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Rationale of auditing.
Legal and professional framework of auditing.
Audit risk and materiality.
Analytical reviews, substantive testing and audit evidence.
Evaluation and testing of internal controls.
Sampling methods in audit testing.
Letters to auditee management.
Audit of fixed and current assets, liabilities, income, expenditure, reserve movements and reserve balances.
Post balance sheet events, going concern questions and audit closure procedures.
Audit reports.
Auditing postulates.
Ethics, responsibilities and public expectations of auditors.

LO1: Explain the legal requirements for auditing and the framework for the professional regulation of auditors.
LO2: Interpret the underlying theory behind the audit process, the purpose of external audit and the essential postulates of auditing
LO3: Assess the quality and relevance of audit evidence
LO4: Appraise financial control and recording systems and the value of their outputs as audit evidence
LO5: Recommend improvements to financial control system