Auditing Concepts –Objective of Audit- Expectation of Users of Financial Statements -General Purpose Financial Statements- Special Purpose Financial Statements- Difference between audit and investigation -Audit vs. certification : Extent of Auditors Liability to the users of the Financial Statement. Basic principles governing an audit- Ethical principles and concept of Auditors Independence- Relationship of auditing with other disciplines. Nature and limitations of Auditing- Types of Audit- Statutory Audit- Internal Audit- Special Audit .

Auditing engagement – Assessing the Risk and Acceptance of the Engagement- Knowledge on Clients Business- Walk Through, Determining Audit Materiality- Audit planning- Evaluation of Internal Control System- Audit programme- Determining the nature and extent of verification - Performing the Audit Documentation – Audit working papers- Discussion with the Auditee- Issuance of Draft Report- Issuance of Final Report.

Audit evidence – Audit procedures for obtaining evidence - Sources of evidence, Reliability of audit evidence- Methods of obtaining audit evidence – Physical verification, Documentation- Direct confirmation- Re – computation- Analytical review techniques, Representation by management. Internal control – Elements of Internal control- Review and documentation- Evaluation of internal control system- internal control questionnaire- internal control check list- Tests of control- Compliance Testing Substantive Testing: .

COSO Frame Work on Internal Audit : Internal Control Principles : Control Environment – Risk Assessment - Control Activities – Information and Communication – Monitoring.

Contents of Audit Report - Types of Opinion – Qualified- Unqualified - Adverse Opinion- Disclaimer- Audit Report under Companies Act- Income Tax Act. Analytical review procedures: Analytical review procedures -Audit of payments – General considerations -Wages, Capital Expenditure- Other payments and expenses- Petty cash payments- Bank payments -Bank reconciliation.