In this learning unit, the ethical principles regulating the auditing and accountancy profession are explained and applied by reference to the International Federation of Accountants (IFAC) Code of Ethics for Professional Accountants, the South African Institute of Chartered Accountants (SAICA) Cod...
Printed and published by the
University of South Africa
Muckleneuk, Pretoria
AUE2601/1/2018
70616175
,Contents
TOPIC 1: INTRODUCTION TO AUDITING .......................................................... 1
LEARNING UNIT 1.1: THE AUDITOR .................................................................... 3
LEARNING UNIT 1.2: ASSURANCE AND NON-ASSURANCE
ENGAGEMENTS ................................................................. 9
LEARNING UNIT 1.3: AUDITING POSTULATES ................................................. 18
LEARNING UNIT 1.4: THE ACCOUNTING PROFESSION .................................. 20
LEARNING UNIT 1.5: THE FINANCIAL STATEMENT AUDIT
ENGAGEMENT ................................................................. 24
TOPIC 2: REGULATION OF THE AUDITOR .................................................... 31
LEARNING UNIT 2.1: THE AUDITING PROFESSION ACT 26 OF 2005
(APA) ............................................................................... 34
LEARNING UNIT 2.2: THE COMPANIES ACT 71 OF 2008 (THE AUDITOR) ... 44
LEARNING UNIT 2.3: ETHICAL PRINCIPLES REGULATING THE
PROFESSION ................................................................. 48
LEARNING UNIT 2.4: QUALITY CONTROL OF AUDIT WORK ......................... 70
TOPIC 3: GENERAL PRINCIPLES OF ASSURANCE ENGAGEMENTS ......... 73
LEARNING UNIT 3.1: ASSURANCE ENGAGEMENTS ..................................... 75
LEARNING UNIT 3.2: INTERNAL CONTROL .................................................... 78
LEARNING UNIT 3.3: AUDIT EVIDENCE .......................................................... 89
LEARNING UNIT 3.4: RISK ASSESSMENT AND AUDIT PROCEDURES ...... 100
LEARNING UNIT 3.5: MATERIALITY ............................................................... 111
LEARNING UNIT 3.6: AUDIT RISK .................................................................. 116
LEARNING UNIT 3.7: AUDIT DOCUMENTATION ........................................... 122
LEARNING UNIT 3.8: ASSURANCE REPORTS .............................................. 124
TOPIC 4: THE AUDIT PROCESS .................................................................... 127
LEARNING UNIT 4.1: STAGES OF THE AUDIT PROCESS ............................ 129
LEARNING UNIT 4.2: THE PRELIMINARY ENGAGEMENT STAGE............... 131
LEARNING UNIT 4.3: THE PLANNING STAGE ............................................... 135
LEARNING UNIT 4.4: PUTTING THE AUDIT STRATEGY AND PLAN INTO
ACTION ......................................................................... 140
LEARNING UNIT 4.5: THE EVALUATING, CONCLUDING AND REPORTING
STAGE .......................................................................... 145
TOPIC 5: ENGAGEMENTS TO REVIEW HISTORICAL FINANCIAL
STATEMENTS ................................................................................. 151
LEARNING UNIT 5.1: THE AUDITING PRINCIPLES WITH REGARD TO
REVIEW ENGAGEMENTS............................................ 153
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, LEARNING UNIT 5.2: PRELIMINARY ENGAGEMENT ACTIVITIES ............... 157
LEARNING UNIT 5.3: PERFORMING THE ENGAGEMENT ............................ 159
LEARNING UNIT 5.4: CONCLUSION AND REPORTING ................................ 163
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