CPA Section 4 – Auditing and Assurance (KASNEB)

About Course

This unit is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to conduct the audit of an entity.

A candidate who passes this paper should be able to:
 Describe the nature and purpose of auditing
 Describe the regulatory framework governing the external audit of financial statements, including an understanding of International Standards of Auditing where appropriate and Professional Ethics and codes of conduct
 Describe the rights, duties and professional obligations of an auditor
 Explain the process of planning an audit and the necessity for an appropriate audit programme taking into account audit evidence and audit risk (excluding group accounts)
 Explain the risk based approach to audit of limited companies; describe the audit evidence required in specified situations
 Describe the audit work required at the final review and report stage of an audit
 Explain the role of internal audit.

Course Content

Assurance and Non-assurance Engagements
Assurance and Non-assurance Engagements

Definition and objectives
Elements of an assurance engagement
Types of assurance engagements
Levels of assurance and reports
Non-assurance engagements

Nature and Purpose of an Audit
Nature and purpose of an audit

Audit Legal and Professional Framework
Audit Legal and Professional framework

Planning and risk assessment
Planning and risk assessment

Overview of forensic accounting
Overview of forensic accounting

Internal Control Systems
Internal control systems

Audit Evidence
Audit evidence

Overall Audit Review
Overall audit review

Audit Reports
Audit reports

Auditing in the Public Sector
Auditing in the Public Sector

Emerging Issues and Trends
Emerging issues and trends

CPA Section 4 – Auditing and Assurance (KASNEB)

About Course

What Will You Learn?

Course Content

Assurance and Non-assurance Engagements Assurance and Non-assurance Engagements

Definition and objectives

Elements of an assurance engagement

Types of assurance engagements

Levels of assurance and reports

Non-assurance engagements

Nature and Purpose of an Audit Nature and purpose of an audit

Nature and objectives

Audit as an assurance engagement

Development of audit (early audit and modern audit)

Types of audit and limitations

Audit Legal and Professional Framework Audit Legal and Professional framework

Regulatory framework within which external audits take place

Statutory regulations; auditors’ liability, appointment, removal, remuneration, resignation, rights and duties of auditors

International standards on auditing and other regulations

Professional ethics/code of ethics for professional accountants

Planning and risk assessment Planning and risk assessment

Obtaining, accepting and retention of an audit engagement

Understanding the entity and its environment

Audit planning, audit strategy, audit programmes and documentation

Assessing audit risks

Fraud, laws and regulations

Overview of forensic accounting Overview of forensic accounting

Nature, purpose and scope of forensic accounting

Types of forensic investigations: Corruption, asset misappropriation, financial statement fraud, others

Fraud prevention and deterrence

Internal Control Systems Internal control systems

Internal controls theory and practice

The use of evaluation of internal control system by auditors

Test controls on specific control environment

Communication on internal control system (management letter)

Information technology threats and control

Audit Evidence Audit evidence

Financial statement assertions and audit evidence

Audit evidence procedures/techniques

Audit sampling and other means of testing

The audit of specific items (income/expenses/assets/liabilities)

Using the work of others (internal audit and experts)

Computer assisted audit techniques

Overall Audit Review Overall audit review

Subsequent events review

Going concern review

Contingencies and commitments

Management representations

Quality control and review

Audit investigation

Audit Reports Audit reports

Legal provisions on audit reports

Basic elements and key audit matters

Types of audit reports and different aspects of reporting

Features of audit reports

Auditing in the Public Sector Auditing in the Public Sector

Introduction to auditing in the Public Sector; regulatory provisions

Framework of public sector audit

Objectives and scope of public sector audit

Categories of public sector audit ( compliance audit, performance, financial)

Audit report of auditor general

Role of internal audit function in public entities

Relationship between external and internal auditors in the public sector

International Standards on Supreme Auditing Institutions

Emerging Issues and Trends Emerging issues and trends

Assurance and Non-assurance Engagements
Assurance and Non-assurance Engagements

Nature and Purpose of an Audit
Nature and purpose of an audit

Audit Legal and Professional Framework
Audit Legal and Professional framework

Planning and risk assessment
Planning and risk assessment

Overview of forensic accounting
Overview of forensic accounting

Internal Control Systems
Internal control systems

Audit Evidence
Audit evidence

Overall Audit Review
Overall audit review

Audit Reports
Audit reports

Auditing in the Public Sector
Auditing in the Public Sector

Emerging Issues and Trends
Emerging issues and trends