Course Details

Course Information Package

Course Unit CodeABSA408
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 discuss the nature, purpose and scope of an audit.
  2. Compare and contrast the characteristics of an internal and external audit
  3. Appraise the statutory and professional duties of an audit.
  4. Examine the true and fair view and its significance to the audit.
  5. Design an audit plan when given a mini-case scenario.
Mode of DeliveryFace-to-face
Recommended optional program componentsNONE
Course Contents

The nature and purpose of an audit: Audit objectives. The role of auditors. The expectation gap. The changing role of an audit. Internal versus external audits.

Professional and legal regulation: The auditor’s duties and responsibilities concerning the statutory audit. The law concerning the removal, appointment and resignation of auditors. Rules of professional ethics. Auditor independence.

Fundamental principles and the framework of an audit: True and fair concept. Materiality. Evaluating compliance of financial statements with accounting requirements.

An overview of the auditing process: Audit planning. Audit evidence – collection and analysis. Evaluation of internal controls and procedures. The balance sheet audit and the audit report.

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.

Introduction to the internal audit: Internal audit versus external audit.

Recommended and/or required reading:
  • Kaplan Publishing, F8 Audit and Assurance, Kaplan Publishing, Edition, 2011.
  • 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
Final Exam60%
Language of instructionEnglish
Work placement(s)NO

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