Institute of Commercial Management | Qualification Subject

Auditing & Taxation

Main Topics of Study

Introduction to Auditing

  • The why of auditing

Auditing and the Companies Act

  • Rights and duties
  • The Companies Act
  • Accounting records
  • Accounting requirements of the Companies Act

Professional Rules

  • Standards and guidelines
  • Accounting standard
  • Professional conduct/ethical principles
  • Letters of representation/engagement

The Conduct of the Audit

  • Accounting systems
  • Internal controls
  • Audit testing
  • Sampling and analysis review techniques
  • Working papers
  • Reports to directors
  • Errors and frauds

Audit Evidence

  • Evidence
  • The audit of assets
  • The audit of liabilities
  • Risk
  • Methods/techniques
  • Reliance on other specialists/auditors’ expert

Review of Financial Statements

  • Final review
  • True and fair view
  • The Management letter

The Auditors’ Report

  • Auditors’ report
  • Qualified reports
  • Subsequent events (post balance sheet events)
  • Going concern

Planning and Control of Audits

  • Planning
  • Quality control

Auditors and the Law

  • Auditors’ liability
  • Unlawful acts of clients and their staff

Income Tax

  • General principles
  • Administration
  • Personal allowances
  • Allowable expenses
  • Pension contribution allowances
  • PAYE – basic principles

Corporation Tax

  • General principles
  • Capital allowances

Note: Examination Format – The Auditing questions will account for a minimum of 70% and a maximum of 75% of the marks available. The Taxation questions will account for a minimum of 25% and a maximum of 30% of the marks available. The Taxation questions will, in general terms, be based on some elements of UK taxation.

Example Candidate Response Booklet

Example Candidate Response (ECR) Booklets are a source of crucial information for Centres and Candidates as they use real candidate responses. We ask Senior Examiners to comment on five or more responses in terms of why the mark was awarded with commentary about how to improve the answer (if necessary).

Recommended Reading

Main Text:

<iframe style="width:120px;height:240px;" marginwidth="0" marginheight="0" scrolling="no" frameborder="0" src="//ws-eu.amazon-adsystem.com/widgets/q?ServiceVersion=20070822&OneJS=1&Operation=GetAdHtml&MarketPlace=GB&source=ss&ref=as_ss_li_til&ad_type=product_link&tracking_id=icm0bb-21&marketplace=amazon&region=GB&placement=1408044080&asins=1408044080&linkId=54cabcd0ea1006aae08a3cf8d6b55936&show_border=false&link_opens_in_new_window=true"></iframe> <iframe style="width:120px;height:240px;" marginwidth="0" marginheight="0" scrolling="no" frameborder="0" src="//ws-eu.amazon-adsystem.com/widgets/q?ServiceVersion=20070822&OneJS=1&Operation=GetAdHtml&MarketPlace=GB&source=ss&ref=as_ss_li_til&ad_type=product_link&tracking_id=icm0bb-21&marketplace=amazon&region=GB&placement=1844801713&asins=1844801713&linkId=a079796c530367a79628edb72b078319&show_border=false&link_opens_in_new_window=true"></iframe>

Auditing – Millichamp and Taylor 10th Edition, Cengage Learning.

Taxation & Self Assessment – Peter Rowes, Thomson Learning

Indicative Text:

Alternative Text and Further Reading: