GRA 6219 Auditing, theory and methodology


GRA 6219 Auditing, theory and methodology

Responsible for the course
Flemming Ruud

Department of Accounting - Auditing and Business Analytics

According to study plan

ECTS Credits

Language of instruction

The course is compulsory and provides students with the necessary theoretical and methodological tools that an auditor should possess.

Learning outcome
The course covers both the basic auditing concepts and methodology, and the International Auditing Standards (ISA). The students should learn to plan an audit of financial statements in accordance with international auditing standards and practices of professional accountancy based on current theoretical knowledge.


All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have spesific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

Compulsory reading
Arens, Alvin, Randal J. Elder og Mark S. Beasley. 2014. Auditing and assurance services: An integrated approach. 15ed. Upper Sadle River: Pearson Education

International Auditing Standards (ISA), IFAC

Recommended reading

Course outline
- Auditing, assurance services and related auditor services
- 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
- Quality requirements of the audit - including generally accepted auditing standards
- Issue the audit report, types of auditor’s reports
- Supervision and sanctions against the auditor

Computer-based tools
Not applicable

Learning process and workload
A course of 6 ECTS credits corresponds to a workload of 160-180 hours.

Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class that is not included on the course homepage/It's learning or text book.

Coursework requirements

The student can choose to answer the written examination in English or in Norwegian.

Form of assessment Weight Group size
Written examination 3 hours 100% Individual

Examination code(s)
GRA 62191 3-hour written examination accounts for 100 % of the final grade in GRA 6219.

Examination support materials
Bilingual dictionary
Permitted examination support materials for written examinations are detailed under examination information in the student portal @bi. The section on support materials and the use of calculators and dictionaries should be paid special attention to.

Re-sit examination
It is only possible to retake an examination when the course is next taught. The assessment in some courses is based on more than one exam code. Where this is the case, you may retake only the assessed components of one of these exam codes. All retaken examinations will incur an additional fee. Please note that you need to retake the latest version of the course with updated course literature and assessment. Please make sure that you have familiarised yourself with the latest course description.

Additional information
Honour code. Academic honesty and trust are important to all of us as individuals, and are values that are integral to BI's honour code system. Students are responsible for familiarising themselves with the honour code system, to which the faculty is deeply committed. Any violation of the honour code will be dealt with in accordance with BI’s procedures for academic misconduct. Issues of academic integrity are taken seriously by everyone associated with the programmes at BI and are at the heart of the honour code. If you have any questions about your responsibilities under the honour code, please ask. The learning platform itslearning is used in the teaching of all courses at BI. All students are expected to make use of itslearning.