Auditing (6398.4)

Please note these are the 2015 details for this unit
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Auditing
Available teaching periods Delivery mode Location
View teaching periods
EFTSL Credit points Faculty
0.125 3 Faculty Of Business, Government & Law
Discipline Study level HECS Bands
School Of Information Systems & Accounting 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 provides an introduction to theories and practices in relation to assurance services such as a financial report audit. Topics include the structure of the auditing profession, ethical issues associated with auditing, the legal liability of auditors, business and internal control risks of clients, audit procedures, audit evidence, sampling techniques and completion of an audit. Students are also introduced to key practical concepts of an audit in a computer-based environment and research issues in auditing.

Learning outcomes

Students who successfully complete this unit will be able to:
1. Explain central audit concepts and justify the reasons for an assurance service, such an audit of financial statements as a means for risk management;
2. Identify key relevant legal, ethical and professional aspects that affect the responsibilities of auditors;
3. Design audit plans and apply audit procedures in assessing business risks and collecting audit evidence through internal control and substantive tests;
4. Prepare and communicate audit opinions;
5. Discuss key developments in audit research and how these research developments have informed auditors and users of audit reports.


Graduate attributes

1. UC graduates are professional - employ up-to-date and relevant knowledge and skills
2. UC graduates are global citizens - communicate effectively in diverse cultural and social settings
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 - adopt an informed and balanced approach across professional and international boundaries
2. UC graduates are global citizens - make creative use of technology in their learning and professional 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 - 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

Accounting for Managers;
Accounting Systems and Practices.

Corequisites

None.

Assumed knowledge

None.
Year Location Teaching period Teaching start date Delivery mode Unit convener
Not available

Required texts

Link to search page for Unit Readings (print materials) 
Link to Co-Op Bookshop

Prescribed book:

Moroney, Campbell & Hamilton (2017). Auditing:  A Practical Approach (3rd ed.), John Willey and Sons, Australia, ISBN: 97811183779011

Recommended reading:

You may find it useful to consult some  HK resources financial and business media, professional journals such as the Business section of the South China Morning Post https://www.scmp.com/business. Hong Kong Business https://hongkongbusiness.hk/. The Hong Kong section of the Financial Times https://www.ft.com/topics/places/Hong_Kong and the business section of Chanel NewsAsia https://www.channelnewsasia.com/news/business/.

The Hong Kong Institute of Certified Public Accountants http://www.hkicpa.org.hk/en/standards-and-regulations/standards/auditing-assurance/ provides relevant content, particularly the HKICPA Handbook Volume III (standards on auditing and related issues). http://app1.hkicpa.org.hk/ebook/HKSA_Members_Handbook_Master/volumeIII/contentpage.pdf.

And other resources are also useful, including  http://www.iaasb.org/new-auditors-report

A range of excellent textbooks are available in this area including: 

  1. Jubb, C., Rittenberg, L.E., Johnstone, K.M. & Gamling, A (2012). Auditing: a business risk approach, Thomson/South-Western, Mason, Ohio. USA.
  2. Soltani, B. (2007). Auditing: an international approach, Financial Times Prentice Hall, Harlow, England; New York.
  3. Louwers, T., Ramsay, R., Sinason, D. & Strawser, J.  (2005). Auditing and Assurance Services, 1st Ed.; McGraw-Hill Irwin, Boston.
  4. Power, M. (1999). The Audit Society: Rituals of Verification, Oxford University Press, Oxford, UK.                             

 The following journal articles are also recommended:

  1. Amran, A., Abdul Manaf Rosli Bin & Bin 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.
  2. Arnold, B. & Paul de Lange (2004), Enron: an examination of agency problems, Critical Perspectives on Accounting, Volume 15, (6–7), August–October: 751-765.
  3. Carey, P., W. Robert Knechel & George Tanewski (2013), Costs and Benefits of Mandatory Auditing of For-profit Private and Not-for-profit Companies in Australia, Australian Accounting Review, Volume 23, (1): 43–53.
  4. Chabrak, C., & Nabyla Daidj (2007), Enron: Widespread myopia, Critical Perspectives on Accounting, Volume 18, (5): 539-557.
  5. 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.
  6. 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.
  7. Deegan, C. & Michaela Rankin (1997), The materiality of environmental information to users of annual reports, Accounting, Auditing & Accountability Journal, Volume (10): 562 – 583.
  8. 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.
  9. Ettredge, M., Elizabeth Emeigh Fuerherm and Chan Li (2014), Fee pressure and audit quality, Accounting, Organizations and Society, Volume 39 (4): 247-263.
  10. 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.
  11. 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.
  12. Humphrey, C., Loft, A. & Woods, M. (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.
  13. 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.
  14. Jamal, J. & Shyam Sunder (2011), Is mandated independence necessary for audit quality?, Accounting, Organizations and Society, Volume 36 (4-5): 284-292.
  15. Knechel, W.R. (2007), The business risk audit: Origins, obstacles and opportunities, Accounting, Organizations and Society Volume 32 (4): 383-408.
  16. Koh, H.C. & E-Sah Woo, (1999), The expectation gap in auditing, Managerial Auditing Journal, Volume 13 (3):147–154.
  17. McLeod, R. M. & Harun Harun (2014), Public Sector Accounting Reform at Local Government Level in Indonesia. Financial Accountability & Management, 30 (2): 238–258.
  18. 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

Special assessment requirements

To pass this unit you must submit each assessment item, obtain at least 50 percent in the final exam and obtain a final cumulative mark of at least 50 percent. All assessments must be submitted by the due date unless an extension has been granted by the unit convenor.

Academic integrity

Students have a responsibility to uphold University standards on ethical scholarship. Good scholarship involves building on the work of others and use of others' work must be acknowledged with proper attribution made. Cheating, plagiarism, and falsification of data are dishonest practices that contravene academic values. Refer to the University's Student Charter for more information.

To enhance understanding of academic integrity, all students are expected to complete the Academic Integrity Module (AIM) at least once during their course of study. You can access this module within UCLearn (Canvas) through the 'Academic Integrity and Avoiding Plagiarism' link in the Study Help site.

Use of Text-Matching Software

The University of Canberra uses text-matching software to help students and staff reduce plagiarism and improve understanding of academic integrity. The software matches submitted text in student assignments against material from various sources: the internet, published books and journals, and previously submitted student texts.

Participation requirements

None

Required IT skills

None

Work placement, internships or practicums

None