Course description

Auditing, theory and methodology

Introduction

The course is mandatory and provides the students with the necessary basic theoretical and methodological tools that an auditor should possess to perform an audit.

Course content

  • Auditing, assurance services and related auditor services
  • Understand the objective of the audit of financial statements
  • Economic demand for financial audits –legal regulation vs. market mechanisms
  • The role of auditing in a corporate governance perspective
  • Acceptance of audit engagements, content and formulation of engagement letter
  • Understanding the business, industry, legal aspects with consequence for the audit
  • The process of auditing
  • Audit planning, auditing of business processes
  • Considering materiality and risk assessments, business risk and the audit risk model
  • Considering internal control and judging control risk
  • Considering the risk of fraud, consequences for the auditing and reporting
  • Audit evidence and analytical auditing
  • Auditing of the main transactions cycles
  • Audit sampling, test methods, including the use of statistical methods
  • Review for contingent liabilities and subsequent events, going concern assessments
  • Audit of the board of directors' report, management reports
  • Audit reporting
  • Quality requirements of the audit - including generally accepted auditing standards

Learning outcome knowledge

The course covers both the basic auditing concepts and methodology, and the International Auditing Standards (ISA). The students learn how to plan an audit of financial statements in accordance with international auditing standards and practices of professional accountancy based on current theoretical knowledge including the main concepts such as materiality and risk based audit planning, identifying audit procedures, and gathering of audit evidence.

Exam organisation

  • Written exam: 100%