ACCTING 3502 - Auditing III
North Terrace Campus - Semester 1 - 2014
General Course Information
Course Code ACCTING 3502 Course Auditing III Coordinating Unit Business School Term Semester 1 Level Undergraduate Location/s North Terrace Campus Units 3 Contact Up to 4 hours per week Prerequisites ACCTING 2501 Assumed Knowledge 48 units of program attempted and passed Course Description Audit comprises a fundamental component of the recurrent and strategic activities of nearly all professional occupations. While a small group of jobs focus exclusively on internal and external audit tasks, the majority of commerce graduates will utilise the principles and practices of risk assessment, internal control, systems evaluation and forensic accountability in their professional lives. This course thus aims to provide an introduction to the principles and practices of auditing. In this context, it will also outline and critically examine contemporary audit issues and challenges.
Course Coordinator: Dr Philip Saj
The full timetable of all activities for this course can be accessed from Course Planner.Please note that because there is a public holiday on Monday March 10th, the lecture that would have been provided on that day has been re-scheduled for 4pm on Friday March 7th from 4.00pm to 6.00pm in Napier 102.
Please note also that, in this course, tutorials commence in the first week of lectures.
Course Learning Outcomes
Knowledge and Understanding
This course introduces students to the field of auditing and assurance. It provides students with a sound understanding of fundamental auditing concepts and procedures, and the application of auditing standards. Consequently, the course provides a foundation for students who intend pursuing a specialised pathway in the auditing profession, as well as those who will pursue careers in accounting and other disciplines where principles of risk assessment, systems control and evaluation, and transaction testing are important. While the course focuses mainly on the practical application of an external financial audit that is regulated under Australian legislation, it also explores the wider audit and assurance framework; including the internal audit function, and some environmental auditing issues. In addition the course seeks to stimulate a critical appreciation of contemporary auditing and assurance issues.
Specific Learning Outcomes
On successful completion of this course students should be able to:
1) Demonstrate an understanding of fundamental audit concepts;
2) Demonstrate an understanding of the steps required to undertake an audit.
3) Demonstrate an understanding of the role of auditing in society;
4) Demonstrate an understanding of the broad assurance framework;
5) Demonstrate an understanding of how to undertake a risk analysis;
6) Apply and interpret analytical procedures;
7) Apply the Audit Risk Model to determine what constitutes sufficient appropriate evidence;
8) Specify procedures necessary to undertake tests of control and substantive tests of transactions and
9) Demonstrate an understanding of completion and review procedures;
10) Determine the appropriate audit opinion in a given situation;
11) Demonstrate an understanding of the regulation of auditing;
12) Apply legal principles in order to determine the nature and extent of auditor liability;
13) Understand the importance of professional ethics, and be able to apply the profession’s code of
14) Apply Auditing Standards;
15) Apply attribute sampling to test internal controls;
16) Apply dollar unit sampling to test ending balances;
17) Research a significant auditing issue;
18) Solve auditing problems through the use of case studies;
19) Be aware of contemporary issues in auditing; and
20) Work in a collegiate manner.
The continuing development of good written, oral and inter-personal communication skills is widely recognised as important for commerce graduates. This course specifically seeks to develop students’ abilities to prepare and present succinct arguments, and to use appropriate academic referencing conventions.
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. All The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 5, 6, 7, 12, 13, 14, 17, 18, and 19. An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 6, 7, 10, 12,13,14,18 and 20. Skills of a high order in interpersonal understanding, teamwork and communication. 17,18 and 20 A proficiency in the appropriate use of contemporary technologies. 2,5,8 and 19 A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. All A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 11, 12,17,18,19 and 20. An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 3, 11,12, 13,14,17,18,19 and 20
Required ResourcesStudents require the textbook, handbook and certain materials prepared by the Lecturer in Charge.
Title: Auditing, Assurance & Ethics in Australia (9th Edition).
Authors: Ares, Best, Schailer, Fiedler, Elder and Beasley
Date of Publication: 2013
Publisher: Pearson Australia
Title: Auditing and Assurance and Ethics Handbook 2014
Date of Publication: 2014
Publisher: Institute of Chartered Accountants in Australia / Wiley
Materials prepared by the Lecturer in Charge.
The following materials will be posted to MyUni. It is the responsibility of each student to print a copy of the materials in advance of lectures and tutorials at which they are required.
