TOPIC Outline For Acc308 Assurance Principles
TOPIC Outline For Acc308 Assurance Principles
TOPIC Outline For Acc308 Assurance Principles
University of Luzon
COLLEGE OF ACCOUNTANCY
Dagupan City
A. Course Description
Auditing and assurance principles is a 3-unit course that will cover conceptual knowledge and
understanding of assurance and related services performed by professional accountants. The
main focus of the course is the independent audits of financial statements; hence, this will
particularly cover the responsibilities of professional accountants; the audit process; audit
objectives, evidence, procedures, auditing standards, and the elements of the independent
auditors' report. This course will refer heavily on the Philippine Standards on Auditing (PSA)
and other regulatory laws and regulations such as RA 9298 & Philippine Code of Ethics for
Professional Accountants.
C. Topic Outline
Preliminary examination
1.0 Fundamentals of Auditing and Assurance Services
1.1 Introduction to assurance engagements
1.1.1 Nature, objective and elements
1.1.2 Types of assurance engagements (audits, reviews, other assurance engagements)
1.1.3 Assurance service vis-a-vis attestation services
1.2 Introduction to auditing
1.2.1 Nature, philosophy, and objectives
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2.0 The Financial Statements Audit -Client Acceptance, Audit Planning, Supervision and Monitoring
2.1 Overview of the audit process
2.2 Pre-engagement procedures
2.3 Scope and purposes of audit planning
2.3.1 Essential planning requirements
2.3.1.1 Knowledge of the business
2.3.1.2 Preliminary analytical procedures
2.3.1.3 Materiality
2.3.1.4 Assessing and managing audit risks
2.3.1.5 Overall audit plan and audit program (experts, internal auditor, other independent
auditors)
2.4 Direction, supervision and review
Midterm examination
3.0 Understanding the Entity and its Environment Including its Internal Control and Assessing the Risks
of Material Misstatement
3.1 Industry, regulatory and other external factors, including the applicable financial reporting
framework
3.1.1 Nature of the entity
3.1.2 Objectives and strategies and related business risks
3.1.3 Measurement and review of the entity's financial performance
3.2 Internal control
3.2.1 Basic concepts and elements of internal control
3.2.2 Consideration of accounting and internal control systems
3.2.2.1 Understanding and documentation
3.2.2.2 Assessment of control risks
3.2.2.2.1 Test of controls
3.2.2.2.2 Documentation
3.3 Assessing the risks of material misstatement
3.3.1 Fraud and errors
3.3.2 Risk assessment procedures
3.3.3 Discussion among the engagement team
3.3.4 Significant risks that require special audit consideration
3.3.5 Risks for which substantive procedures alone do not provide
sufficient appropriate audit evidence
3.3.6 Revision of risk assessment
3.4 Communicating with those charged with governance and management
Semi-final examination
5.0 Completing the Audit/ Post-Audit Responsibilities
5.1 Completing the audit and audit report preparation
5.1.1 Analytical procedures for overall review
5.1.2 Related party transactions
5.1.3 Subsequent events review
5.1.4 Assessment of going concern assumption
5.1.5 Obtaining client's representation letter
5.1.6 Evaluating findings, formulating an opinion and drafting the audit report
5.2 Post-audit responsibilities
5.2.1 Subsequent discovery of facts
5.2.2 Subsequent discovery of omitted procedures
Final Examination
7.0 Auditing in a Computerized Information Systems (CIS) Environment
7.1 Internal control in a CIS environment
7.1.1 Introduction
7.1.2 Impact of computers on accounting and internal control systems
7.1.2.1 General controls
7.1.2.2 Application controls
7.1.3 Unique characteristics of specific CIS
7.1.3.1 Stand alone
7.1.3.2 On-line
7.1.3.3 Database system
7.2 Basic approach to the audit of CIS environment
7.2.1 Introduction
7.2.2 Effects of computers on the audit process
7.2.3 Computer assisted audit techniques
Prepared by:
Approved by: