Overview
This course examines the purpose, scope, and professional practice of external auditing and assurance. It addresses the role of auditors in capital markets, reasonable assurance, professional skepticism, independence, ethics, auditor responsibilities, auditing standards, and regulatory frameworks.
Students develop a foundational understanding of engagement acceptance, materiality, audit risk, client and business risk, internal controls, audit planning, evidence quality, sampling, analytical procedures, substantive testing, working papers, audit documentation, fraud considerations, subsequent events, going concern, and audit reporting.
Through case exercises, transaction testing, control walkthroughs, audit memoranda, and report analysis, students apply professional judgment to assess risks, select appropriate audit procedures, evaluate misstatements, document conclusions, and distinguish major audit opinions.
Learning Outcomes
- Explain the purpose, scope, and assurance framework of external auditing.
- Evaluate ethical, independence, and professional responsibility issues arising during audit engagements.
- Analyse inherent, control, and detection risk and explain their relationship within the audit risk model.
- Develop a basic risk-based audit plan addressing materiality, business risk, internal controls, and assessed audit risks.
- Select and justify appropriate audit evidence, sampling approaches, analytical procedures, and substantive tests.
- Perform basic transaction tests and control walkthroughs and document the results in appropriate working papers.
- Evaluate identified misstatements, fraud indicators, subsequent events, and going-concern considerations.
- Prepare concise audit memoranda that communicate procedures performed, evidence obtained, and conclusions reached.
- Distinguish major audit opinions and assess the circumstances in which each reporting outcome is appropriate.
Timetable
| Type | Length | Frequency | Period |
|---|---|---|---|
| Lecture | 2 hours | Weekly | All semester |
| Tutorial | 1 hour | Weekly | All semester |
| Workshop | 2 hours | Fortnightly | All semester |
| Practicum | 2 hours | Fortnightly | Second term |
Assessment Schedule
| Type | Description | Weighting |
|---|---|---|
| Assignment | Audit planning memorandum | 15.00% |
| Quiz | Audit standards and risk quizzes (5 × 2%) | 10.00% |
| Test | Mid-semester test | 20.00% |
| Deliverable | Control walkthrough and working papers | 15.00% |
| Assignment | Evidence evaluation and substantive testing case | 15.00% |
| Exam | Final examination | 25.00% |
Teaching Staff & Programs
This course is delivered jointly by faculty from the participating programs listed below. In line with the Douchewater Way, the University of Sexology tailors core instruction directly to each cohort's specific discipline — adapting curriculum to program needs rather than forcing students into a one-size-fits-all model. Learn more about our approach at The Douchewater Way.