BUSN9121 Auditing and Assurance

2016

4.5

1 x 3-hour workshop weekly

1 BUSN9118 - Financial Accounting Issues
2 Admission into MAF-Master of Accounting and Finance
2a Admission into MACC-Master of Accounting
2b Admission into MAM-Master of Accounting and Marketing
Must Satisfy: (1 and (2 or 2a or 2b))

BUSN9111 has been successfully completed

Accounting Standards and principles as well as legal framework

This topic provides and introduction to audit research and theory (e.g. fundamental postulates as well as stewardship, agency, capital market and human judgement theories). 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 examination and applied project management principles are covered. The audit implications of information technology and electronic commerce are examined. Specialised functions (e.g. forensic accounting, environmental auditing, performance auditing) are dealt with through elective study.

This topic aims to provide an understanding of:

• the theoretical underpinnings of auditing practice
• the nature and function of internal and external audit engagements 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

The topic further 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- AANZ, CPA and IPA.

On successful completion of this topic, students will be able to:

1. Consider the postulates of auditing as a research framework for external audit engagements including statutory responsibilities, ethical implications and the legal consequences of an audit.
2. Describe the nature and purpose of auditing and assurance services.
3. Explain audit objectives and the processes involved in performing an audit.
4. Identify how business failure and assessment of risk are interrelated
5. Explain the concepts of materiality and risk in relation to the audit.
6. Explain the significance of corporate governance and internal controls and how they relate to the audit.
7. Explain the various sampling techniques and their relevance to audit evidence gathering.
8. Describe the whole audit process, the role of the audit program and how audit evidence is evaluated.
9. Recognise the different types of audit reports and causes for departures from unqualified audit reports in communicating authenticated judgments to relevant stakeholders.
10. Describe the legal and ethical issues facing today’s auditor.
11. Discuss contemporary social, legal and business issues affecting the auditing profession, including electronic commerce.
12. Describe the impact of information technology on auditing.