Auditing

Module Title	Auditing
Module Code	25-5003-00S
Semester of Delivery	See Module Information Table
Mandatory/Elective/Option	See Module Information Table
Level	5
Credit Points	20
Assessment Mode Weighting	Coursework	25%
	Examination	75%
Pre-requisites	Financial Accounting 1
Co-requisites	None
Class Contact Hours
Average Weekly	2.5
Directed Learning
Average Weekly	10
Module Leader	Alex Dunlop
	Sheffield Business School
Module Banding	A
Approval Status	Validated

 

Rationale

An understanding of the nature and purpose of auditing provides a useful insight into the information systems and control procedures which exist within the modern business organisation, as well as an understanding of the ways in which external environmental factors might have a bearing on its performance. The study of auditing also provides a sound basis for the appreciation of the regulatory framework of the business entity, the interests and power of the various stakeholder groups, the manner in which corporate accountability is effected and the role of the auditor in this process.

Summary of Aims

1. To develop students' understanding of the nature and purpose of auditing.
2. To provide an understanding of the operation and relevance of information and control systems in organisations.
3. To develop students' knowledge of the practices, techniques and output of the audit process.

Anticipated Learning Outcomes

On completion of the module, the student should be able to:

1. Demonstrate an appreciation of the role of the auditor as agent of the shareholders or as a participant in the provision of internal assurance on the risk management systems of an organisation;
2. Explain the operation and effectiveness of organisational and system controls;
3. Understand and demonstrate an ability to apply the processes by which the auditor
4. Assesses risk, collects and evaluates evidence and reaches an audit conclusion
5. Understand and explain the methodology of audit reporting
6. Demonstrate an appreciation of the dynamics of the audit role, including regulatory,
7. Professional, ethical and commercial aspects;
8. Formulate and discuss views on possible future directions of auditing.

Assessment and Feedback Strategy

Elements of learning outcomes requiring literary search and analysis will be assessed primarily by way of individual written coursework. Skills of critical analysis and of application to practice will be assessed primarily by final examination. Students will be provided with feedback on their progress towards achieving the desired learning outcomes via a combination of seminar activities and the assessed coursework.

Module Assessment Criteria

This grid provides an indication of the nature of the assessment process across the range of candidate performance.

Learning Outcome	Assessment Criterion (where assessed)	Level descriptors
		fail	PASS	2.2	2.1	First
Outcomes requiring analysis and explanation		Inadequate analysis Failure to identify key issues Poor knowledge of topic Inadequate literature review Poor conclusions and or answering question set	Tendency to be descriptive Some issues identified Limited knowledge of topic Weak literature review Some attempt to conclude and to answer question	Sound analysis Identification of some key issues Clear knowledge of topic Sound literature review Competent attempt to conclude and to answer question	Critical and reasoned analysis Identification of key issues Good knowledge of topic Critical consideration of literature Critical and reasoned conclusion and answer	Perceptive and insightful analysis Identification of key and potential issues Excellent understanding of topic Perceptive critique of literature Perceptive and insightful conclusions and tailoring of answer
Outcomes requiring the demonstration of ability to apply knowledge to practical situations		Inadequate demonstration	Limited application to practice	Competent attempt to relate to practice	Reasoned application to practice	Insightful application to practice

Teaching and Learning Strategy and Methods

Topics will be introduced by way of lectures, and developed in seminars.

The practical aspects of the module will be strongly case study based, while theoretical input will be backed by directed reading, followed by seminar discussion. Topical issues will be introduced wherever appropriate, supported by press and journal articles.

Indicative Content

• Auditing postulates and concepts.
• The regulatory framework of auditing.
• Independence, competence and ethical factors.
• The comparative role and work of the internal and external auditor.
• The approach to audit, including risk assessment, planning and setting of audit objectives.
• Management of the audit process.
• Techniques of audit evidence gathering and analysis.
• Materiality ;
• Audit sampling.
• Computer assisted audit techniques.
• Audit reporting ( Statutory and non-statutory ).
• Audit expectations gap.
• Environmental auditing.
• Auditor liability for professional negligence.
• Current issues in auditing.