Auditing and Assurance (11762.1)

Please note these are the 2022 details for this unit
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Auditing and Assurance
Available teaching periods Delivery mode Location
View teaching periods On-campus
Online real-time
 Bruce, Canberra
EFTSL Credit points Faculty
0.125 3 Faculty Of Business, Government & Law
Discipline Study level HECS Bands
Canberra Business School Level 3 - Undergraduate Advanced Unit Band 4 2021 (Commenced After 1 Jan 2021)
Band 4 2021 (Commenced After 1 Jan Social Work_Exclude 0905)
Band 5 2021 (Commenced Before 1 Jan 2021)
Auditing and Assurance provides a study of the role of audit systems and assurance activities, as well as providing a critical evaluation of the values and assumptions underlying audit and assurance within the context of professional, legal, regulatory, social, political and ethical responsibilities and requirements. The unit draws on practical and theoretical components relevant to audit and assurance and draws on accounting skills and knowledge developed within business and accounting units in the programme. Students demonstrate work-integrated knowledge through their ability to apply and evaluate audit practice concepts, theories, methodologies, and skills to business problems and challenges that emerge in professional practice.

Learning outcomes

After successful completion of this unit, students will be able to:
1. Critically evaluate the audit system with emphasis on the relevant legal and regulatory environment, professional expectations related to ethics and independence and the broader social and political context of auditing;
2. Exercise critical thinking in the application of relevant auditing standards and regulation for the purpose of auditing general-purpose financial statements;
3. Exercise judgment with respect to audit risk, material misstatement and appropriate audit strategies in responding to case-based scenarios;
4. Exercise judgment in audit engagements (including the application of relevant quantitative methods), in identifying relevant audit evidence, including contradictory evidence, and in making decisions to reach conclusions relevant to the conduct of an audit; and
5. Exercise judgement in determining an audit opinion and critically evaluate whether there is sufficient and appropriate evidence to justify the audit opinion.


Graduate attributes

1. UC graduates are professional - communicate effectively
1. UC graduates are professional - use creativity, critical thinking, analysis and research skills to solve theoretical and real-world problems
1. UC graduates are professional - work collaboratively as part of a team, negotiate, and resolve conflict
1. UC graduates are professional - display initiative and drive, and use their organisation skills to plan and manage their workload
1. UC graduates are professional - take pride in their professional and personal integrity
2. UC graduates are global citizens - think globally about issues in their profession
2. UC graduates are global citizens - understand issues in their profession from the perspective of other cultures
2. UC graduates are global citizens - communicate effectively in diverse cultural and social settings
2. UC graduates are global citizens - make creative use of technology in their learning and professional lives
2. UC graduates are global citizens - behave ethically and sustainably in their professional and personal lives
3. UC graduates are lifelong learners - reflect on their own practice, updating and adapting their knowledge and skills for continual professional and academic development
3. UC graduates are lifelong learners - be self-aware
3. UC graduates are lifelong learners - adapt to complexity, ambiguity and change by being flexible and keen to engage with new ideas
3. UC graduates are lifelong learners - evaluate and adopt new technology


Prerequisites

11214 Corporate Accounting

Corequisites

None.

Incompatible units

6223 Auditing PG

Equivalent units

11218, 6398 Auditing

Assumed knowledge

Students enrolled in this unit should have a basic understanding and practical knowledge of accounting. They should be able to prepare financial statements.
Availability for enrolment in 2026 is subject to change and may not be confirmed until closer to the teaching start date.
Year Location Teaching period Teaching start date Delivery mode Unit convener
2025 Bruce, Canberra Semester 2 28 July 2025 On-campus Dr Romalani Leofo
2025 Bruce, Canberra Semester 2 28 July 2025 Online real-time Dr Romalani Leofo
2026 Bruce, Canberra Semester 2 10 August 2026 On-campus Dr Romalani Leofo
Not available

Required texts

Prescribed textbook:

Gay, G., & Simnett, R. (2023). Auditing & Assurance Services in Australia (8 ed.). Sydney, Australia: McGraw-Hill.

Please note that this is an e-book available through the Univeristy of Canbera Library:

You are welcome to purchase your own version of the text should you wish, but you can access for free through the library website: https://www.canberra.edu.au/library

Please search for Auditing & Assurance Services in Australia. You will likely need your student ID number and password to access the book. 

Please also note that there are a large number of auditing textbooks that you may wish to consult, but we have prescribed Gay & Simnett (2023) for this unit.

