BA in Business Administration / Бакалавр в Области Делового Администрирования

Course Details

Course Information Package

Course Unit TitleAUDITING THEORY & PRACTICE II
Course Unit CodeABSA411
Course Unit Details
Number of ECTS credits allocated5
Learning Outcomes of the course unitBy the end of the course, the students should be able to:
  1. Identify and explain the different components of audit risks and understand their significance to planning the audit.
  2. Describe and evaluate accounting and internal control systems and identify and communicate control risks, potential consequences and recommendations.
  3. Explain the importance of audit evidence and apply this knowledge to material aspects of the financial statements.
  4. Examine the procedures undertaken at the review stage of the audit.
  5. Construct suitable audit reports based on mini-case study scenarios
Mode of DeliveryFace-to-face
PrerequisitesABSA408Co-requisitesNONE
Recommended optional program componentsNONE
Course Contents

Audit evaluation and planning: Engagement letters. Developing an audit plan. Sources of audit evidence. Establishing materiality levels, statistical sampling and size. Audit and business risk. Substantive analysis at the planning stage. Designing, documenting and re-evaluating the audit plan.

Internal Controls and Audit Testing: Internal controls, objectives, procedures and tests of control. Computer systems and internal controls.

The Income Statement Audit: Auditing the sales and purchases system. Auditing wages, cash and various other systems.

The Balance Sheet Audit-Assets: Audit procedures, controls and tests for: Inventories, Non-current assets; Receivables, Cash and other current assets.

The Balance Sheet Audit-Liabilities and Equity: Audit procedures and tests for: Current and non-current Liabilities, Share capital and reserves.

Finalising the Audit: The final review stage. Reviewing the truth and fairness of financial statements. The audit report and the potential effects of qualifications.

Recommended and/or required reading:
Textbooks
  • Kaplan Publishing, F8 Audit and Assurance, Kaplan Publishing, Edition, 2011.
References
  • BPP, AIA Professional Level 2 - Paper 15: Professional Practice (Auditing), 2nd Edition, BPP Learning Materials, 2008.
  • Alan Millichamp and John Taylor, Auditing, South Western Publishing, 9th Edition, 2008.
  • Iain Gray and Stuart Manson, The Audit Process: Principles, Practice and Cases, Fourth Edition, Thomson Learning, 2008.
  • Graham Cosserat and Neil Rodda, Modern Auditing, 3rd Edition, John Wiley, 2008.
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
Assignments20%
Tests20%
Final Exam60%
Language of instructionEnglish
Work placement(s)NO

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