Overview

This unit provides a body of knowledge to understand the nature and diversity of audit and assurance engagements. The unit provides an insight on audit and assurance processes, the methodologies and procedures. It also examines the objectives of assurance engagements and current and future developments in assurance engagements. The environment within which the auditor or assurance practitioner operates, and the respective roles of the private and public-sector auditors and internal audit, are also discussed This unit integrates the materials from the CPA Program Professional Level segment titled Advanced Audit and Assurance and prepares students for the CPA examination. This is a core unit in the Master of Professional Accounting (CPA Specialisation) degree.

Requisites

Prerequisites
ACC60008 Accounting Systems and Reporting
ECO80001 Economics
FIN60003 Business Modelling and Analysis
LAW60003 Corporations and Contract Law
ACC80008 Managerial Accounting
FIN80005 Corporate Financial Management
ACC80019 Financial Accounting and Theory
ACC80020 Accounting, Organisations and Society

Rule

Pre-requisite
Before enrolling in this course you must be enrolled in this subject with CPA Australia as part of their CPA Program
AND
ACC60008 Accounting Systems and Reporting
AND
ECO80001 Economics
AND
FIN60003 Business Modelling And Analysis
AND
LAW60003 Corporations and Contract Law
AND
ACC80008 Managerial Accounting
AND
FIN80005 Corporate Financial Management
AND
ACC80019 Financial Accounting and Theory
AND
ACC80020 Accounting, Organisations and Society

Teaching Periods
Location
Start and end dates
Last self-enrolment date
Census date
Last withdraw without fail date
Results released date

Learning outcomes

Students who successfully complete this unit will be able to:

  • Critically evaluate the framework for assurance engagements in audit and review engagements and assurance engagements (other than audits or reviews)
  • Critically analyse the quality control standards for audit and assurance engagements, and the fundamental ethical principles for the auditing profession
  • Demonstrate coherent and advanced knowledge of the requirements of the audit, review and assurance standards that are applicable to audit and review engagements and assurance engagements (other than audits or reviews)
  • Apply the relevant auditing standards to the assessment for fraud and going concern in an audit of financial statements
  • Communicate proficiently and in professional practice and act as a leader or member of a team

Teaching methods

Hawthorn

Type Hours per week Number of weeks Total (number of hours)
Face to Face Contact (Phasing out)
Class
3.00 12 weeks 36
Unspecified Learning Activities (Phasing out)
Independent Learning
9.50 12 weeks 114
TOTAL150

Assessment

Type Task Weighting ULO's
AssignmentGroup 20 - 30% 2,3,5 
CPA ExaminationIndividual 30 - 40% 1,2,3,4 
TestIndividual 30 - 50% 1,2,3,4 

Content

  • Module 1: The Auditing and Assurance Framework: Overview of the current assurance environment - IFAC, IAASB and IFIAR; Regulation of auditing in Australia: FRC, ASIC, APESB and AUASB; International Framework for Assurance Engagements; and Code of Ethics for Professional Accountants -  importance of professional scepticism and professional judgment; types of assurance engagements; and impact a changing environment from evolving business models, enhanced disclosure requirements related to climate risks and the incorporation of technological innovations. 
  • Module 2: : Planning the Audit of Historical Financial Information: Auditing standards and application of ISAs; Terms of audit engagements; and Auditor independence for the audit of financial statements; Quality control of audits; Audit planning procedures - understanding the entity and its environment including the entity's internal controls and business risks; auditor's responsibility to consider fraud; assessing risk including significant risks; and responding to risks.
  • Module 3: Performing the Audit of Historical Financial Information: evidence-gathering procedures; sufficiency and appropriateness of audit evidence; test of controls and substantive procedures; data analytics; audit documentation; security and confidentiality; and the auditor's requirement to evaluate the audit evidence to ensure sufficient appropriate audit evidence is collected to inform the audit opinion.
  • Module 4: Conclusions and reporting Responsibilities for an Audit of Historical Financial Information:  Completion of fieldwork; management representation letter; subsequent events; analytical review of the financial statements; final review of sufficiency and appropriateness of evidence to inform conclusions; types of auditor’s opinions; and the auditors responsibilities for communication and reporting to stakeholders and those charged with governance.
  • Module 5: Other Assurance Engagements: The nature and characteristics of assurance services; continuous assurance services (from impact of IT and availability of data) performance engagements (Structure and responsibilities of a performance audit);  Internal audits; non-assurance services, including agreed-upon procedures, comfort letters and compilation engagements

Study resources

Reading materials

A list of reading materials and/or required textbooks will be available in the Unit Outline on Canvas.