Internal Audit and Control Syllabus

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Course Contents

Unit 1

Financial Audit - evolution of Financial auditing; idea of development of Financial Audit in India; auditing, objectives, scope and philosophy of auditing; qualifications and qualities of an auditor; advantages and limitations of audit

Unit 2

Types of Audit - general audits and specific audits; types of general audits and types of specific audits; continuous, periodical and balance sheet audits

Unit 3

Internal Audit - concept and objectives of internal audit; application of audit to different management functions; differentiates between internal and external audit; internal check and internal audit

Unit 4

The Internal Auditor - qualifications for an internal auditor; need for independent functioning; relationship with the external auditor; code of ethics; qualities required in internal audit personnel; role of internal auditor as a management member.

Unit 5

Planning Internal Audit- Importance of planning internal audit; factors to for a good plan; stages of internal audit planning. Knowledge of the business an integral aspect; internal audit plan

Unit 6

Internal Audit Programme - nature of internal audit programme; advantages and disadvantages, use of sampling techniques and use of tests

Unit 7

Internal Control - concept and objectives of internal control; characteristics of an effective system of internal controls; elements and basic principles and inherent limitations.

Unit 8

Internal Check - meaning and significance of internal check; objectives and characteristics of an effective internal check system; advantages and disadvantages

Unit 9

Internal Controls in Computer-based Systems - IT revolution; challenges in internal controls; aspects of internal controls applicable in IT environment and internal controls for computerised accounting

Unit 10

Internal Controls on the Accounting Function -Internal control considerations, cash functions like Cash and bank; Salaries and employee benefits; Purchases and creditors; Sales and debtors; Inventories; Fixed assets and investments and other accounting activity.

Unit 11

Evaluation of Internal Control Systems - objectives of evaluation; steps in evaluation; techniques of evaluation; flowcharts and internal control questionnaires; internal control schemes.

Unit 12

Dimensions of Internal Control - internal control and risk assessment; internal control in banking and insurance, internal control for small and medium enterprises (SMEs),audit practices in relation to internal control ; lists out the reporting of internal control weaknesses

Unit 13

Audit Practices in relation to the Accounting System and Related Internal Controls - SAP: 6: “Study and Evaluation of the Accounting System and Related Internal Controls in Connection with an Audit.”

Unit 14

Internal Audit Reports - features of a good internal audit report; importance of working papers; CARO – Companies (Auditors Report) Order 2003.

Unit 15

Internal Audit in an EDP Environment - audit planning in computerised environment; challenges for the auditor in an IT environment; internal audit practices in computerised systems; Computer assisted audit techniques (CAATs).

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