Institute of Commercial Management | Qualification Subject

Auditing & Taxation

Main Topics of Study

Introduction to Auditing

  • The why of auditing

Auditing and the Companies Act

  • Rights and duties
  • The Companies Act
  • Accounting records
  • Accounting requirements of the Companies Act

Professional Rules

  • Standards and guidelines
  • Accounting standard
  • Professional conduct/ethical principles
  • Letters of representation/engagement

The Conduct of the Audit

  • Accounting systems
  • Internal controls
  • Audit testing
  • Sampling and analysis review techniques
  • Working papers
  • Reports to directors
  • Errors and frauds

Audit Evidence

  • Evidence
  • The audit of assets
  • The audit of liabilities
  • Risk
  • Methods/techniques
  • Reliance on other specialists/auditors’ expert

Review of Financial Statements

  • Final review
  • True and fair view
  • The Management letter

The Auditors’ Report

  • Auditors’ report
  • Qualified reports
  • Subsequent events (post balance sheet events)
  • Going concern

Planning and Control of Audits

  • Planning
  • Quality control

Auditors and the Law

  • Auditors’ liability
  • Unlawful acts of clients and their staff

Income Tax

  • General principles
  • Administration
  • Personal allowances
  • Allowable expenses
  • Pension contribution allowances
  • PAYE – basic principles

Corporation Tax

  • General principles
  • Capital allowances

Note: Examination Format – The Auditing questions will account for a minimum of 70% and a maximum of 75% of the marks available. The Taxation questions will account for a minimum of 25% and a maximum of 30% of the marks available. The Taxation questions will, in general terms, be based on some elements of UK taxation.

Recommended Reading

Main Text:

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Auditing – Millichamp and Taylor 10th Edition, Cengage Learning.

Taxation & Self Assessment – Peter Rowes, Thomson Learning

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Alternative Text and Further Reading: