| Unit name | Auditing |
|---|---|
| Unit code | EFIM30016 |
| Credit points | 20 |
| Level of study | H/6 |
| Teaching block(s) |
Teaching Block 4 (weeks 1-24) |
| Unit director | Dr. Lu |
| Open unit status | Not open |
| Pre-requisites |
EFIM1NEW2 Fundamentals of Accounting and Finance 1 OR ACCG10052 Introduction to Accounting |
| Co-requisites |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
A theoretical approach to the practical underpinnings of auditing will be adopted which will have significance to both international and domestic students.
Broadly speaking this unit covers four parts: the auditing industry and its surroundings; auditing concepts and techniques, auditing procedures for business functions, and current issues regarding auditing practice.
Aims to equip students with a sound understanding of the theory, principles and practice of auditing, as well as training on methodology and research skills.
Students should be able to: 1. Explain how auditing theory, concepts and principles underpin auditing practice; 2. Recall the basic postulates of auditing and explain why they are important; 3. Define the auditing concepts under the general headings of credibility of the auditor, process of audit, communication by the auditor and performance of the auditor’s work; 4. Explain the implications of truth and fairness in relation to financial statements and the work of the auditor; 5. Explain the significance of the concept of materiality; 6. Explain that the regulatory framework of auditing provides the criteria by which audits are conducted and encompasses the concepts of auditing; 7. Explain how organisations attempt to control their internal environments in the context of external influences; 8. Explain the importance of auditor independence and the practical implications for the auditor in meeting the demands of the audit role; 9. Explain the meaning and significance of auditor independence, discuss the threats to independence and how they might be overcome; 10. Explain how various kinds of conflict and risk can affect the independence of the auditor; 11. Use suitable case law to illustrate the responsibilities of auditors and how these have developed over time; 12. Discuss current debates in auditing and possible trends of topical issues.
Lectures and small-group tutorials
Summative assessment: Three-hour closed-book examination in the Summer term: 100%
Formative assessment: Tutorial questions and associated tutorials contributions
Variable from year to year as Auditing Standards are updated.
Indicative reading at time of unit proposal:
Whittington and Pany (2012) Auditing and other assurance services, 18th edition, McGraw-Hill
