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Auditing

  • Module code: BA5805
  • Year: 2018/9
  • Level: 5
  • Credits: 30
  • Pre-requisites: BA4801 Financial Accounting
  • Co-requisites: None

Summary

Students studying this module will develop an understanding of the operational, practical and theoretical issues in auditing. Students will develop an awareness of the audit process, its limitations and the influence of regulation on audits. In order to balance theory with practice, the module will cover relevant international standards on auditing and relevant statutes such as the Companies Acts, Fraud Act, Money Laundering Act and Bribery Act. Case law, in so far as it affects auditing practices, will also be discussed. Ethics, corporate governance, environmental and social issues, fair values and information technology will also form part of the course curriculum.

Aims

  • To enable students to develop an understanding of the operational, practical and theoretical issues in auditing
  • To develop an awareness of some elements of the audit process and its limitations
  • To develop an understanding of the importance and influence of regulation

Learning outcomes

On successful completion of the module, students will be able to:

  • Explain the validity and significance of key theories underpinning audit
  • Evaluate the audit process and the various techniques that are applied
  • Appraise the efficiency and effectiveness of audit regulation
  • Analyse the drivers for and practice of corporate governance
  • Evaluate internal controls, techniques and internal audit tests, including the use of ICT

Curriculum content

  • The role and context of modern auditing
  • Auditing concepts, including the postulates of auditing
  • Ethical framework, including independence, IFAC Code and safeguards.
  • Audit regulation, including UK company law, EU law, FRC, APB, FRRP, POB
  • Audit judgement and the risk-based approach to auditing. Audit planning and materiality
  • Audit evidence, including qualities sufficiency, relevance and reliability; audit assertions
  • Internal controls, including layers of control and regulation. Systems recording, testing and evaluation. Internal audit. Management letter
  • Substantive testing, including computer-assisted audit techniques and audit programmes. Audit sampling
  • Final work, including analytical review of financial statements, the audit of non-current assets, trade receivables, inventories, construction contracts, trade payables and financial liabilities
  • Final review, including post balance sheet date review, going concern, provisions, contingencies and letter of representation
  • The audit report, including the unmodified opinion and modified opinions
  • Audit quality and the expectations gap
  • Insolvency, including auditor responsibility and implications.
  • Corporate governance, including UK Corporate Governance Code and auditor's responsibilities
  • Fraud and auditor liability
  • Assurance engagements auditing in the public sector
  • Current issues in auditing.

Teaching and learning strategy

This module is delivered in a single teaching block through seven hours of weekly class contact. These class sessions are normally used to deliver and demonstrate topic material and for students to discuss the topics and present their learning. Students will be directed to research papers and current articles reported in the business press and professional journals and will be expected to analyse these articles and contribute to class discussion. These discussions will provide an opportunity for students to appreciate the link between theory and practice. Students will learn to develop commercial awareness through reading the business press and will be encouraged to discuss topics and their work in groups, enabling peer learning. Students will also be expected to make short topic presentations to encourage skills in public speaking as well as to provide opportunities for formative feedback on understanding of topics.

Due to the experiential nature of the learning on this degree, and the importance of professional development enabling students to develop practical skills, learn from and interact with others, attendance is compulsory. Any students not attending a minimum of 80% of their timetabled sessions will be at risk of academic failure or termination from the course.

 

Breakdown of Teaching and Learning Hours

Definitive UNISTATS Category Indicative Description Hours
Scheduled learning and teaching There will normally be seven hours of class contact per teaching week incorporating lecture delivery and student discussion and activities 63
Guided independent study Guided independent study will include the pre-lecture reading, reading journal and research articles, seminar preparation and practical exercises 237
Total (number of credits x 10) 300

Assessment strategy

Summative assessment will take the form of coursework and an end-of-module exam.

The coursework will comprise four equally weighted individual pieces of work. Each piece of coursework will be limited to a maximum of 800 words and will require students to comment on a particular audit issue, a current newspaper topic or research article. These will aid students' analytical and communication skills and help prepare students for the exam. 

The exam will be three hours in duration and will use essay-based questions to assess both understanding and evaluation of theory and practice, and short-case scenario questions to assess interpretation and application of appropriate audit standards or statute.

Mapping of Learning Outcomes to Assessment Strategy (Indicative)

Learning Outcome Assessment Strategy
1) Explain the validity and significance of key theories underpinning audit Summative: exam and coursework
2) Evaluate the audit process and the various techniques that are applied Summative: exam and coursework
3) Appraise the efficiency and effectiveness of audit regulation Summative: exam and coursework
4) Analyse the drivers for and practice of corporate governance Summative: exam and coursework
5) Evaluate internal controls, techniques and internal audit tests, including the use of ICT Summative: exam and coursework

Elements of Assessment

Description of Assessment Definitive UNISTATS Categories Percentage
Four individual pieces of coursework Coursework 30%
Three-hour exam Written exam 70%
Total (to equal 100%) 100%

Achieving a pass

It IS NOT a requirement that any major assessment category is passed separately in order to achieve an overall pass for the module.

Bibliography core texts

Gray, I., Manson, S. and Crawford, L., 2015. The Audit Process. 6th ed. Cengage Learning.

Bibliography recommended reading

Institute of Chartered Accountants in England and Wales. Audit & Assurance Advanced Stage Technical Integration. ICAEW Study Manual.

Cosserat, G. and Rodda, N. Modern Auditing. Chichester: John Wiley & Sons.

Millichamp, A. and Taylor, J. Auditing. Cengage Learning.

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