AC31510 - AUDIT, RISK AND ASSURANCE

Module Identifier	AC31510
Module Title	AUDIT, RISK AND ASSURANCE
Academic Year	2001/2002
Co-ordinator	Mr Mahbub Zaman
Semester	Semester 1
Pre-Requisite	AC11020
Course delivery	Lecture	9 Hours
	Workshop	9 Hours
Assessment	Course work		30%
	Exam	2 Hours	70%

Aims

People want to know more about what's going to happen tomorrow than what happened yesterday. The rules of business and the economy are changing at mind-boggling rates. Auditing can do much more than confirm the financial statements; it can be an important tool for helping management to assess where their companies are, where they want to be, and why they are not yet there. Such aspirations are evident in the explosion of auditing activity since the early 1980s and in the recent, significant developments in audit methodologies. The aim of the module is to provide students with an understanding of audit methodologies and the implications for risk management and assurance.

Learning outcomes

Having followed this module a student should be able to:

Understand the nature and regulation of auditing, and explain the structure of audit firms and the audit market.
Analyse audit methodologies, particularly of large audit firms, and discuss the nature of the risk-based approach to auditing and identify its components.
Evaluate the effectiveness of the audit process for the detection and prevention of fraud, error and irregularities in financial statements.
Discuss auditor communication in the context of developments in the audit environment particularly current requirements for, and possible extensions of, auditor's reporting on financial reports and corporate governance.

Reading Lists

Books
James K Loebbecke. (1999) The Auditor: An Instructional Novella. Prentice Hall
Michael Sherer and Stuart Turley. (1997) Current Issues in Auditing. 3rd edition. Paul Chapman
Iain Gray and Stuart Manson. (2000) Audit Process: Principles, Practice and Cases. 2nd edition.
William Knechel. (2001) Auditing Assurance and Risk. 2nd edition. Prentice Hall
Josephine Maltby. Case Studies in Auditing. 2nd edition. Paul Chapman