Santa Rita College of Pampanga

Santa Rita, Pampanga

College of Accounting Technology

COURSE SYLLABUS
Course Title: Internal Auditing Instructor: Yvonne L. Tolentino
Course Credit: 6 units Contact Number: 0917-574-9755

COURSE DESCRIPTION: This course gives students an introduction to the audit planning process specifically understanding
an audit client, studying its internal control systems, testing its control procedures, conducting an analytical procedure,
conducting substantive testing and drafting the appropriate audit reports.
After the course, learners are expected to evaluate issues and scenarios involving audit and related services and
prepare basic audit documentations.

COURSE GUIDE

CONTENT TOPICS

AUDIT- An Overview  Auditing defined

 Types of Audits
 Types of Auditors
 The Independent Financial Statement Audit

The Professional Standards  Generally Accepted Auditing Standards

 Philippine Standards on Auditing
 Quality Control System

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The Auditor’s Responsibility  Error
 Fraud
 Noncompliance with Laws and Regulations

The Audit Process- Accepting an Engagement  General Audit Approach

 Overview of the Audit Process
 Accepting an Engagement
 Engagement Letter

Audit Planning  Understanding the Client’s Business and Industry

 Materiality
 Audit Risk
 Analytical Procedures
 Planning Documentation

Consideration of Internal Control  Nature of Internal Control

 Components of Internal Control
 Consideration of Internal Control
 Communication of Internal Control Weaknesses

Auditing in a Computerized Environment  Characteristics of CIS

 Internal Control in CIS environment
 Auditing Around the Computer
 Computer Assisted Auditing Techniques (CAAT’s)

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Performing Substantive Tests  Analytical Procedures
 Test of details
 Audit Evidence
 Working Papers
 Related Parties
 Using the Work of an Auditor’s Expert
 Considering the Work of Internal Auditors
 Auditing Accounting Estimates

Audit Sampling  Sampling Risks

 Statistical and Non-statistical Sampling
 Basic Steps when Using Audit Sampling
 Sampling for Tests of Control
 Sampling for Substantive Tests

Completing the Audit  Subsequent Events

 Litigations, Claims and Assessment
 Management Representation Letter
 Going concern
 Wrap-up Procedures

Audit Reports on Financial Statements  The Unmodified Report

 Modification of the Report
 Reports on Consolidated Financial Statements
 Reports on Comparatives
 Special Purpose Audit Engagements

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Assurance and Related Services  Review of Financial Statements
 Agreed-upon Procedures Engagement
 Compilation of Financial Statements
 Assurance Engagements

The Code of Ethics and Republic Act 9298  The Code of Ethics for Professional Accountants
 The Philippine Accountancy Act of 2004

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