Details for Audit and Assurance

Unlike other financial accounting courses where students are instructed to prepare financial statements and interpret them, this course is about the provision of assurance that the financial information can be relied upon. This assurance is provided through the process of auditing. Both the process of auditing and the rationale for assurance will be studied in their legal and ethical context. This course is of importance to those students who will be employed as auditors, investigators and in general compliance and assurance work but it is also important to any student who will need to rely on the information provided in audited financial statements.


Quick Info

  • Currently offered by Alphacrucis: Yes
  • Course code: ACC320
  • Credit points: 10
  • Subject coordinator: Philip Lee

Prerequisites

ACC202 Financial Reporting

The following courses are prerequisites:

Awards offering Audit and Assurance

This unit is offered as a part of the following awards:

Unit Content

Outcomes

Course Outcomes: 1. Identify and explain the nature and purpose of auditing; 2. Explain the risk based methodology for auditing, as specified in Australian Auditing Standards; 3. Demonstrate an ability to interpret basic general purpose financial statements, and design an audit strategy to address the risks of errors in those statements, based on an analysis of the business risks faced by a company and the quality of internal controls; 4. Formulate and execute a plan for the audit of financial statements, and then produce an appropriate report on the audit risks faced by a company, of a suitable standard for presentation to audit partners; 5. Describe and evaluate the differences between audit of financial statements and other assurance services; 6. Explain and demonstrate an understanding of the Auditors’ responsibilities, including regulatory and professional requirements, legal liabilities and related ethical requirements; 7. Describe and discuss the development of assurance and audit framework internationally and within Australia, including the auditing process and the role of auditing standards.

Subject Content

1.An overview of Auditing including the audit of financial statements

2.Client evaluation and planning the audit

3.Audit risk assessment

4.Materiality and audit evidence

5.Tests of controls

6.Designing substantive testing procedures

7.Audit sampling

8.Auditing inventories and property, plant and equipment

9.Auditing sales and receivables

10.Auditing purchases, payables and payroll

11.Auditing cash and investments

12.The auditor’s report;

13.Completing the audit

14.Professional Ethics, independence and audit quality

15.The auditor’s legal liability

16.Other assurance engagements and quality standards.

This course may be offered in the following formats

This subject will include: online lectures, readings, case studies, group discussions, application exercises, reflective activities and self-directed learning. Students will require access to Moodle, which will facilitate delivery of online resources and forum discussion.

Please consult your course prospectus or enquire about how and when this course will be offered next at Alphacrucis College.

Required Equipment

Access to a computer and the internet

Prescribed Text

Leung, P., Coram, P., Cooper, B. & Richardson, P. (2014). Modern Auditing and Assurance Services (6th ed.). Milton, Queensland: John Wiley and Sons, Australia.

Representative References

TBA