ACCTING 3502 - Auditing III

North Terrace Campus - Semester 1 - 2018

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.

  • General Course Information
    Course Details
    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 3 hours per week
    Available for Study Abroad and Exchange Y
    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 Staff

    Course Coordinator: Dr Philip Saj

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

    Tutorials commence in the second  week of lectures.
  • Learning Outcomes
    Course Learning Outcomes

    On successful completion of this course, students will be able to:

    1) Articulate knowledge of fundamental audit concepts.
    2) Apply critical thinking skills and solve auditing problems through the use of case studies.
    3) Demonstrate the use of the Auditing, Assurance and Ethics Handbook.
    4) Explain the legal framework under which Australian company audits are conducted and apply the professions code of conduct.
    5) Demonstrate the ability to undertake research on significant auditing issues and to keep up-to-date with developments in auditing theory and practice.
    6) Outline the role of auditing in society.
    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)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1,2,3,4,5,6
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    2,3,4,5,6
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    4
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    1,2,3,4,5,6
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • Able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    2,3,4
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    4
  • Learning Resources
    Required Resources

    There are two  prescribed books for this subject:

    Textbook

    Title: Auditing and Assurance Services in Australia (6th Edition Revised).

    Authors: Gay, G. and Simnett, R.

    Date of Publication: 2017

    Publisher: McGraw-Hill Australia

    Handbook

    Auditing, Assurance and Ethics Handbook 2017

    Chartered Accountants Australia and New Zealand

    Date of Publication: 2017

    Publisher: Wiley
    Recommended Resources

    Students may find the following sources helpful in attempting to master the course material. All books listed below can be borrowed from the library.

    Books


    Title: Modern Auditing and Assurance Services (6th Edition).

    Authors: P. Leung, P.Coram, B.J. Cooper, and P Richardson

    Date of Publication: 2015.

    Publisher: Wiley

    Place of Publication: Milton, Qld.



    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

    New York


    Understanding the New Auditing Standards Related to Risk Assessment

    American Institute of Certified Public Accountants 2006.

    American Institute of Certified Public Accountants

    New York

    Other resources in the Barr Smith Library


    Australian Financial Review

    Business Review Weekly

    Acuity (Journal of the Institute of Chartered Accountants in Australia and New Zealand)

    In The Black (Journal of CPA Australia)

    The business sections of daily newspapers

     
    Web sites

    www.cpaaustralia.com.au ( CPA Australia)

    https://www.charteredaccountantsanz.com/ (Institute of Chartered Accountants in Australia and New Zealand)

    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)

    Online Learning
    This course uses Canvas extensively. The following material will be posted prior to and during the semester:
     Echo 360 recordings of lectures
     Handouts of lecture slides
     Weekly lecture and tutorial outlines (which, include tutorial questions)
     Lecture exercises
     Additional guidance notes
     Newspaper articles
     Readings
     Assessment information
     links to useful websites
     Short films
     Model answers to weekly questions
     Announcements
     Marks for in-course assessments
  • Learning & Teaching Activities
    Learning & Teaching Modes
    The prime delivery mode is through one  lecture and one tutorial  per week. Lectures are of two hours duration. Lectures are recorded with through Echo360. The recording of lectures is offered as a back-up only. Students are strongly advised to attend all lectures.

    Tutorial classes of one hour commence in Week 1: the week of February 26th. Tutorials are an important component of this course. 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.
    Workload

    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 Summary


    Week 1:
    Introduction to auditing, and an overview of the auditing process. Understanding the role of management in the preparation of the financial report.

    Week 2:
    Understanding the role of management in the preparation of financial reports. Fundamental auditconcepts

    Week 3: Fundamental audit concepts

    Week 4:
    Fundamental audit concepts.

    Week 5:
    Client acceptance. Planning the audit: knowledge of the business and evaluating business risk.
     
    Week 6:
    Planning the audit: Assessing specific business risks and materiality; and Understanding and assessing internal control

    Week 7:
    Tests of controls, including the application ofsamplingin tests of control.

    Week 8:
    Substantive tests of transactions and balances, including the application ofsampling;

    Week 9:
    Completing the Audit. The Auditor's reporting obligations

    Week 10:
    The Auditor's reporting obligations. The professional and regulatory environment: Ethics

    Week11:The professional and regulatory environment: Legal issues affecting auditors.

    Week 12:Other Assurance Services; and Contemporary Issues in Auditing

    Revision Lecture



  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary

    There are five assessable items in this course. They are:

    Test 1: Wednesday March 28th at 11.10 am in Ligertwood 333. Duration of the test is 25 minutes. This test covers material from weeks 1, 2 and 3. It is worth 10% of the marks for this course.

    Test 2: Wednesday May 2nd  at 11.10 am in Ligertwood 333. Duration of the test is 25 minutes. This test covers material from weeks 4, 5 and 6. It is worth 10% of the marks for this course.

    Test 3: Wednesday May 23rd  at 11.10 am in Ligertwood 333. Duration of the test is 25 minutes. This test covers material from weeks 7, 8 and 9. It is worth 10% of the marks for this course.

     
    Weekly Questions:   Students are required to complete  three questions and submit their answers by 9am on the Monday* of each teaching week through turnitin.  The first weekly submission will be on Monday March 5th . Of the 44 questions, 4 will be selected at random and marked. The best 2 scores will be used to yield a mark out of 10.  This items is thus wrth 10% of the marks for this course.

    * Where there is a public Holiday on the Monday, the questions are to be submitted by 9 am on the Tuesday.


    Exam: The exam will be held during  the exam period. It is worth 60% of the marks for this course. Sample exam appers will be provided later in the semester.

    Please Note:To pass this course, students must achiev a mark of 50% in the exam and 50% overall.

    Assessment Related Requirements
    As well as obtaining an overall pass grade of 50%, you are required to achieve a mark of 50% or more on the final exam to pass the course.
    Assessment Detail

    No information currently available.

    Submission
    Weekly questions are to be submitted through turnitin in a word format (.doc or .docx). Students are required to place their name, student number and the tutorial week number at the top of the first page of their answers.
    Course Grading

    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.

  • Student Feedback

    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.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    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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