ACCTING 3502 - Auditing III

North Terrace Campus - Semester 2 - 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 Adelaide Business School
    Term Semester 2
    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 first 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)
    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
    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
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    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
    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
  • Learning Resources
    Required Resources

    There are two  prescribed books for this subject:


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

    Authors: Gay, G. and Simnett, R.

    Date of Publication: 2017

    Publisher: McGraw-Hill Australia


    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.


    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 ( CPA Australia) (Institute of Chartered Accountants in Australia and New Zealand) ( Auditing and Assurance Standards Board) (Financial Reporting Council) (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 one hour fifty minutes duration. Lectures are recorded, and recordings are posted on Canvas 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  fifty minutes duration and commence in the week of Monday July 23rd. Tutorials are an essential 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 six questions (from the Lecture and Tutorial Outline) each week and be prepared to discuss workshop questions that are provided in the tutorials. Solutions to the six weekly questions will be provided at the end of each teaching week. The workshop questions 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. However, the course is designed so that students will be able to develop good quality model solutions for these questions during tutorials.

    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 Summary
    The 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.

    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 audit concepts

    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 of sampling in tests of control.

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

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

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

    Week 11: The professional and regulatory environment Ethics and 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 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 Wednesday  August 22nd at 3.10pm in Florey Lecture Theatre.  10 Weeks 1, 2, and 3.
    Test 2 Wednesday September 12th at 3.10pm in Florey Lecture Theatre. 10 Weeks 4, 5 and  6
    Test 3 Wednesday October 17th at 3.10pm in Florey Lecture Theatre7 10 Weeks 7,8  and 9 
    Weekly Questions 9.00 am on the Monday of each teaching week. (There is a public holday on Monday October 1st. For that week, answers to the questions will be due at 9.00am on Tuesday Oct 2nd.)Submit via turnitin. 10 All
    Final Exam Exam period 60  All


    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 in-class tests or final exam.

    Calculators will not be allowed into the final exam.

    Students must retain a copy of all assignments submitted.

    Lecturers will refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.

    Extensions to the due date for assessable items 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).

    Assessment Detail

    Explanation of each assessable item is as follows:

    Weekly Questions: 10%
    Each week students will be given a set of 6 weekly questions. Students are required to submit a copy of their answers to these questions through “turnitin”, before 9.00 am on the Monday of each teaching week (but see above regarding public holidays). Please put your name, ID, and the number of the teaching week (i.e. 1 to 11) on top left hand corner of the first page, and ensure that pages are numbered. Please use only files formatted as .doc or .docx, not .pdfs or other formats.

    Four weekly submissions will be chosen at random and one question from each of the four submissions will be marked. The best two scores will be will be averaged to yield a mark out of 10. The results for this assessable item will be released after the completion of teaching.

    Students must  bring a hard copy of their answers to all tutorial questions to each tutorial to be used as a basis for workshop questions that are undertaken during tutorials. Students are also required to bring their text books and handbooks to tutorials.

    This assessable item is designed to assist students to keep up-to-date with the course material. However, its main value is that it provides students with a clear focus for their study of the basic course concepts. It also provides valuable practice in formulating structured answers. Information about “turn it in” can be found at:

    In-Class Tests: 10% each
    There will three in-Class Tests (see above for dates and times). These will be held in the Lecture Theatre, (Florey Lecture Theatre, Helen Mayo North 103N). The first test will cover material from weeks 1 to 3, the second will cover material from weeks 4 -6, and the third will cover material from weeks 7-9. The tests are closed book tests. These assessable items are also designed to assist students to keep up-to-date with the course material and to provide them with ongoing feedback on their progress. Practice test papers will be provided in advance.

    Students who undertake the course in an organised way, and at a steady pace (that is by undertaking the tutorial questions each week, dealing with any issues of concern in a timely manner, and participating in tutorials) will find that the test are not unduly onerous and that they benefit from completing the tests and receiving feedback.

    Final Exam 60%
    A 3-hour exam will be held during the semester 2 exam period. No materials, dictionaries or calculators other than a copy of the 2017 CAANZ Auditing, Assurance and Ethics Handbook can be taken into the exam for use in the exam. While the Auditing Handbook can be used as a reference, candidates must not quote directly from them while answering questions. Candidates must answer all questions in their own words.

    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 ( 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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