Syllabus of CAF8 Audit and Assurance

Get access to latest and updated syllabus of CAF subjects now. Here you will find detailed course content or Syllabus of CAF8 Audit and Assurance for Spring 2023.

Please Note that CAF examination scheme has changed. So each student should consult with their city regional offices for further clarification .

Now you know what topics to study and practice .The next step would be to download the latest official CAF Audit and Assurance Study Text. Click here to Download.

Syllabus GRID

Here is the grid of Syllabus of CAF Audit and Assurance.

Course Outline

The course outline gives an overview of Syllabus of CAF Audit and Assurance . The detailed Syllabus of CAF Audit and Assurance for Spring 2022 attempt is given below.

Audit Framework, Regulations and professional ethics
Basic Concepts
“1. Describe briefly the history, vision, mission, objectives and functions of the international auditing and assurance standards board (IAASB).

2. Discuss the types, scope and inherent limitations of an External Audit.
3. Discuss the concepts of true and fair view, professional skepticism, professional judgement, accountability and stewardship.
4. Discuss the responsibility of management, those charged with governance and external auditors in relation to financial statements.”
   Concept of assurance and non-assurance engagements
   “1. Discuss the types and levels of the assurance engagement.
5. Discuss briefly the non-assurance engagements related to Preparing Accounting Records and Financial Statements, Valuation Services and Recruitment Services.”
   Agreeing the terms of Audit Engagements
   “1. Discuss the concept, importance and the contents of Engagement Letter.
6. Discuss factors to be considered in the case of recurring audits.”
7. Discuss Preconditions for an audit and Course of action in the case when preconditions are not present.
   Quality Control Procedures
   “1. Explain the overall objectives and importance of quality control procedures in conducting an audit.
8. Explain briefly the quality control procedures for acceptance and continuance of client relationship and engagement, engagement performance and monitoring.”
   Appointment, removal and qualification of auditors
9. Discuss the requirements related to appointment, removal, fee, qualification and disqualification of auditors.
10. Discuss the objectives, rights and duties of external auditors in relation to the Financial Statement.
    Code of Ethics
    “1. Discuss fundamental principles and threats to Independence and Objectivity.
11. Discuss the circumstances that cause threats and explain the safeguards to offset threats to compliance with the fundamental principles and threats to independence and objectivity.
12. Explain the matters to be considered by an audit firm in the following circumstances:
     Client acceptance
     Engagement acceptance”
    Planning and Risk Assessment
    Planning an Audit
    “1. Discuss the importance of planning an audit and the content of an audit strategy and detailed audit plan.
13. Discuss preliminary engagement activities.
14. Discuss additional considerations in initial audit engagements.
15. Discuss briefly the concept of interim and final audit and list the audit procedures that can be performed by the external auditor at the interim and final stage of an audit.”
    Audit Documentation
    “1. Discuss the importance of audit documentation including custody, ownership, confidentiality and retention.
16. Discuss types of working papers (Permanent and current), including automated and standardized working papers.”
17. Discuss factors to be considered in determining the form and content of audit documentation.
    Risk identification and Assessment
    “1. Define audit risk and its components.
18. Explain audit risk from the given scenario and the auditor’s response to the risk identified.
19. Explain why auditors obtain an understanding of the entity and its environment.
20. Explain the matters about which the auditor will obtain an understanding of the entity and its environment.
21. Explain how the auditor will obtain an understanding of the entity and its environment.
22. Explain the purpose of risk assessment procedures at the planning stage of an audit.
23. Discuss documentation.”
    Materiality in planning and performing an Audit
    “1. Explain the concepts of materiality, qualitative materiality, revision in materiality, performance materiality.
24. Explain how materiality is calculated.
25. Explain the application of materiality on audit.
26. Discuss documentation of materiality.”
    Fraud and Error
    “1. Define fraud and error and discuss their differences.
27. Discuss types of Fraud.
28. Discuss the responsibility of Management, those charged with governance and external auditor with respect to fraud.
29. Discuss risk assessment procedures with respect to fraud by the External Auditor.
30. Discuss response to the assessed risk of material misstatement due to fraud (at the financial statement level).
31. Identify fraud risk factors and circumstances that indicate the possibility of fraud in simple scenarios.”
    Audit evidence and Internal Controls
    Audit Evidence
    “1. Define audit evidence and discuss methods to obtain audit evidence.
32. Discuss the concept of Sufficient and appropriate audit evidence.
33. Explain types of audit procedures.
34. Define financial statement assertions.”
    External Confirmation
    “1. Define external confirmation, types, methods and significance of external confirmation.
35. Discuss planning and design of External Confirmation.
36. Discuss the course of action in the case of reply from third parties (both in the case of positive and negative confirmations).
37. Discuss the course of action if management refuses to allow the auditor to send confirmation.
38. Discuss the concept of exception and procedures to be performed in the case of an exception.”
    Analytical procedures
39. “1. Explain analytical procedures and their various types.
40. Discuss factors to be considered when using analytical procedures as substantive procedures.
41. Discuss the importance of analytical procedures at the planning stage and when forming an overall conclusion / at the end of the audit.
42. Interpret accounting ratios along with audit risk.”
    Audit Sampling
    “1. Explain audit sampling and its purpose.
43. Explain the concept of 100% testing and selection technique including factors to be considered in this regard.
44. Discuss methods of sampling (Statistical and non- statistical).
45. Explain the concept of sampling risk and non-sampling risk.
46. Explain the concept of Stratification.
47. Discuss the concept of misstatement and rate of deviation including expected and tolerated.
48. State the audit procedures to be performed on the selected sample.
49. Discuss the concept of projecting misstatement and evaluating the results of audit sampling.”
    Subsequent Events
    “1. Explain requirements related to subsequent events and the auditor’s responses.
50. Describe the auditor’s responsibility in respect of the following situations:

