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AL4: ADVANCED ASSURANCE
Learning Objectives

To develop the key competencies to conclude on external audits, assurance and other related engagements.

Key Competencies

On successful completion of this exam, the student shall be able to:

  • Demonstrate the understanding of related regulatory framework and code of professional ethics.
  • Demonstrate the ability to conduct audit, assurance and other related services in accordance with the International Standards on Auditing and the applicable regulatory framework.
  • Demonstrate the ability to exercise professional judgements on audit and assurance assignments.
  • Evaluate the results of audit, assurance and related engagements and develop the reports.

GRID Weightage
Regulatory framework and ethics 15-20
Quality Control 15-20
Performance of audit 25-30
Specialized areas of audit and 20-30
Audit reports, other assurance engagements and related services 25-30
Total 100
Components
Regulatory framework, Ethics (ISA 250 revised)
  • Comprehend the regulatory environment for conducting audit engagements.
  • Explain the impact of corporate governance on audit engagements
  • Explain the concepts of money laundering and window dressing.
  • Describe the methods to respond to money laundering.
  • Explain the importance of Know Your Client (KYC).
  • Explain the conceptual framework and fundamental principles.
  • Describe the safe guards available to ensure compliance with fundamental principles.
  • Compliance with international standard related to considerations of laws and regulations in an audit.

Quality Control (ISA 210, ISA 220, ISA 240, ISA 510)

Obtain in depth knowledge of elements of production cost and their mechanism including

  • Explain the objectives of quality control mechanism for audit and other assurance engagements
  • Describe the ethical issues related to fee determination.
  • Demonstrate the ability to identify the procedures that an audit firm shall apply while accepting the engagements and continuation of existing engagements.
  • Evaluation of quality controls procedures in place.


Performance of Audit

Demonstrate the knowledge and ability of practical application of the following International Standards on Auditing related to performance of audit:

  • Planning an audit of Financial Statements (ISA 300).
  • Identifying and Assessing the risk of material misstatements through understanding the entity and its environment (ISA 315).
  • Materiality in planning and performing an audit (ISA 320).
  • The auditors responses to assessed risk (ISA 330).
  • Audit Evidence (ISA 500).
  • Audit evidence-specific considerations for selected items (ISA 501)
  • External confirmations (ISA 505)
  • Initial audit engagements-opening balances (ISA 510)
  • Analytical procedures (ISA 520).
  • Audit Sampling (ISA 530).
  • Auditing accounting estimates, including Fair Value Accounting Estimates and related disclosures (ISA 540).
  • Related Parties (ISA 550).


Special Area of audit

Develop comprehensive understanding of:

  • Going concern and how it’s affects the auditor’s opinion (ISA 570 revised)
  • The nature, response of subsequent events and their impact on auditor’s opinion (ISA 560).
  • Special Considerations-audits of financial statements prepared in accordance with special purpose frameworks (ISA 800 revised).
  • Special Considerations-audits of single financial statements and specific elements, accounts or items of financial statement (ISA 805).
  • Special Considerations-audit of group financial statements.
  • Engagements to report on summary financial statements (ISA 810 revised)


Conclusion of Audit and Reporting

Demonstrate the ability to assess the type of audit report and audit opinion to be issued under various circumstances with specific application of:

  • Forming an opinion on financial statements (ISA 700).
  • Communicating key audit matters in the Independent Auditor’s report (ISA 701).
  • Modifications to the opinion in Independent Auditor’s report (ISA 705 revised).
  • Emphasis of matter paragraph and other matter paragraph in the Independent Auditor’s report (ISA 706 revised).
  • Comparative information-corresponding figures and comparative Financial Statements (ISA 710).
  • The Auditor’s responsibility to other information in documents containing Audited Financial Statements (ISA 720)


Other Assurance Engagements & Related Services
  • Review engagements
  • Assurance engagements other than audits or review of historical financial information.
  • Examination of prospective financial statements.
  • Agree upon procedures engagements.
  • Compilation engagements.