ACCT08028 2022 Auditing 1

Assess the role and function of audit and assurance and company directors’ and auditors’ responsibilities in the context of relevant legislation, standards and corporate governance.

Assess the importance of professional ethics for auditors and demonstrate knowledge of the relevant ethical standards.

Explain the main stages in the audit process and describe the key elements in developing an audit strategy and plan.

Determine the risk assessment process and evaluate the risk of material misstatement.

Critically assess and test internal control systems in the key functional areas.

This module will be delivered through a combination of lectures and tutorials. Student learning will be aided by reviewing newspaper extracts, professional and regulatory reports and documents, video clips, and discussions around students' personal experiences.

This subject will be assessed through a continuous assessment during the term and a final written exam. The final written exam will be supervised in person or via online proctoring.

Repeat assessments may include a repeat continuous assessment and/or a final written exam supervised in person or via online proctoring.

LO1: Assess the role and function of audit and assurance and company directors’ and auditors’ responsibilities in the context of relevant legislation, standards and corporate governance.

• The purpose of an audit: True and fair view. Importance of auditor professional scepticism
• Audit and other assurance engagements
• Statutory financial statement audit and the audit or assurance of other information, e.g., sustainability reports
• Director and auditor responsibilities in accordance with relevant legislation
• Appointment, rights, duties, removal, resignation and remuneration of auditors in accordance with relevant legislation
• The role of various statutory and regulatory agencies in auditing
• Corporate governance requirements relevant to auditors and the audit
• Structure and function of audit committees

LO2: Assess the importance of professional ethics for auditors and demonstrate knowledge of the relevant ethical standards.

• The importance of ethics for auditors
• The ethical framework applicable to external auditors

LO3: Explain the main stages in the audit process and describe the key elements in developing an audit strategy and plan.

• The stages involved in the audit process
• Acceptance and continuance of an audit engagement, including the letter of engagement
• Audit strategy and plan including consideration of materiality
• Auditors’ responsibilities regarding fraud, laws and regulation
• Audit work papers, audit files, audit evidence

LO4: Determine the risk assessment process and evaluate the risk of material misstatement.

• Risk assessment process
• Assessing audit risks

LO5: Critically assess and test internal control systems in the key functional areas.

• Objectives of internal control systems
• Evaluate internal control systems
• Tests of controls
• Communication of internal control weaknesses