AC302 Auditing and Assurance

DESCRIPTION

This unit introduces the concepts and practices applied when conducting financial report audits and providing an audit opinion. It deals primarily with the methodology applied by an external auditor, within the Australian

professional, ethical and legal framework when providing an opinion on the truth and fairness of financial reports.

RELEVANT COURSES

Bachelor of Accounting*

*Core unit

CREDIT POINTS

10

DELIVERY MODE

On campus

Intensive

Extensive

PREREQUISITE OR CO-REQUISITE

AC101 Accounting I

UNIT LEARNING OUTCOMES

LO1 Critique the auditing process, the different types of audits, the concepts of risks and materiality and an auditor’s legal, professional and ethical responsibilities

LO2 Plan an audit by applying risk assessment techniques to understand an organisations control environment and develop audit procedures to address identified business and financial reporting risks

LO3 Design an audit program to examine the design, implementation, and effectiveness of internal controls and substantiate material accounting transactions and balances

LO4 Draw conclusions from audit procedures, interpret audit evidence and use professional judgement to form an audit opinion

CONTENT

  • Introduction and overview of audit and assurance
  • Ethics, legal liability and client acceptance
  • Risk assessment I
  • Risk assessment II
  • Audit evidence
  • Gaining an understanding of the client’s system of internal controls
  • Sampling and overview of the risk response phase of the audit
  • Execution of the audit — testing of controls
  • Execution of the audit — performing substantive procedures
  • Substantive testing and balance sheet accounts
  • Substantive testing and income statement accounts
  • Completing and reporting on the audit

ASSESSMENT METHODS

  1. Online Quizzes – 20%
  2. Practical Assessment – 30%
  3. Exam – 50%

PRESCRIBED READINGS

Moroney, R., Campbell, F. & Hamilton, J. (2020). Auditing: A Practical Approach (4th ed.). Milton QLD: John Wiley & Sons

Check with the lecturer each semester before purchasing any textbooks