Weekly Lecture and Tutorial Outline. Each week a lecture and Tutorial Outline is provided. This document contains a brief overview of the topics to be covered and how they relate to other topics dealt with in the course. They also contain the tutorial questions, and may also contain lecture exercises, definitions of key terms and illustrative examples.
Lecture slide handouts. These should be printed three frames to an A4 page in order to leave enough room to make notes.
Guidance notes. Provide extensive guidance and illustrative examples on selected issues.
Readings as advised by the Lecturer.
Newspaper articles and other papers as advised by the Lecturer.
Recommended ResourcesStudents may find the following sources helpful in attempting to master the course material. All books listed below can be borrowed from the library.
Title: Modern Auditing and Assurance Services (5th Edition).
Authors: P. Leung, P.Coram, B.J. Cooper, and P Richardson
Date of Publication: 2011.
Place of Publication: Milton, Qld.
Title: Auditing and Assurance Services in Australia (5th Edition).
Authors: G Gay and R Simnett
Date of Publication: 2013
Title: Auditing and Assurance Services A systematic Approach (4th Edition)
Authors: W F Messier Jr, S M Glover, and D F Prawitt 2006.
McGraw Hill Irwin
Understanding the New Auditing Standards Related to Risk Assessment
American Institute of Certified Public Accountants 2006.
American Institute of Certified Public Accountants
Other resources in the Barr Smith Library
Australian Financial Review
Business Review Weekly
Charter (Journal of the Institute of Chartered Accountants in Australia)
In The Black (Journal of CPA Australia)
The business sections of daily newspapers
www.cpaaustralia.com.au ( CPA Australia - Some public information, more for CPA Australia Passport
www.icaa.org.au (Institute of Chartered Accountants in Australia -some public information, more for
www.pearson.com.au (Companion site to the textbook)
www.aasb.org.au (Australian Accounting Standards Board)
www.auasb.gov.au ( Auditing and Assurance Standards Board)
www.frc.gov.au (Financial Reporting Council)
www.asic.gov.au (Australian Securities and Investments Commission)
See also websites of other professional organisations, public companies, accounting firms and government
Online LearningThis course uses MyUni extensively. The following material will be posted prior to and during the semester:
- MyMedia recordings of lectures
- Handouts of lecture slides
- Weekly lecture and tutorial outlines (which, include tutorial questions)
- Lecture exercises
- Addional guidance notes
- Newspaper articles
- Assessment information
- links to useful websites
- Short films
- Selected tutorial answers
- Marks for in-course assessments
Learning & Teaching Activities
Learning & Teaching ModesThe prime delivery mode is through one lecture and one tutorial per week. Lectures are of one hour and fifty minutes duration. Lectures are recorded, and recordings are posted on MyUni as soon as they are available, which is generally within one hour. The recording of lectures is offered as a back-up only. Students are strongly advised to attend all lectures.
Tutorial classes of one hour and fifty minutes duration commence in the week of Monday March 3rd. Tutorials are an important component of this course. Membership of tutorial classes is to be finalised by the end of the second week of semester. Students wishing to swap between tutorial classes after this time are required to present their case to the Lecturer-in-Charge, but should be aware that such a request may not be approved. Students are strongly advised to attend all tutorials.
Students are required to complete the assigned tutorial questions each week and be prepared to discuss questions in the tutorials. Solutions to selected questions will be provided. In addition to the tutorial questions, workshop question/questions will be discussed at each tutorial. The workshop question will provide students with an opportunity to further consolidate their understandings of key concepts and to apply them in a collegiate environment. While tutors will be available to provide assistance to students as they discuss the workshop questions, model answers to workshop questions will not be provided.
The communication skills developed in tutorials by regularly participating in discussions are considered to be most important by the School, and are highly regarded by employers and professional bodies.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.The University expects full-time students to devote a total of 48 hours per week to their studies. This means that for this course students are expected to commit approximately nine hours of private study, that is, study outside classes. Students in this course are expected to attend all lectures and tutorials through the term.
Learning Activities SummaryThe following topics are covered in this course. For a more detailed outline of what is covered each week, please see the document titled, " Overview of Topics", which can be found under "Lecture and Tutorial Outlines" on the MyUni site for this course.
