The financial auditing and review process is a fundamental pillar for ensuring the reliability of financial statements and enhancing confidence in financial markets. This comprehensive course aims to provide participants with professional knowledge and advanced practical skills in accordance with International Standards on Auditing (ISA) and the standards approved by the Saudi Organization for Chartered and Professional Accountants (SOCPA). The course focuses on audit risk management, evaluating internal control systems, and detecting fraud and financial manipulation methods. It also covers strategic audit planning and the preparation of professional reports, thereby qualifying participants to professionally pass the professional fellowship certificate exam.
Course Objectives
- Apply International Standards on Auditing (ISA), local standards, and approved rules of professional ethics and conduct.
- Prepare a comprehensive audit plan, determine materiality, and develop a risk assessment strategy.
- Evaluate the effectiveness of internal control systems and financial risk management in various organizations.
- Use methods and mechanisms to detect fraud, manipulation, and material misstatements in financial statements.
- Efficiently gather and document audit evidence, and implement verification procedures and tests of details.
- Draft final audit reports with all types of opinions and understand the legal liability of the auditor.
Target Audience
- Internal and external auditors in professional firms and companies.
- Candidates and applicants for the Saudi Organization for Chartered and Professional Accountants (SOCPA) fellowship exam.
- Risk management, compliance, and financial control specialists in the public and private sectors.
- Financial managers and accountants seeking to deepen their knowledge of international auditing practices.
Course Outlines
The course topics are distributed over 8 days as follows:
Day 1: International Standards on Auditing (ISA) and Professional Ethics
- Introduction to International Standards on Auditing (ISA) and standards issued by SOCPA.
- Principles and rules of professional conduct, ethics, and maintaining independence and objectivity.
- The concept and scope of auditing and the primary responsibilities of the external auditor.
- Audit engagement terms and drafting the Engagement Letter.
Day 2: Audit Planning and Materiality
- Comprehensive audit strategy and development of a detailed audit plan.
- Understanding the entity, its operational and legal environment, and the applicable financial reporting framework.
- Determining and understanding the concept of Materiality in the planning and execution phases.
- Assessing the risks of material misstatement at the financial statement and assertion levels.
Day 3: Internal Control Assessment and Risk Management
- Components of the internal control system according to the COSO framework and auditing standards.
- Methods and procedures for evaluating the effectiveness of internal control elements within the organization.
- The audit risk model (Inherent Risk, Control Risk, and Detection Risk).
- Linking risk assessment to the nature, timing, and extent of further audit procedures.
Day 4: Fraud Detection and Financial Manipulation Methods
- The auditor’s responsibility relating to fraud in an audit of financial statements (ISA 240).
- The fraud triangle (Pressure, Opportunity, Rationalization) and warning indicators (Red Flags).
- Methods and techniques of financial statement manipulation, and ways to detect and analyze them.
- Audit procedures directed to respond to assessed fraud risks and their disclosure.
Day 5: Audit Evidence and Verification Procedures
- Nature, types, sufficiency, and appropriateness of audit evidence (ISA 500).
- Evidence gathering methods (Observation, Inspection, Recalculation, and Inquiry).
- Designing and implementing External Confirmations (ISA 505).
- Analytical procedures in auditing and their use as audit evidence (ISA 520).
Day 6: Sampling and Tests of Details
- Statistical and non-statistical sampling techniques in auditing (ISA 530).
- Tests of Controls.
- Substantive tests of details for classes of transactions, account balances, and disclosures.
- Documenting audit work, working papers, and reviewing the audit file (ISA 230).
Day 7: Audit Reports and Legal Liability
- Structuring and drafting the independent auditor’s report (ISA 700).
- Types of opinions (Unmodified, Qualified, Adverse, and Disclaimer of Opinion).
- Key Audit Matters (KAM) and Emphasis of Matter paragraphs in the report (ISA 701 & 706).
- The statutory and legal responsibility of the auditor towards management, shareholders, and external parties.
Day 8: Comprehensive SOCPA Exam Simulation
- Intensive and comprehensive review of key approved international and local auditing standards.
- Solving and analyzing complex case studies and past exam questions simulating the SOCPA fellowship exam.
- Practical applications on assessing audit risks and drafting opinions in professional reports.
Course Outcomes and Impact
This course ensures that participants are empowered to execute financial auditing and review operations efficiently and competently in accordance with international and local standards. It builds the ability to assess risks, design verification procedures, and clearly detect manipulation and fraud. This maximizes participants’ complete readiness to excel in the SOCPA fellowship exam and lead financial audit engagements with high confidence.
This course is the ideal choice for every auditor and financial professional seeking to build a prestigious career path in the auditing field and apply the highest standards of quality and financial control across various business environments.
