Auditing is an important process necessary to provide assurance about the accuracy and transparency of corporate financial statements. This subject introduces the principles and practices of external auditing in the public accounting domain within the framework of Australian and International Auditing Standards. Whilst the audit risk model and each phase of the audit process is presented, emphasis is also placed on ethical considerations, independence and corporate governance.
|Academic unit:||Bond Business School|
Delivery & attendance
|Attendance and learning activities:||Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible.|
|Prescribed resources:|| |
|[email protected] & Email:||[email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.|
To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.
Assumed Prior Learning (or equivalent):
|Restrictions: ?|| This subject is not available to|
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Explain the purpose, nature and limitations of audits of general purpose financial statements and related regulation.
- Apply International Standards on Auditing or other relevant auditing standards, laws, and regulations applicable to an audit of general-purpose financial statements.
- Demonstrate the ability to make decisions about various elements of the audit risk model and determine how those decisions influence audit strategy, including the nature, timing, and extent of audit procedures.
- Apply methods that are used in audit engagements to inform judgements, make decisions and reach well-reasoned conclusions relevant to the sufficiency and appropriateness of audit evidence.
- Synthesise audit evidence to make recommendations as to the appropriate audit opinion to be issued.
- Identify threats to compliance with the application of fundamental ethics principles in standard auditing contexts.
- Communicate clearly and concisely when presenting and discussing knowledge and ideas related to auditing professional practice in informal situations.
- Communicate straightforward auditing advice and ideas in writing to influence specialists and non-specialists.
|Class Participation||In class decision making exercises.||20%||Ongoing||1, 2, 3, 4, 6, 7, 8.|
|Project||A three-part, case-based, audit simulation project. Part A: Client acceptance and risk assessment.||15%||Week 6||1, 2, 3, 6, 7.|
|Project||A three-part, case-based, audit simulation project. Part B: Audit planning.||15%||Week 9||1, 2, 3, 7.|
|Project||A three-part, case-based, audit simulation project. Part C: Audit program and reporting considerations.||20%||Week 12||1, 2, 3, 4, 5, 8.|
|Learning Log||Completion of a reflection workbook in which students identify attributes and traits acquired, achievement of subject learning outcomes, and reflect on their learning experience. Part B: Submission of completed learning log.||30%||Week 13||1, 2, 8.|
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
|High Distinction||85-100||Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.|
|Distinction||75-84||Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.|
|Credit||65-74||Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.|
|Pass||50-64||Usually awarded to students whose performance meets the requirements set for work provided for assessment.|
|Fail||0-49||Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.|
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Students must check the [email protected] subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.
Policy on plagiarism
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Additional subject information
This is a compulsory subject for eligibility requirements for Certified Practising Accountants Australia (CPA Australia) and Chartered Accountants Australia and New Zealand (CA ANZ). As part of the requirements for Business School quality accreditation, the Bond Business School employs an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
An overview of the demand for auditing, the audit engagement and the audit expectation gap. Also discussed is the role of different regulators in maintaining the quality of the audit industry and the relevance of auditing standards.
Introduces the principles of professional ethics and auditor independence, including threats to independence and safeguards to minimise or mitigate those threats. Other concepts include the auditor’s relationship with others, legal liability to third parties, and client acceptance and continuance decisions.
Highlights the audit risk model and the development of an audit strategy for the nature, timing and extent of planned audit testing. It includes the concept of materiality and risk of material misstatement, evaluating fraud risk, the going concern assumption, and other activities undertaken in this phase of the audit process.
Examines internal control systems, their objectives, the strengths and weaknesses of various controls and different techniques to document internal controls. Focus is also given to different levels of internal controls, specifically, those appropriate at the entity level and to the transactional level.
Audit sampling is introduced, as well as sampling risks and the strengths and weaknesses of different sampling methods. Factors that influence the sample size and procedures to evaluate sample results are also explored.
Techniques for testing internal controls and the decisions about the selection, design, nature, timing, and extent of testing are considered. Methods to evaluate the results of internal control testing is also considered.
An explanation of audit assertions, identifying and appraising the different types of audit evidence an auditor can obtain. Also includes an introduction to the concept of sufficient, appropriate audit evidence and how an auditor may rely on the work of others.
Defines substantive analytical procedures and substantive tests of details procedures, linking procedures to audit assertions. Also considers different examples of substantive procedures.
The relationship between the risk of material misstatement and the extent and timing of substantive procedures is examined. Substantive procedures for a range of balance sheet and income statement accounts are introduced.
Procedures performed when completing an audit, including assessing going concern, subsequent events, unadjusted audit differences and audit reporting.