Syllabus of PIPFA Level 4 AUDIT, ASSURANCE & ETHICS

Get access to latest and updated syllabus of PIPFA Level 4 Audit Assurance and Ethics now. Here you will find detailed course content or syllabus of PIPFA Level 4 Audit Assurance and Ethics for upcoming attempt.

Unfortunately, PIPFA does not publish it’s own study text. But you need not to worry as you can use study texts of ICAP and/or ICMAP. You will have the advantage on other students. The reason being ICAP and ICMAP study texts are comparatively more difficult than the books recommended by PIPFA examination body.

syllabus of PIPFA Level 4 Audit Assurance and Ethics

Syllabus GRID:

Here is the grid for syllabus of PIPFA Level 4 Audit Assurance and Ethics.

GRIDWEIGHTAGE
General concepts and principles of audit20 – 25
Performance of audit and reporting30 – 40
Audit evidence25 – 30
Professional Accountancy10 – 15
Professional Ethics10 – 15
Total100

Course Outline:

The course outline of PIPFA Level 4 Audit Assurance and Ethics for upcoming attempt gives an overview of the course .The detailed Syllabus of PIPFA Level 4 Audit Assurance and Ethics for upcoming attempt is given below the course outline section.

General concepts and principles of audit:

The course outline for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering General concepts and principles of audit part contains following content.

  • Introduction to International Federation of Accountants
  • Introduction to International Auditing and Assurance Standard Setting Body
  • Objectives and General Principles governing an audit (ISA 200)
  • Distinguish between the responsibilities of auditor and the accountant, in respect of financial statements
  • Auditor’s responsibility to consider fraud (ISA 240)
  • Appointment and removal of auditors (sections 252 to 260 of the Companies Act 2017)
  • Terms of audit engagements (ISA 210)

Performance of audit and reporting:

The course outline for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering Performance of audit and reporting part contains following content.

  • Planning an audit (ISA 300)
  • Assessment of audit risks (ISA 315 and 330)
  • Audit materiality (ISA 320)
  • Audit evidence (ISA 500)
  • Audit sampling (ISA 530)
  • Tests of controls and Substantive procedures (ISA 330)
  • Analytical procedures (ISA 520)
  • Documentation (ISA 230)
  • Contents of audit report of annual financial statements under Companies Act, 2017 and types of modifications in audit reports.

Audit evidence:

The course outline for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering Audit evidence part contains following content.

  • External Confirmations (ISA 505)
  • Subsequent events (ISA 560) (Excluding matters related to issuance of revised reports)
  • Written representation (ISA 580)
  • Using the work of internal auditor (ISA 610)
  • Using the work of auditor’s expert (ISA 620)
  • Difference between annual audit and review of interim financial statements

Professional Accountancy:

The course outline for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering Professional Accountancy part contains following content.

  • Fundamental principles (Section 100 to 150 of the Code of Ethics for Chartered Accountants)
  • Client and engagement acceptance (Section 210 of the Code of Ethics for Chartered Accountants)

Professional Ethics:

The course outline for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering professional ethics part contains following content.

  • Code of Ethics issued by IFAC

Detailed Syllabus Contents:

The detailed Syllabus of PIPFA Level 4 Audit Assurance and Ethics for upcoming attempt is given below.

General concepts and principles of audit:

The detailed syllabus content for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering General concepts and principles of audit part contains following content.

  • Briefly describe the organizational overview encompassing

•    History;

•    Vision and mission

  • Briefly describe the objectives and functions of IAASB.
  • Describe the objectives of audit including concepts of accountability, stewardship, agency, independence and fair presentation
  • Describe the overall objectives of the independent auditor.
  • Describe the concepts of assurance and levels of assurance i.e. absolute, reasonable and limited assurance including elements of an assurance engagement, assurances provided by audit and review engagement
  • Explain the requirements of an external audit, eligibility and ineligibility of auditor
  • Describe the rights and duties of auditors
  • Explain the nature and scope of an audit designed to enable the independent auditor to meet those objectives
  • Outline the requirements establishing the general responsibilities of the independent auditor applicable in all audits including consideration of inherent limitations of an audit
  • Discuss the concept of professional skepticism.
  • Discuss the concept of interim and final audit
  • List the audit procedures that can be performed by the external auditor at the interim and final stage of an audit
  • Discuss the concept of audit of Not-for-profit organizations.
  • Understand the responsibility of management and those charged with governance for financial reporting and related internal control on financial reporting
  • Distinguish between the terms ‘error’, ‘fraud’ and ‘misstatement’
  • Compare the respective responsibilities of management and auditors for fraud
  • Describe the matters to be considered and procedures to be carried out to assist the auditor in identifying, assessing and detecting the risks of material misstatement due to fraud
  • Identify the fraud risk factors in the simple scenario as given in the appendix 1 of ISA 240
  • Identify the circumstances that indicate the possibility of fraud in the simple scenario as given in the Appendix 3 of ISA 240.
  • Explain how the first and subsequent auditors are appointed LO1.6.2: Explain how the first and subsequent auditors are removed
  • Describe qualification and disqualification of the auditor
  • Describe the powers and duties of auditors
  • Describe the concept of audit of cost accounts
  • Discuss the additional matters to be included in the auditor’s report.
  • Describe the preconditions for an audit and upon which it is necessary for the auditor and the entity’s management to agree
  • Respond if preconditions are not present or limit is imposed on scope of audit in well explained simple situations
  • State the contents of an audit engagement letter
  • Discuss the requirement of issuance of engagement letter and factors that necessitate the issuance of engagement letter in case of recurring audit
  • Discuss the circumstances of acceptances of changes in terms of engagement by the auditor.

