AUDITING - 2020/1

Module code: MAN3098

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 provider

Surrey Business School

Module Leader

SOPER Rhiannon (SBS)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 6

Module cap (Maximum number of students): N/A

Overall student workload

Independent Learning Hours: 117

Lecture Hours: 22

Tutorial Hours: 11

Module Availability

Semester 2

Prerequisites / Co-requisites

Students must have completed Company Financial Reporting MAN3081

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

  • Fraud

  • 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

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

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

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
1 Knowledge and understanding of underlying auditing theory KCPT
2 Knowledge and understanding of some of the technical language and practices employed in the audit of company financial statements. KCPT
3 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
4 Knowledge and understanding of the main stages of the typical audit process and developments in audit methodologies KCPT
5 Examination of auditing practices and techniques KCPT
6 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

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

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list
Upon accessing the reading list, please search for the module using the module code: MAN3098

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 2020/1 academic year.