Basics of Auditing A Complete Study

Learn the fundamentals of auditing to excel in accounting and auditing career

Take this Course for $21
Are you an Accounting or Finance Professional?
Are you an Accounting or Finance Student planning a career in either of the fields?
Are you a Professional Course Student planning career as Auditor?
Then this course is for you.
Welcome to Auditing Basics.
The basic purpose of Auditing is to confirm the authenticity of Books of Accounts prepared by an accountant.
So, the auditing begins, where the function of an accountant ends.
Auditing is done to determine the true and fair picture of accounts.
Auditing is done by examining the books of accounts with supporting documents in order to detect and prevent fraud and error.
Auditing provides lots of benefits like
a) Verification of Books of Accounts
b) Independent Opinion
c) Moral Check
d) Protection of the Rights and Interests of Share holders
e) Reliance by Outsiders
f) Ensures compliance with level requirements
g) Strengthens Internal Control
Hence, by taking this course, you will learn
i) Evolution of Auditing
ii) Meaning of Auditing
iii) Features of Auditing
iv) Objectives of Auditing
v) Principal aspects of Auditing
vi) Benefits of Auditing
vii) Limitations of Auditing
viii) Statutory Audit
ix) Internal Audit
x) Secretarial Audit
xi) Cost Audit
xii) Tax Audit
xiii) Bank Audit
xiv) Insurance Audit
xv) Management Audit
xvi) Tools of Audit
This course is structured in Self paced learning style.
You may find accounting terminologies used in this course. Hence, you should have Basic knowledge of Accounting.
Advanced auditing tools and concepts will be launched as separate courses in the due course.

