ICAB PL Audit & Assurance study guide
ICAB PL Audit & Assurance · Work through your exam, one topic at a time.
The ICAB Professional Level Examination is part of the chartered accountancy qualification awarded by The Institute of Chartered Accountants of Bangladesh (ICAB), which describes itself as the National Professional Accounting Body in Bangladesh and as the regulatory body for the profession of accountants and connected matters. Candidates reach the Professional Level after the Certificate Level and progress afterwards to the Advanced Level, so the qualification is intended for students who have already built foundational knowledge of accounting, law and business and are now moving into the applied, judgement-heavy stage of training. The ICAB PL Audit & Assurance study guide has 5 sections and about 1,844 words.
01The Audit Framework and the Regulatory Environment
An audit is an independent, objective examination of financial statements that enables the auditor to express an opinion on whether they are prepared, in all material respects, in accordance with an applicable financial reporting framework. Candidates must be fluent in the vocabulary of reasonable assurance , materiality , true and fair view , professional scepticism , and the expectation gap .
375 words, about 2 min02Planning, Risk Assessment and Materiality
Planning is not a single event; it is continuous and iterative. It begins with client acceptance and continuance procedures (independence, competence, integrity, resources), continues through engagement letter agreement, and then to understanding the entity and its environment .
378 words, about 2 min03Internal Control, Audit Evidence and Testing
The auditor obtains an understanding of the five components of internal control: the control environment , the entity's risk assessment process , the information system and communication , control activities , and monitoring . Control activities include authorisation, segregation of duties, reconciliations, physical controls, and IT general controls.
341 words, about 2 min04Completion, Review and Audit Reporting
Before issuing the report the auditor performs subsequent events review (adjusting vs non-adjusting events up to the date of the report), obtains written representations (a letter from management confirming responsibilities and completeness of information), performs a going concern assessment (at least 12 months from the date of the financial statements), reviews litigation and claims , evaluates uncorrected misstatements in aggregate against materiality, and carries out engagement quality control review where required. Candidates must know the difference between the date of the financial statements , the date of the auditor's report , and the date the statements are issued.
366 words, about 2 min05Professional Ethics and Quality Management
The IFAC Code of Ethics sets out five principles: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour . Candidates must apply the conceptual framework : identify threats, evaluate their significance, and address them through safeguards or by declining/withdrawing from the engagement.
384 words, about 2 min