General Information
This subject introduces the principles and practices of external auditing in the public accounting domain within the framework of Australian and International Auditing Standards. This subject focuses on the critical analysis and application of the audit risk model, auditing standards and each phase of the audit process. Emphasis is also placed on ethical considerations, independence and corporate governance relevant to the practice of external auditing of corporate financial statements.
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Details
Academic unit: Bond Business School Subject code: ACCT71-305 Subject title: Auditing Subject level: Postgraduate Semester/Year: January 2023 Credit points: 10.000 -
Delivery & attendance
Timetable: https://bond.edu.au/timetable Delivery mode: Standard Workload items: - Seminar: x12 (Total hours: 24) - Seminar 1
- Seminar: x12 (Total hours: 24) - Seminar 2
- Personal Study Hours: x12 (Total hours: 72) - Recommended study time & reviewing materials
Attendance and learning activities: Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible. -
Resources
Prescribed resources: Books
- Robyn Moroney, Fiona Campbell, Jane Hamilton Auditing. 4th, Australia John Wiley and Sons
iLearn@Bond & Email: iLearn@Bond is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student. To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
| Academic unit: | Bond Business School |
|---|---|
| Subject code: | ACCT71-305 |
| Subject title: | Auditing |
| Subject level: | Postgraduate |
| Semester/Year: | January 2023 |
| Credit points: | 10.000 |
| Timetable: | https://bond.edu.au/timetable |
|---|---|
| Delivery mode: | Standard |
| Workload items: |
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| Attendance and learning activities: | Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible. |
| Prescribed resources: | Books
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|---|---|
| iLearn@Bond & Email: | iLearn@Bond is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student. To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au |
Enrolment requirements
| Requisites: |
Nil |
|---|---|
| Assumed knowledge: |
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge. Assumed Prior Learning (or equivalent):
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| Restrictions: |
Nil |
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Evaluate the purpose, nature and limitations of audits of general purpose financial statements and related regulation.
- Apply International Standards on Auditing or other relevant auditing standards, laws, and regulations applicable to an audit of general-purpose financial statements.
- Critically evaluate elements of the audit risk model and make informed decisions as to the appropriate audit strategy to be implemented, including the nature, timing, and extent of audit procedures.
- Apply methods that are used in audit engagements to inform judgements, make decisions and reach well-reasoned conclusions relevant to the sufficiency and appropriateness of audit evidence.
- Synthesise complex information related to audit evidence to determine the appropriate audit opinion to be issued, including relevant disclosures as appropriate.
- Demonstrate a comprehensive understanding of threats to compliance with the fundamental ethics principles and their application and remediation in a variety of auditing contexts.
- Communicate clearly and concisely when presenting and discussing knowledge and ideas related to auditing professional practice in formal and informal situations.
- Communicate complex auditing advice and ideas in writing to influence specialists and non-specialists.
Generative Artificial Intelligence in Assessment
The University acknowledges that Generative Artificial Intelligence (Gen-AI) tools are an important facet of contemporary life. Their use in assessment is considered in line with students’ development of the skills and knowledge which demonstrate learning outcomes and underpin study and career success. Instructions on the use of Gen-AI are given for each assessment task; it is your responsibility to adhere to these instructions.
