AC302 Auditing and Assurance
DESCRIPTION
This unit introduces the concepts and practices applied when conducting financial report audits and providing an audit opinion. It deals primarily with the methodology applied by an external auditor, within the Australian
professional, ethical and legal framework when providing an opinion on the truth and fairness of financial reports.
RELEVANT COURSES
*Core unit
CREDIT POINTS
10
DELIVERY MODE
On campus
Intensive
Extensive
PREREQUISITE OR CO-REQUISITE
AC101 Accounting I
UNIT LEARNING OUTCOMES
LO1 Critique the auditing process, the different types of audits, the concepts of risks and materiality and an auditor’s legal, professional and ethical responsibilities
LO2 Plan an audit by applying risk assessment techniques to understand an organisations control environment and develop audit procedures to address identified business and financial reporting risks
LO3 Design an audit program to examine the design, implementation, and effectiveness of internal controls and substantiate material accounting transactions and balances
LO4 Draw conclusions from audit procedures, interpret audit evidence and use professional judgement to form an audit opinion
CONTENT
Introduction and overview of audit and assurance
Ethics, legal liability and client acceptance
Risk assessment I
Risk assessment II
Audit evidence
Gaining an understanding of the client’s system of internal controls
Sampling and overview of the risk response phase of the audit
Execution of the audit — testing of controls
Execution of the audit — performing substantive procedures
Substantive testing and balance sheet accounts
Substantive testing and income statement accounts
Completing and reporting on the audit
ASSESSMENT METHODS
1. Online Quizzes - 20%
2. Practical Assessment - 30%
3. Exam - 50%
PRESCRIBED READINGS
Moroney, R., Campbell, F. & Hamilton, J. (2020). Auditing: A Practical Approach (4th ed.). Milton QLD: John Wiley & Sons
Check with the lecturer each semester before purchasing any textbooks