Nature and purpose of an audit. Rules and ethics governing the work of an auditor, professional
independence of the auditor and his legal status, appointment, resignation and removal of the
auditor. Relationship with directors and management, duties, rights and remuneration of the
auditors, his professional responsibilities and liabilities. Planning, controlling and recording an
audit, internal controlling and recording and audit, internal and external audit, internal control
systems, audit procedure. Audit of cash transactions, impersonal ledger, verification of assets,
statement of financial position audit and post-statement of financial position events.