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Paper 2.6
Audit and Internal Review
Syllabus aim
To develop knowledge and understanding of the audit process and its application in the context of the external regulatory framework and for business control and development.
Objectives
On completion of this paper, candidates should be able to:
- understand the nature, purpose and scope of auditing and internal review, including the role of external audit and its regulatory framework, and the role of internal audit in providing assurance on risk management and on the control framework of an organisation
- identify risks, describe the procedures undertaken in the planning process, plan work to meet the objectives of the audit or review assignment and draft the content of plans
- describe and evaluate accounting and internal control systems and identify and communicate control risks, potential consequences and recommendations
- explain and evaluate sources of evidence, describe the nature, timing and extent of tests on transactions and account balances (including sampling and analytical procedures) and design programs for audit and review assignments
- evaluate findings, investigate inconsistencies, modify the work program as necessary, review subsequent events, and justify and prepare appropriate reports for users within and external to the organisation, including recommendations to enhance business performance
- discuss and apply the requirements of relevant Statements of Auditing Standards (International Standards on Auditing from December 2005)
- demonstrate the skills expected in Part 2.