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STARRY GOLD ACADEMY
INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA
PROFESSIONAL EXAMINATION ONE – ADVANCED
AUDITING & ASSURANCE
SECTION ONE: AUDIT PLANNING AND CONTROL
Development of Audit Strategy:
- Determination and uses of quantitative and
qualitative
materiality considerations.
- Multiple location and consolidated organisation
considerations.
- Audit Plans and Planning Memorandum.
- Factors for consideration in Audit Planning.
Determination of Audit Risks:
- Inherent risks.
- Control risks.
- Detection risks.
Execution of Audit Strategy:
- Documentation and assessment of control systems.
- Nature, extent and timing of audit procedures.
STARRY GOLD ACADEMY
Organising, audit working papers and working with
specialist reports.
REVIEW QUESTIONS
1. Enumerate factors to consider when planning an
audit
2. List the content of an audit planning
memorandum
3. Outline the qualities of good working papers
4. Distinguish between audit strategy, audit program
and audit integrity checklist or audit completion
checklist.
5. L.ist the content of current audit file.
STARRY GOLD ACADEMY
SECTION TWO: ISSUES IN AUDIT PRACTICE
Organisation and Conduct of Professional Office:
- Office and office facilities
- Partners relationship
- Staff and management
- Quality control
- Training
Standards for Assurance Engagement:
- Definition and underlying concept of assurance
engagement
- Quality control practices and procedures,
advertising and publicity, fees, tendering,
engagement letters and consultation
- Performance and reporting standards
Appraisal of Expectation Gap, Responsibilities for
Fraud Detection,
Prevention, Reporting Errors, Omissions,
Misstatements and Other
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Irregularities etc.
Negotiation skills
Auditors‟ liability
REVIEW QUESTIONS
1. Enumerate the functions of the staff partner
2. List the general quality control procedures by the
firm
3. Mention the types of assurance engagement and list
the examples of assurance engagement other than
statutory audit.
4. Enumerate the contents of an engagement letter
5. Identify the two types of bargaining, outline a
normal bargaining process
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SECTION THREE: PUBLIC SECTOR AUDIT
Audit of Corporations and Parastatals.
Specialised Audits: Contracts, Pensions, Defence and
Security Agencies,
Audit of Nigerian Foreign Missions and Agencies.
Value-for-money Audit.
Investigations: Uses of Probe Panels in Investigating
Acts of Fraud and Corruption.
Due process review
Audit of Government Accounts (Federal, States and
Local Governments).
REVIEW QUESTIONS
1. Enumerate the functions of Auditor-General for the
federation
2. Outline the departments under the office of the
auditor-general for the federation
3. List the congent areas of audit in a public sector
audit.
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4. Define Value for money audit, identify its elements
and mention the areas of concern
5. What are the types of public sector audit and list the
documents obtainable for a regulatory audit.
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SECTION FOUR - SPECIALISED AUDITS AND
INVESTIGATIONS
Understanding of special features of certain types of
situations peculiar to:
- farmers, professionals, hospitals, hotels, etc.
- forensic investigation and reporting.
- banks, insurance companies, primary mortgage
institutions, etc.
- not-for profit‟ organizations – Charities, NGO‟s,
etc.
Joint Audits.
Investigations
- Distinction between auditing and investigation.
- Nature, classes and methods of investigation.
- Auditors‟ involvement with prospectuses and
other offer documents.
- Examination of financial forecasts and
projections.
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- The report appropriate to each type of
investigation.
Insolvency and Business Recovery
- Various legal processes involved in corporate
distress.
- Differences between receivership,
receiver/manager, bankruptcy and liquidation
- Implications of insolvency for corporate
governance and ‘’going concern‟ threats.
- Legal requirements
- Handling insolvency assignments.
Due diligence reviews for mergers, acquisitions
and business combinations.
REVIEW QUESTIONS
1. Explain the peculiarities of Joint audit
2. List the steps under specific approach for
specialized audits and investigations.
