AC5061 - Audit and Internal Control (2024/25)
Module specification | Module approved to run in 2024/25 | ||||||||||
Module title | Audit and Internal Control | ||||||||||
Module level | Intermediate (05) | ||||||||||
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) |
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Module summary
This module focuses on the role of the independent external auditor in assessing the internal controls of businesss entities. Students will learn and apply appropriate concepts and techniques in planning the audit and to gather and assess audit evidence to be able to critically evaluate assertions made by others.
Module aims:
to understand the audit process and the regulatory and ethical environment within which external audits take place.
to critically evaluate the procedures for audit planning and risk assessment and for gathering and evaluating audit evidence.
to critically evaluate an entity’s internal control.
Syllabus
- The purposes and types of audits and assurance and the need for professional standards - LO1
- Auditor rights, duties, obligations and liabilities - LO1
- The engagement process, - LO1
- Professional ethics, independence and quality control - LO1/LO2
- Audit planning; audit risk and risk-based audit - LO2
- Audit Evidence - LO3
- Internal control risk, procedures and testing, and application to specific business processes - LO3
Balance of independent study and scheduled teaching activity
Scheduled teaching activity is a weekly 2-hour lecture and 1 hour seminar. Independent study is supported by additional practice questions, case studies, past exam questions and current articles and video clips from online accountancy and audit journals, ft.com, FRC and professional accountancy bodies and the websites of the professional accountancy and audit firms.
Learning outcomes
Upon completion of the module, students will be able to:
LO1. critically evaluate the procedures for the audit engagement and explain
and apply the fundamental principles of professional ethics,
independence and quality control
LO2. identify and critically assess audit planning, risk assessment procedures
and audit evidence
LO3. critically assess internal controls over business processes and review
communication between the auditor and others.
Bibliography
Textbooks:
Core Text:
Auditing and Assurance Services
Eilifsen A., Messier W., Glover S. and Prawitt D. (2014) 3rd International Edition, McGraw Hill
Other Recommended Texts:
Auditing and Assurance Services, Global Edition
Elder R.J., Beasley M.S., Hogan C.., and Arens A.A. (2017) 16th edition, Pearson Education
E-BOOK
https://ebookcentral.proquest.com/lib/londonmet/detail.action?docID=5185606
Auditing
Millichamp A. and Taylor J. (2018), 11th edition, Cengage
E. BOOK AVAILABLE
The Audit Process – Principles, Practice and Cases
Gray S., Manson S. and Crawford L. (2015), 6th edition, Cengage
Modern Auditing
Cosserat G. and Rodda N. (2017), 4th edition, Blackwell’s
Principles of External Auditing
Porter B., Simon J. and Hatherly D. (2014) 4th edition Wiley
Websites:
Financial Reporting Council www.frc.org.uk
ICAEW www.icaew.com
ACCA www.accaglobal.com
ICAEW online journal www.accountancymagazine.com
Accountancy Age www.accountanyage.com
Financial Times www.ft.com
Electronic Databases: FAME