Course Overview:
This 5-day course is designed to provide auditors, accountants, and professionals in the auditing field with a comprehensive understanding of the International Standards on Auditing (ISA). Participants will explore the core principles and guidelines of ISA and how these standards are applied during the audit process. The course will provide both theoretical knowledge and practical insights through case studies, real-world scenarios, and hands-on exercises. By the end of the course, participants will be well-equipped to perform audits in line with international standards, enhancing their ability to ensure accuracy, transparency, and compliance in financial reporting.
Course Duration:
5 Days (8 hours per day)
Course Format:
- Interactive lectures on ISA principles and audit practices
- Group discussions and case studies on real-world audit situations
- Practical exercises on applying auditing standards
- Role-playing and simulations of audit processes
- Evaluations through quizzes, assignments, and a final audit report project
Detailed Course Breakdown
Day 1: Introduction to International Standards in Auditing (ISA)
Objectives:
- Understand the significance and role of ISA in global audit practices.
- Gain a thorough understanding of the framework and structure of ISA.
- Learn the key concepts in auditing that ISA governs, including independence, objectivity, and professional skepticism.
Content:
- Overview of International Standards on Auditing (ISA) and their global impact.
- Structure of ISA: Parts of the standards, from general principles to audit procedures.
- The role of the International Auditing and Assurance Standards Board (IAASB).
- Core principles of auditing: Independence, objectivity, professional skepticism, and due care.
- Ethical requirements and the role of auditors in ensuring transparency and accountability.
Activities:
- Case study: Analysis of the significance of ISA in a high-profile audit case.
- Group discussion: Key challenges auditors face when applying ISA principles.
- Quiz: Overview of ISA structure and auditing standards.
Assessment:
- Quiz on ISA structure and key principles.
- Group discussion on ethical dilemmas faced by auditors.
Day 2: Understanding ISA 200 – Overall Objectives of the Independent Auditor
Objectives:
- Explore the general objectives of an independent auditor under ISA 200.
- Understand how ISA 200 guides auditors in forming an opinion on financial statements.
- Learn the relationship between audit objectives and audit procedures.
Content:
- Introduction to ISA 200: General objectives and the importance of forming an independent audit opinion.
- Understanding the role of an auditor in ensuring compliance with financial reporting frameworks.
- Risk assessment and its influence on the overall audit strategy.
- Audit planning, execution, and conclusion based on ISA 200.
Activities:
- Practical exercise: Formulating an audit strategy based on ISA 200 guidelines.
- Case study: Real-world audit application of ISA 200 objectives and procedures.
- Group discussion: The importance of auditor independence in audit opinion formation.
Assessment:
- Case study analysis and group presentation on applying ISA 200.
- Assignment: Drafting an audit strategy based on ISA 200 standards.
Day 3: Risk Assessment and Audit Procedures – ISA 315 & ISA 330
Objectives:
- Understand the process of risk assessment during an audit under ISA 315.
- Learn about the procedures auditors should follow to assess and respond to audit risk.
- Gain hands-on experience in applying ISA 330 for audit testing.
Content:
- ISA 315: Identifying and assessing risks of material misstatement.
- Understanding inherent risk, control risk, and detection risk.
- Procedures for assessing risks at the financial statement and assertion levels.
- ISA 330: The auditor’s responses to assessed risks.
- Designing audit procedures to respond to identified risks.
- Evaluating the effectiveness of internal controls in mitigating audit risks.
- Techniques for collecting audit evidence to support audit findings.
Activities:
- Group exercise: Performing a risk assessment for a sample client using ISA 315.
- Hands-on workshop: Developing audit procedures and responses based on ISA 330.
- Case study: Analyzing an audit scenario and responding to identified risks.
Assessment:
- Practical exercise: Risk assessment and audit procedure design.
- Group project: Developing an audit plan for a hypothetical company with identified risks.
Day 4: Audit Evidence and Documentation – ISA 500 & ISA 530
Objectives:
- Explore the requirements for obtaining sufficient and appropriate audit evidence under ISA 500.
- Learn about the importance of audit documentation and how it ensures compliance with auditing standards.
- Understand how auditors evaluate the reliability of audit evidence.
Content:
- ISA 500: Audit Evidence – The nature and extent of evidence required in an audit.
- Sources of audit evidence: Inspection, observation, inquiry, and external confirmation.
- Criteria for determining the sufficiency and appropriateness of audit evidence.
- ISA 530: Audit Sampling – When and how to use audit sampling techniques.
- Statistical and non-statistical sampling methods.
- Applying audit sampling to gather reliable evidence.
- The importance of audit documentation and the requirements for retaining documentation to support audit conclusions.
Activities:
- Practical exercise: Designing an audit evidence collection plan using ISA 500.
- Group work: Evaluating the quality of audit evidence for a sample audit.
- Case study: Understanding the role of audit sampling in ensuring audit efficiency and effectiveness.
Assessment:
- Assignment: Draft an audit evidence plan for a sample audit engagement.
- Quiz on audit evidence types, sufficiency, and documentation requirements.
Day 5: Reporting and Final Audit Opinion – ISA 700, ISA 705 & ISA 706
Objectives:
- Understand the process of drafting the final audit report based on ISA 700.
- Learn how to express the auditor’s opinion on financial statements.
- Explore the different types of audit opinions as outlined in ISA 705 and ISA 706.
Content:
- ISA 700: Forming an Opinion and Reporting on Financial Statements.
- The format and components of an auditor’s report.
- The importance of presenting a clear and objective opinion on the financial statements.
- ISA 705: Modifications to the Opinion in the Independent Auditor’s Report.
- Types of modifications: Qualified, adverse, and disclaimer of opinion.
- ISA 706: Emphasis of Matter and Other Matter Paragraphs.
- When to include emphasis of matter and other matter paragraphs in the report.
Activities:
- Group exercise: Drafting a sample audit report based on ISA 700.
- Role-play: Presenting an audit opinion and explaining audit conclusions to stakeholders.
- Case study: Analyzing a real-world audit report with a qualified opinion.
Assessment:
- Final Project: Create a complete audit report, including the opinion and key audit findings.
- Peer feedback on audit report presentations.
Evaluation Methods:
- Daily Quizzes: Short quizzes to assess understanding of the day’s content.
- Assignments: Practical exercises related to audit procedures, evidence collection, and risk assessment.
- Group Projects: Collaborative work on case studies, including risk assessments and audit plans.
- Final Project: A comprehensive audit report including the application of ISAs in a simulated audit engagement.
- Peer Review: Feedback on group project work and final audit report presentations.
Required Materials:
- Textbook: International Standards on Auditing: A Practical Guide (or similar).
- Access to ISAs: Downloadable PDFs of the full set of International Standards on Auditing.
- Online Resources: Access to ISA updates and relevant auditing tools.
Optional Resources:
- Auditing Software Tools: Use of audit tools to simulate real-world auditing processes.
- Webinars and Podcasts: Expert interviews on the practical application of ISAs in various industries.
Learning Outcomes:
By the end of the 5-day course, participants will be able to:
- Understand the core principles and framework of the International Standards on Auditing (ISA).
- Apply ISA standards to perform thorough risk assessments and design appropriate audit procedures.
- Collect sufficient and appropriate audit evidence and document the audit process effectively.
- Formulate clear and objective audit opinions based on ISA guidelines.
- Draft comprehensive audit reports, including appropriate audit opinions and modifications.
This course is ideal for auditors, accounting professionals, audit managers, and those seeking to strengthen their knowledge of international audit standards and improve the quality of their audit engagements.