Taxation and Auditing

Course Code: BBA 311

Credit Hour: 3

Course Group: Core Courses

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Course Contents Taxation:

Introduction to Taxation: Definition of Tax- Purposes of Taxation-Characteristics of Tax- Cannons of TaxationTypes of Taxation-Role and Nature of Tax in Economic Development-Tax Structure and Tax Administration in Bangladesh- Income tax Authorities: Role and Legal Power-Current Tax Rate-Tax Rebate- Tax Holiday-Rights and Obligation of Tax Payers- Impact of Taxation on Business.

Income Tax: Definition of Income and Income Tax- Income Tax in Bangladesh-Characteristics of Income-Total Income and Total World Income- Income Year and Assessment Year-Role of Income Tax Law in Industrial Development of Bangladesh-Classification of Income: Assessable and Non-assessable Income- Assessee : Concept-Classification, Residential Status-Heads of Income: a) Income from Salary-b)Income from Interest on Securities-c)Income from House Property-d)Income from Agriculture-e)Income from Business and Profession-f) - Capital Gains-g)Income from other Sources.

Tax Assessment and Recovery: Assessment Procedures-Appeal-Revision- Recovery-Refund and Relief–Penalties and Prosecutions-Tax Assessment of Individuals, Partnerships and Public Limited Companies.

Value Added Tax (VAT): Introduction: Assessment and Payment of Tax -Imposition of VAT- Calculation of VAT - Tax Rebate-Registration-Submission of Returns- Deduction of VAT at Source- Drawback- Controlling Evasion of VAT.

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Course Contents of Auditing:

An Overview of Auditing: Nature of Auditing, Distinction between Auditing and Accounting, Types of Audit, Types of Auditor, Auditing and Investigation, Qualities of an Auditor, Scope of audit, Audit objectives, Generally Accepted Auditing Standards, Quality control, Elements of quality control.

Audit Planning and Documentation: Planning, Preplan the Audit, Obtain Background Information, Obtain Information about Client’s Legal Obligations, Working papers, Purposes of working papers.

Materiality and Risk: Materiality, Set primary judgment about materiality, Estimate error, Risk, Desired audit risk, Inherent risk, Control risk, Detection risk.

Internal Control and Control Risk: Client concerns, Auditor concerns, Components of internal control: The control environment, Risk assessment, Control activities, Monitoring, Procedures to obtain an understanding of internal control.

Audit Evidence: Nature of evidence, Audit evidence decisions, Persuasiveness of evidence, Types of audit evidence, Cost of types evidence, Analytical procedure, Types of analytical procedures.

Audit Responsibility and Objectives: Management responsibilities, Auditor’s responsibilities, Assessing risk of fraud, Risk factor for financial reporting, Risk factor for misappropriation of assets, Auditor’s responsibilities for discovering illegal acts. 

Audit Reports: Standard Unqualified Audit Report, Parts standard unqualified audit report, Unqualified Audit Report with explanatory Paragraph or Modified wording, Conditions Requiring Departure, Audit Report Other than Unqualified, Materiality.

Legal Liabilities: Changed Legal Environment, Distinction Between Business Failure, Audit Failure and Audit Risk, Legal Concept Affecting Liability, Definitions, liability to Clients, Liability to third Parties Under Common Law, Responsibilities for Confidentiality, The profession response to legal liability, Protecting individual from legal liability.

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Books Recommended (Taxation):

Fazlul Haque, Akkas & Ashif, Three Direct Taxes of Bangladesh, (6/e), Mullick & Brothers, Dhaka-1205.

M. A. Baree, Law and Practice of Bangladesh Income Tax, (Latest edition),

Prof. Dr. Monjur Morshed Mahmud, Income Tax, (Latest edition),

Government of Bangladesh, The Income Tax Ordinance 1984- Part 1 & 2

Government of Bangladesh, Value Added Tax Act, 1991

The Institute of Chartered Accountants of Bangladesh, Study Manual on Taxation, Vol 1 & 2.

Government of Bangladesh, Wealth Tax Act, 1963

Government of Bangladesh, Gift Tax Act, 1990

Government of Bangladesh, Customs Act, 1969