ICWA INTERMEDIATE COMPANY ACCOUNTS AND AUDIT
SECTION A – GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES (GAAP)
Study Note 1 : Conceptual Framework for Preparation
Presentation of Financial Statements
Meaning and Objective of Financial Statement
Component of Financial Statement
Frame Work
Users and their Information Needs
Study Note 2 : Accounting Standards
AS 11 : The Effects of Changes in Foreign Exchange Rates (Revised 2003)
AS 12 : Accounting for Government Grants
AS 15 : Employee Benefits
AS 19 : Leases
AS 20 : Earning Per Share
AS 26 : Intangible Assets
AS 29 : Provisions, Contingent Liabilities and Contingent Assets
SECTION – B ACCOUNTS OF JOINT STOCK COMPANIES
Study Note 3 : Accounting for Shares and Debentures
Share Capital
Follow on Public Offer & Rights Issue
Buy-back of Shares
Issue & Redemption of Preference Shares
Debentures-Issue and Redemption
Employee Stock Option Plan (ESOP), Employees Stock Option Scheme (ESOS)
Underwriting of Shares and Debentures
Study Note 4 : Presentation of Financial Statements (Schedule III)
Part I – Form of Balance Sheet
Part II – Form of Statement of Profit and Loss
Managerial Remuneration
Study Note 5 : Cash Flow Statement (AS 3)
Statement of Cash Flows
Meaning of Cash and Cash Equivalent
Types of Cash Flow
Study Note 6 : Segmental Reporting (AS 17)
Need for Segmental Reporting
International Scenario
The Indian Scenario
Segmental Reporting Problems & Difficulties
Specific Issues Relating to Management Accounts
Segmental Disclosure – A practical example
Study Note 7 : Business Combinations and Corporate Restructuring
Merger
Acquisitions
Accounting for Mergers And Acquisitions
External Reconstruction
Profit Prior to Incorporation
Study Note 8 : Liquidation of Companies
Modes of Liquidation
Liquidators’ Statement of Account
Deficiency Account, in the context of Liquidation of Companies
Overriding Preferential Payments U/S 326 of the Companies Act,2013
Preferential Payment U/S 327 of the Companies Act, 2013
Liquidators’ Final Statement of Account
SECTION – C AUDITING
Study Note 9 : Auditing Concepts
Evolution of Auditing
Definitions
Nature of Auditing
Scope of Auditing
Comparison between Book Keeping, Accounting and Auditing
Relationship and Distinction Between Auditing and Accounting
Auditor
Audit and Investigation
Aspects to be Covered in Audit
Objectives Of Auditing
Basic Principles Governing an Audit
Significance of Audit
Advantages of Audit
Inherent Limitations of an Audit
Auditor’s Engagement
Functional Classification of Audit – External Audit and Internal Audit
Types of Audit
Audit Evidence
Concept of True and Fair
Concept of “Materiality” in Planning and Performing the Audit
Contemporary Issues in Auditor’s Independence —
Issues, Tools, Institutions (Basic Knowledge)
Disclosure of Accounting Policies
Study Note 10 : Type of Audit
Introduction
Classification of Type of Audit
Voluntary Audit or Private Audit
Advantages of Auditing for Sole Proprietors
Advantages of Auditing for Partnership Firms & Others
Statutory Audit
Government Audit
Difference between Private (Voluntary) Audit and Statutory (Mandatory) Audit
Difference between Statutory Audit and Government Audit
Difference between Audit of a Company and a Firm
Independent Financial Audit
Internal Audit
Difference between Statutory Audit and Internal Audit
Cost Audit
Management Audit
Tax Audit
Secretarial Audit
Forensic Audit
Difference between Statutory Audit and Forensic Audit
Information Security Audit
Social Audit
Environmental Audit
Efficiency-Cum-Performance Audit
Propriety Audit
Operational Audit
Continuous Audit
Information Systems Audit
Annual Audit
Interim Audit
Balance Sheet Audit
Difference between Balance Sheet Audit and Annual Audit
Difference between Balance Sheet Audit and Continuous Audit
Complete, Partial and Detailed (in Depth) Audit
