PAPER-2 Internal and Forensic Audit CS Professional Mod 1 Electives

Taught by Faculties:



To provide skills and knowledge required to conduct Internal Audit and open new vistas of opportunities for Company Secretaries in the field of internal auditing as well as to add tangible value to their organisations.
To understand and analyse the concept of Corporate Fraud and Forensics Auditing the contemporary world along with the legal mechanism to counter the corporate fraud and understanding Forensic Audit and its methods.
Level of Knowledge: Expert Knowledge
Detailed Contents
Part I: Internal Audit (60 Marks)

1. Internal Audit: Introduction & Overview:

*Definition, Key Concept, Purpose, Authority and Responsibility of Internal Auditing
*Internal Auditor vs. External Auditor
*Types of Internal Audit l Qualification and Appointment of Internal Auditor
*Strategic and Operational Role of Internal Auditor

2. Practices related to Internal Auditing:

*Laws, Standards and Regulations on Internal Auditing - National and International
*Internal Auditing Practices
*Corporate / Organizational Governance Principles
*Code of Ethics

3. Internal Controls :

*Meaning and Definition of Internal Control
*Dimensions of Internal Control
*Types of Controls (Preventive, detective, input, output)
*Internal Control Techniques
*Internal Control Frameworks (COSO, Cadbury)
*Role of Internal Auditors in Implementation of Internal Controls
*Examine the effectiveness and efficiency of internal controls
*Fraud Risk Awareness
*Risk Management
*Recommend controls to prevent and detect fraud and educate to improve the organization's fraud awareness

4. Internal Audit Engagements and Planning :

*Plan Engagements
*Supervise Engagement
*Communicate Engagement Results
*Monitor Engagement Outcomes
*Audit Planning and Stages for Internal Audit Planning

5. Internal Audit Tools and Techniques :

*Data Gathering
*Data Analysis, Interpretation and Reporting
*Documentation / Work Papers
*Process Mapping including Flowcharting
*Steps in evaluation and its techniques
*Use of Sampling Techniques and its tests
*Flowcharts and Internal Control Questionnaires

6. Internal Audit of Specific Functions :

*Internal Audit of Purchase & Inventory Management
*Internal Audit of Production and Operations
*Internal Audit of Finance and Accounts l Internal Audit of Human Resources
*Internal Audit of Sales & Marketing
*IT System Audit

7. Special Points relating to Internal Audit in various entities :

*Banking Companies
*Insurance Companies
*Cooperative Societies
*Public Sector Undertakings
*Shipping Companies
*Electric Supply Company

8. Reporting under Internal Audit :

*Observation Formulation
*Report Writing
 *Monitoring Closure of Issues
 l CARO - Companies (Auditors Report) Order

9. Emerging Issues and Challenges :

*Financial Accounting and Funding Risks
*Business related Challenges
*Project Management/ Organizational Change
*In-house vs. Outsourcing Audit Assignments
*Emerging Issue
Part II : Forensic Audit (40 Marks)

10. Basic Concepts of Forensic Audit:

*Introduction l Need and Objectives of Forensic Audit
*Fundamentals of Forensic Audit l What is Fraud
*Kinds of Frauds l Forensic Audit vis-a-vis Audit
*Modern Day Scenario

11. Audit and Investigations:

*Tools for handling Forensic Audit
*Investigation Mechanism
*Field Investigations
*Methods of Investigations
*Red Flags
*Green Flags
*financial Statement Analysis

12. Forensic Audit: Laws and Regulations:

*Information Technology and Business Laws
*International Laws and Practices
*UK Bribery Act
*US Foreign Corrupt Practices Act l Indian Laws
*ICSI Anti Bribery Code

13. Forensic Audit and Indian Evidence Law:

*Finding Facts
*Relevant Facts
*Admission of Evidence
*Methods to Prove Cases

14. Cyber Forensics:

*Introduction to Cyber Crime
*International Guidance to Cyber Forensics Laws
*Digital Forensics and Cyber Laws
*Introduction to Data Extraction
*Digital Forensics and Cyber Crime
*Ethical Hacking l Digital Incident Response
*Case Laws: Indian and International

15. Fraud Detecting Techniques:

*EarlyWarningIndicatorsoffraud ,Moneylaundering ,misconductl GeneralAuditTechniques
*Statistical & Mathematical Techniques
*Technology Based/ Digital Forensics Techniques
*Data mining techniques
*Willful defaults and Corporate Insolvency & Bankruptcy – emerging Forensic audit aspec