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3. Enumerate the peculiar guidelines for the audit of
banks.
4. Enumerate the specific requirements for the audit
of insurance companies
5. Distinguish between auditing and investigation,
then list the various classes of investigation.
STARRY GOLD ACADEMY
SECTION FIVE: PRINCIPLES AND APPLICATIONS OF
PROFESSIONAL ETHICS
The nature of ethics; differentiation between
philosophical and professional approaches.
Concepts of integrity, obligation, independence,
public expectations.
Ethics and the professions; social responsibility.
Ethics and the law.
Consequences of unethical behaviour to the
individuals, the professions and the society at
large.
Ethical standards and professional responsibilities,
independence, confidentiality, objectivity,
securing professional work, consultancy,
succession arrangement, disciplinary procedures,
compliance with standards and development.
Relationship with fellow members, joint
engagements, communication with predecessors,
special assignments and other assurance services.
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Corporate Governance: Concepts and
Applications
- auditors‟ responsibility in relation to
shareholder information and participation
rights.
- the duties and organisations of the Board of
Directors and the Management
- systems of checks and balances.
Obligation should change to objectivity.
REVIEW QUESTIONS
1. Define Ethics and explain the three fundamental
ethical principles
2. Enumerate the characteristics of a profession
3. Explain the relationships between Ethics and Law
4. Outline the ethical rules of auditor’s independence
5. What is Corporate Governance, explain the
expected roles of the auditor.
STARRY GOLD ACADEMY
SECTION SIX: LOCAL AND INTERNATIONAL
LEGISLATIONS AFFECTING AUDITS
Economic and Financial Crimes Commission
(EFCC) Act
Independent, Corrupt Practices and Other
Related Offences Commission (ICPC) Act
Sarbanes-Oxley Act and other relevant
international legislations.
REVIEW QUESTIONS
1. Mention 5 other laws in Nigeria that EFCC
enforces.
2. Differentiate between the EFCC Act of 2004 and
the ICPC Act of 2001
3. Enumerate the functions of ICPC
4. Describe the provisions of Sarbanes-Oxley Act
5. List the requirements for the approval of
auditors for quoted companies
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SECTION SEVEN: QUALITY CONTROL IN AUDIT AND
ASSURANCE REPORTS
Effects of SAS, NSA and IFRS on Audit Reports.
Statutory Audit Reports:
- Supervisor‟s Review.
- Manager‟s Review.
- Partner‟s Review.
- External/Peer Group Review.
- Hot/Quality Control Appraisal.
Reports to Management.
Reports on Assurance assignments.
REVIEW QUESTIONS
1. Describe the effects of NSA, ISA, SAS & IFRS on
audit report
2. Distinguish between internal and external
review
3. Differentiate between hot and cold review
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4. List the contents of a management letter
5. Explain the factors that affects the qualification
of auditors reports.
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SECTION EIGHT: EMERGING ISSUES IN AUDIT AND
ASSURANCE
Transnational audits.
Environmental and social audits.
REVIEW QUESTIONS
1. Explain the concept of transnational audit
2. Enumerate the procedures for environmental and
social audit
3. List and briefly explain 5 fundamental emerging
issues
4. Describe the provisions of SARBANES OXLEY Act.
STARRY GOLD ACADEMY
SECTION NINE: INFORMATION TECHNOLOGY ISSUES IN
AUDIT AND ASSURANCE
IT general controls environment.
IT governance.
IT control activities.
Systems evaluation & procedural controls.
IT risk assessment methodologies and
processes.
Disaster recovery.
Auditor‟s role in Systems Development Life
Cycle (SDLC).
REVIEW QUESTIONS
1. Distinguish between IT & ICT and enumerate IT
general controls environment
2. Define IT governance and mention IT control
activities
3. Describe IT risk assessment methodologies and
processes
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4. What is Disaster recovery and enumerate the
various methods available
5. Explain the auditor’s role in System Development
Life Cycle (SDLC).