AC6052 - Audit and Risk Management (2024/25)
| Module specification | Module approved to run in 2024/25, but may be subject to modification | ||||||||||||
| Module title | Audit and Risk Management | ||||||||||||
| Module level | Honours (06) | ||||||||||||
| Credit rating for module | 15 | ||||||||||||
| School | Guildhall School of Business and Law | ||||||||||||
| Total study hours | 150 | ||||||||||||
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| Assessment components |
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| Running in 2024/25(Please note that module timeslots are subject to change) | No instances running in the year |
Module summary
This module focuses on the role of the independent external auditor in assessing the internal controls of the business under review. The process of audit, from planning to the expression of an opinion, is examined.
Prior learning requirements
Successful completion of Level 5: BA Accounting and Finance, BA Accounting and Banking or BA Accounting and Business Management
Module aims
To provide an understanding of the functions and underlying theory of internal
and external audit, the compilation of evidence and documentation leading to an
audit opinion
To provide an awareness of the need for independence in forming an audit
opinion
To enable the student to identify control risk, internal control procedures and auditing techniques to identify and communicate control weaknesses
It also aims to develop students’ skills, in particular:
- Academic writing skills
- Interpersonal skills, including working with others
- Professional outlook and attitude
- Self assessment and reflection
Syllabus
The purposes and types of audit and the need for professional standards
Auditor rights, duties, obligations and liabilities; the postulates of auditing and the social context of auditing
The engagement process and the particular issue of independence
Organisation of business accounting systems
Audit risk and risk-based audit
Audit planning and documentation
Audit evidence
Internal control risk, procedures and testing – sales and purchases
Audit opinion
Learning and teaching
Teaching will take the form of a one hour lecture and two hours seminar programme.
The lecture will introduce the subject area in broad terms, all relevant material will be pre-distributed.
The seminar programme will focus on problem solving and discursive questions, attempted in advance, using scenarios, role play and media sessions to illustrate key concepts.
Learning outcomes
On successful completion of this module, students will be able to:
1) identify the issues relating to acceptance of an audit engagement together with the
rights, duties and obligations of the auditor and client
2) identify internal control tests to detect weaknesses in specified areas of accounting systems
3) understand the importance of evidence and independence for audit decisions
4) understand audit risk and risk-based audit
Bibliography
Essential text:
Eilifsen, A. et al. (2010) Auditing and Assurance Services, 2nd International edition. McGraw Hill: London
Additional reading:
Cosserat,G. and Rodda,N. (2009) Modern Auditing, 3rd edition. Wiley: UK
Gray,I and Manson,S (2011) The Audit Process – Principles, Practice and Cases, 5th edition. Cengage Learning: UK
Porter,B., Simon, J. and Hatherly,D. (2008) Principles of External Auditing, 3rd edition. Wiley:UK
Journals: Student Accountant (ACCA), Accountancy (ICAEW)
Web sites:
www.accaglobal.com
www.frc.org.uk
www.icaew.com
www.ifac.org
Texts, journals and web sites will be added as necessary, with key
articles, in the module booklet and on WebLearn