Course Code :


Title :

Audit & Assurance

Type/Status :


aaaaaaaaaaaa Aims :
This course module is designed to provide the student with a basic understanding of all aspects of auditing to analyze the situations to determine the key evidential issues to construct the appropriate audit report to be communicated to the stake holders based on the guidelines established by the Sri Lanka Auditing Standards.
Learning Outcome : aaaaaaaaaaaaaaaa
By the end of the course students will be able to
  • identify the requirements for auditing of Company’s financial statements under the Sri Lanka Accounting & Auditing Standards act no. 15 of 1995 and the Companies Act no 07 of 2007
  • define the framework of Auditing & Assurance engagements and identify the importance of qualified professionals for carrying out the assurance engagements
  • describe and apply the basic principles and essential procedures of auditing (audit engagement, quality control, communication with previous auditors etc)
  • identify the external and internal audit procedures separately under planning, knowledge gathering, applicable laws and regulations, materiality, obtaining evidences and documentation.


Course Content : Introduction to Auditing; Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 and Companies Act no 07 0f 2007 (Sections 154 to 165); Sri Lanka Framework for Assurance engagements; Sri Lanka Standards on Quality control; Objective of an audit of financial statements; Terms of audit engagements; Planning of an audit; Understanding the entity and its Environment; Audit evidence and External confirmation; Documentation; Fraud and error;  Audit materiality; Risk assessment and internal control; Consideration of laws and regulations

Method of Teaching & Learning:

Lectures, Class room discussions, Case Studies and Presentations.

Scheme of Evaluation:

End semester examination, Assignments and Presentation.

The weights given to each component of the evaluation method is announced at the commencement of the module.

Recommended Readings:

Chartered Accountants of Sri Lanka, Sri Lanka.

Companies Act No. 7 of 2007

Milichamp A.H., (2002), Auditing, an Instructional Manual for Accounting Students, London, D.P. Publications

Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995

Sri Lanka Accounting Standards (2011) - The Institute of

Sri Lanka Auditing Standards & Sri Lanka Standards on Quality control (2011), The Institute of Chartered Accountants of Sri Lanka, Sri Lanka.