Module Overview

See above 

External auditing and assurance

This section gives an outline of the evolution of external auditing and assurance, defining the basic terms and explaining the objectives of the auditor. The regulatory and legal environments are explained and an overview provided of the key legal cases that have shaped the auditor’s legal liability. Related Standards: ISA 200

Ethics, corporate governance and fraud

This section considers three key elements:(i) A discussion surrounding the overarching principles and supporting ethical provisions, including the concept of professional ethics and the importance of integrity, objectivity, and independence. General requirements and guidance are also discussed which includes compliance, the assessment and identification of threats, specific circumstances that give rise to threats and guidance on how to safeguard against such threats.(ii) The impact of corporate governance on the auditing profession is also discussed, to provide students with an appreciation of the UK Corporate Governance Code and the Irish Corporate Governance Annex and the impact of the Code on the performance of individual audit and on the auditing profession in general. (iii) The nature of fraud and the impact it has had on the auditing profession is examined, outlining the difference between fraud and error, types of fraud, the fraud triangle, and a discussion on who is responsible for the prevention and detection of fraud. This section also outlines the procedures the auditor is required to carry out with respect to detecting fraud impacting on the financial statements of an entity, their responsibilities regarding reporting actual or suspected fraud and the limitations of audit procedures regarding their ability to detect fraud and error. Related standards: Ethical Standard for Auditors (Ireland) 2017, ISQM1&2, ISA 240 and ISA 250.

Audit acceptance, continuance, planning and gathering audit evidence

This section examines the lifecycle of an audit from acceptance, planning and gathering of audit evidence.(i) Issues and activities facing the auditor prior to commencements of the fieldwork of the audit are discussed, which include considerations when deciding whether to accept or continue an audit engagement and specific planning requirements.(ii) Audit evidence, both general and specific, are discussed in relation to specific auditable classes of transactions and balances in the financial statements, the methods of obtaining audit evidence which are open to the auditor and how the auditor evaluates such evidence obtained. The importance of audit documentation is also considered. Related standards: ISA 210, ISA 220, ISA 230, ISA 300, ISA 320, ISA 500, ISA 505, ISA 510, ISA 520, ISA 530, ISA 540 and ISA 620.

Management assertions

The core concept of management assertions / audit objectives is introduced which is critical to the understanding of the audit process.

Risk assessment process

This section discusses the concept of risk, its related components, and the approach of the auditor regarding identifying and responding to such risk. The assessment of the risk of material misstatement in relation to the financial statements is considered, before designing a response to those risks, in particular significant risks. Related standards: ISA 200, ISA 265, ISA 315, ISA 320, ISA 330 and ISA 500.

Controls testing and substantive testing

This section firstly explores the internal controls for each business cycle, introducing the concept of the internal control system and its related components, the objectives of internal controls and their importance to both the client entity and the external auditor. The stages involved in reviewing the internal controls of the client entity are also discussed as is the communication process when the auditor identifies deficiencies in the control environment.Substantive testing techniques are also discussed in relation to each of the main business cycles, which includes validating transactions, balance, and disclosures at the assertion level in response to identified risks. The use of CAAT’s is alco considered in who they assist the auditor in carrying out audit procedures in the most effective and efficient way.Related standards: ISA 265, ISA 315, ISA 330, ISA 500, ISA 510, ISA 520, ISA 530, ISA 540 and ISA 620.

Audit completion and reporting

This section discusses audit procedures to obtain further audit evidence to draw conclusions and finalise the audit process. These include final analytical procedures, evaluation of misstatements identified during the audit, review of subsequent events, review of the going concern assumption, management written representations, review of final working papers, communication with those charged with governance and concluding on related parties. In relation to the audit report, the scene is set by examining legislative environments that govern audit reports before discussing the actual contents of an audit report. The auditors responsibility with respect to ‘other information’ in the financial statements is also clarified. Related standards: ISA 250, ISA 260, ISA 320, ISA 450, ISA 501, ISA 520, ISA 550, ISA 560, ISA 570, ISA 580, ISA 700, ISA 701, ISA 705, ISA 706, ISA 710 and ISA 720.

Current Trends

The impact of AI. Impact of Sustainability standards and status of assurance standards. Integrated Reporting

The teaching strategy for this module emphasises the need for the student to be actively engaged in the learning process, both in class and when they are studying in their own time. Students are encouraged to ask and answer questions during class, to complete self-test and review questions/scenarios in class as well as following solutions prepared by the lecturer. Where a new topic is introduced particularly in relation to the financial reporting cycles (e.g. revenue and receivables etc.) the lecturer uses brainstorming techniques to gauge what knowledge students already have in relation to the topic, that will enable them to apply auditing techniques. Brainstorming of topics highlights for students the link between various modules. Moodle is used to distribute notes to the students, publish past exam papers and suggested solutions and to add extra reading/viewing material relevant to the topic being studied. Sustainability reporting is a relatively new process, and it can be challenging to report consistent, reliable, and complete data as a routine, especially given the increasing number of disclosure requirements. The module will touch on such challenges such new disclosure pose for the auditor.

Module Content & Assessment
Assessment Breakdown	%
Formal Examination	70
Other Assessment(s)	30