We previously have used Gay & Simnett (2018) for this unit and that is still a useful resource. Examples have been updated as has the relevant Auditing Standards.   

Recommended reading:

You may find it useful to consult Australian financial and business media, professional journals such as the Australian Financial Review, Business Review Weekly, National Accountant, CA Magazine, Auditing and Standards Board of Australia. A range of excellent textbooks available in this area include:

a. Australian Auditing and Assurance Standards Board (2016), Auditing and Assurance Standards (AUS),available at: http://www.auasb.gov.au/Pronouncements/Auditing-and-Assurance-Standards.aspx

b. Chartered Accountants of Australia and New Zealand (various), Auditing, Assurance and Ethics Handbook (various)
c. Alvin, A. A. (2013). Auditing and Assurance Services in Australia, 9th edition, Prentice Hall: Sydney.
d. Jubb, C., Rittenberg, L.E., Johnstone, K.M. & Gamling, A (2012). Auditing: a business risk approach, Thomson/South-Western, Mason, Ohio. USA.
e. Soltani, B. (2007). Auditing: an international approach, Financial Times Prentice Hall, Harlow, England: New York. 

f. Louwers, T., Ramsay, R., Sinason, D. & Strawser, J. (2005). Auditing and Assurance Services, 1st Ed.; McGraw-Hill Irwin, Boston.
g. Power, M. (1997). The Audit Society: Rituals of Verification, Oxford University Press, Oxford, UK.

Journals are an important source of up-to-date information and reflections on challenges on current auditing and assurance practices. The following journal articles are also recommended:

a. A. Amran, A Manaf Rosli Bin, B Che Haat & Mohd Hassan (2009) Risk reporting: An exploratory study on risk management disclosure in Malaysian annual reports, Managerial Auditing Journal, Volume 24 (1): 39-57.
b. Arnold, B. & Paul de Lange (2004), Enron: an examination of agency problems, Critical Perspectives on Accounting, Volume 15, (6–7), August–October: 751-765.
c. Carey, P., W. Robert Knechel & George Tanewski (2013), Costs and Benefits of Mandatory Auditing ofFor-profit Private and Not-for-profit Companies in Australia, Australian Accounting Review, Volume 23,(1): 43–53.
d. Chabrak, C., & Nabyla Daidj (2007), Enron: Widespread myopia, Critical Perspectives on Accounting ,Volume 18, (5): 539-557. 
e. Christopher, J., Gerrit Sarens & Philomena Leung (2009), A critical analysis of the independence of the internal audit function: evidence from Australia Accounting, Auditing & Accountability Journal, Volume 22(2); 200 – 220.
f. Cooper, David J., Tina Dacin & Donald Palmer (2003), Fraud in accounting, organizations, and society: Extending the boundaries of research, Accounting, Organizations and Society, Volume 38 (6–7): 440-457.
g. Deegan, C. & Michaela Rankin (1997), The materiality of environmental information to users of annual reports, Accounting, Auditing & Accountability Journal, Volume (10): 562 – 583.
h. El-Mary, E. & Kathryn A. Hansen (2008), Factors affecting auditors' utilization of evidential cues: Taxonomy and future research directions, Managerial Auditing Journal, Volume 23 (1): 26-50. 
i. Ettredge, M., Elizabeth Emeigh Fuerherm and Chan Li (2014), Fee pressure and audit quality, Accounting, Organizations and Society, Volume 39 (4): 247-263. 

j. Guénin-Paracini, H., Bertrand Malsch, Anne & Marché Paillé (2014), Fear and risk in the audit process, Accounting, Organizations and Society, Volume 39 (4): 264-288.
k. Guiral, A; Ruiz, W. & , Choi, H.J., (2014), Audit report information content and the provision of non-audit services: Evidence from Spanish lending decisions, Journal of International Accounting, Auditing and Taxation, Volume 23 (1): 44-57.

l. Humphrey, C., Anne Loft & Margaret Woods (2009), The global audit profession and the international financial architecture: Understanding regulatory relationships at a time of financial crisis, Accounting, Organizations and Society, Volume 34 (6-7): 810-825.
m. Fischer, M. J. (1996), Realizing the benefits of new technologies as a source of audit evidence: An interpretive field study, Accounting, Organizations and Society, Volume 21 (1-2): 219-242.
n. Jamal, J. & Shyam Sunder (2011), Is mandated independence necessary for audit quality?, Accounting, Organizations and Society, Volume 36 (4-5): 284-292.