• Events occurring between the date of the financial statements and the date of the auditor’s report.”
  “- Facts that become known to the auditor after the date of the auditor’s report but before the date the financial statements are issued.
• Facts that become known to the auditor after the financial statements have been issued.”
  Going Concern
  “1. Discuss the concept of going concern assumption.
• Discuss the responsibility of management and external auditors with respect to going concern.
• Explain potential indicators that an entity is not a going concern.
• Discuss the procedures to be applied in performing going concern reviews and additional procedures when events or conditions are identified.
• Explain the impact on the audit report in the case of going concern.”
  Written Representation
  “1. Explain written representation.
• Discuss the course of action when there is a doubt as to the reliability of written representation.
• Discuss the course of action in the event when management does not provide the requested written representation.
• Explain the impact on the audit report in the case there is a doubt about the reliability of written representation and when such is not provided by the management.”
  Substantive Procedures
  “1. Explain the audit procedures to verify:

• Profit and loss items (Sales, Purchases, payroll expense, Bad debt expense)
• Balance Sheet Items (Cash in hand, Cash at Bank, Tangible and Intangible Fixed Assets, Debtors, Trade Payables, Inventory, Long term loan, Various types of provisions)
• litigation and claims
• segment information

2. Explain the audit procedures for relevant and specific financial statement assertions.”
   Internal Control and Test of Controls
3. Explain internal control and its components.
   “2. Discuss the objectives and limitation of an accounting and internal control system.
4. Discuss how the internal control system is documented through various methods.
5. Discuss the concept of Walkthrough Test and the difference between Walk through Test and Test of Controls.
6. Discuss internal controls of a small company/entity.
7. Explain the risk, controls and test of controls to be performed on major transition cycles (Sales system, purchase system, inventory system, bank and cash system, payroll system and revenue and capital expenditure system).”
   Using the work of others
   “1. Discuss the concepts and functions of the internal audit department.
8. Explain the difference b/w the external audit and internal audit.
9. Explain how the work of internal auditors is evaluated and direct assistance of internal auditors is used.
10. Explain areas where an auditor’s expert can be used by the external auditor.
11. Explain factors to evaluate the competence, capability and objectivity of the auditor’s expert.
12. Explain how the adequacy of the auditor’s expert’s work can be evaluated.
13. Explain how reference to the Auditor’s expert is made in the auditors’ report.”
    Related Party
    “1. Describe the term related party using simple examples.
14. Discuss how related party transactions can give rise to the risk of material misstatement using simple examples.
15. Describe the audit procedures including risk assessment procedures and related activities to obtain information relevant to identifying the related party relationships and transactions including responses to the assessed risk of material misstatement.”
    Computer Assisted Audit Techniques and General & Applicable IT Controls
    “1 Explain the concept of Computer Assisted Audit Techniques, Test Data and Audit Software and their advantages and disadvantages.
    2 Describe general I.T controls and Application I.T controls.”

Syllabus of CAF8 Audit and Assurance:

Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance Syllabus of CAF8 Audit and Assurance