CA CISA
113 Points
Joined September 2007
Here is the excerpts from the Audit Jan 2011 module..
Some say that SOX audit had been deleted. See what the preface tells about the same...
On the wake of many corporate failures in the USA, Sarbanes–Oxley Act was enacted which
encompasses newer ideas of internal control and Peer review apart from reinforcing old best
practices of auditing and assurance. Enhanced role of the auditors has also been perceived at
home in the context of implementing code of corporate governance and various fiscal
legislations.
This study material is divided into twenty two chapters covering in details principles of
Auditing, Standards on Auditing issued by the ICAI, Salient features of Sarbanes Oxley Act,
2002 with special reference to reporting on internal control as a part of Risk Assessment and
Internal Control, specific audit issues classified by organizations like Company Audit, audit of
Banks, Audit of General Insurance Business, Audit of Co-Operative Societies, NBFCs and
Audit of Public Sector Undertakings, special audit issues like audit under Fiscal Laws, role of
auditor under clause 49 of the Listing Agreement, Audit of Consolidated Financial Statements,
Investigation and Due Diligence. In Chapter 21, the latest concept of Peer Review has been
explained in details, which are considered as an important step towards maintenance and
improvement of audit quality. In Chapter 22 Professional Ethics are dealt with which is
regarded as a foundation to the audit function, which is essentially developed on the
foundation of ethical norms, which has so far brought name and fame to the profession. All
students of Final course should read this chapter with sincerity and imbibe the norms
explained. These norms should be the guiding force while they will work as a chartered
accountant.