F8 Presentation - A Salam Jan &...

F8 Presentation

December 2013

Abdus Salam Jan – FCA, FPFA

Topic List

1. Introduction to assurance

2. Rules and Regulation

3. Ethics and acceptance

4. Risk

5. Planning

6. Evidence

7. Systems and controls

8. Procedures

9. Completion and review

10. Reporting

11. Corporate governance

12. Internal audit

Chapter 1

Introduction to Assurance

Chapter 1. what is assurance?

1. What is assurance?

2. Elements of an Assurance engagement

3. Assurance in the context of a company

4. The development of Assurance Engagements

5. Audit Engagements

6. Types of assurance engagements

Separation of Management from Ownership

Ownership Management

Assurance Services

by independent auditor become vital when

MANAGEMENT

of business is separated from

OWNERSHIP.

What assurance do?

Assurance enhances

the

CONFIDENCE

of users of financial

statements.

7 Users of financial statements

I INVESTORS

C CUSTOMERS

S SUPPLIERS

L LENDERS

E EMPLOYEES

P PUBLIC

G GOVT.

M MANAGEMENT

Components of Assurance Engagement

Conclusion

Practitioner Subject Matter

Intended User

Responsible Party

Evidence

Criteria

Assurance services - Overview

Types of Assurance

Reasonable

Moderate

Negative

Assurance

Positive

Assurance

There are two types of assurance engagement a practitioner is

permitted to perform:

A reasonable assurance engagement (positive but not

absolute) &

A limited assurance engagement. (moderate & negative).

Objective of External Audit

Types of Assurance Services

Limitations of an audit

Use of estimation in financial information

Evidence is persuasive not conclusive

Inherent limitations of control used as audit evidence

Representation from management as only evidence.

Can not review 100% of the transactions

I F R Ss Extras

Fair Presentation & Compliance with IFRSs Extras