APPLIES TO ACADEMIC YEAR 2016/2017

GRA 6219 Auditing, theory and methodology

Responsible for the course
Flemming Ruud

Department
Department of Accounting - Auditing and Business Analytics

Term
According to study plan

ECTS Credits
6

Language of instruction
English

Introduction
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.

Prerequisites

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

Other:
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

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