o. Knechel, W.R. (2007), The business risk audit: Origins, obstacles and opportunities, Accounting, Organizations and Society Volume 32 (4): 383-408.
p. Koh, H.C. & E-Sah Woo, (1999), The expectation gap in auditing, Managerial Auditing Journal, Volume13 (3):147–154. 

q. McLeod, R. & Harun Harun (2014), Public Sector Accounting Reform at Local Government Level in Indonesia. Financial Accountability & Management, 30 (2): 238–258.
r. Unerman, J. & Brendan O'Dwyer (2004), Enron, WorldCom, Andersen et al.: a challenge to modernity, Critical Perspectives on Accounting, Volume 15 (6-7): 971-993.

Submission of assessment items

Extensions & Late submissions

Students are encouraged to submit all assessment items and this will provide the best pathway for success in the unit, but students must submit the two mandatory assessment items to be able to pass the unit

Use of AI is not permitted in this unit

The University's position is that artificial intelligence services must not be used for assessment or assessment preparation by students unless explicitly allowed in the assessment instructions for an assessment task published with the assessment task and/or in the unit outline. That is, an AI service may only be used if:

a) its use is authorised by the unit convener as part of the specified task; and

b) it is used in the way allowed in the assessment instructions and/or unit outline; and

c) its use is appropriately referenced, meaning that the students must reference the use of AI in their assessment in the same way as they reference other source material.

The use of AI has not been specified in the assessment instructions for the unit or in the unit outline and thus, AI is not a permissible resource. 

Students must apply academic integrity in their learning and research activities at UC. This includes submitting authentic and original work for assessments and properly acknowledging any sources used.

Academic integrity involves the ethical, honest and responsible use, creation and sharing of information. It is critical to the quality of higher education. Our academic integrity values are honesty, trust, fairness, respect, responsibility and courage.

UC students have to complete the Academic Integrity Module annually to learn about academic integrity and to understand the consequences of academic integrity breaches (or academic misconduct).

UC uses various strategies and systems, including detection software, to identify potential breaches of academic integrity. Suspected breaches may be investigated, and action can be taken when misconduct is found to have occurred.

Information is provided in the Academic Integrity Policy, Academic Integrity Procedure, and University of Canberra (Student Conduct) Rules 2023. For further advice, visit Study Skills.

Learner engagement

Please note that Auditing and Assurance can be conceptually challenging for many students, as it is a different mindset and introduces a new set of concepts, frameworks and processes to financial and management accounting. 

The invitation here is to be an active participant. This likely includes viewing the pre-recorded lecture material, studying the lecture slides, completing chapter readings as and when necesary, attending the online workshop and preparing for and attending the weekly tutorial. 

Participation requirements

You are encouraged to prepare for, attend and participate actively (comment, take notes, be active) in all workshops and tutorials. Active attendance involves note taking, answering questions, sharing ideas and learning from others in the class. This is the best method of preparing your own personal viewpoints for the purposes ofthe assessment, including the exam. Reading someone else's notes or watching a recording is pedagogically less useful than actively participating. Students are expected to be on-time for classes and please note the class is interactive.

Required IT skills

Students are expected to be able to use Microsoft Word in addition to University systems available over the Internet (e.g. MyUC, Email, E-Reserve, LearnOnline, Library Catalogue, and Library Databases).

Students are encouraged to use Zotero, Endnote or RefWorks for managing references for their assignment work.

As is common in the professional world, we will also be using Zoom or Blackboard Collaborate (Virtual Room). As this unit involves online meetings in real time using Virtual Room in your UCLearn teaching site or via Zoom, you will be able to communicate in real time with your lecturer and other students. To participate verbally, rather than just typing, you will need a microphone. For best audio quality we recommend a microphone and speaker, and or a headset. For more information and to test your computer, go to the Virtual Room in your UCLearn site and 'Join Course Room'. This will trigger a tutorial to help familiarise you with the functionality of the virtual room. Zoom has similar testing functions. 

When you enter the meeting room, please mute your microphone.

Please also note that as this is a unit associated with professional training, it makes sense that when you enter the online learning environment, you turn on your camera to introduce yourself to the class. Equally, as is good professional training, when asking a question, seeking clarification or adding to our discussion, it would be appropriate to turn on your camera and participate actively. This is considered more appropriate than merely typing into the chat function. A professional courtesy includes practicing your professional skills by having a visual presence.

Work placement, internships or practicums

None