Course Curriculum

Need for Auditing
Purpose of Auditing
Evolution of Auditing
Meaning of Auditing
Features of Auditing
Objectives of Auditing
Principal aspects of Auditing
Benefits of Auditing
Limitations of Auditing
Audit Process
Audit Process in three stages
Vouching
General Consideration in Audit of Cash Transactions
Concept of Auditors Independence Part 1
Concept of Auditors Independence Part 2
Persons disqualified for Appointment as Auditor of Company as per Companies Act
Independence vis-à-vis Indebtedness of Auditor
Introduction to Audit Evidence
Introduction to Sufficiency and Appropriateness of Audit Evidence
Sufficiency of Audit Evidence
Appropriateness of Audit Evidence
Sources of Audit Evidence
Audit Procedures to obtain Audit Evidence
Risk Assessment and Nature and Timing of Audit Procedures
Audit Procedures to obtain Audit Evidence Detailed Explanation
Tests of Controls
Timing of Tests of Control
Using Audit Evidence obtained in Previous Audits
Evaluating the operating effectiveness of controls
Substantive Procedures
What is External Confirmation?
Reliability of External Response
Positive and Negative Confirmation Request
No Response to Positive Confirmation
How to handle exceptions in Confirmation request?
Third party confirmation cases
What is Verification in Audit Context?
Difference between Verification and Vouching
Objectives of Verification
Verification of Building
Verification of Freehold land
Verification of Leasehold Property
Verification of Plant and Machinery
Verification of Furniture and Fixture
Verification of Small Tools
Verification of Patents
Verification of Copy Right, Trade Mark and Goodwill
Verification of Debtors
Verfication of Cash at Bank and in Hand
Verification of Petty Cash
Verification of Inventories
Verification of Stocks Lying with Third Parties
Verification of Bills Receivables
Verification of Prepaid Expenses
Verification of Sinking Fund Policies
Capital Expenditure and Revenue Expenditure
What is Depreciation
Purpose of Providing Depreciation
Depreciation on Wasting Assets
Methods of Providing Depreciation
Factors to be considered in Selecting Depreciation Policy
Verification of Loans and Borrowings
Verification of Trade Creditors
Verification of Contingent Liability
Verification of Bills Payable
Verification of Amount due to Subsidiary Companies
Verification of Outstanding Expenses
Audit of Educational Institutions
Audit of Hospital
Audit of Cinema Halls
Audit of Charitable Institutions
Audit of Club
Audit of Hotels
Audit of Local Bodies
Audit of Small Companies
Audit of Partnership Firm
Audit of Hire Purchase Company
Audit of Publishers
Audit of Incomplete Records
Audit of Leasing Companies
Audit of Non Governmental Organisations (NGOs)
Untitled Lesson
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Audit Planning
Description of certain items in Audit Plan
Knowledge of Client's Business
Development of an Overall Audit Plan
Developing the Audit Program
Advantages and Disadvantages of Audit Program
How to conduct systematic audit?
Classification of Audit According to Time of Assurance
Overcome Limitations of Continuous Audit
Basics of Test Checking or Sampling
Judgemental Sample
Statistical Sampling
Random Sampling and Systematic Sampling
Factors affecting size of Sample
Difference between Test Checking & Routine Checking
SA 530 Audit Sampling
Surprise Check
Audit Working Papers
Working Paper Files
Audit Note Book
Advantages of Working Papers
Access of Working Papers by others
Audit Documentation SA 230
What is Cost Audit?
Applicability for maintenance of Cost Records
Maintenance of Cost Records
Applicability of Cost Audit
Who can be Cost Auditor?
Appointment of Cost Auditor
Removal of Cost Auditor
Casual Vacany of Cost Auditor
Remuneration of Cost Auditor
Submission of Cost Audit Report
Non Applicability of Cost Audit Rules
Penal provisions in case of Default in Cost Audit
Introduction to Company Audit
Qualifications for being appointed as Auditor
Persons not eligible for being appointed as an Auditor
Appointment of First Auditors
Appointment of Subsequent Auditors Non Government Company
Appointment of Subsequent Auditors Government Company
Case 1 Eligibility for Appointment as Auditor of Company
Case 2 Shares held by relative and impact on Auditors Appointment
Case 3 Shares held by relative and impact on Auditors Appointment
Case 4 Shares held by relative and impact on Auditors Appointment
Is it possible to issue shares at discount?
Services prohibited for Auditors
Case on Disqualification of Auditor
Case - Auditor Disqualification after appointment
Rotation of Auditors - Class of Companies
Auditors term (period) of appointment
What is Fraud?
Characteristics of Fraud
How Fraudulent Financial Reporting is accomplisehd?
How Management overrides Controls?
Why Management / Employees commit Fraud?
What and how of Misappropriation of Assets?
How defalcation of cash is attempted?
Circumstances indicating possibilities of Fraud
Reporting of Fraud to Central Government by Audtior
Reporting of Fraud to Audit Committee or Board
What is Internal Control System
Scope of Internal Control System
Objectives of Internal Control System
What is Control Environment?
Limitations of Internal Control System
What is Control Risk?
Internal Audit Function
What is Internal Audit and applicability of Internal Audit for Companies
author

CA N Raja Natarajan

Instructor

I am a Chartered Accountant with tonnes of passion for teaching.

I teach Financial Management & Strategic Financial Management for Chartered Accountancy, Cost and Management Accountancy and Company Secretary students in Ernakulam, India. I also hold Post Graduate Diploma in Business Administration in Finance from Symbiosis, Pune and Bachelors in Commerce, from Loyola College, Chennai.

I worked in State Bank of India as Assistant Vice President - Credit for a period of four years after which i started my Chartered Accountancy Practice. During the stint in State Bank of India, I worked on credit proposals of Mid Corporate Units and gained good experience in Financial Analysis, Risk Assessment, Viability Study, Evaluating business models, Project Finance, Working Capital Management, etc.

I conduct work shops for Entrepreneurs, Chartered Accountancy / Cost and Management Accountancy Students on the topics like Project Finance, Credit Risk Assessment, Entrepreneurship Development, Finance for Non Finance Executives, etc.

I love teaching and i want fundamentals of accounting and finance to reach students and so i am here.