AUDITING - 2017/8

Module code: MAN3098

Module provider

Surrey Business School

Module Leader


Number of Credits


ECT Credits



FHEQ Level 6

JACs code


Module cap (Maximum number of students)


Module Availability

Semester 2

Overall student workload

Independent Study Hours: 117

Lecture Hours: 22

Tutorial Hours: 11

Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test 1 HOUR MIDTERM TEST (CLOSED BOOK) 30
Examination 2 HOUR EXAM (CLOSED BOOK) 70

Alternative Assessment

Not applicable

Prerequisites / Co-requisites


Module overview

The module offers a structured approach to the conceptual and practical principles of auditing.  It provides a real world perspective on current auditing practices with coverage of cutting edge developments and techniques

Module aims

To introduce students to the major issues in auditing theory and practice

To explain and analyse the nature of statutory audit and the key stages in the audit process

To illustrate audit concepts with case studies from well-known companies, such as Enron, Societe Generale and Madoff Investments

Learning outcomes

Attributes Developed
Knowledge and understanding of underlying auditing theory KCPT
Knowledge and understanding of some of the technical language and practices employed in the audit of company financial statements. KCPT
Knowledge and understanding of the nature, role and development of a profession and professional bodies, professional duties and ethics, professional independence, professional negligence and legal liability KCPT
Knowledge and understanding of the main stages of the typical audit process and developments in audit methodologies KCPT
Examination of auditing practices and techniques KCPT
Knowledge and understanding on the differences between external and internal auditing KCPT

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Module content

Indicative content includes:

Auditing overview: The audit market and the role of auditor
Ethics, independence and legal liability of auditors
Client acceptance
Audit Planning and risk assessment- understanding the entity and its environment including audit documentation
Concepts of audit risk and audit materiality
Internal control – the use of internal control systems by auditors, transaction cycles, tests of control, the evaluation of internal control components, communication on internal control
Substantive testing and analytical procedures
Audit evidence – the use of assertions by the auditor, audit procedures, the audit of specific risk items, audit sampling and other testing, computer assisted audit techniques
Audit opinion and reporting
Review – subsequent events, going concern, written representations, audit finalisation and the final review
Internal audit- the differences between the external auditor and the internal audit function, the scope of the internal audit function, outsourcing the internal audit department, internal audit assignments

Methods of Teaching / Learning

The learning and teaching strategy is designed to provide the students with the essential information, to help them structure the information and to be a source of explanation. Furthermore, short example – cases will be reviewed and discussed during the lectures in order to enhance students’ understanding and promote participation. Also, case studies will be discussed with the students. The case studies will cover the main audit scandals/frauds and other issues raised during the lectures. Doing so, students are expected to understand the importance of auditing and connect issues raised in the module with the “real world”. This learning and teaching strategy seeks to enhance students’ analytical and critical thinking.

The learning and teaching methods include 3 hour per week (2-hour lecture and 1-hour tutorial) x 11 weeks

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate understanding in the topics (both auditing theories and practical cases) raised during the lectures and the workshops. Thus, the summative assessment for this module consists of:

2 Hour Examination (Closed Book) during the formal Examination period
1 Hour Class Test (Closed Book) during Week 7 of the semester

The Class Test will examine student’s learning in topics covered during the first half of the semester, as the test will take place in Week 7. The test seeks to provide students with immediate feedback and prepare them for the final exam. Therefore, marks and feedback on the class test will be provided within 3 weeks. The 2 hour examination is designed to further examine students understanding and knoweledge of the topics raised during the lectures and workshops. Marking and feedback will be provided according to the university’s regulations.

In addition, the workshops can act as formative assessments, where it will possible to monitor students’ understanding through their participation in the discussion.

Formative assessment and feedback

Both lectures and workshops are designed in a way to improve students’ participation. Through short cases (in the lectures) and long case studies (in the workshops) students are encouraged to demonstrate understanding through their participation in the discussion

Reading list

Reading list for AUDITING :

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Accounting and Finance BSc (Hons) 2 Compulsory A weighted aggregate mark of 40% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2017/8 academic year.