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Assessment details
Type Task % Timing* Outcomes assessed Project A three-part, case-based, audit simulation project. Part A: 15% Week 6 1,2,3,6,7 Project A three-part, case-based, audit simulation project. Part B: Audit planning. 15% Week 9 1,2,3,7 Project A three-part, case-based, audit simulation project. Part C: Audit program and reporting considerations. 20% Week 12 1,2,3,4,5,8 Exercise Completion of a reflection workbook in which students identify attributes and traits acquired, achievement of subject learning outcomes, and reflect on their learning experience. 30% Week 13 1,2,8 Student Engagement In class decision making exercises. 20% Ongoing 1,2,3,4,6 - * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
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Assessment criteria
Assessment criteria
High Distinction 85-100 Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking. Distinction 75-84 Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas. Credit 65-74 Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above. Pass 50-64 Usually awarded to students whose performance meets the requirements set for work provided for assessment. Fail 0-49 Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines. Quality assurance
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
| Type | Task | % | Timing* | Outcomes assessed |
|---|---|---|---|---|
| Project | A three-part, case-based, audit simulation project. Part A: | 15% | Week 6 | 1,2,3,6,7 |
| Project | A three-part, case-based, audit simulation project. Part B: Audit planning. | 15% | Week 9 | 1,2,3,7 |
| Project | A three-part, case-based, audit simulation project. Part C: Audit program and reporting considerations. | 20% | Week 12 | 1,2,3,4,5,8 |
| Exercise | Completion of a reflection workbook in which students identify attributes and traits acquired, achievement of subject learning outcomes, and reflect on their learning experience. | 30% | Week 13 | 1,2,8 |
| Student Engagement | In class decision making exercises. | 20% | Ongoing | 1,2,3,4,6 |
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
Assessment criteria
| High Distinction | 85-100 | Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking. |
|---|---|---|
| Distinction | 75-84 | Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas. |
| Credit | 65-74 | Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above. |
| Pass | 50-64 | Usually awarded to students whose performance meets the requirements set for work provided for assessment. |
| Fail | 0-49 | Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines. |
Quality assurance
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Study Information
Submission procedures
Students must check the iLearn@Bond subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.
Academic Integrity
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Bond University utilises Originality Reporting software to inform academic integrity.Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
Accessibility and Inclusion Support
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Additional subject information
This is a compulsory subject for eligibility requirements for Certified Practising Accountants Australia (CPA Australia) and Chartered Accountants Australia and New Zealand (CA ANZ). As part of the requirements for Business School quality accreditation, the Bond Business School employs an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Subject curriculum
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Overview and Key Concepts
An overview of the demand for auditing, the audit engagement and the audit expectation gap. Also discussed is the role of different regulators in maintaining the quality of the audit industry and the relevance of auditing standards.
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Ethics, Auditor Independence and Legal Liability
Introduces the principles of professional ethics and auditor independence, including threats to independence and safeguards to minimise or mitigate those threats. Other concepts include the auditor’s relationship with others, legal liability to third parties, and client acceptance and continuance decisions.
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Risk Assessment
Highlights the audit risk model and the development of an audit strategy for the nature, timing and extent of planned audit testing. It includes the concept of materiality and risk of material misstatement, evaluating fraud risk, the going concern assumption, and other activities undertaken in this phase of the audit process.
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Internal Controls
Examines internal control systems, their objectives, the strengths and weaknesses of various controls and different techniques to document internal controls. Focus is also given to different levels of internal controls, specifically, those appropriate at the entity level and to the transactional level.
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Sampling and Testing Overview
Audit sampling is introduced, as well as sampling risks and the strengths and weaknesses of different sampling methods. Factors that influence the sample size and procedures to evaluate sample results are also explored.
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Testing Internal Controls
Techniques for testing internal controls and the decisions about the selection, design, nature, timing, and extent of testing are considered. Methods to evaluate the results of internal control testing is also considered.
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Audit Evidence
An explanation of audit assertions, identifying and appraising the different types of audit evidence an auditor can obtain. Also includes an introduction to the concept of sufficient, appropriate audit evidence and how an auditor may rely on the work of others.
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Performing Substantive Testing
Defines substantive analytical procedures and substantive tests of details procedures, linking procedures to audit assertions. Also considers different examples of substantive procedures.
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Substantive Testing
The relationship between the risk of material misstatement and the extent and timing of substantive procedures is examined. Substantive procedures for a range of balance sheet and income statement accounts are introduced.
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Completing the Audit
Procedures performed when completing an audit, including assessing going concern, subsequent events, unadjusted audit differences and audit reporting.