Excerpt from course description

Audit Theory and Methodology


The course aims to give students a deeper understanding of the theoretical and methodological basis for the subject area of financial auditing and how it is practised.

Course content

  • Auditing, certification and assurance services and connected auditor tasks
  • The objective of the audit
  • Comprehension of the need for financial audits – legal regulation vs. market mechanisms
  • Acceptance of audit assignments, content and formulation of appointment letter, including an understanding of the company’s activities, legal conditions
  • The role of auditing in a corporate governance perspective
  • The audit process
  • Strategic planning of auditing, auditing of business processes
  • Detailed understanding of materiality and risk assessments, including organizations’ business risk, with consequences for the audit and the audit risk model
  • The auditor’s assessment of the client’s internal control (must be considered in connection with the course Auditing III and IV)
  • Types and combinations of audit evidence for various audit areas
  • Analytical auditing
  • Audit of the sales and collection cycle
  • Samples for testing, random checks and test methods, including the use of statistical random checks
  • Assessment of faults and irregularities, discovered violations of the law, consequences for further auditing and reporting
  • Latent obligations
  • Events after balance sheet date
  • Assessments of the conditions for continued operations
  • Audit of the board’s annual report, management obligations
  • Quality requirements of the audit (including generally accepted auditing standards)
  • The auditor’s reporting to external users, formulation of the auditor’s report, types of auditor’s reports
  • Sanctions against the auditor


This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.