ACCT300 - Auditing

Year

Credit points

Campus offering

Prerequisites

ACCT209 Corporate Accounting

Teaching organisation

Unit rationale, description and aim

Accounting is a profession in which public trust is paramount. Auditing and assurance services provide credence to published financial statements and therefore, are one of the major activities of the accounting profession. Auditing is a vital economic and accounting function on which a number of people rely on to make decisions. As such, this unit will raise your awareness of the interplay between auditing, common good and stewardship. This unit covers both theoretical and practical aspects of auditing. The knowledge and competencies learned in this unit are applicable globally as international accounting standards are used throughout the course. This unit introduces students to the concepts and practice of auditing, the way the profession has developed and how it addresses current business and social needs. Particular emphasis is placed on an appreciation of ethical standards and corporate governance issues in auditing and the role auditors play, in developing and reinforcing sound governance practices and processes. This unit aims to emphasise contemporary auditing theory and practices, and provides a stimulating and research-informed learning environment that will develop students’ critical thinking and team working skills.

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

On successful completion of this unit, students should be able to:

LO1 - appraise how auditing can contribute to the common good and stewardship (GA2, GA5)

LO2 - analyse the ethical issues that auditors encounter in their role in rectifying the problems they encounter (GA3, GA5)

LO3 - evaluate the Australian/International Auditing Standards and their application to the work of auditors regarding planning the audit, obtaining appropriate sufficient evidence and testing internal control systems (GA5, GA7)

LO4 - assess the entire audit process from planning to compiling an audit report in regard to the relevant auditing standards (GA5, GA8)

LO5 - evaluate reporting standards and determine appropriate audit opinion under different circumstances and decide the appropriate treatment for subsequent events (GA4, GA5).

Graduate attributes

GA2 - recognise their responsibility to the common good, the environment and society 

GA3 - apply ethical perspectives in informed decision making

GA4 - think critically and reflectively 

GA5 - demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession 

GA7 - work both autonomously and collaboratively 

GA8 - locate, organise, analyse, synthesise and evaluate information. 

Content

Topics will include:

• the auditing and assurance services profession
• ethics, common good and stewardship in auditing
• statutory obligations of auditors
• audit planning
• overview of elements of the financial report audit process
• assessing inherent risk, other business risks and materiality
• internal control
• audit evidence
• fraud auditing
• audit of the revenue cycle 
• audit of the payment cycle 
• completion, review and reporting
• working collaboratively in the auditing context

Learning and teaching strategy and rationale

The teaching and learning strategy is built on a “student-focused approach”. ACU’s teaching policy focuses on learning outcomes for students. Our teaching aims to engage students as active participants in the learning process while acknowledging that all learning must involve a complex interplay of active and receptive processes, constructing meaning for oneself, and learning from others. ACU promotes and facilitates learning that is autonomous and self-motivated, is characterised by the individual taking satisfaction in the mastering of content and skills and is critical, looking beneath the surface level of information for the meaning and significance of what is being studied.

The schedule of the workshop is designed in such a way that students can achieve intended learning outcomes sequentially. Teaching and learning activities will apply the experiential learning model, which encourages students to apply higher-order thinking. The unit ensures that learning activities involve real-world scenarios that in turn assist with ‘real-world’ preparedness. The unit also uses a scaffolding technique that builds a student’s skills and prepares them for the next phase of the learning process.

This unit is structured with required upfront preparation before workshops, and most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise. It is up to individual students to ensure that the out of class study is adequate for the optimal learning outcomes and successes.

Mode of delivery: This unit is offered in different modes. These are: “Attendance” mode, “Blended” mode and “Online” mode. This unit is offered in three modes to cater to the learning needs and preferences of a range of participants and maximise effective participation for isolated and/or marginalised groups.

Attendance Mode

In a weekly attendance mode, students will require face-to-face attendance in specific physical location/s. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise.

