Audit and Assurance

Module description

To be taken by students on BSc Accounting only.

The aim of this module is to build on module BEA1011K to give students greater knowledge and understanding of the concepts which underpin the audit process, the regulatory framework and the audit process.  Students will also be introduced to concepts and practices relating to the auditing profession and legal liability and to contemporary problematic audit issues.

Full module specification

Module title:Audit and Assurance
Module code:BEA3012K
Module level:3
Academic year:2016/7
Module lecturers:
Module credit:15
ECTS value:

7.5

Pre-requisites:

BEA1011K Principles of Auditing

Co-requisites:

None

Duration of module: Duration (weeks) - term 1:

0

Duration (weeks) - term 2:

0

Duration (weeks) - term 3:

6

Module aims

The aim of this module is to build on module BEA1011 to give students greater knowledge and understanding of the concepts which underpin the audit process, the regulatory framework and the audit process.  Students will also be introduced to concepts and practices relating to the auditing profession and legal liability and to contemporary problematic audit issues

ILO: Module-specific skills

  • 1. On completion of the module, students should be able to: discuss the role of the external audit function is securing the accountability of the directors of public companies in the United Kingdom
  • 2. explain the role played by, and the requirements of, the elements of the regulatory framework which governs the financial statement audits of companies (that is, statute law, case law, and quasi-governmental (including corporate governance) and professional regulations)
  • 3. demonstrate an in-depth understanding of the concepts which underpin auditing – including, competence, independence, true and fair view, sufficiency and appropriateness of audit evidence, principles of third party assurance scepticism, materiality, audit risk and audit quality
  • 4. discuss the auditors’ responsibilities for detecting and reporting fraud and illegal acts
  • 5. describe the pre audit engagement investigation and the audit engagement process
  • 6. explain the audit planning process and the factors which affect auditors’ desired level of audit risk and materiality levels
  • 7. discuss the importance of assigning, directing, supervising and reviewing the work of audit staff members and how this is accomplished
  • 8. apply the key compliance and substantive tests for non-current assets, sales / accounts receivable, purchases / accounts payable, cash and payroll and how they are performed
  • 9. discuss the reporting responsibilities of financial statement auditors – to shareholders and to those charged with governance of the reporting entity and the value of auditors’ reports as means of communication
  • 10. explain the development of auditors’ legal liability
  • 11. discuss the importance of high quality audits and the steps the auditing profession has taken (and could take) to ensure all financial statement audits are of a high standard
  • 12. demonstrate an awareness and understanding of current debates in the auditing arena
  • 13. explain differences between the audit of financial statements and assurance of sustainability reports

ILO: Discipline-specific skills

  • 14. identify and apply relevant auditing concepts and Auditing, Ethical and Quality Control Standards in given situations encountered in the statutory audit of companies’ financial statements
  • 15. evaluate the strengths and weaknesses of different opinions on auditing issues

ILO: Personal and key skills

  • 16. demonstrate written and oral communication skills
  • 17. demonstrate problem solving skills
  • 18. demonstrate group working (i.e. teamwork) skills
  • 19. demonstrate an ability to assess the validity and value of ideas expressed, by other students

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
321180

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Tutorial exercises13 hrs preparation by student / 1 hr in class discussion1-19Verbal in tutorials and suggested solution on ELE

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
20800

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Individual Report202000 words1-19Written
Examination803 hours1-15Suggested solution on ELE
0
0
0
0

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Report and ExaminationExamination (2 hours) 100%1-15August Exam Period

Syllabus plan

• Role of the external audit function 
• The regulatory framework 
• Detecting and reporting fraud and illegal acts; 
• The pre audit engagement investigation and the audit engagement process; 
• The audit planning process including audit risk and materiality levels; 
• Assigning, directing, supervising and reviewing the work of audit staff members and how this is accomplished; 
• Apply the key compliance and substantive tests for non-current assets, sales / accounts receivable, purchases / accounts payable, cash and payroll and how they are performed. 
• The reporting responsibilities of financial statement 
• Auditors’ legal liability 
•  Differences between the audit of financial statements and assurance of sustainability reports

Indicative learning resources - Basic reading

Porter, B., Simon, J., and Hatherly, D. (2008). Principles of External Auditing. 3rd Edition. John Wiley & Sons.
Trussel, J. M., and Frazer, J. D. (2008). The Lakeside Company – Case Studies in Auditing. 11th Edition. Pearson/Prentice Hall.

Module has an active ELE page?

Yes

Indicative learning resources - Web based and electronic resources

www.ifac.org – Source of all International Standards on Auditing and Code of Ethics for Professional Accountants, and International Education Standards. 
www.frc.org.uk – Source of all International Standards on Auditing (UK and Ireland) and Ethical Standards applicable in UK and Ireland. 
www.icaew.co.ukwww.icas.co.uk and www.acca.co.uk – Various publications of the key professional 
bodies in the UK

Origin date

03/05/2011

Last revision date

03/05/2011