AUDITING AND INVESTIGATION

• Instructor: Lagos City Polytechnic
• Lectures: 13
• Quizzes: 2
• Students: 1001
• Duration: 60 hours

LAGOS CITY POLYTECHNIC, IKEJA

HIGHER NATIONAL DIPLOMA IN ACCOUNTANCY

YEAR I

AUDITING AND INVESTIGATION

CODE: ACC 412

HIGHER NATIONAL DIPLOMA IN ACCOUNTANCY

Course: AUDITING AND INVESTIGATION

CODE: ACC 412

CREDIT HOURS:                                 60 HOURS

GOAL: To enable students gain an in-depth understanding of the general principles and practices of modern auditing and investigation so as to enable them to apply the knowledge to practical situations.

GENERAL OBJECTIVES

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

1.0        Understand audit planning process and the generally accepted audit procedures as the basis for audit tests and questionnaires.

2.0       Understand Public Reporting and Generally Accepted Auditing Procedures (GAAP)

3.0          Understand audit investigation.

4.0          Understand principles underlying the acquisition and amalgamation of companies.

5.0       Understand Fraud.

6.0          Know forms of audit reports.

7.0          Understand the Companies and Allied Matters Act (CAMA) (1990) and the Auditors’

Responsibilities.

8.0          Understand Shareholders, Employees and Creditors’ protection under CAMA.

• Know Take-Over Code.
• Understand Audit of Computerized Accounting System.
• Understand Financial Statements and Audit Opinions.
• Understand Special Audit.
• Understand Ethical Code of Conduct.

DETAILED COURSE OUTLINE

1.0 GENERAL OBJECTIVE:  Understand Audit Planning Process and the Generally Accepted Audit Procedures as the Basis for Audit Tests and Questionnaires

Week 1

1.1          Define Audit tests and Questionnaires.

1.2          Explain the process of developing audit tests and questionnaires including ICQS.

1.3          Explain the Generally Accepted Basis for Audit Tests (GAAP) and ICQs

1.4          Explain the development of these tests and questionnaires

1.5       State the nature and scope of these tests and questionnaires.

1.6       Draw up and apply ICQs and audit tests.

2.0 GENERAL OBJECTIVE:  Understand Public Reporting and generally accepted auditing procedures (GAAP)

Week 2

2.1        Define Public Reporting

2.2        Classify forms of Public Reporting.

2.3        Explain the principles acceptable to accountants.

2.4        Explain the application of GAAP to all published accounts.

• Explain the application of generally accepted principles to all forms of published accounts.

3.0  GENERAL OBJECTIVE :  Understand Audit Investigation.

Week 3

3.1      Define Investigation.

3.2      Explain types and nature of investigation.

3.3     Explain related terms used in investigation vis-à-vis prospectus, acquisition and

amalgamations; purchase and sales of business.

3.4     State the similarities in procedure during audit investigation.

Week 4.0  GENERAL OBJECTIVE :  Understand principles underlying the acquisition and amalgamation of companies.

Week 4

4.1      Define acquisition and amalgamation.

4.2      Explain the similarities and differences between acquisition and amalgamation.

4.3      Explain the generally accepted accounting principles of acquisition and amalgamation.

4.4      Apply these principles in audit reporting.

.

4.5    Test 1

5.0 GENERAL OBJECTIVE: Understand Fraud.

Week 5

5.1      Define fraud.

5.2       State the different types of fraud.

5.3      Explain the possible procedures for detecting fraud.

5.4     State the possible steps that can be taken to prevent frauds.

6.0 GENERAL OBJECTIVE: Know forms of audit reports.

Week 6

6.1    Define Audit Reports.

6.2    State the different types of audit reports: qualified and unqualified reports.

6.3   Distinguish between adverse, qualified and unqualified opinion.

6.4   State conditions for a disclaimer report and qualified reports.

6.5   Apply the knowledge acquired in a given audit assignment to reflect qualified and

unqualified reports.

6.6   Explain current developments in reporting.

7.0 GENERAL OBJECTIVE: Understand the Companies and Allied Matters Act (CAMA) (1990) and the auditors’ responsibilities

Week 7

7.1   Explain the position of the auditor in the companies and allied matters Act (1990).

7.2   Explain how the Companies and Allied Matters Act (1990) affects the responsibilities of the

auditor.

7.3   Explain the meaning of ‘true and fair view’ in audit reports.

7.4   Explain reasons for non-compliance the provision of the Act.

8.0 GENERAL OBJECTIVE: Understand shareholders, employees (employers?) and creditors’ protection under CAMA.

Week 8

8.1   Explain the importance of the Act (CAMA). Shareholders, employees (employers?) and

creditors (CAMA) to th.

8.2   Explain the implications of non-compliance on the shareholder/employers, creditors etc..

8.3   Explain measures to enforce compliance.

• Test 2

9.0 GENERAL OBJECTIVE: Know Take-Over Code.

Week 9

9.1    Define take-over code.

9.2    Explain the reasons for take-over.

9.3    Explain take-over code as it relates to audit report.

9.4    State the importance of take-over code..

9.5    State the legal requirements of take-over..

9.6    Explain the process of take-over.

10.0 GENERAL OBJECTIVE: Understand audit of Computerized Accounting System

Week 10

10.1    State the audit procedures used in the audit of Computerized Accounting systems,

10.2    Explain the following terms in computer audits:

(a) Input Devices;

(b) Output Devices;

(c ) Software Packages.

10.3    Describe the system development control i.e:

-Over input;

-Over processing;

-Over output.

• .

11.0 GENERAL OBJECTIVE: Understand Financial Statements and Audit Opinions

Week 11

11.1    Review financial statements as aid to audit opinion.

11.2    Explain compliance with generally accepted accounting principles and accounting

Standards both local and international.

11.3    review presentation and disclosure procedure.

11.4    explain compliance of financial statements with statutory and other regulation.

12.0 GENERAL OBJECTIVE: Understand Special Audit.

Week 12

12.1    Define Special Audit.

12.2    State procedures for writing investigation reports.

12.3    Describe the procedure and the process of presentation of reports to management and

clients.

• Explain the advantages and disadvantages of such reports to clients.

13.0 GENERAL OBJECTIVE: Understand Ethical Code of Conduct.

Week 13

13.1    State the objectives of ethical codes of conduct.

13.2    Explain the different Laws and regulations issued by the Accounting Bodies.

13.3    Explain conflicts.

13.4    State the gains of compliance and the penalties for non-compliance with the dictates of:

– Ethical codes of Conduct;

– Regulation and Laws issued by professional bodies.

13.5    Identify the various bodies responsible for the development of Accounting Standards

Locally and Internationally..

13.6    Identify various factors against the harmonization of the International and local

Accounting Standards.