Course:                                AUDITING 2

CODE     :                               ACC 223

CREDIT HOURS:                                 45 HOURS


GOAL: To further develop the students’ knowledge of concepts, principles, theories and practice of auditing and their ability to perform attest functions.



On completion of this module, students should be able to:

1.0          Understand audit reports and opinions.

2.0          Understand fraud, its prevention and detection.

3.0          Understand manual and computerized auditing.

4.0          Understand the liabilities of auditors.

5.0          Understand Internal Auditing and its relationship to statutory audits.

6.0          Understand Balance Sheet Audit.

7.0           Understand the verification and valuation of assets and liabilities.


  • GENERAL OBJECTIVE: Understand audit reports and opinions

Week 1


1.1          Define the terms: Audit Reports and Opinions;

1.2          Classify audit reports into unqualified and qualified reports;

1.3          Explain the conditions for qualifying reports.

1.4       Explain disclosures as required by IFRS 7 and the likely impact on audit reports.


  • GENERAL OBJECTIVE : Understand fraud, its prevention and detection

Week 3


2.1 Define Fraud

2.2 Explain the frauds that may be discovered

2.3 State the procedures through which fraud may be discovered.

2.4 Explain the procedures through which fraud may be prevented


  • GENERAL OBJECTIVE : Understand manual and computerized auditing.


3.1 Explain the audit procedures adopted in the audit of Electronic data Processing  (EDP) systems.


3.2 Explain the following EDP audits:

(i) Input Devices

(ii) Auxiliary Storage Devices

(iii) Output Devices (main and auxiliary)

(iv) Software.


3.3 Explain the importance and application of internal control in EDP system.


3.4  Define and state the advantages and disadvantages of the following computer terms:

(i) test packs;

(ii) computer programme;

(iii) hardware;

(iv) software;

(v) peripherals;

(vi) configuration, etc.

3.5  Explain the security devices in EDP environment


  • GENERAL OBJECTIVE: Understand the liabilities of an auditor.

4.1 Explain in greater details the liabilities of auditors viz: Civil and criminal cases affecting

auditors in recent times.

  • Explain in greater details recent cases of liabilities of auditors to third parties.
  • Explain the need for reasonable care and skill in the performance of audit duty.


  1. GENERAL OBJECTIVE: Understand Internal Audit and its relationship to Statutory Audit.
  • Define conditions relating to Internal and Statutory (External) Audit.
  • Distinguish between an Internal and External Auditor.
  • Explain their similarities.
  • Discuss the relationship between Internal Auditing and Internal Control.
  • Explain the extent to which the external auditor may rely on the job performed by an internal auditor.


  • Understand Balance Sheet Audit.
  • Define balance sheet audit.
  • Explain the procedures adopted in a balance sheet audit.


  1. GENERAL OBJECTIVE:  Understand Verification and Valuation of Assets and Liabilities.


  • Define verification and valuation of assets.
  • Explain the steps to be followed in the verification of assets and liabilities such as:

(i) Positive and negative circularization;

(ii) Observation of items, etc.

7.3 Explain the principles adopted in the valuation of assets.

7.4 Explain the provisions of the IFRS on valuation of pension investment assets.

  • AUDITING 2 - ACC 223 0/7

There is no review for this course

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