ADVANCED AUDITING AND ASSURANCE

Advanced Auditing and Assurance builds upon the principles and practices of auditing and assurance and provides students with advanced knowledge and skills necessary for planning, conducting, evaluating, and reporting on audit and assurance engagements. The module emphasizes the audit function, professional ethics, auditor independence, professional appointments, professional liability, quality control, corporate governance, audit planning and evidence, audit evaluation and reporting, audit of financial statement components, assurance and related services, internal audit, prospective financial information, social and environmental audits, and group audits. Students are expected to apply professional judgment and skepticism in addressing complex audit and assurance issues in accordance with International Standards on Auditing (ISAs), ethical requirements, and best professional practices.

 

LEARNING OUTCOMES

·         Upon successful completion of this module, students should be able to:

  • Explain the nature and purpose of assurance services and the audit function and evaluate the need for regulation in auditing practice.
  • Apply fundamental ethical principles and independence requirements in accordance with professional standards and codes of ethics.
  • Assess professional appointments, auditor responsibilities, and legal liabilities associated with audit engagements.
  • Evaluate quality control procedures, corporate governance practices, and the regulatory environment affecting audit firms.
  • Plan and perform audit engagements by applying materiality, risk assessment, analytical procedures, and internal control evaluation techniques.
  • Assess the sufficiency and appropriateness of audit evidence and evaluate the use of management representations and the work of experts and other auditors.
  • Evaluate subsequent events, going concern assumptions, comparative information, and other information in forming audit conclusions.
  • Formulate appropriate audit opinions and reports and communicate audit findings effectively to management and stakeholders.
  • Apply audit procedures to significant financial statement components and evaluate disclosures in accordance with applicable financial reporting frameworks.
  • Examine assurance and related services, internal audit, outsourcing, prospective financial information, social and environmental audits, and group audits in contemporary business environments.
  • Demonstrate professional judgment, analytical skills, communication skills, and ethical behavior in resolving advanced auditing and assurance issues.

 

MODULE CONTENT

Lecture 1: Assurance and the Audit Function

  • Nature and purpose of assurance
  • Need for regulation
  • The audit function
  • Audits of small entities
  • Methodology of an audit

Lecture 2: Professional Conduct

  • Fundamental principles and guidance
  • Auditor independence
  • Confidentiality
  • Ethical issues and areas of controversy

Lecture 3: Professional Appointments

  • Advertising and tendering
  • Acceptance of audit engagements
  • Agreeing terms of engagement
  • Access to books and documents
  • Change of auditors

Lecture 4: Professional Responsibility and Liability

  • Fraud and auditor's responsibilities
  • Professional liability
  • Professional misconduct
  • Professional indemnity insurance

Lecture 5: Practice Management and Regulatory Environment

  • Risks facing audit firms
  • Quality control
  • Current developments in auditing
  • Corporate governance
  • Legal and regulatory framework

Lecture 6: Audit Planning and Strategy

  • Audit planning
  • Materiality
  • Risk assessment
  • Risk-based approach
  • Systems and controls
  • Cycles and transactions
  • Balance sheet approach
  • Directional testing
  • Analytical procedures

Lecture 7: Audit Evidence

  • Nature and sources of audit evidence
  • Related parties
  • Management representations
  • Using the work of others
  • Audit documentation

Lecture 8: Audit Evaluation and Review

  • Review procedures
  • Opening balances
  • Comparative information
  • Other information
  • Subsequent events
  • Going concern
  • Compliance with IFRS

Lecture 9: Audit Reports

  • Forming an audit opinion
  • Communication issues
  • Electronic reporting
  • Special purpose reports
  • Reporting to management

Lecture 10: Audit of Financial Statements

  • Construction contracts
  • Liabilities
  • Income
  • Expenses
  • Financial statement disclosures

Lecture 11: Audit Related and Assurance Services

  • Audit-related services
  • Assurance engagements
  • Risk assessments
  • Performance management
  • Systems reliability
  • Electronic commerce
  • Forensic audits
  • Whistleblowing

Lecture 12: Internal Audit and Outsourcing

  • Internal audit
  • Outsourcing
  • Impact of outsourcing on external audit

Lecture 13: Prospective Financial Information

  • Accepting engagements
  • Audit procedures
  • Reporting on prospective financial information
  • Expression of opinion

Lecture 14: Social and Environmental Audits

  • Social and environmental performance
  • Implications for companies and management
  • Implications for statutory audit
  • Assurance services relating to sustainability

Lecture 15: Group Audits

  • Group accounting and holding company auditors
  • Principal and component auditors
  • Consolidation process
  • Joint audits
  • Auditing foreign subsidiaries
  • Recent developments in group auditing