Description

Vertical 1 : Major 1 – Finance

Auditing

S.Y.B.Com. (Management Studies) – Semester IV

Syllabus As Per NEP 2020 Academic Year 2025-26

Module 1 : Introduction to Auditing 15 Hours
1. Definition and Objectives of Auditing, Need and Limitations of Audit, Difference Between Accounting and Auditing, Investigation and Auditing.
2. Errors and Frauds – Definitions, Reasons and Circumstances, Types of Error and Frauds, Risk of Fraud and Error in Audit, Auditors Duties and Responsibilities in Case of Fraud.
3. Principles of Audit, Materiality, True and Fair View
4. Types of Audits – Meaning, Advantages, Disadvantages of Balance Sheet Audit, Interim Audit, Continuous Audit, Concurrent Audit and Annual Audit, Statutory Audit

Module 2 : Audit Planning, Procedures and Documentation 15 Hours
1. Audit Planning – Meaning, Objectives, Factors to be Considered, Sources of Obtaining Information, Discussion with Client, Overall Audit Approach
2. Audit Program – Meaning, Factors, Advantages and Disadvantages, Overcoming Disadvantages, Methods of Work
3. Audit Working Papers – Meaning, Importance, Factors Determining Form and Contents, Main Functions / Importance, Features
4. Temporary Audit File, Ownership, Custody, Access of Other Parties to Audit Working Papers, Auditors Lien on Working Papers, Auditors Lien on Client’s Books

Module 3 : Auditing Techniques and Internal Audit Introduction 15 Hours
1. Test Check – Test Checking Vs Routing Checking, Test Check – Meaning, Features, Factors to be Considered, When Test Checks can be Used, Precautions.
2. Audit Sampling – Audit Sampling, Meaning, Purpose, Factors in Determining Sample Size – Sampling Risk, Tolerable Error and Expected Error, Methods of Selecting Sample
3. Internal Control – Meaning and Purpose, Review of Internal Control, Advantages, Auditor’s Duties, Inherent Limitations of Internal Control, Internal Control Samples
4. Internal Audit – Meaning, Basic Principles of Establishing Internal Audit, Objectives, Evaluation of Internal Audit by Statutory Auditor, Internal Audit vs. External Audit

Module 4 : Auditing Techniques : Vouching and Verification 15 Hours
1. Audit of Income – Cash Sales, Sales on Approval, Consignment Sales, Sales Returns Recovery of Bad Debts Written Off, Rental Receipts
2. Audit of Expenditure – Purchases, Purchase Returns, Salaries and Wages, Rent, Insurance Premium, Telephone Expense Postage and Courier, Petty Cash Expenses
3. Audit of Assets Book Debts / Debtors, Stocks – Auditors General Duties; Patterns, Dies and Loose Tools, Spare Parts, Empties and Containers Quoted Investments and Unquoted Investment Trade Marks / Copyrights Patents Know-How
4. Audit of Liabilities – Outstanding Expenses, Bills Payable Secured Loans Unsecured Loans, Contingent Liabilities