BUSN3048 Auditing

2016

4.5

1 x 1-hour tutorial weekly
1 x 2-hour on-line lecture weekly

BUSN2036 - Financial Accounting Issues

BUSN3003 has been successfully completed

Accounting Standards and principles as well as legal framework

Bachelor of Commerce

This topic provides an introduction to auditing. A reference framework is presented. This is followed by an emphasis on essential auditing standards, principles and professional practices. The topic examines the nature of internal and external auditing, audit planning, evidence gathering and reporting. Contemporary issues such as the expectation gap as well as professional, ethical and legal responsibilities of auditors are considered. Practical issues of audit methodology including risk assessment, analytic review procedures, internal control assessment, substantive testing procedures, statistical sampling, fraud assessment and applied project management principles are covered. The audit implications of information technology and electronic commerce are examined.

This topic aims to provide an understanding of:

• the nature and function of internal and external audit engagements in Australia including statutory responsibilities, ethical implications and the legal consequences of an audit
• auditing principles and standards in the context of risk management and corporate governance mechanisms
• the application and limitations of practical auditing methods and techniques in evidence gathering and evaluation
• reporting and communication authenticated judgments to relevant stakeholders

In addition, the course aims to develop:

• general cognitive skills (especially analytical and evaluative skills), and
• behavioural skills (especially personal and interpersonal skills) which can be employed in an organisational work environment

The topic is accredited by Australian accounting professional bodies - CAANZ, CPA and IPA.

Upon successful completion of this topic students will be able to:

1. Apply auditing principles and concepts to the practice of contextualfinancial statement audits
2. Discuss the need for independent audits and describe the development of the audit role in corporate governance
3. Explain the regulatory and professional audit requirements and apply relevant rules, standards and pronouncements to a financial statement audit
4. Identify key case law developments about an auditor's responsibilities to clients and third parties
5. Identify how business failure and assessment of risk are interrelated
6. Demonstrate an understanding of materiality and risk in relation to the audit
7. Identify the project management and quality control procedures necessary to perform a competent audit
8. Describe the audit process (including business and audit risk assessment, internal control assessment, manual and computer assisted audit programs of compliance and substantive tests)
9. Describe audit evidence gathering techniques, levels of persuasiveness and explain the broad principles of audit sampling techniques
10. Determine the appropriateness of different types of audit reports to relevant stakeholders.