1 x 3-hour workshop weekly
1 BUSN9118 - Financial Accounting Issues
2 Admission into MAF-Master of Accounting and Finance
2a Admission into MACC-Master of Accounting
2b Admission into MAM-Master of Accounting and Marketing
Must Satisfy: (1 and (2 or 2a or 2b))
Enrolment not permitted
BUSN9111 has been successfully completed
Assumed knowledge
Accounting Standards and principles as well as legal framework
Topic description
This topic provides an introduction to the nature and purpose of auditing and assurance, and the regulatory environment in which it operates. The topic has an emphasis on essential auditing standards and their application to the audit process, as well as principles and professional practices. Practical issues of audit methodology including risk assessment, analytic review procedures, internal control assessment, substantive testing procedures, statistical sampling, fraud assessment and applied project management principles are covered. Contemporary issues such as the expectation gap as well as professional, ethical and legal responsibilities of auditors are considered. The audit implications of information technology and electronic commerce are examined. Other assurance functions (e.g. forensic accounting, environmental auditing, performance auditing) are dealt with through elective study.
Educational aims
This topic aims to introduce students to the nature and function of audit and assurance engagements in Australia, including:

  1. statutory responsibilities, ethical implications and the legal consequences of an assurance engagement
  2. auditing principles and standards in the context of risk management
  3. practical auditing methods and techniques in evidence gathering and evaluation, including the audit of computerised systems and the use of computer-assisted audit techniques (CAATs)
  4. reporting and communication of audit findings to relevant stakeholders.

In addition, the topic aims to develop:

  • general cognitive skills (especially analytical and evaluative skills), and
  • behavioural skills (especially personal and interpersonal skills) which can be employed in an organisational work environment.

The topic is accredited by Australian accounting professional bodies - CAANZ, CPA and IPA.
Expected learning outcomes
On completion of this topic, students will be expected to be able to:

  1. Identify and explain the nature and purpose of auditing and assurance services
  2. Explain the regulatory and professional requirements of auditors, and apply relevant rules, standards and pronouncements to a financial statement audit
  3. Demonstrate an understanding of audit planning and risk assessment in an IT environment
  4. Describe audit evidence gathering techniques, including sampling and substantive testing, and the use of computer-assisted audit techniques
  5. Determine the appropriateness of different types of audit opinions and explain the key features of an audit report.