition, Objectives, Regulatory Requirements (Companies Act).
· Audit Procedure – Vouching and verification of Assets & Liabilities;
Unit-III: Company Auditor, Audit Report and Certificate -
· Qualifications and disqualifications,
· Appointment, Rotation, Removal, Remuneration, Rights and Duties;
· Auditor’s Report- Definition-Distinction between Report and Certificate- Types of Reports/Opinion (Clean, Qualified, Disclaimer, Negative and Piecemeal)
· Contents of Audit Report (As per Companies Act and Standards on auditing), True and Fair View (Concept and Guiding Factors).
· Liabilities of Statutory Auditors under the Companies Act 2013.
Unit-IV: Other thrust areas and Auditing and Assurance Standards:
· Cost audit, Tax audit and Management audit.
· Recent Trends in Auditing: Basic considerations of audit in EDP Environment.
· Relevant Auditing and Assurance Standards (AASs).
Unit-V: Audit of Special Entities:
· Audit of Educational Institutions
· Audit of Charitable Trusts
· Audit of Cooperative Society
· Audit of Hospitals, Hotels, Clubs, Insurance Companies
Classroom lecture, seminars, group discussions and summer internship.
I. Sharma, Kumar (2011). Auditing-Principles and Practises. PHI Learning Private Limited. New Delhi.
II. Basu, S. (2009). Fundamentals of Auditing. Pearson Education.
III. Sana, A. K., Sarkar, S., Biswas, B., & Das, S. (2019). Auditing and Assurance, 2e. McGraw-Hill Education.
IV. Tandon, B., SUdharsanam, S., & Sundharabahu, S. (2007). A Handbook of Practical Auditing. S chand.
- TEACHER: Annesha Saha