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: 
Revisjon, teori og metode
Product category: 
Master of Accounting and Auditing
2024 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 of financial statements in a time where accounting data and information increasingly is digitized and influensaen by international guidelines.

Learning outcomes - Knowledge

The course covers the basic auditing concepts and methodology as well as 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 methodological concepts such as materiality and risk based audit planning, understanding internal control, selection of audit procedures and designing audit programs, gathering of audit evidence, as well as reporting on the audit.

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 overall audit plan, judge and employ materiality guidelines, developing risk based audit programmes, perform 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.

General Competence

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
  • Understand the objective of the audit of financial statements and assurance services in an international perspective
  • 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 audit process
  • 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
  • Reporting on the audit
Teaching and learning activities

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.
Additional information

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.


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.


Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Exam category: 
School Exam
Form of assessment: 
Written School Exam - digital
Exam/hand-in semester: 
First Semester
Support materials: 
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
3 Hour(s)
Written examination under supervision.
Exam code: 
GRA 62191
Grading scale: 
Examination when next scheduled course
Type of Assessment: 
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.