Originally Posted by Awesum Farhan

Paper-2

Reading Material:
Auditing by S.K Basu
Auditing by Khawaja Amjad Saeed
Virtual University Notes
Audit Standards (Don't read each and every word only relevant material if you want me to send relevant material then I can mail you)

Before giving outlines about Auditing; let me make it clear that Audit syllabus is ambiguous and everything is written in a random manner. So in order to do complete preparation in systematic manner, I'll write syllabus in the most logical way so that my fellows can prepare well. Moreover, I'm aware the outlines are ambiguous too and those who are studying it first time, will be perplexed with it. Unfortunately, we don't have any standard text available in the market. In near future, I'll try to compile notes of Auditing which would be detailed and cover complete syllabus, but it will take time.


1)Auditing-40 marks
I. Fundamental Auditing Principles and Concepts:
i)Audit and Auditing, True and Fair View, Reasonable Assurance

Chapter-1 Nature of Auditing by S.K Basu
Chapter-1 Auditing by Khawaja Amjad Saeed
VU Notes Lesson-1
ISA-200

ii)Audit Assertions and Reasonable Assurance, Regulatory Framework:
VU Notes- Lesson-4
Read them online from google search

iii) Stages of Audit or Audit Process (Not written in syllabus but It's implied):
VU Notes-Lesson- 3
VU Notes Lesson-5

Usually Audit process consists of following stages:
1-Engagement
2-Using the work of Other Auditors (Optional in case of different auditors)
3-Audit Planning
3.i)Knowledge of Business
3.ii)Setting Materiality
3.iii)Risk Assessment
3.iv)Internal Control and Accounting system review
4-Overall Audit Plan
5-Designing Audit Programs
6-Obtaining Audit Evidence by Audit Procedures using audit sampling
7-Forming opinion and reporting
For more information search from Google

iv) Audit Engagement
ISA-210

v) Audit Documentation (Tells you what sort of documents you need to compile)
ISA-230

vi) Auditor's responsibility to consider fraud
ISA-240

vii) Planning of Audit
ISA-300


viii) Internal Control Review
Chapter-3 Internal Control by Khawaja Amjad Saeed
Chpater-3 Internal Control by S.K Basu
VU Notes Lesson-17,18

viii) Audit Materiality and Risk
ISA-315
ISA-320
VU Notes Lesson-14, 15

ix) Audit Programs

use internet to study in detail

x) Audit Evidence , Tests of contro, substantive procedures
Chapter-2 Audit Procedures by Khawaja Amjad Saeed
ISA-500
ISA-520
ISA-530
VU Notes Lesson-20,21,22,23

x) Governance and Premise
ISA-260, 580

xi) Going Concern
ISA-570

xii) Audit in computer based environment (EDS and CAAT)
Chapter-20 S.K Basu

2) Audit Considerations, Dimensions and Conduct

i) Internal Control System: Already Done

ii) Classifications of Audit
Chapter-2 S.K Basu

iii) Scope, Objective and Conduct of Audit: ISA-200

iV) Audit procedures for undertakings
Chapter- 12, 17 S.K Basu
Chapter-15 Khawaja Amjad Saeed

3) Role and Responsibilities of an Auditor:

Chapter- 9 Khawaja Amjad Saeed
Chapter-10 Khawaja Amjad Saeed
Chapter-14 Khawaja Amjad Saeed
VU Notes Lesson-6,7,8

4- Reporting
Chapter-11 Audit Reports by Khawaja Amjad Saeed