Topics include: the nature and objectives of independent financial statement audits; the auditing environment; legal and ethical responsibilities and auditing standards; risk analysis in auditing; sources and nature of evidence; audit planning and documentation; audit testing methods (including computer assisted auditing techniques); sampling techniques; form and purpose of audit reports; other assurance engagements and environments.  An important component of the course is the application of recent academic research to the theory and practice of financial statement audits.

At the conclusion of the course you are expected to be able to:

1. discuss the need for an independent audit and briefly describe the development of the role of the auditor in modern business society;
2. explain the regulatory environment in which the auditor operates (including relevant sections of the Corporations Act 2001 and the auditing standards issued by the Australian Auditing and Assurance Standards Board (AUASB)) as well as the ethical pronouncements issued by the Institute of Chartered Accountants in Australia (ICAA) and CPA Australia, and apply those rules, standards and pronouncements to the conduct of a financial statement audit;
3. describe the quality control procedures necessary to ensure that a competent audit is performed;
4. follow the development of case law in respect of the definition of the auditor's responsibilities to clients and to third parties;
5. understand the audit process, beginning with gaining an understanding of the client and its associated business risks, followed by the assessment of controls to manage, mitigate or share those risks, followed again by the development of an audit program of compliance and substantive tests and ending in the communication of the results to the client;
6. work with the concepts of audit risk and assurance, and audit testing procedures (including computer assisted auditing testing procedures) grouped by audit assertions, for a business' major transaction types and account balances;
7. describe the various levels of persuasiveness of different types of audit evidence and explain the broad principles of audit sampling techniques;
8. determine the appropriateness, in different circumstances, of different types of audit reports and write (prepare) such audit reports
9. apply recent academic research to the theory and practice of financial statement audits.

In addition, the course aims to develop your cognitive skills (especially analytical and appreciative skills) and behavioural skills (especially personal and interpersonal skills).

Mid-semester examination 20%

Group assignment 20%

Final examination 60%

TOTAL 100%

The course is structured around 13 three-hour seminars and your own private study.

This course is designed to be taken in the final year of an accounting major.   You are expected to have retained familiarity with the concepts studied in previous accounting, introductory commercial law, information systems and introductory statistics courses.

BUSN7050 Corporate Accounting and BUSN7057 Business Association Law.

Incompatible with BUSN3002 Auditing

See Course Outline:  http://ecocomm.anu.edu.au/courses/outline/BUSN7054.pdf

See Course Outline:  http://ecocomm.anu.edu.au/courses/outline/BUSN7054.pdf

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=BUSN7054