Auditing

Aims

The main objective of this module is to provide a thorough and complete initiation to the general framework and procedure of auditing. It aims to present a) theoretical foundation on which auditing expertise and competences can be based b) utilization of the theoretical foundations in case studies in order to expose students to real life audit problems. More specifically, this course focuses on the better comprehension and application of audit models in various contexts. Topics that this module contains are: audit planning, review of client’s control systems, audit testing and conclusions on the results of audit testing and audit opinions. There will also be significant focus on the professional accountability and ethics of auditors related to their profession. In this respect, the course will highlight the importance of adequate and relevant audit evidence as well as the dynamic character of the auditor’s professional reluctance.

Learning Outcomes

On completing the course the students will be able to:

• Understand the audit function in the framework of the audit procedure
• Explain the different types of audits and appreciate the deriving responsibilities and potential legal consequences as a result of auditors work
• Describe and implement the various steps of audit planning as well as the preparatory actions to achieve better knowledge of the professional involvement and clients’ needs
• Appreciate the principles which guarantee the credibility of audits (ethics and independence, good governance of the profession, responsibility for the auditors etc)
• Implement the audit risk model under different cases
• Assess the sincerity and methods of internal controls and audit testing in order to shape a professional autonomous opinion (audit testing)
• Acknowledge auditor’s obligations in performing the audit, involving testing for post audit events and comparing this procedure to other audit assignments (audit completion).

Content

• Introduction and overview of audit and assurance
• Ethics, legal liability and client acceptance
• Audit planning and evidence
• Overview of tests of control
• Sampling
• Testing controls/substantive procedures
• Gaining an understanding of the client’s system of internal controls
• Execution of the audit
• Substantive testing and balance sheet/ income statement accounts
• Legal Liability
• Completing and reporting on the audit