EXTERNAL AUDITING
Syllabus
EN
IT
Learning Objectives
LEARNING OUTCOMES:
to provide basic knowledge about external auditing
KNOWLEDGE AND UNDERSTANDING:
to know the basic principles of financial statement auditing, with particular attention to risk identification and substantive procedures
APPLYING KNOWLEDGE AND UNDERSTANDING:
to be able to apply auditing procedures to real scenarios such as cash and banks, revenues, receivables, payables, equity
MAKING JUDGEMENTS:
to analyze the errors identified in the auditing process and conclude on the impact on the audit report
COMMUNICATION SKILLS:
ability to present the objectives and results of the auditing procedures
LEARNING SKILLS:
to have a comprehensive view of the audit process, from the acceptance of a new client to the issuance of the audit report
to provide basic knowledge about external auditing
KNOWLEDGE AND UNDERSTANDING:
to know the basic principles of financial statement auditing, with particular attention to risk identification and substantive procedures
APPLYING KNOWLEDGE AND UNDERSTANDING:
to be able to apply auditing procedures to real scenarios such as cash and banks, revenues, receivables, payables, equity
MAKING JUDGEMENTS:
to analyze the errors identified in the auditing process and conclude on the impact on the audit report
COMMUNICATION SKILLS:
ability to present the objectives and results of the auditing procedures
LEARNING SKILLS:
to have a comprehensive view of the audit process, from the acceptance of a new client to the issuance of the audit report
Prerequisites
Basic knowledge of accounting and financial reporting.
Program
1. Auditing and Audit quality:
a. Purpose of an external audit
b. Rules and regulations
2. Audit process:
a. Client acceptance and continuance
b. Risk:
i. Audit Risk
ii. Professional skepticism
iii. Analytical procedures
iv. Understanding the entity
v. Fraud
vi. Materiality
3. Substantive procedures:
a. Assertions
b. Audit Procedures and Audit Evidence
c. Test of controls
d. Bank and Cash
e. Receivables
f. Payables
g. Equity
h. Revenues
4. Completion and Review
a. Evaluation of misstatements
b. Subsequent events
c. Going concern
d. Written representations
5. Audit Report
6. Practical activities
a. Purpose of an external audit
b. Rules and regulations
2. Audit process:
a. Client acceptance and continuance
b. Risk:
i. Audit Risk
ii. Professional skepticism
iii. Analytical procedures
iv. Understanding the entity
v. Fraud
vi. Materiality
3. Substantive procedures:
a. Assertions
b. Audit Procedures and Audit Evidence
c. Test of controls
d. Bank and Cash
e. Receivables
f. Payables
g. Equity
h. Revenues
4. Completion and Review
a. Evaluation of misstatements
b. Subsequent events
c. Going concern
d. Written representations
5. Audit Report
6. Practical activities
Books
Auditing, 12th Edition, 2023 (Karla M. Zehms, Audrey A. Gramling, Larry E. Rittenberg)
Bibliography
Material presented during classes and available on the course portal
Technical articles uploaded on the course portal
IAASB: https://www.iaasb.org/
ICAEW: https://www.icaew.com/technical/audit-and-assurance/audit
ACCA: https://www.accaglobal.com/gb/en.html
Technical articles uploaded on the course portal
IAASB: https://www.iaasb.org/
ICAEW: https://www.icaew.com/technical/audit-and-assurance/audit
ACCA: https://www.accaglobal.com/gb/en.html
Teaching methods
Lecture approx. 50%
Exercises, Discussion and group presentations, guest lectures approx. 50%
Non-attending students will find the practical case and the presentation made by guest speaker will be make available on the course web page.
Exercises, Discussion and group presentations, guest lectures approx. 50%
Non-attending students will find the practical case and the presentation made by guest speaker will be make available on the course web page.
Exam Rules
The evaluation will be carried out as follows:
1. Attending students:
- Mid-term written exam: 30%
- Final written exam: 70%
or
2. Both attending and non-attending students:
- Final written exam: 100%
The content of format 1 and 2 is the same, and the duration of the exam will be proportional to the topics covered.
Additionally, factors such as proactive participation and answering optional questions assigned by the instructor may result in bonus points added to the final grade at the discretion of the course instructor on an individual basis.
There is no difference between the evaluation of attending and non-attending students, who can benefit from additional bonus points during the final exam.
Exam results will always be published anonymously on the course webpage, referencing only the student ID number, as soon as they become available.
The exam will be assessed according to the following criteria:
- **Fail** Significant deficiencies and/or inaccuracies in knowledge and understanding of the topics; limited analytical and synthesis skills, frequent generalizations, and limited critical and judgmental abilities. Topics are presented incoherently and with inappropriate language.
- 18-20: Just sufficient knowledge and understanding of the topics with possible generalizations and imperfections; sufficient analytical, synthesis, and judgmental skills. Topics are frequently presented incoherently, with language that is insufficiently appropriate/technical.
- 21-23: Routine knowledge and understanding of the topics; correct analytical and synthesis skills with sufficiently coherent logical arguments and language that is not always appropriate/technical.
- 24-26: Good knowledge and understanding of the topics; adequate analytical and synthesis skills with logically structured arguments expressed with sufficiently appropriate/technical language.
- 27-29: Comprehensive knowledge and understanding of the topics; significant analytical and synthesis skills. Good judgmental autonomy. Topics are presented rigorously and with appropriate/technical language.
- 30-30L: Excellent level of knowledge and deep understanding of topics. Outstanding analytical, synthesis, and judgmental autonomy skills. Arguments are expressed in an original yet rigorous manner with appropriate technical language.
1. Attending students:
- Mid-term written exam: 30%
- Final written exam: 70%
or
2. Both attending and non-attending students:
- Final written exam: 100%
The content of format 1 and 2 is the same, and the duration of the exam will be proportional to the topics covered.
Additionally, factors such as proactive participation and answering optional questions assigned by the instructor may result in bonus points added to the final grade at the discretion of the course instructor on an individual basis.
There is no difference between the evaluation of attending and non-attending students, who can benefit from additional bonus points during the final exam.
Exam results will always be published anonymously on the course webpage, referencing only the student ID number, as soon as they become available.
The exam will be assessed according to the following criteria:
- **Fail** Significant deficiencies and/or inaccuracies in knowledge and understanding of the topics; limited analytical and synthesis skills, frequent generalizations, and limited critical and judgmental abilities. Topics are presented incoherently and with inappropriate language.
- 18-20: Just sufficient knowledge and understanding of the topics with possible generalizations and imperfections; sufficient analytical, synthesis, and judgmental skills. Topics are frequently presented incoherently, with language that is insufficiently appropriate/technical.
- 21-23: Routine knowledge and understanding of the topics; correct analytical and synthesis skills with sufficiently coherent logical arguments and language that is not always appropriate/technical.
- 24-26: Good knowledge and understanding of the topics; adequate analytical and synthesis skills with logically structured arguments expressed with sufficiently appropriate/technical language.
- 27-29: Comprehensive knowledge and understanding of the topics; significant analytical and synthesis skills. Good judgmental autonomy. Topics are presented rigorously and with appropriate/technical language.
- 30-30L: Excellent level of knowledge and deep understanding of topics. Outstanding analytical, synthesis, and judgmental autonomy skills. Arguments are expressed in an original yet rigorous manner with appropriate technical language.