BUSN3048 Auditing

2019

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 the nature and purpose of auditing and the regulatory environment in which it operates. The topic has an emphasis on essential auditing standards and their application to the audit process, as well as principles and professional practices. 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. Contemporary issues such as the expectation gap as well as professional, ethical and legal responsibilities of auditors are considered. The audit implications of information technology and electronic commerce are examined.

This topic aims to introduce students to the nature and function of audit engagements in Australia, including:

1. statutory responsibilities, ethical implications and the legal consequences of an audit
2. auditing principles and standards in the context of risk management
3. practical auditing methods and techniques in evidence gathering and evaluation, including the audit of computerised systems and the use of computer-assisted audit techniques (CAATs)
4. reporting and communication of audit findings to relevant stakeholders

In addition, the topic 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.

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

1. Identify and explain the nature and purpose of auditing
2. Explain the regulatory and professional requirements of auditors and apply relevant rules, standards and pronouncements to a financial statement audit
3. Demonstrate an understanding of audit planning and risk assessment in an IT environment
4. Describe audit evidence gathering techniques, including sampling and substantive testing, and the use of computer-assisted audit techniques
5. Determine the appropriateness of different types of audit opinions and explain the key features of an audit report.