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|
|Running in 2020/21||
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
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.
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.
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%.
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
Financial Reporting Council www.frc.org.uk
ICAEW online journal www.accountancymagazine.com
Accountancy Age www.accountanyage.com
Financial Times www.ft.com
Electronic Databases: FAME