Auditing

Half module

MOMN042H6

Convenor: Mrs Zhiqi Wang

This course provides an introduction to auditing concepts, and the syllabus includes the nature, role and objectives of auditing, statutory and regulatory framework, auditor independence and responsibility, audit reporting and audit methodology.

Aims

On this module, we aim to provide you with an introduction to auditing concepts and methodologies underlying the auditors' opinion on the financial statements of UK companies, within the overall regulatory framework for financial reporting in the UK.

Learning objectives

By the end of this module, you should be able to:

• explain the following:
  • the nature, role and objectives of external auditing of limited companies;
  • the statutory and regulatory framework;
  • auditor independence and responsibility;
  • audit reporting;
  • audit methodologies;
  • links with governance, internal control and the internal auditing function;
• relate the audit process to the wider regulatory framework for reporting by UK companies;
• discuss and critically evaluate current developments in company auditing;
• analyse and evaluate audit evidence and formulate practical audit responses and judgements.

Assessment

One three-hour written examination (75%) and coursework (25%). The coursework will require students to cover both the practical aspects of auditing and auditing theory, concepts or current developments.

Recommended reading

Please note that reading lists may be altered: you will be informed in the first class which books you should purchase. If you wish to buy books in advance, please only purchase those books marked 'main text'.

Main text

• Gray, I. and S. Manson (2008) The Audit Process: Principles, Practice and Cases. fourth edition. Cengage Learning EMEA.

Supplementary reading

• Cosserat, G. (2000) Modern Auditing. Wiley.
• Lee, T.A. (1993) Corporate Audit Theory. Chapman & Hall.
• Porter, B., J. Simon and D. Hatherly (1996) Principles of External Auditing. Wiley.
• Sherer, M. and S. Turley (1997) Current Issues in Auditing. Paul Chapman.