Candidates are expected to possess knowledge of accounting systems, generally accepted accounting principles, audit and assurance principles and practice to build a firm foundation for internal and external audit engagements. There is an emphasis on knowledge of international auditing standards and their application to simple situations requiring audit opinion.
A. Introduction to assurance, legal, regulatory framework and process of audit 30%
1. Objectives and need of audit and assurance
(a) Discuss the concepts of audit, assurance, attestation services, and
relationship among these concepts.
(b) Identify and explain the reasons for audit and assurance.
(c) Explain the benefits of different types of audit and assurance assignments.
(d) Discuss the objectives of external audit.
(e) Identify the parties in audit and assurance engagements including the
members of the audit and assurance team and discuss their roles, duties
and rights.
(f) Compare and contrast the different levels of assurance that may be
obtained from audit and assurance assignments.
(g) Discuss audit expectation gap, including reasonableness gap and
performance gap.
(h) Discuss the role of the internal audit department in maintaining an effective
internal control system.
(i) Compare internal and external audits.
(j) Discuss the peculiarities of public sector audit.
Apply the provisions of CAMA and International Standards on Auditing (ISA) in relation to audit and
assurance engagements
Discuss appropriate internal controls to safeguard the assets of clients
Understand the
need for audit and
assurance
Understand audit
and assurance
process
Discuss the
principles of
internal control
Discuss the
process of
gathering audit
and assurance
evidence
Understand the five fundamental principles of ethics and apply same in resolving ethical dilemmas
REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 61
2. The legal and regulatory framework for audit and other assurance
engagements
(a) Discuss the legal and regulatory frameworks for statutory audit and
assurance in line with the provisions of:
(i) Companies and Allied Matters Act 2020;
(ii) Financial Reporting Council of Nigeria Act, 2011;
(iii) International standards on auditing (ISAs); and
(iv) International standards on assurance engagement (ISAEs).
3. Process of audit and assurance
(a) Explain the basic steps of audit and assurance process in relation to:
(i) Nomination;
(ii) Acceptance;
(iii) Engagement;
(iv) Planning (ISA 300, ISA 320);
(v) Execution :
❖ Evaluation of internal control;
❖ Evidence and obtaining evidence (ISA 500);
❖ Records and working papers;
❖ Testing and other works;
❖ Evaluating results (ISA 450);
(vi) Conclusion;
(vii) Reporting (ISA 700); and
(viii) Determination and disclosure requirements for key audit matters (ISA
701).
(b) Explain public interest and the need for professional scepticism in carrying
out audit and assurance engagements.
(c) Discuss the concept of materiality (ISA 320).
(d) Explain reasonable assurance.
(e) Explain types of audit opinion and assurance report including circumstances
under which each can be issued.
B. The nature and use of internal control (ISA 315 revised) 20%
1. Discuss the meaning, objectives and nature of internal control.
2. Discuss effective internal control.
3. Discuss the different types of internal control.
4. Discuss responsibilities for instituting and evaluating the effectiveness of internal
control.
5. Discuss the main components of internal control.
REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 62
6. Explain how accounting systems and related internal controls may be identified,
recorded and analysed.
7. Discuss the techniques required for evaluating internal controls (walk-through, spot
check, compliance test, substantive test)(ISA530)
8. Evaluate internal controls in a given scenario.
9. Discuss the limitations of internal control.
10. Discuss the contents of a management letter.
11. Discuss internal controls in a computerized accounting environment (ISA 315).
12. Discuss information security.
C. Gathering evidence 30%
The nature of audit evidence and the selection of sufficient and appropriate audit evidence
(ISA 500 and (ISA 570 revised))
1. Justify the need to maintain and keep working papers and other documentation.
2. Evaluate the different sources and quality of evidence and the methods of obtaining
evidence.
3. Document appropriate procedures for gathering evidence based on a given scenario
(ISA 505, ISA 520).
4. Identify the circumstances where written representations may be required (ISA 580).
5. Evaluate the circumstances requiring discussion with senior assurance team members
(ISA 450) and advise on how this should be communicated and documented.
6. Application of information technology in audit process
Discuss the following:
(a) Statistic analysis;
(b) Algorithm review; and
(c) Artificial intelligence tools in auditing such as Repetitive process automation, clone
for stock taking, block chain for audit and revenue assurance tools.
REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 63
D. Professional ethics and public interest 20%
1. Discuss the importance of professional ethics.
2. Differentiate between rule-based and principle-based approaches to professional
ethics.
3. Explain the meaning of public interest in the context of audit and assurance.
4. Discuss ethical issues under IFAC code and ICAN professional code of ethics and
guide for members.
5. Compare ethical issues in the governance of private and public entities.
6. Discuss actions to deal with ethical dilemmas.
7. Assess the ethical threats to independence and safeguards.
8. Assess the ethical conflicts an accountant faces as an employee in a private or public
entity.
9. Assess the ethical conflicts facing an accountant when charged with governance in a
private or public entity.
10. Discuss the concept of whistle blowing in relation to audit and assurance (non
compliance with rules and regulations - NOCLAR).
Applicable Standards
a. International Standards on Auditing (ISA):
❖ 200 - Overall Objectives of the Independent Auditor and the Conduct of an Audit in
accordance with International Standards on Auditing.
❖ 230 - Audit documentation
❖ 300 - Planning an Audit of Financial Statements
❖ 315 - Identifying and Assessing the Risks of Material Misstatement Through
Understanding the Entity and its Environment
❖ 320 - Materiality in Planning and Performing an Audit
❖ 450 - Evaluation of Misstatements Identified during the Audit
❖ 500 - Audit Evidence
❖ 505 - External Confirmations
❖ 520 - Analytical Procedures
❖ 530 - Audit Sampling
❖ 540- Auditing Accounting Estimates, Including Fair Value Accounting
Estimates and Related Disclosures
❖ 580 - Written Representations
❖ 700 - The Auditor’s Report on Financial Statements.
REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 64
❖ International standards on assurance engagement (ISAEs).
Note: All the approved and released standards may be examined after six months
from date of issue.
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