Auditing

Module title	Auditing
Module code	BEA3022
Academic year	2025/6
Credits	15
Module staff	Dr April Li ()

Duration: Term	1	2	3
Duration: Weeks	11

Number students taking module (anticipated)	80

Module description

Summary:

Auditing is of critical importance for the smooth functioning of financial markets and efficient allocation of resources. A number of high-profile corporate failures have, however, shaken the confidence of non-expert users in the external audit function (examples include Enron, WorldCom and Tyco (USA), Barings Bank (UK), Parmalat (Italy) HIH (Australia) and Satyam (India)).While a number of deficiencies in audit practice contributed to these scandals, much of the criticism directed at the audit profession can be attributed to the fact that the process followed by external auditors to reach a conclusion on a company’s financial statements is not well understood.

In this context, the aim of this module is to enable you to understand:

The nature and objectives of the audit function
The audit process
The concepts underlying, and the principles of, audit practice
Some of the current issues and challenges facing the audit profession

Additional Information:

Internationalisation

This module looks at the International Auditing Standards, which are applicable in most countries.

External Engagement

This module is accredited by major professional accounting and finance bodies, such as: ICAEW (Institute of Chartered Accountants in England and Wales), ACCA (Association of Chartered Certified Accountants), and ICAS (Institute of Chartered Accountants of Scotland).

Employability

This module equips you with practical auditing skills and the course feeds into the professional accounting qualification.

**It should be noted that the module is intended to provide you with a good understanding of the principles of external auditing and its value for society. The module is at an introductory level and will be useful for those interested in pursuing further studies towards a professional accounting/auditing qualification**.

Module aims - intentions of the module

The module aims to give you an understanding of the basic concepts and techniques relating to the execution of an audit of financial statements in terms of International Standards on Auditing and provides you with an understanding of the legal and ethical framework surrounding auditing.

The overall aim of the auditing module is to enable you to understand:

The nature and objectives of the audit function
The audit process
The concepts underlying, and the principles of, audit practice
Some of the current issues and challenges facing the audit profession

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

1. Explain the concept and principles of external audit and other assurance engagements such as sustainability assurance
2. Discuss emerging issues in the auditing arena and applicable regulatory requirements (such as the UK Company Act) concerning the appointment of auditors and execution of audit engagement
3. Explain the importance of ethical behaviour in the context of external audit and apply codes of professional conduct (including the Financial Reporting Council Ethical Standard) to identify threats to ethical behaviour and appropriate safeguards to address those risks
4. Discuss the procedures which an auditor follows before accepting a new audit client and the planning phase of an audit engagement
5. Assess risks of material misstatement at the overall/financial statement level and at the assertion level and explain the responses to these risks
6. Identify, explain and critically evaluate a companys internal controls
7. Identify, explain and recommend audit procedures and tools which can be used to obtain sufficient and appropriate audit evidence
8. Evaluate misstatements identified during the audit process, subsequent events, going concern assumptions and written representations
9. Explain different audit opinions and the impact of various issues on audit opinions
10. Discuss the reporting responsibilities to shareholders and to those charged with the governance of the reporting entity
11. Explain the nature and role of corporate governance and internal audit function in an organization

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

12. Critically evaluate arguments and evidence in accounting and auditing discourse
13. Analyse structured accounting and auditing problems logically and apply critical thinking, knowledge and skills to solve them

ILO: Personal and key skills

On successfully completing the module you will be able to...

14. Communicate effectively in writing, using appropriate technical terms and forms
15. Work independently and manage time effectively

Syllabus plan

1: Assurance & Regulatory Framework, including:

Audit of financial statements
Other assurance engagement such as sustainability assurance

Conceptual framework
Regulatory framework
The role of external auditors

2: Code of Ethics & Acceptance, including:

Fundamental principles of professional ethics
Other ethical considerations
Pre-engagement activities

3: Planning an Audit, including:

Gaining an understanding of the client
Assessing risk at the both overall and assertion level
Determining materiality
Audit strategy and plan

4: Internal Control, including:

Use and evaluation of systems of internal control
Test of controls
Communicate with management

5: Audit Process & Evidence, including:

Substantive testing
Audit sampling and other means of testing
Automated tools and technologies
The work of others
Not-for-profit organizations

6. Review & Reporting, including:

Evaluating misstatement
Subsequent events
Going concern
Written representations
Audit finalization and the final review
The independent auditor’s report

7. Corporate Governance & Internal Audit

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
32	118	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled learning and teaching activity	22	Lectures
Scheduled learning and teaching activity	10	Tutorials
Guided independent study	118	Reading and preperation for tutorials and assessments

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Assigned work for each tutorial (in groups or individually)	3 hrs preparation by the students/1hr in-class discussion	1-15	In class and suggested solutions on ELE

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
0	100	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
In-class test	20	1 hour	1-15	In class and suggested solutions on ELE
Written examination	80	2 hours	1-15	Suggested solutions on ELE

Details of re-assessment (where required by referral or deferral)

Original form of assessment	Form of re-assessment	ILOs re-assessed	Timescale for re-assessment
In-class test (20%)	In class test (20%) [1 hour]	1-15	Referral/Deferral Period
Written examination (80%)	Final examination (80%) [2 hours]	1-15	Referral/Deferral period

Re-assessment notes

** If you pass the module overall you will not be referred in any component – even if you have not passed one of the individual components.

Students who fail the whole module will be re-assessed with an in-class test and/or summer examination, whichever is relevant as above.

Indicative learning resources - Basic reading

The required text for the module is:

Büchling, M., Cerbone, D., & Maroun, W. (2023). Assurance, risk and governance: An international perspective. (3^rd ed.) Claremont, Cape Town: Juta & Company

Web-based and electronic resources:

www.ifac.org – Source of all International Standards on Auditing and Code of Ethics for Professional Accountants, and International Education Standards
www.frc.org.uk – Source of all International Standards on Auditing (UK and Ireland) and Ethical Standards
www.icaew.com , www.icas.com and www.accaglobal.com – Various publications of the key professional bodies in the UK

ELE – https://vle.exeter.ac.uk/course/view.php?id=10024

Key words search

Auditing, Auditors, External

Credit value	15
Module ECTS	7.5
Module pre-requisites	BEA2019 and BEA2020 (For UG students)
Module co-requisites	BEAM024 (For MSc Accounting & Finance students)
NQF level (module)	6
Available as distance learning?	No
Origin date	01/04/2013
Last revision date	28/01/2025