ACCT300 - Auditing

Year

Credit points

Campus offering

Prerequisites

ACCT207 Financial Accounting

Teaching organisation

150 hours over a twelve-week semester or equivalent study period

Unit rationale, description and aim

Accounting is a profession for 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. The aim of this unit is to emphasise contemporary auditing theory and practices and provides a stimulating and research-informed learning environment which 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 the independent, ethical and professional conduct of auditors can contribute to informed decision making, following the legal and regulatory requirements (GA3, GA5)

LO2 - Consider auditors liability and assess the risks of material misstatement in the financial statements and consider the impact on the audit strategy (GA4, GA5)

LO3 - Interpret the Australian/International Auditing Standards and their application to the work of auditors regarding planning the audit, obtaining appropriate sufficient evidence and documentation and testing internal control systems (GA5, GA6)

LO4 - Evaluate the entire audit process from pre-engagement to compiling an audit report with regard to International Standards on Auditing or other relevant auditing standards, laws, and regulations applicable to an audit of general-purpose financial statements (GA5, GA8)

LO5 - Devise appropriate audit opinions under different circumstances and decide the appropriate treatment for subsequent events, using Australian/International Auditing Standards (GA5)

Graduate attributes

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 

GA6 - solve problems in a variety of settings taking local and international perspectives into account 

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

Content

Topics will include:

• Nature of auditing and assurance services profession
• Statutory obligations and professional conduct of auditors
• International Standards on Auditing or other relevant auditing standards, laws, and regulations
• Audit pre engagement activities
• Audit planning and risk, including response to assessed risk activities
• Audit evidence gathering and documentation
• Audit completion and overview
• Internal control
• Fraud auditing
• Audit of revenue and payment cycles

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, the constructing of 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, 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 students 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 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. This unit is structured with required upfront preparation before workshops, 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 students 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. This unit is structured with required upfront preparation before workshops. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for students 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.

ACU Online

This unit uses an active learning approach to support students in the exploration of knowledge essential to the discipline. Students are provided with choice and variety in how they learn. Students are encouraged to contribute to asynchronous weekly discussions. Active learning opportunities provide students with opportunities to practice and apply their learning in situations similar to their future professions. Activities encourage students to bring their own examples to demonstrate understanding, application and engage constructively with their peers. Students receive regular and timely feedback on their learning, which includes information on their progress.

Assessment strategy and rationale

Assessments are used primarily to foster learning. ACU adopts a constructivist approach to learning which 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 must demonstrate competence in all learning outcomes and achieve an overall score of at least 50%. Using constructive alignment, the assessment tasks are designed for students to demonstrate their achievement of each learning outcome.

The overview of assessment table is provided below under different delivery modes.

Overview of assessments

Attendance and Blended Mode:;

Online and ACU Online Mode:

Representative texts and references

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