This unit is primarily focused on the external audit of corporate financial statements while also covering other assurance services, professional ethics, and legal liabilities.  The seminars presented are structured to correspond with auditing process in theory and practice, and inevitably integrate Australian and International Auditing Standards.

The majority of the seminars deal with the various activities undertaken by external auditors using examples to illustrate the challenges faced by auditors and the ethical and professional responsibilities placed upon them.  The main stages of the audit process are addressed including risk analysis in auditing, audit planning and documentation, fraud auditing, gathering and evaluating audit evidence (including performance of tests of controls and substantive audit procedures) and the formation of the audit opinion. Other topics, including auditors' legal responsibilities, audit quality and ethics, and other assurance services, are also dealt with as special topics. 

The seminars mainly deal with the concepts underlying assurance methodology, while the examples are used to demonstrate how the methodology is applied in practical situations.

Upon successful completion of the requirements for this course, students will be able to:

• discuss the need for an independent audit and assurance function, and briefly describe the development of the role of the external and internal assurance provider in modern business society;
• 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 Accounting Professional and Ethical Standards Board (APESB), and apply those rules, standards and pronouncements to the conduct of a financial report audit and other assurance engagements;
• describe the quality control procedures necessary to ensure that a competent assurance engagement is performed, and apply professional ethics including Code of Conduct to specific scenarios;
• understand the financial report audit process, beginning with accepting clients, followed by understanding the client, evaluating business risk and assessing inherent risk, performing tests of controls to assess control risk and substantive tests to reduce detection risk, considering subsequent events and evaluating evidence gathered, ending in the formation of an audit opinion and communication of the results to the client;
• describe the various levels of persuasiveness of different types of audit evidence and explain the broad principles of audit sampling techniques;
• for major transaction types and account balances, identify appropriate assertions at risk and apply appropriate audit procedures to test the assertions identified;
• determine the appropriateness, in different circumstances, of different types of audit and review reports;
• understand auditors’ legal liabilities, and be able to apply case law in making a judgement whether auditors might be liable to certain parties;
• describe other assurance and non-assurance services provided by the auditing and assurance profession, and, for assurance services, understand the level of assurance provided.

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

• Weekly Assignment 10%
• Mid Semester Examination 20%
• Group Assignment 15%
• Final Examination 55%

Students taking this course are expected to commit at least 10 hours a week to completing the work. This will include:

• 3 hours a week: seminar commencing from Week 1
• 3 - 4 hours a week: reading and completing exercises
• 3 - 4 hours a week: research, working on assignment and/or preparing test/examination

At least an average of 65% (or equivalent) in the final two years of an Australian undergraduate degree

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

See Course Outline

For further information please refer to the course website