Performance of audit and reporting:

The detailed syllabus content for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering performance of audit and reporting part contains following content.

  • Discuss the need for planning an audit including contents of an audit plan and its relation with risk assessment
  • Discuss the contents of overall audit strategy and audit plan
  • State who should be involved in planning and what preliminary engagement activities are necessary
  • Outline the additional considerations that should be identified while planning the initial audit.
  • Discuss the risk-based approach to auditing including audit risk model
  • Identify the inherent risk, control risk and detection risk in simple scenario
  • Explain relationship between audit risk and its components i.e. inherent risk, control risk and detection risk
  • Discuss the identification and assessment of the risks of material misstatement at both the financial statement level and assertion level, including understanding of entity, its environment, accounting and internal control systems
  • Explain the elements of internal control
  • Discuss the evaluation of controls and control environment and communication of deficiencies to the management
  • Explain the categories of control activities (internal controls) by using simple examples including Application and General IT Controls
  • Explain and identify the control weaknesses in the given scenario and suggest appropriate recommendations to remove these weaknesses
  • Discuss and explain the limitations of internal control system
  • Explain the concepts of materiality and performance materiality using simple examples.
  • Explain materiality level or levels for particular classes of transactions, account balances or disclosures
  • Explain the relationship between audit risk and level of materiality
  • Explain, using examples, sufficient appropriate audit evidence
  • Discuss the general principles assisting the auditor in assessing the relevance and reliability of audit evidence
  • Discuss audit procedures to obtain audit evidence including types of audit procedures
  • Discuss the course of action available to auditor in case sufficient appropriate audit evidence is not obtained
  • Explain the financial statement assertions including Assertions about class of transactions, account balances and presentation and disclosure
  • Explain the audit work related to Inventory
  • Explain audit sampling, statistical sampling and sampling and non-sampling risk using simple examples
  • Discuss the relationship between sampling and audit risk model
  • Explain what matters are considered by auditors in respect of sample design, size and selection of items for testing using simple examples including sample selection method.
  • Explain the nature, extent and timing of test of controls using simple examples
  • Explain the concept of Computer Assisted Audit Techniques
  • Explain how auditors evaluate the operating effectiveness of controls using simple examples
  • Understand the financial statement assertions
  • Briefly explain the advantages and dis-advantages of both test data and audit software.
  • Discuss the use of computer software in substantive testing, auditing around the computer and directional testing
  • Discuss the methods of obtaining audit evidence for substantive testing
  • Explain the nature, extent and timing of substantive procedures for different items of financial statements.
  • Explain the controls over major transaction cycles including related risks, weaknesses control objectives and designing appropriate tests of controls.
  • Explain the nature and purpose of substantive analytical procedures using simple examples
  • State the purpose of analytical procedures performed near the end of the audit
  • Applying analytical procedures through calculations of different ratios for different items of financial statements
  • Factors to be considered when using analytical procedures as substantive procedures
  • Course of action when results of analytical procedures identify fluctuations and inconsistencies.
  • Explain the nature and purpose of audit documentation LO2.8.2: Describe the form, content and extent of audit documentation using simple examples
  • Discuss the use of computer based audit working papers
  • Explain the difference between permanent and current working papers with examples.
  • List the contents of working paper file / audit documentation
  • Discuss the ownership, custody and confidentiality of audit working papers
  • Understand the nature of assembly of the final audit file.
  • Understand modified and unmodified audit opinion
  • Explain qualified opinion, disclaimer of opinion and adverse opinion
  • Explain emphasis of matter and other matter in the auditor’s report
  • List the circumstances under which an external auditor uses an emphasis of matter and other matter paragraph in the auditor’s report.