Statutory Report
Study Note 11 : Audit Planning, Programme and Procedures
Introduction
Audit Planning
Continuous Audit
Final Audit
Audit Working Papers
Audit Note Book
Quality Control for Audit Work
Audit Sampling
Audit Risk
Surprise Checks
Study Note 12 : Internal Control, Internal Check and Internal Audit
Internal Control
Internal Check
Difference between a Checklist and an Internal Control Questionnaire
Distinction between Internal Check, Internal Audit and Internal Control
Brief Difference between Internal Audit, Internal Control and Internal Check
Surprise Check
Cut off Procedures
Examination in Depth/Auditing In Depth: ‘’Walk Through Test”
Difference between Test Checking and Statistical Sampling
Internal Audit
Organisational Independence
Standards on Internal Audit (SIA)
Study Note 13 : Vouching and Verification
Voucher: Meaning and Object
Vouching
Cash Vouching Procedure
Teaming & Leading / Lapping
Audit of Payments
Verification of Assets and Liabilities
Study Note 14 : Audit of Regulated and Non-Regulated Industries
Audit of an Educational Institution
Audit of Hospital
Government Expenditure Audit
Audit of a Non-Governmental Organisation (NGO)
Audit of Charitable Institution
Audit of a Hotel
Audit of a Cinema Hall
Audit of a Recreation Club
Audit of a partnership firm
Audit of Small Companies
Audit of a Sole Trader
Audit from Incomplete Records
Propriety Audit in the context of Government Audit
Audit of Commercial Accounts
Study Note 15 : The Company Auditor
Appointment of Auditors [Section 139]
Class of Companies
Manner of Rotation of Auditors by the Companies on expiry of their term
Removal, Resignation of Auditor and Giving of Special Notice [Section 140]
Eligibility, Qualifications and Disqualifications of Auditors [Section 141]
Remuneration of Auditors [Section 142]
Powers and Duties of Auditors and Auditing Standards [Section 143]
Audit of Branch Office
Other matters to be included in Auditor’s Report
Duties and powers of the Company’s Auditor with reference to the audit
of the branch and the Branch Auditor
Reporting of frauds by Auditor
Auditor not to render Certain Services [Section 144]
Auditor to sign Audit Reports, etc. [section 145]
Auditors to attend General Meeting [Section 146]
Punishment for Contravention [Section 147]
Role of Cost Audit
Scope of Audit Committee
Study Note 16 : The Company Audit
Audit of Shares
Audit of Debentures [Section 71]
Audit of Divisible Profit
Loans to Directors [Section 185]
Inter-Corporate Loans and Investment [Section 186]
Remuneration of Directors [Section 197]
Study Note 17 : Audit Report
Scope, Basic Elements and Significance of Audit Report
Unqualified Opinion
Qualified Opinion/ Report
Disclaimer of Opinion
Piecemeal Opinion
Adverse or Negative Report
Audit Report under The Companies Act, 1956
CARO – Companies (Auditor’s Report) Order, 2003
Auditor’s Report on Revised Accounts of Companies Before
Circulation to Shareholders
Revision of The Audit Report
Audit of Abridged Financial Statement
Provision For Proposed Dividend
Accounts of Liquidators / Report U/S 551 Of Companies Act, 2013
293A of The Companies Act and the Auditor
Audit of Consolidated Financial Statements (CFS)
Corporate Governance
Audit Certificate
Study Note 18 : Standards on Auditing (SA)
International Resources to Auditing needs
India’s Response to Auditing needs
Rationale of Auditing Standards
Auditing Standards–Setting in India
International Harmonisation of Auditing Standards
Compliance with Auditing Standards
The Objectives and Functions of the Auditing and
Assurance Standard Board (AASB)
Standards Issued by Auditing and Assurance Standard Board under the
Authority of the Council
New/Revised Standards Issued under the Clarity Project
Comparative Statement of AS & IND AS
Standard on Auditing