Topics: Auditing, Audit, Auditor's report Pages: 31 (6688 words) Published: August 13, 2013
Assurance Hand Note
Professional Stage-Knowledge Level By: Shafique Ahmed-Sr. Officer (Internal Audit-BSRM)


CA in Bangladesh


Assurance Hand Note
Professional Stage-Knowledge Level By: Shafique Ahmed-Sr. Officer (Internal Audit-BSRM) CONTENTS OF ASSURANCE 01. 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12

Preliminary of Assurance:
Assurance Engagement: Key elements of an assurance engagement: Levels of assurance Objective of an Audit: True & Fair Why is assurance important? Why can assurance never be absolute? Professional ethics: Basic principle governing of an audit: Threats and safeguards: Suggestion to improve or safeguard against threat: ICAB Code

2.01 2.02 2.03 2.04 2.05 2.06

Introduction to internal control
Internal control System: Reasons for internal controls Limitations of internal controls Components of internal control: Audit committee Terms of audit committee function:

3.01 3.02 3.03 3.04

Introduction to Internal Audit
Internal audit: External Audit: Differences between internal and external Audit What does internal audit do?

4.01 4.02 4.03 4.04

Audit Appointment:
Engagement Letter: What are the procedures for accepting new engagement? The purpose of an engagement letter is to: The form and remaining content of audit engagement letters are given below:

5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 5.09 5.10

Planning the assignment
Audit Planning Audit strategy Why audit plan is significant? Define steps to develop an audit plan including risk assessment procedures, Understanding the entity –why,what,how Professional skepticism Analytical procedures Possible source of information about the client to perform analytical procedure Materially Tolerable error


Assurance Hand Note
Professional Stage-Knowledge Level By: Shafique Ahmed-Sr. Officer (Internal Audit-BSRM) 06. 6.01 6.02 6.03

Risk assessment
Audit risk- Inherent risk, Control risk, Detection risk Steps to identifying and assessing the risks Significant risks

7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12

Process of assurance
Audit evidence Tests of controls Substantive procedures Sufficient appropriate audit evidence Procedures for obtaining Audit evidence Audit of Accounting Estimates Audit sampling Statistical sampling Non-statistical sampling Management Representation Management representation as assurance evidence When management representation is required

8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 8.09 8.10

Documentation Purpose of documentation The form and content of working Papers are affected by matters such as: The form and contents of Audit working Paper Contents of Permanent Audit files Contents of current file Safe custody, retention, ownership and right of access to documentation Importance of confidentiality: Security procedures to prevent accidental disclosure of information: Where an auditor can disclose information acquired in the course of professional work:

9.01 9.02 9.03 9.04 9.05 9.06 10. 11. 12. 13.

Reporting Criteria
Content of the audit report Unqualified report Qualified report Adverse report Disclaimer report Level of assurance and the expectations gap Substantive Procedure Revenue System Purchase system Employee costs


Assurance Hand Note
Professional Stage-Knowledge Level By: Shafique Ahmed-Sr. Officer (Internal Audit-BSRM) 01. 1.01

Preliminary of Assurance
Assurance Engagement:
An assurance engagement is a practitioner expresses a conclusion designed to enhance confidence of the intended users as well as the responsible party about the result of evaluation of a subject matter against criteria'.


Key elements of an assurance engagement:
1) Three party relationship:  The practitioner (accountant)  The intended users  The responsible party (Client) A subject matter such as financial statements) Suitable criteria: Standard,...
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