Auditing notes

[zaaraqutab]

Any one has auditing notesss please share pleaseeee

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[Zubair Gilgiti]

Its too late to reply you. I am in process of compiling for CSS from my C.A material. If you still need then let me know, i will share or email you after completion. A sample of my notes is shared for you. Please check and comment.

[Zubair Gilgiti]

A Sample of Auditing Notes (For CSS)

Fundamental Auditing Principles and Concepts

Auditing:
Auditing refers to a systematic and independent examination financial statements and underlying records (books, accounts, documents and vouchers) of an organization to ascertain whether the financial statements present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law

True and Fair View

True and fair view in auditing means that the financial statements are free from material misstatements and faithfully represent the financial performance and position of the entity.
Explanation
Although the expression of true and fair view is not strictly defined in the accounting literature, we may derive the following general conclusions as to its meaning:
True suggests that the financial statements are factually correct and have been prepared according to applicable reporting framework such as the IFRS and they do not contain any material misstatements that may mislead the users. Misstatements may result from material errors or omissions of transactions & balances in the financial statements.
Fair implies that the financial statements present the information faithfully without any element of bias and they reflect the economic substance of transactions rather than just their legal form.

Audit Assertions or Management Assertions
Management assertions or financial statement assertions are the implicit or explicit assertions that the preparer of financial statements (management) is making to its users. Financial statements include assertions related to the recognition, measurement, presentation, and disclosure of the financial information contained within such statements.[1] The role of the auditor in a financial statement audit is to obtain evidence as to whether management's assertions can be supported.[2]
The concept is primarily used in regard to the audit of a company's financial statements, where the auditors rely upon a variety of assertions regarding the business. The auditors test the validity of these assertions by conducting a number of audit tests.

Management assertions fall into the following three classifications:

Transaction-level assertions. The following five items are classified as assertions related to transactions, mostly in regard to the income statement:
• Accuracy. The assertion is that the full amounts of all transactions were recorded, without error.
• Classification. The assertion is that all transactions have been recorded within the correct accounts in the general ledger.
• Completeness. The assertion is that all business events to which the company was subjected were recorded.
• Cutoff. The assertion is that all transactions were recorded within the correct reporting period.
• Occurrence. The assertion is that recorded business transactions actually took place.

Account balance assertions. The following four items are classified as assertions related to the ending balances in accounts, and so relate primarily to the balance sheet:
• Completeness. The assertion is that all reported asset, liability, and equity balances have been fully reported.
• Existence. The assertion is that all account balances exist for assets, liabilities, and equity.
• Rights and obligations. The assertion is that the entity has the rights to the assets it owns and is obligated under its reported liabilities.
• Valuation. The assertion is that all asset, liability, and equity balances have been recorded at their proper valuations.

Presentation and disclosure assertions. The following five items are classified as assertions related to the presentation of information within the financial statements, as well as the accompanying disclosures:
• Accuracy. The assertion is that all information disclosed is in the correct amounts, and which reflect their proper values.
• Completeness. The assertion is that all transactions that should be disclosed have been disclosed.
• Occurrence. The assertion is that disclosed transactions have indeed occurred.
• Rights and obligations. The assertion is that disclosed rights and obligations actually relate to the reporting entity.
• Understandability. The assertion is that the information included in the financial statements has been appropriately presented and is clearly understandable.
There is a fair amount of duplication in the types of assertions across the three categories; however, each assertion type is intended for a different aspect of the financial statements, with the first set related to the income statement, the second set to the balance sheet, and the third set to the accompanying disclosures.
If the auditor is unable to obtain a letter containing management assertions from the senior management of a client, the auditor is unlikely to proceed with audit activities. One reason for not proceeding with an audit is that the inability to obtain a management assertions letter could be an indicator that management has engaged in fraud in producing the financial statements.

[Zubair Gilgiti]

Section –A (Auditing) CE 2016

Question No.2

Internal Control and its Objectives

As we know Internal control means policies and procedures designed, implemented and operated by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

a. Effectiveness and efficiency of operations.
b. Reliability of financial reporting.
c. Compliance with applicable laws and regulations.

The first category addresses an entity's basic business objectives, including performance and profitability goals and safeguarding of resources.

The second relates to the preparation of reliable published financial statements, including interim and condensed financial statements and selected financial data derived from such statements, such as earnings releases, reported publicly.

The third deals with complying with those laws and regulations to which the entity is subject. These distinct but overlapping categories address different needs and allow a directed focus to meet the separate needs.

As internal controls are not in use, therefore, we will perform other audit procedures to address the above mentioned control objectives.


Question No.3

Materiality

Misstatements, including omissions, are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Determining Planning Materiality and Performance Materiality

When establishing the overall audit strategy, the auditor shall determine materiality for the financial statements as a whole. If, in the specific circumstances of the entity, there is one or more particular classes of transactions, account balances or disclosures for which misstatements of lesser amounts than materiality for the financial statements as a whole could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements, the auditor shall also determine the materiality level or levels to be applied to those particular classes of transactions, account balances or disclosures. The auditor shall determine performance materiality for purposes of assessing the risks of material misstatement and determining the nature, timing and extent of further audit procedures

Question No.4

Considerations with regard to IFRS while planning and performing audit

The auditor shall obtain understanding of the entity’s selection and application of accounting policies, including
the reasons for changes thereto. The auditor shall evaluate whether the entity’s accounting policies are appropriate for its business and consistent with the applicable financial reporting framework and accounting policies used in the relevant industry.

The Entity’s Selection and Application of Accounting Policies

An understanding of the entity’s selection and application of accounting policies may encompass such matters as:
a. The methods the entity uses to account for significant and unusual transactions.
b. The effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
c. Changes in the entity’s accounting policies.
d. Financial reporting standards and laws and regulations that are new to the entity and when and how the entity will adopt such requirements.

The auditor shall select samples and perform substantive procedures to ensure the compliance with applicable financial reporting framework.

[Fouji]

Originally Posted by zaaraqutab

Any one has auditing notesss please share pleaseeee

Sent from my SM-G355H using Tapatalk

Download pdf file of VU course book on Auditing code Acc311
It covers almost full syllabus.

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[Fouji]

Originally Posted by Zubair Gilgiti

Its too late to reply you. I am in process of compiling for CSS from my C.A material. If you still need then let me know, i will share or email you after completion. A sample of my notes is shared for you. Please check and comment.

Kindly send me your notes
I am opting for CE-2017
My gmail account is
jafery514

Sent from my SHV-E330L using Tapatalk

[Geralt of Rivia]

Originally Posted by Zubair Gilgiti

Its too late to reply you. I am in process of compiling for CSS from my C.A material. If you still need then let me know, i will share or email you after completion. A sample of my notes is shared for you. Please check and comment.

Kindly send me your notes.
shayanali777@yahoo.com

[thedude]

For those asking for notes. I contacted Gilgati Sahab a few months ago. It seems that he has unfortunately abandoned his CSS plans. I do not know if he has made notes for Auditing, I think it is unlikely.

[curious soul]

if anyone wants auditing notes/study material then visit ICAP official website to download their auditing,accounting,taxation and costing books in pdf