module specification

AC5061 - Audit and Internal Control (2020/21)

Module specification Module approved to run in 2020/21
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
 
105 hours Guided independent study
45 hours Scheduled learning & teaching activities
Assessment components
Type Weighting Qualifying mark Description
Coursework 50%   1 hour in-class test containing multiple choice questions and short answer questions
Unseen Examination 50%   2-hour closed book exam, to include one compulsory scenario-based question
Running in 2020/21
Period Campus Day Time Module Leader
Spring semester North Thursday Morning

Module summary

This module focuses on the role of the independent external auditor in assessing the internal controls of the entity under review.  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 :

1. to understand the audit process and the regulatory and ethical environment within which external audits take place
2. to critically evaluate the procedures for audit planning and risk assessment and for gathering and evaluating audit evidence
3. to critically evaluate the use of internal control systems by auditors

Syllabus

1. The purposes and types of audit and the need for professional standards  LO1
2. Auditor rights, duties, obligations and liabilities  LO1
3. The engagement process  LO1
4. Professional ethics, independence and quality control  LO1
5. Audit planning; audit risk and risk-based audit LO2
6. Audit Evidence LO2
7. Internal control risk, procedures and testing, and application to the Revenue and Purchasing processes  LO3
8. Audit Opinion  LO3

Balance of independent study and scheduled teaching activity

Scheduled teaching activity is a weekly 1.5-hour lecture and 1.5-hour seminar. Independent study is supported by practical seminar examples, case studies, past exam questions and current articles and video clips from online accountancy and audit journals, ft.com, ICAEW economia website, FRC and professional accountancy bodies and the websites of the professional accountancy and audit firms.

Learning outcomes

On completing the module, students will be able to:

1. critically evaluate the procedures for the audit engagement and explain and apply the fundamental principles of professional ethics, independence and quality control
2. identify and critically assess audit planning, risk assessment procedures and audit evidence
3. critically appraise and apply relevant internal controls to business processes and review communication between the auditor and others.

Assessment strategy

Formative assessment will be provided throughout the whole study period and ongoing feedback will be provided accordingly to help students identify their strengths and weaknesses and target areas that need more work.
Formal summative assessment will comprise: 1 hour in-class test containing a mixture of multiple choice and short answer questions (50%); and 2 hours closed book exam to include scenario-based and discursive questions (50%)

The module overall pass mark is 40%.

Bibliography

Textbooks:

Core Text:  

Eilifsen A., Messier W., Glover S. and Prawitt D. ( 2014 )  Auditing and Assurance Services  ( Third International Edition )   McGraw Hill

Other Texts:  Cosserat G. and Rodda N.  ( 2017 )   Modern Auditing   Fourth edition    Blackwell’s

Gray S., Manson S. and Crawford L.  ( 2015 )   The Audit Process – Principles, Practice and Cases  Sixth edition   Cengage Learning

Porter B., Simon J. and Hatherly D. ( 2014 )   Principles of External Auditing  Fourth 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