Lecture 1: Introduction to auditing, and an overview of the auditing process
Lecture 2: The preparation of financial reports and fundamental audit concepts
Lecture 3: Fundamental audit concepts
Lecture 4: Fundamental audit concepts;
Client acceptance; and
Planning the audit: knowledge of the business and evaluating business risk
Lecture 5: Planning the audit: Assessing specific business risks and materiality; and
Understanding and assessing internal control
Lecture 6: Tests of controls, including the application of sampling in tests of control
Lecture 7: Substantive tests of transactions and balances
Lecture 8: Substantive tests of transactions and balances, including the application of sampling; and
Completing the audit
Lecture 9: The Auditor’s reporting obligations
Lecture 10: The professional and regulatory environment: Ethics
Lecture 11: The professional and regulatory environment: Legal issues affecting auditors, and
Legal liability of auditors
Lecture 12: Other Assurance Services; and
Contemporary Issues in Auditing
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
There are five assessment items in this course. The weighting ascribed to each is as follows:
Assessable Item Due Date and Time Weighting % Related Learning Outcomes Test 1 Monday April 7th at 10:10am in Florey Lecture Theatre 10 Weeks 1, 2,3 and 4 Assignment Thursday April 10th at 10.00 am. 15 See Assignment
Test 2 Monday May 12th at 10:10am in Florey Lecture Theatre 10 Weeks 5, 6 and 7. Weekly Questions 9.00 am on the Monday* of each teaching week. 10 See weekly learning
Final Exam Exam period 55 All 100
* There is a public holiday on Monday March 10th. Consequently, the due date for submitting answers
to the first set of the tutorial questions will be 9.00 on Tuesday March 11th.
To pass this course, students must achieve an overall grade of 50% and also achieve at least 50% in the final exam. Students who fail to meet both criteria will be awarded a mark of no more than 49.
None of the assessment in this course is redeemable. Failure to complete any assessment item in accordance with the requirements will result in forfeiture of the marks allocated to that assessment item.
Legible handwriting and the quality of English expression are considered to be integral parts of the assessment process. Marks may be deducted for poor presentation of written, in–course assessable items. In addition, marks may also be deducted in the final examination because of poor handwriting and the inability, therefore, for a marker to read that text.
No dictionaries whatsoever are permitted in the mid-semester test or final exam.
Students may take into the final exam a copy of the 2014 Auditing Assurance and Ethics Handbook (Institute of Chartered Accountants edition). This handbook may have highlighting or underlining but there shall be no writing or any other forms of communication including (but not limited to) notes, pictures, graphics, tabs, ciphers or the like whatsoever. Page corners cannot be folded. Handbooks may be covered with clear plastic only. No other material may be used. Handbooks will be inspected by examiners and invigilators during the exam for compliance with the above. If a copy of a Handbook is discovered which breaches these conditions then that copy will be confiscated and that student will be subject to examination misconduct provisions and sanctions.
Calculators will not be allowed into the final exam.
Students must retain a copy of all assignments submitted.
For the assignment, please attach an ‘Assignment Cover Sheet’, which is signed and dated by you before submission.
Lecturers will refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.
The assignment needs to be appropriately referenced and any evidence of plagiarism will be
dealt with according to University, Faculty and/or School policy.
Extensions to the due date for assignments will only be given in exceptional circumstances.
Only the Lecturer in Charge can grant an extension. Students who hand in assignments after
the due date, for which an extension has not been granted by the Lecturer in Charge, will be
subject to the following late penalty: 10% of available marks per day (or part day).
No information currently available.
No information currently available.
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
- Academic Support with Maths
- Academic Support with writing and speaking skills
- Student Life Counselling Support - Personal counselling for issues affecting study
- International Student Support
- AUU Student Care - Advocacy, confidential counselling, welfare support and advice
- Students with a Disability - Alternative academic arrangements
- Reasonable Adjustments to Teaching & Assessment for Students with a Disability Policy
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
- Academic Credit Arrangement Policy
- Academic Honesty Policy
- Academic Progress by Coursework Students Policy
- Assessment for Coursework Programs
- Copyright Compliance Policy
- Coursework Academic Programs Policy
- Elder Conservatorium of Music Noise Management Plan
- Intellectual Property Policy
- IT Acceptable Use and Security Policy
- Modified Arrangements for Coursework Assessment
- Student Experience of Learning and Teaching Policy
- Student Grievance Resolution Process
Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.
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