Course Details
Course Information Package
Course Unit Title | AUDITING THEORY | ||||||||
Course Unit Code | ABSA409 | ||||||||
Course Unit Details | |||||||||
Number of ECTS credits allocated | 5 | ||||||||
Learning Outcomes of the course unit | By the end of the course, the students should be able to:
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Mode of Delivery | Face-to-face | ||||||||
Prerequisites | ABSA408 | Co-requisites | NONE | ||||||
Recommended optional program components | NONE | ||||||||
Course Contents | The context of auditing: Audit and assurance assignments. The concept of ‘true and fair’ and its effect on the audit. The theory of the “expectation gap” and how it may be narrowed. Materiality and the audit. Internal audit and the external audit. Professional responsibility and liability: The auditor’s duties and responsibilities concerning the statutory audit. The law concerning the removal, appointment and resignation of auditors. Rules of professional ethics. Relationship of corporate governance to the audit. Practice management: Procedures to be followed concerning the acceptance of a new client. Contents of an engagement letter and examine its importance. Quality control and the audit. Reviews of the audit. The audit process and business risk: Audit risk and business risk in the audit process. Top down and bottom up testing. Analytical review and its application to the audit. Review of financial statements and audit reports: Explain and understand the role of the review of the financial statements to the audit process. Tasks to be carried out in the review. Different types of audit reports that may be issued. Analyse the contents of an audit report. Small and medium sized companies and the audit. Application of accounting standards to auditing practice – an introduction: Analyse and apply the accounting standards in the areas of: provisions, contingencies, and impairment of assets, non-current assets, investments and stocks amongst others. Group audits: Characteristics of a group audit. Relationship between the primary and secondary auditor. | ||||||||
Recommended and/or required reading: | |||||||||
Textbooks |
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References |
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Planned learning activities and teaching methods | The taught part of course is delivered to the students by means of lectures. Lecture notes and presentations are available through the web for students to use in combination with the textbooks. Lectures are supplemented with class exercises carried out in class and via homework. The students will be asked to complete an assignment during the course. | ||||||||
Assessment methods and criteria |
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Language of instruction | English | ||||||||
Work placement(s) | NO |