Auditing Global Capability Centre (GCC)

Module 1 - Conceptual Framework of US GAAP

• The Objective of General-Purpose Financial Reporting
• The Reporting Entity
• Qualitative Characteristics of useful financial information
• Element of Financial Statements
• Recognition and De-Recognition
• Measurement
• Presentation
• Notes to Financial Statement
• Case Studies

Module 2 - Conceptual Framework of IFRS

• The Objective of General Financial Reporting
• The Qualitative Characteristics of Useful Financial Information
• Description of the reporting entity and it’s boundaries
• Definition of an asset, Liability, equity, income and expenses and guidance supporting these definitions
• Criteria For Including assets, Liabilities in Financial Statement (Recognition) and guidance on when to remove them (Derecognition)
• Measurement basis and guidance on when to use them
• Concepts and guidance on presentation and disclosure
• Concepts relating to capital and capital maintenance

Module 3 - Conceptual Framework of IND AS

• The Objective of General Purpose and Financial Reporting
• Qualitative Characteristics of Useful Financial Information
• Financial Statement and the reporting entity
• The Element of Financial Statement introduction
• Recognition and Derecognition Criteria
• Measurement
• Presentation and Disclosure

Module 4 - Key Differences in the Conceptual Frameworks

• The Objective of General Purpose and Financial Reporting
• Qualitative Characteristics of Useful Financial Information
• Financial Statement and the reporting entity
• The Element of Financial Statement introduction
• Recognition and Derecognition Criteria
• Measurement
• Presentation and Disclosure

Module 5 - Key Differences between the US GAAP and IFRS

• First Time Adoption of IFRS Accounting Standards
• Revenue Recognition
• Expenses Recognition – Share Based Payments
• Expenses Recognition – Employee Benefits
• Assets – Non-Financial Assets
• Assets – Financial Assets
• Liabilities – Taxes
• Liabilities – Others
• Financial Liabilities and equity
• Derivative and Hedging
• Consolidation
• Business Combination
• Leases
• Other Accounting and Reporting Topics
• IFRS for SME’s

Module 6 - Key Differences between the IFRS and IND AS

• Presentation of Financial Statements
• Events after the reporting period
• Property, Plant and Equipment
• Investment in associate and Joint Ventures
• Financial Instruments – Presentation
• First Time Adoption of Indian Accounting Standards
• Business Combination
• Other Changes in the Indian accounting standard not resulting in carve outs

Module 7 - Key Differences between the PCAOB Standards and ISA

• Key Audit Matter V/s Critical Audit Matter
• Consideration in determining whether a matter is a KAM/CAM (Key
• Audit Matters/ Critical Audit Matters)
• Documentation – KAM/CAM
• Communication of KAM/CAM
• Description of KAM/CAM in the audit report
• Other Enhancement to Auditors Reporting
• Going Concern and Other Information
• Internal Control Over Financial Reporting
• Documentation
• Risk Assessment Procedures
• Use of Work of Another Auditors and Reporting Implication

Module 8 - Key Differences between the ISA and Indian Auditing Standards

• Joint Audit
• Group Audits
• Division of Responsibility
• Indian Laws Consideration
• Audit Reports

Module 9 - Understanding audit process such as Materiality, Risk and Audit Strategy

• Audit Risk
• Audit Assertion
• Audit Procedures
• Underlying Audit Evidences
• Assessing Quality of Evidences
• Understanding Materiality Consideration
• Understanding Risk and Responses
• Documentation of Substantive Work Performed
• Self-Review Consideration
• Application of Accounting Standards – Relevant Framework such as IFRS, US GAAP, Respective Country GAAP’s etc
• Application of Auditing Standards – Relevant Framework such as ISA’s, PCAOB Standards, Respective Country Auditing Standards
• Identifying and Reporting Exceptions
• Evaluation of Exceptions noted on controls and overall audit strategy and coverage

Module 10 - Performing Effective walkthrough and Identifying design deficiencies

• Understanding the process – end to end process and how the transactions are initiated, recorded and reported
• Mapping the risk to controls
• Identifying Automated V/S Manual, Preventive V/S Detective and Review Controls
• Identifying Potential Design issues
• Fraud Risk Consideration
• Asking Probing Question as a part of walkthrough what can go wrong
• Consideration of Key Litigations specially impacting financial statements and it’s impact on controls
• Reporting design issues identified as part of walkthrough’s

Module 11 - Performing operating effectiveness of controls and identifying operating deficiencies

• Identifying Key Controls
• How Key Controls are exercised by management – Competence,
• Objectivity and underlying data and report use to exercise controls
• Selection of key controls for testing
• Obtaining Audit Evidences
• Evaluating Sufficiency of Audit Evidence
• Documentation
• Self-Review of work performed

Module 12 - Evaluation of Severity of Deficiencies

• Understanding the deficiencies in control testing, automated V/S Manual
• Understanding root cause of deficiencies – Competence, Objectivity, Data etc
• Classifying Deficiency into – Deficiency, Significant deficiency, material weakness, Taking into account both quantitative and qualitative factors. Factoring initial recognition, measurement, presentation and disclosures in the respective accounting framework, non-compliance with laws and regulations. Especially those impacting financial statements.

Module 13 - Evaluation of Uncorrected Misstatements

• Uncorrected misstatement in balance sheet, Income Statement, Cash Flows and disclosures
• Assessing impact off uncorrected misstatement in internal controls over financial reporting
• Factoring of Uncorrected misstatement identified in earlier years/ quarters

Module 14 - Application of Healthy Skepticism and making sound judgement while evaluating audit evidences

• Source of Audit Evidence – Internal V/S External
• Evaluating Adequacy/ Sufficiency of Audit Evidence
• Consideration of Alternate Audit Evidence
• Assessing the quality of Audit Evidences

Module 15 - Audit Sampling Technique

• Statistical V/S Non-Statistical
• Benefit and Drawbacks of statistical sampling
• Benefit and Drawback of non-statistical sampling
• Completion of data before applying the sampling technique
• Adequacy of period considered for audit sampling
• Extrapolating the deficiency in the sample to untested population
• Control V/S Substantive testing sampling population
• Sampling Conclusion

Module 16 - Effective Documentation in the audit database including self-review of the work performed

• Nature
• Timing
• Extent
• How Judgements are applied both in control testing and substantive testing
• How Skepticism is exercised while performing the work both in control testing and substantive testing
• Linking Risk, Assertion, Audit procedures, Audit Evidence and Conclusion to support audit opinions

Module 17 - Understanding Key Issues in Auditing GCC’s

• Lack of relevant GAAP Knowledge
• Lack of relevant GAAS Knowledge
• Lack of understanding of end-to-end process
• Application of healthy skepticism while performing control and substantive testing
• Lack of assessing quality and relevance of audit evidence including consideration of alternate audit evidence
• Inappropriate communications
• Evaluation and Reporting of deficiencies
• Lack of understanding of proper roles and responsibilities between the group team, component team, and auditing GCC team
• Poor Communication Skills