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Midlands State University Faculty of Commerce Department of Accounting Module Outline-Auditing 1A Introduction To Auditing Theory-Acc 218

This document provides a module outline for an introductory auditing course at Midlands State University. The module aims to introduce students to auditing theory. Students must have basic accounting skills before taking this course. By the end of the course, students will understand the nature of auditing, the auditing profession, fundamental concepts and principles of auditing, and an overview of the audit process. Assessment includes in-class tests and an examination that evaluate students' comprehension, analysis, and application of auditing concepts.

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69 views2 pages

Midlands State University Faculty of Commerce Department of Accounting Module Outline-Auditing 1A Introduction To Auditing Theory-Acc 218

This document provides a module outline for an introductory auditing course at Midlands State University. The module aims to introduce students to auditing theory. Students must have basic accounting skills before taking this course. By the end of the course, students will understand the nature of auditing, the auditing profession, fundamental concepts and principles of auditing, and an overview of the audit process. Assessment includes in-class tests and an examination that evaluate students' comprehension, analysis, and application of auditing concepts.

Uploaded by

Artwell Zulu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MIDLANDS STATE UNIVERSITY

FACULTY OF COMMERCE

DEPARTMENT OF ACCOUNTING

MODULE OUTLINE-AUDITING 1A

INTRODUCTION TO AUDITING THEORY-ACC 218

Aim

This module aims at introducing the student to the theory of auditing

Pre-requisites

Candidates must have acquired basic accounting skills equivalent to those at Acc 107 and Acc
107 levels. Knowledge of Business Law is expected to complement the basic financial
accounting knowledge.

Module Objectives

By the end of the study, candidates should have mastery of the following areas:

The nature of the audit function


The audit profession
The fundamental audit concepts, postulates and principles
The approach to an audit
An overview of the audit process

Content:

1. The nature of the audit function

-the need for auditing services;


-types of audit engagements;
-the audit practice;
-audit postulates

2. The audit profession

-historical development of the audit profession;


-the governance of the public auditor;
-procedures for regulating the profession;
-the role of the professional auditor;
-the internal auditor and the external auditor
3. Fundamental auditing concepts and principles

-audit assurance;
-audit evidence;
-planning materiality;
-working papers;
-audit risk;
-inherent risk;
-sampling risk;
-detection risk;
-the relationship amongst the various sub-risks

4. Internal control system

-internal control concept


-organisational control;
-accounting systems and their inter-relationship,
-the design of the internal control system and compliance requirements;
-quality control in auditing;
-documentation in auditing in working papers;
-auditor’s reliance on the internal controls

5. An overview of the audit process

-pre-engagement activities and their importance;


-planning an audit;
-management’s assertions and how they interfere with the audit objectives;
-obtaining audit evidence and ultimate reporting

Assessment

Candidates’ coursework has a weighting of 30%. This is obtained through in class-


tests. The tests require a display of a combination of skills-comprehension of
concepts, analysis and synthesis of matter on hand and application of concepts or
principles. The examination is structured along similar lines carrying a weighting of
70%. Candidates are required to think outside the box.

Recommended reading list

I. International Standards in Auditing- Selected and relevant standards to the


introduction.
II. Puttick, Van Esch- The Principles and Practices of Auditing, Juta’ latest
edition
III. Loebbeck- Auditing, an integrated approach’ latest edition

This Module Outline is effective from August 2010

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