GRA 6219 Auditing, theory and methodology

GRA 6219 Auditing, theory and methodology

Course code: 
GRA 6219
Accounting and Operations Management
Course coordinator: 
Flemming T. Ruud
Course name in Norwegian: 
Auditing, theory and methodology
Product category: 
Master of Accounting and Auditing
2018 Autumn
Active status: 
Level of study: 
Teaching language: 
Course type: 
One semester

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.

Learning outcomes - 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.

Learning outcomes - Skills

After finishing the course, the students should possess the knowledge to:

- plan and conduct an audit of financial statements in accordance with international auditing standards and practices of professional accountancy based on current theoretical knowledge, including developing the over all audit plan, judge and employ materiality guidelines, developing audit programmes, perform risk based audit procedures, and know how to gather audit evidence. The students should be able to evaluate the results of the audit and conclude by identifying inputs to the audit report

Learning Outcome - Reflection

Upon completion of the course the students should understand how audit professionals conduct an audit of financial statements and understand the challenges of being an auditor in terms of identifying potential misstatements in financial reporting and reporting on them to the board and general assembly.

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 process and requirements to students

The course has 36 hours of plenary lectures and the students are expected to read the literature before the lectures and digest the material lectured afterwards.


Software tools
No specified computer-based tools are required.

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 specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

Exam category: 
Form of assessment: 
Written submission
Support materials: 
  • Bilingual dictionary
3 Hour(s)
Written examination under supervision.
Exam code: 
GRA 62191
Grading scale: 
Examination when next scheduled course
Exam organisation: 
Ordinary examination
Total weight: 
Sum workload: 

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.