Audit evidence:

The detailed syllabus content for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering audit evidence part contains following content.

  • Define external confirmation and list various types of third party confirmations available to an external auditor.
  • Describe the significance of using external confirmation procedures for obtaining relevant and reliable audit evidence
  • Describe the steps involved in external confirmation procedures
  • Differentiate between the positive confirmation request and negative confirmation request, including their appropriateness in different situations
  • Discuss the conditions of sending negative confirmations
  • Discuss the auditor’s course of Action if management refuses to allow auditor to send confirmation.
  • Explain subsequent events and its relevance with the following critical dates

•  Date of the financial statements

•  Date of approval of the financial statements

•  Date of the auditor’s report

•  Date the financial statements are issued

  • Explain the subsequent events review procedure
  • Discuss the classification of subsequent events into adjusting and non-adjusting events
  • Describe the auditor’s responsibility in respect of following situations

•  Events occurring between the date of the financial statements and the date of the auditor’s report

•  Facts which become known to the auditor after the date of the auditor’s report but before the date the financial statements are issued

•  Facts which become known to the auditor after the financial statements have been issued

  • Identify the subsequent events and explain the auditor’s responses.
  • Discuss the nature of written representations as audit evidence
  • Discuss the circumstances where written representations are necessary and the matters on which representations are commonly obtained
  • Discuss the form and content of written representations
  • Explain the various types of written representation
  • Discuss the auditor’s course of action if management refuses to provide requested written representation.
  • Discuss the auditor’s course of action when there is doubt as to the reliability of written representation provided by the management.
  • Explain the relationship between the external auditor with internal auditors and auditor’s experts
  • Explain the internal audit function including internal audit activities
  • Discuss the factors determining the independence of internal auditors, weaknesses and limitations of internal audit
  • Discuss how external auditors determine whether and to what extent they use the work of internal audit
  • Discuss how the auditor assesses the work of an expert
  • Discuss how the external auditor uses the work of an auditor’s
  • Expert when that work is used to assist in obtaining sufficient appropriate audit evidence.
  • Explain the objective of a review engagement of financial statements and how it differs from an audit
  • State the terms of engagement which may be included in the engagement letter LO3.6.3: Explain assurance and non- assurance engagement with examples.
  • Describe the procedures generally adopted by the practitioner to obtain evidence in review engagements
  • Discuss and explain the report issued under engagement to review financial statements.

Professional Accountancy:

The detailed syllabus content for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering professional accountancy part contains following content.

  • Describe with simple examples the fundamental principles of professional ethics of integrity, objectivity, professional competence and due care, confidentiality and professional behavior
  • Apply the conceptual framework to identify, evaluate and address threats to compliance with fundamental principles
  • Understand the threats and circumstances that cause threats of self-interest, self-review, advocacy, familiarity, and intimidation
  • Discuss the safeguards to offset the threats to compliance with the fundamental principles
  • Discuss the concept of ethical conflict resolution.
  • Explain the advertisement and publicity guidelines of ICAP’s Code of Ethics for obtaining the audit work.
  • Apply the conceptual framework to identify, evaluate and address threats incase of Fees, Referral Fees and Tendering for audit work.
  • Explain using simple examples the matters to be considered and the procedures that an audit firm/ professional accountant should carry out in the following circumstances:

•        Client acceptance

•        Engagement acceptance

•        Changes in a professional appointment (including Additional work, Mid-Term Removal and Non-reappointment)

Professional Ethics:

The detailed syllabus content for syllabus of PIPFA Level 4 Audit Assurance and Ethics covering professional ethics part contains following content.

  • Describe with simple examples the fundamental principles of professional ethics of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
  • Apply the conceptual framework to identify, evaluate and address threats to compliance with fundamental principles.
  • Understand the threats and circumstances that cause threats of self-interest, self-review, advocacy, familiarity, and intimidation.
  • Discuss the safeguards to offset the threats to compliance with the fundamental principles.
  • Discuss the concept of ethical conflict resolution.

syllabus of PIPFA Level 4 Audit Assurance and Ethics syllabus of PIPFA Level 4 Audit Assurance and Ethics syllabus of PIPFA Level 4 Audit Assurance and Ethics syllabus of PIPFA Level 4 Audit Assurance and Ethics syllabus of PIPFA Level 4 Audit Assurance and Ethics syllabus of PIPFA Level 4 Audit Assurance and Ethics syllabus of PIPFA Level 4 Audit Assurance and Ethics syllabus of PIPFA Level 4 Audit Assurance and Ethics syllabus of PIPFA Level 4 Audit Assurance and Ethics syllabus of PIPFA Level 4 Audit Assurance and Ethics

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