AF6008 - Auditing

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What will I learn on this module?

On this module, you will be taught holistically to represent the ‘real life’ scenarios that are faced within the audit profession. Topics are viewed and taught as interrelated concepts, with the ethical principles of auditors (Accountability, Integrity, Objectivity, Independence, Competence and Rigour, Judgement, Confidentiality) underpinning the module content (Flint’s postulates). The following high level topics are covered during the module:

Audit in Context
What is the role, purpose and value of audit? What does the audit report say? What is the role of the audit profession and what are the key professional ethical guidelines? What are the statutory rules governing audit?

Audit Ethics
How does the nature of the audit business impact on audit ethics?
How does audit regulation promote or comprise confidence in audit ethics?
Why do audit ethics matter?
Threats to audit independence
Role of audit ethics in assuring audit quality

Audit Process
The identification of audit risk from knowledge of the business and the control environment. Planning the audit assignment
Analysis of Business Risk and application to the audit
Assessment of Risk Management and Internal Control
The nature of audit evidence and the methods of collection including sampling, analytical review and auditing accounting estimates
Critical appraisal of audit evidence techniques
The audit of going concern
Formulating and reporting an audit opinion

Current Issues in Auditing
The development of audit and the problems of independence
Critical appraisal of audit standards
Audit liability and its impact on the value of audit
The role of audit in corporate governance - internal audit, external audit and the audit committee
Role of audit in detection and prevention of fraud
Audit and society (Power, 1997, 2000, 2007), and the continued ‘audit expectation’ gap considering the impact of crises (Humphrey, Kausar and Loft, 2011).

How will I learn on this module?

You will be supported by a teaching and learning plan which outlines the formal sessions, together with the tutor-directed study and independent reading. An interactive approach to lecture sessions will draw upon the directed learning undertaken and participants’ own experiences. Throughout, the emphasis will be on high levels of participation, by both you individually, and within small groups or teams. You can therefore expect the reflective-practitioner approach to learning to be embedded in all workshop/seminar sessions through undertaking activities which facilitate you to apply theory to ‘real-life’ situations, critically analysing and making recommendations for appropriate ways forward for the organization/individual.

Directed learning will centre upon a range of activities including pre-reading, preparation for interactive activities and use of the audit simulation on the e-learning platform.

Independent learning will centre upon you identifying and pursuing areas of interest in relation to the subject area or by providing deeper/broader knowledge and understanding of the subject through a range of learning activities that might include extended reading, reflection, research etc.

You will learn through tutor led activities in the form of lecturers and seminars (total 24 hours across the module), alongside independent completion of directed study. Directed study is highlighted on the teaching and learning plans, alongside updates to recommended reading during lectures and seminars.

How will I be supported academically on this module?

During lectures and seminars you will be supported by the tutors, and key reading from both the academic and practice led literature bases will be highlighted to you (including reference to the relevant International Auditing Standards). Tutors will be available both during sessions, and over email to answer student queries about the module. Formative feedback will be provided by tutors, both verbally during teaching sessions, and through additional guidance documentation following seminars.

The e learning portal will be populated with lecture material and seminar activities in advance of all sessions.

The audit simulation will be accessible via Blackboard throughout the module, to allow you to explore examples of audit processes and documentation in preparation for your assessment.

Examples of prior examination questions will also be available for you to access, to enable you to prepare accordingly for assessment.

What will I be expected to read on this module?

All modules at Northumbria include a range of reading materials that students are expected to engage with. The reading list for this module can be found at: http://readinglists.northumbria.ac.uk
(Reading List service online guide for academic staff this containing contact details for the Reading List team – http://library.northumbria.ac.uk/readinglists)

What will I be expected to achieve?

Knowledge & Understanding:
• At the end of the modules you are expected to have critically analysed the role of the auditing business in the corporate world (MLO1).

• Identify audit risk and select, with justification, appropriate audit techniques to obtain audit evidence to support the formulation of the audit opinion appropriate to professional practice (MLO2).


Intellectual / Professional skills & abilities:
• Critique the development of your auditing practice in the context of progression to professional settings (MLO3).

Personal Values Attributes:
• At the end of the modules you are expected to have critically analysed the role ethics within the auditing profession (MLO4).

How will I be assessed?

Formative Assessment:
Formative assessment will be provided to you through a range of seminar activities which will enable you to prepare for summative assessment during, and at end of the module. You will be given the opportunity to develop their examination skills through example examination questions. Formative assessment will be provided by tutors during sessions, and through guidance notes to seminar activities.

Summative Assessment:
Examination 80%. Feedback on exam script. Learning objectives assessed, through a mix of short form, case study, and essay questions (MLO1, MLO2, MLO3 & MLO4).

Practical ‘On line’ assessment 20% under examination conditions. Digital feedback via ESAF. Learning objective assessed through a practical ‘audit’ task being completed, which is related to the audit simulation (MLO2).

Pre-requisite(s)

AF5006 Corporate and Group Accounting

Co-requisite(s)

AF6009 Contemporary Issues in Financial Reporting

Module abstract

Through a range of theoretical and practical instruction, this module allows you to explore the role of the professional auditor. The module gives an insight into the practical aspects of how and why audits are performed and their role in corporate reporting together with an exploration of the theory supporting current audit practice and a critical appraisal thereof. The module discusses the nature and influence of audit risk on the modern audit and the key issues of audit independence and liability. It also focuses on the contemporary and contentious issues surrounding the effectiveness of audit (audit quality) due to the limitations in the modern audit process and the ethical conflicts arising from the nature of audit as a business.

You will participate in ‘audit simulation’ and client ‘case studies’ activities, alongside engagement with practice based auditors to embed a knowledge of documentation, analytical skills and processes undertaken during modern audits. Technology enabled Learning is utilised in this module and use of ‘audit simulation’ both within class, and as directed study. The practical assessed task will be submitted through ESAF, with feedback provided electronically.

Course info

UCAS Code N400

Credits 20

Level of Study Undergraduate

Mode of Study 3 years full-time or 4 years with a placement (sandwich)/study abroad

Department Newcastle Business School

Location City Campus, Northumbria University

City Newcastle

Start September 2020

Fee Information

Module Information

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