Module: Audit Principles & Procedures

Module Specifications.

Current Academic Year 2024 - 2025

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Date posted: September 2024

Module Title	Audit Principles & Procedures
Module Code	AC222 (ITS) / ACC1006 (Banner)
Faculty	DCU Business School	School	DCU Business School
Module Co-ordinator	Brid Murphy
Module Teachers	Barbara Flood, Caroline McGroary, Karen Ann Dwyer
NFQ level	8	Credit Rating	5
Pre-requisite	Not Available
Co-requisite	Not Available
Compatibles	Not Available
Incompatibles	Not Available

None
Array

Description

The purpose of this module is to introduce the student to the underlying theories, principles and practices of modern auditing. In doing so it will examine the modern auditing process and identify contemporary issues in auditing practice. It will provide students with the ability to assess audit risk and its component parts and evaluate a company's internal control systems and environment.

Learning Outcomes

1. Demonstrate comprehension of the role, responsibility and duty of the auditor as well as the purpose, benefits and limitations of auditing.
2. Identify relevant audit regulation and standards.
3. Assess the importance of ethics in auditing and the independence of the auditor.
4. Outline the main steps in the audit process.
5. Demonstrate the importance of audit planning and factors impacting on it.
6. Evaluate and assess audit risk and its constituent components.
7. Evaluate control procedures in an internal control system.
8. Critically assess current issues facing the auditing profession.

*Type*	*Hours*	*Description*
Workload	Full-time hours per semester
Online activity	24	combination of live lectures and asychronous activity
Independent Study	30	preparation for assessment
Independent Study	30	Lecture Preparation
Independent Study	41	Reading & Research
Total Workload: 125

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities

Nature, Purpose and Scope of an Audit
Definition of auditing, historical background, examination of the need for and theories of auditing, advantages, limitations of auditing, directors' responsibilities', responsibilities of the auditor, the audit report, types of audits, types of auditors

Audit Regulation
Role of the International Federation of Accountants (IFAC), International Auditing and Assurance Standards Board (IAASB), Auditing Practices Board (APB), Irish Auditing and Accounting Supervisory Authority (IAASA), Auditing Standards (ISAs), Statute, Professional Bodies

Auditor Independence
Introduction to ethics in auditing, the importance of the independence of auditors, the ethical code

The Audit Process
An overview of the planning, interim and final audit stages. introduction to audit evidence, audit objectives, audit procedures, working papers.

Planning an Audit
Appointment of auditors and the terms of engagement, planning the audit, audit risk and assessing the risk of material misstatement, understanding the entity and its environment, consideration of planning materiality, audit procedures in response to assessed risks.

Assessment of Accounting System
Definition and the responsibility of internal control, the importance and the limitations of internal control, components of internal control, procedures used to obtain an understanding of internal control, documenting internal control, preliminary assessment of internal control, tests of control, consideration of audit objectives and control procedures for individual audit objectives and control procedures for individual audit components (for example sales, purchases, stock, bank and cash, and payroll.)

Introduction to Current Issues
Discussion of the issues and challenges facing the accounting and auditing profession. Creative accounting and the auditors role in relation to fraud.

Expanded audit report
Introduction to the content in expanded audit reports: materiality and risk

Assessment Breakdown
Continuous Assessment	100%	Examination Weight	0%

Type	Description	% of total	Assessment Date
Course Work Breakdown
Assignment	n/a	100%	Week 6

Reassessment Requirement Type
Resit arrangements are explained by the following categories: Resit category 1: A resit is available for both* components of the module. Resit category 2: No resit is available for a 100% continuous assessment module. Resit category 3: No resit is available for the continuous assessment component where there is a continuous assessment and examination element.
* ‘Both’ is used in the context of the module having a Continuous Assessment/Examination split; where the module is 100% continuous assessment, there will also be a resit of the assessment
This module is category 1

Indicative Reading List

Cosserat, G. W. and Rodda, N.: 2017, Modern Auditing, 4th edition, Wiley,
Gray, I. and Manson, S.: 2011, The Audit Process, 5th edition, Cengage Learning,
Porter, B, Simon, J., and Hatherly, D.: 2008, Principles of External Auditing, 3rd edition, Wiley,
Martin Nolan and Christine Nangle: 2018, External Auditing and Assurance (3rd Edition), 3rd,

Other Resources

None