Blended Mode

In a blended mode, students will require intermittent face-to-face attendance determined by the School. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise.

Online Mode

In an Online mode, students are given the opportunity to attend facilitated synchronous online seminar classes with other students and participate in the construction and synthesis of knowledge, while developing their knowledge. Students are required to participate in a series of online interactive workshops which include activities, knowledge checks, discussion and interactive sessions. This approach allows flexibility for students and facilitates learning and participation for students with a preference for virtual learning.

Assessment strategy and rationale

Assessments are used primarily to foster learning. ACU adopts a constructivist approach to learning that seeks alignment between the fundamental purpose of each unit, the learning outcomes, teaching and learning strategy, assessment and the learning environment. In order to pass this unit, students are required to achieve an overall score of at least 50% and attempt all assessment items. Using constructive alignment, the assessment tasks are designed for students to demonstrate their achievement of each learning outcome.

Assessments are the same regardless of whether teaching mode is attendance, blended, or online. This is indicated in overview of assessment table below. 

Overview of assessments

Representative texts and references

Arens, AA, Best, P, Shailer, G, Fiedler, B, Elder, RJ & Beasley, M 2017, Auditing, assurance services in Australia: An Integrated Approach, 10th edn, Pearson Education, Sydney.

Auditing, Assurance and ethics handbook 2017 Australia, CAANZ, Sydney, NSW.

Beasley, MS, Buckless, FA, Glover, SM & Prawitt, DF 2018, Auditing Cases: An Interactive Learning Approach, 6th edn, Pearson Education.

Gay, G. & Simnett, R. 2018, Auditing and assurance services in Australia, 7th edn, McGraw-Hill Australia.

Jubb, C, Rittenberg, LE, Johnstone, KM. & Gramling, A 2018, Auditing and assurance: a business risk approach, 3rd edn, Cengage Learning, Sydney, NSW.

Knapp, M 2018, Contemporary auditing, Cengage Learning.

Leung, P, Coram, P, Cooper, B & Richardson, P 2015, Modern auditing and assurance services, 6th edn, John Wiley & Sons Australia.

Martinov-Bennie, N, Roebuck, P & Soh, D 2017, Auditing and assurance – a case studies approach, 6th edn, Lexis Nexis.

Messier, WF, Glover, SM & Prawitt, DE 2016, Auditing and assurance services: a systematic approach, 10th edn, McGraw-Hill, Irwin.

Moroney, R, Campbell, F & Hamilton, J 2020, Auditing: a practical approach, 4th edn, John Wiley & Sons Australia, Sydney, NSW.

Cyr, D., Heroux, S., Fontaine, R. (2020). Auditors’ Judgment Subordination and the Theory of Planned Behaviour. Managerial Auditing Journal. Volume 35, Issue 8, pp.1189-1211.

Elmghaamez, I.K., Gerged, A.M., and Ntim, C.G. (2020). Financial Market Consequences of Early Adoption of International Standards on Auditing: International Evidence. Managerial Auditing Journal. Volume 35, Issue 6, pp. 818-858.

Garcia, J., Villiers, C., Li, L. (2021). Is a client's corporate social responsibility performance a source of audit complexity?. International Journal of Auditing. Volume 25, Issue 1, pp. 75-102.

Khoo, E., Lim, Y., and Monroe, G. (2020). Corporate reputation and the timeliness of external audit and earnings announcement. International Journal of Auditing. Volume 24, Issue 3, pp.366-395.

Kitiwong, W., and Sarapaivanich, N. (2020). Consequences of the implementation of expanded audit reports with key audit matters (KAMs) on audit quality. Managerial Auditing Journal. Volume 35, Issue 8, pp.1095-1119.

Sharma, D., Ananthanarayanan, U., and Litt, B. (2021). CEO compensation, corporate governance, and audit fees: Evidence from New Zealand. International Journal of Auditing  Volume 25, Issue 1., pp.117-141