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ICAP CA Audit and Assurance Syllabus
Every chapter and topic of Audit and Assurance examined in ICAP CA — 7 chapters, 19 topics, plus 55 flashcards written against it.
Audit and Assurance syllabus — full chapter and topic list
Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Audit and Assurance in ICAP CA, not a summary of it.
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Introduction to Assurance
2 topics- Nature and objectives of assurance engagements
- Levels of assurance and the audit framework
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Audit Regulation and Ethics
2 topics- Appointment, removal and rights of auditors
- ICAP Code of Ethics and independence
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Planning and Risk Assessment
3 topics- Understanding the entity (ISA 315)
- Audit risk and materiality
- Audit strategy and planning (ISA 300)
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Internal Control
3 topics- Components of internal control
- Tests of controls
- Deficiencies and management reporting
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Audit Evidence and Procedures
3 topics- Sufficient appropriate audit evidence (ISA 500)
- Substantive procedures on key balances
- Audit sampling
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Completion and Review
3 topics- Subsequent events and going concern
- Written representations
- Overall review of financial statements
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Audit Reporting
3 topics- Forming an opinion (ISA 700)
- Modifications to the auditor's report
- Key audit matters and emphasis of matter
Audit and Assurance flashcards for ICAP CA
18 of 55 cards from the Audit and Assurance deck — real questions with worked answers.
What is an assurance engagement?
An engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of intended users (other than the responsible party) about the outcome of the evaluation or measurement of a subject matter against criteria.
What are the five elements of an assurance engagement?
(1) A three-party relationship (practitioner, responsible party, intended users); (2) an appropriate subject matter; (3) suitable criteria; (4) sufficient appropriate evidence; (5) a written assurance report.
Distinguish between reasonable assurance and limited assurance engagements.
Reasonable assurance: high (not absolute) level of assurance, expressed positively (e.g. an audit). Limited assurance: lower level, expressed negatively (e.g. a review), where procedures are limited compared with a reasonable assurance engagement.
Why can an auditor never give absolute (100%) assurance?
Because of inherent limitations: use of judgement, sampling/testing rather than 100% checking, inherent limitations of internal control, the persuasive (not conclusive) nature of evidence, and the possibility of management collusion or fraud/concealment.
What is the objective of an external audit of financial statements?
To enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework (i.e. give a true and fair view).
State the form of conclusion in a positive (reasonable) assurance opinion vs a negative (limited) assurance conclusion.
Positive: "In our opinion the financial statements give a true and fair view...". Negative: "Nothing has come to our attention that causes us to believe that the financial statements are not prepared, in all material respects...".
Under the Companies Act 2017 (Pakistan), who normally appoints the auditor and when?
The first auditor is appointed by the directors within 90 days of incorporation; subsequent auditors are appointed by the members (shareholders) at each Annual General Meeting, holding office until the next AGM.
If directors fail to appoint the first auditor within 90 days of incorporation, who appoints the auditor?
The members (shareholders) appoint the auditor in a general meeting; failing that, the SECP may appoint the auditor.
How may an auditor be removed before the expiry of the term under the Companies Act 2017?
By a special resolution of the members in general meeting (with prior approval/notice to the registrar as required); the auditor has the right to make representations and to be heard.
List four key statutory rights of an external auditor.
(1) Right of access at all times to the company's books, accounts and vouchers; (2) right to require information and explanations from officers; (3) right to receive notice of and attend general meetings; (4) right to be heard at meetings on matters concerning the audit.
What are the five fundamental principles of the ICAP Code of Ethics?
Integrity, Objectivity, Professional Competence and Due Care, Confidentiality, and Professional Behaviour.
Name the five categories of threats to compliance with the fundamental ethical principles.
Self-interest, Self-review, Advocacy, Familiarity, and Intimidation threats.
Give an example of a self-review threat to auditor independence.
When the audit firm audits financial statements that include figures or systems the same firm previously prepared/designed (e.g. preparing the accounting records or doing a valuation that is then audited).
What are the two general categories of safeguards against ethical threats?
Safeguards created by the profession, legislation or regulation; and safeguards in the work environment (within the firm and within the client's systems).
What is the threat when audit fees from one client are too large a proportion of the firm's total fees, and how is it commonly safeguarded?
A self-interest threat (fee dependency / economic dependence). Safeguards include monitoring, reducing the dependency, and an independent (external/engagement quality) review of the audit work.
What is the objective of ISA 315 (Identifying and Assessing the Risks of Material Misstatement)?
To identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels through understanding the entity, its environment, and its internal control.
List the main aspects of an entity the auditor must understand under ISA 315.
The entity's industry, regulatory and other external factors (including the financial reporting framework); the nature of the entity (operations, ownership, structure, investments); accounting policies; objectives, strategies and related business risks; measurement and review of financial performance; and internal control.
What is the audit risk model formula?
Audit Risk = Inherent Risk x Control Risk x Detection Risk.
Planning Audit and Assurance for ICAP CA
Audit and Assurance is about 13% of the ICAP CA syllabus by topic count — 19 of 147 topics, spread over 7 chapters. At roughly 45 minutes per topic plus 12 minutes per sub-topic, a first pass runs to about 15 hours.
The heaviest chapters are Planning and Risk Assessment (3 topics), Internal Control (3 topics), Audit Evidence and Procedures (3 topics) . Front-load those while your energy is high; the short chapters are better revision filler later.
Work top-down: read the chapter, then tick topics off individually rather than marking the whole chapter done. Sub-topics are where silent gaps hide.
Audit and Assurance (ICAP CA) FAQ
What is in the ICAP CA Audit and Assurance syllabus?
Audit and Assurance is split into 7 chapters — Introduction to Assurance, Audit Regulation and Ethics, Planning and Risk Assessment, Internal Control, Audit Evidence and Procedures and Completion and Review, and 1 more, containing 19 topics and 0 sub-topics in total.
How is Audit and Assurance structured in the ICAP CA syllabus?
7 chapters. Audit and Assurance accounts for about 13% of the topics in the whole ICAP CA syllabus (19 of 147).
How long should I spend on Audit and Assurance for ICAP CA?
Budget around 15 hours for a first pass through Audit and Assurance — about 45 minutes per topic plus 12 minutes per sub-topic across its 19 topics. Add revision cycles on top.
Are there flashcards for ICAP CA Audit and Assurance?
Yes — a 55-card Audit and Assurance deck. Sample cards are printed on this page, and the full deck is free in the Examius app with spaced repetition scheduling.