Assurance Manual
The Institute of Chartered Accountants of Bangladesh
ASSURANCE
Professional Stage Knowledge Level www.facebook.com/cainbd Study Manual www.icab.org.bd Assurance
The Institute of Chartered Accountants of Bangladesh Professional Stage
These learning materials have been prepared by the Institute of Chartered Accountants in England and Wales
ISBN 978-1-84152-637-9
First edition 2009
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means or stored in any retrieval system, or transmitted in, any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior permission of the publisher.
ii
© The Institute of Chartered Accountants in England and Wales, March 2009
Welcome to the ICAB
© The Institute of Chartered Accountants in England and Wales, March 2009
iii
iv
© The Institute of Chartered Accountants in England and Wales, March 2009
Contents
Introduction
vii
Specification grid for Assurance
viii
The learning materials
ix
Study guide
x
Getting help
xvii
Syllabus and learning outcomes
xviii
1.
Concept of and need for assurance
1
2.
Process of assurance: obtaining an engagement
17
3.
Process of assurance: planning the assignment
37
4.
Process of assurance: evidence and reporting
67
5.
Introduction to internal control
85
6.
Revenue system
107
7.
Purchases system
127
8.
Employee costs
145
9.
Internal audit
159
10. Documentation
169
11. Evidence and sampling
185
12. Management representations
209
13. Substantive procedures – key financial statement figures
221
14. Codes of professional ethics
251
15. Integrity, objectivity and independence
263
16. Confidentiality
287
Sample paper
299
© The Institute of Chartered Accountants in England and Wales, March 2009
v
vi
© The Institute of Chartered Accountants in England and Wales, March 2009
INTRODUCTION
1 Introduction
1.1
What is Assurance and how
ASSURANCE
Professional Stage Knowledge Level www.facebook.com/cainbd Study Manual www.icab.org.bd Assurance
The Institute of Chartered Accountants of Bangladesh Professional Stage
These learning materials have been prepared by the Institute of Chartered Accountants in England and Wales
ISBN 978-1-84152-637-9
First edition 2009
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means or stored in any retrieval system, or transmitted in, any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior permission of the publisher.
ii
© The Institute of Chartered Accountants in England and Wales, March 2009
Welcome to the ICAB
© The Institute of Chartered Accountants in England and Wales, March 2009
iii
iv
© The Institute of Chartered Accountants in England and Wales, March 2009
Contents
Introduction
vii
Specification grid for Assurance
viii
The learning materials
ix
Study guide
x
Getting help
xvii
Syllabus and learning outcomes
xviii
1.
Concept of and need for assurance
1
2.
Process of assurance: obtaining an engagement
17
3.
Process of assurance: planning the assignment
37
4.
Process of assurance: evidence and reporting
67
5.
Introduction to internal control
85
6.
Revenue system
107
7.
Purchases system
127
8.
Employee costs
145
9.
Internal audit
159
10. Documentation
169
11. Evidence and sampling
185
12. Management representations
209
13. Substantive procedures – key financial statement figures
221
14. Codes of professional ethics
251
15. Integrity, objectivity and independence
263
16. Confidentiality
287
Sample paper
299
© The Institute of Chartered Accountants in England and Wales, March 2009
v
vi
© The Institute of Chartered Accountants in England and Wales, March 2009
INTRODUCTION
1 Introduction
1.1
What is Assurance and how