AUDITING I

• Instructor: Lagos City Polytechnic
• Lectures: 7
• Students: 1
• Duration: 10 weeks

NATIONAL DIPLOMA IN ACCOUNTANCY

YEAR II

AUDITING I

CODE: ACC 213

NATIONAL DIPLOMA IN ACCOUNTANCY

Course:                                AUDITING 1

CODE     :                               ACC 213

CREDIT HOURS:                                 45 HOURS

GOAL: To expose students to the concepts, theories, principles and techniques of Auditing.

GENERAL OBJECTIVES

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

1.0          Understand theory and philosophy of auditing.

2.0          Know rights, duties and responsibilities of the auditor.

3.0          Understand professional ethics.

4.0          know the Auditor’s Liabilities.

5.0          Understand the appointment and removal of Auditors.

6.0          Know the inter-relationships of the audit functions and the internal control

system..

7.0          Know selections of areas of work control, in-depth tests and use of graphing and

of sampling techniques.

DETAILED COURSE OUTLINE

• GENERAL OBJECTIVE : Understand theory and philosophy of auditing.

Week 1

1.1          Define Auditing

1.2          Relate the history of auditing and philosophy of auditing

1.3          Explain the theory and philosophy of auditing.

1.4          Explain the concepts and conventions underlying the practice of auditing

1.5          Explain the generally accepted auditing standards (GAAPs)

1.6       Distinguish between auditing and accounting

• GENERAL OBJECTIVE : Know the rights, duties and responsibilities of auditor.

2.1 Explain the role of auditors in an enterprise

2.2 Explain the rights, duties and responsibilities of auditors to a sole trader, a partnership and to

a public organization

2.3 explain the auditors’ right to remuneration

2.4 Explain the significance of the following as they affect an audit:

– source of auditors’ power, audit plans, programmes, engagement letters, standard of field –         work and audit process

2.5 Explain what audit working papers mean and the objectives of audit working papers.

2.6 Distinguish between a permanent audit file and a current audit file and state the documents

found in each of them.

2.7 Explain auditing approaches and significance of systems approach in modern auditing,

2.8 Explain what an audit trail means and its indispensability to vouching approach in auditing

2.9 Explain the methods or approaches to audit such as final audit, interim audit, procedural

audit, continuous audit and balance sheet audit.

2.10 Explain the advantages and disadvantages of each in 2.9 above.

3.0 GENERAL OBJECTIVE:  Understand Professional Ethics

3.1 Define professional ethics

3.2 Describe the concept of independence.

3.3 Relate such ethics to association with directors, shareholders and clients

3.4 Explain an auditor’s responsibilities to the profession, colleagues and society.

4.0 GENERAL OBJECTIVE; KNOW THE AUDITORS’S LIABILITIES

4.1 Define liability

4.2 State the source of liability

4.3 Explain liability for negligence under common law

4.4 Explain liability under statute- Civil and Criminal Law

4.5 Discuss recent developments in third party liability

5.0 GENERAL OBJECTIVE; Und stand the Appointment and Removal of Auditors

5.1 Explain the procedure for the appointment and removal of auditors –legal and other requirements

5.2 State the procedure for fixing the remuneration of auditors

5.3 State the qualification of an Auditor as distinct from that of Accountants

6.0 GENERAL OBJECTIVE; Know the inter-relationship of the audit functions and the internal control system

6.1 Define internal Control, Internal Audit and Internal Check

6.2 Explain the significance of an audit assignment

6.3 Explain the characteristics of internal audit functions and internal control questionnaires

6.4 Explain the significance of internal audit functions and internal control questionnaires an audit

6.5 Explain the significance of strong internal control systems

7.0 GENERAL OBJECTIVE; Know selection of areas of work control, in-depth tests, use of graphs, and sampling techniques

7.1 Define work control, in-depth graphing and sampling techniques

7.2 state the significance of organizational charts and flow charts in an audit procedure for work control, in-depth graphing and sampling techniques.

7.3 Explain the testing of the system of internal control, compliance tests, transaction tests and functional test.