ACCT3000 Outline Auditing, Assurance and Risk Assessment PDF

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Faculty of Business and Law School of Accounting

Unit Outline

ACCT3000 Auditing, Assurance and Risk Assessment Semester 1, 2020

Unit study package code:

ACCT3000

Mode of study:

Internal

Tuition pattern summary:

Note: For any specific variations to this tuition pattern and for precise information refer to the Learning Activities section. Lecture: 1 x 1.5 Hours Weekly Workshop: 1 x 1.5 Hours Weekly This unit does not have a fieldwork component.

Credit Value: Pre -requisite units:

25.0 305229 (v.0) Advanced Financial Accounting 260 or any previous version OR ACCT2006 (v.0) Financial Reporting or any previous version

Co -requisite units:

Nil

Anti- requisite units:

Nil

Result type:

Grade/Mark

Approved incidental fees:

Information about approved incidental fees can be obtained from our website. Visit fees.curtin.edu.au/incidental_fees.cfm for details.

Unit coordinator:

Title: Name: Phone: Email: Location: Consultation times:

Dr Abhijeet Singh +61 8 9266 2382 [email protected] Building: 407 - Room: 432 Please Refer to Blackboard

Teaching Staff:

Name: Phone: Email: Location:

Dr Imran Haider +61 8 9266 3966 [email protected] Building: 407 - Room: 410A

Administrative contact:

Name: Phone: Email: Location:

Ms Eveline Indra +61 8 9266 2869 [email protected] Building: 407 - Room: 422a

Learning Management System: Blackboard (lms.curtin.edu.au)

Acknowledgement of Country We respectfully acknowledge the Indigenous Elders, custodians, their descendants and kin of this land past and present. The Centre for Aboriginal Studies aspires to contribute to positive social change for Indigenous Australians through higher education and research.

ACCT3000 Auditing, Assurance and Risk Assessment Bentley Campus 17 Feb 2020 School of Accounting, Faculty of Business and Law

Page: 1 of 14 CRICOS Provider Code 00301J The only authoritative version of this Unit Outline is to be found online in OASIS

Faculty of Business and Law School of Accounting 

Syllabus An overview of assurance and ethics, independence and corporate governance. Understanding of the company audit process including audit planning - the concepts of materiality and audit risk. The evaluation and testing of internal control systems and substantive audit testing of transactions and balances. The finalisation of the audit and audit reporting.

Introduction Welcome to Auditing, Assurance and Risk Assessmentfor Semester 1 2020! I hope that you find this a rewarding and interesting unit. The purpose of the unit is to introduce students to auditing, with the emphasis on practical auditing concepts, the auditor's decision -making processes and the appropriate audit procedures which auditors follow in different circumstances. The theme of the course is the external audit of reporting entities, from initial planning to final reporting in the context of a professional assurance environment. We will begin the course by examining the audit process in an overview format and we will regularly return to this overview to identify the stage of the audit process we are examining. A significant part of this course is spent examining the audit planning process, which is the most important aspect of the audit. To this end, we will examine a number of examples during lectures and workshops that analyse financial statements and identify the key risk areas from the auditor’s perspective. This is not very different from financial statement analysis studies you have completed in other areas of your degree. What is different is how we use this information in terms of the audit emphasis. Remember, auditors are not responsible for preparing the accounting information (i.e. the general purpose financial report). Their job is to audit the financial statements with a view to providing an audit opinion in accordance with Australian Auditing and Assurance Standards. Auditing is a challenging unit and students should be mindful of the following points: 1.The purpose of the lecture notes (available on Blackboard) is to give guidance on the various topics covered in the course. As it is impossible to cover every aspect of a topic in such notes, it is essential that students acquaint themselves thoroughly with a topic by reading the relevant sections of the prescribed texts and other reference material prior to attending lectures. 2.The key to success in Auditing is PRACTICE . Students will be assisted in this process by considering workshop questions that ask for the application of auditing concepts. Students should set aside a minimum of ten hours per week to complete the readings, workshop practice questions, workshop assessment and to study sufficiently to achieve the required level of understanding and competence in the unit. Depending on your ability and academic background, you may need to devote more or less time to this unit than the hours shown. For example, ESL (English is a second language)students may need to devote more time to reading and review tasks than the hours shown.

Unit Learning Outcomes All graduates of Curtin University achieve a set of six Graduate Capabilities during their course of study. These inform an employer that, through your studies, you have acquired discipline knowledge and a range of other skills and capabilities which employers would value in a professional setting. Each unit in your course addresses the Graduate Capabilities through a clearly identified set of learning outcomes. They form a vital part in the process referred to as assurance of learning. The learning outcomes notify you of what you are expected to know, understand or be able to do in order to be successful in this unit. Each assessment for this unit is carefully designed to test your knowledge of one or more of the unit learning outcomes. On successfully completing all of the assessments you will have achieved all of these learning outcomes. Your course has been designed so that on graduating you will have achieved all of Curtin's Graduate Capabilities through the assurance of learning processes in each unit.

ACCT3000 Auditing, Assurance and Risk Assessment Bentley Campus 17 Feb 2020 School of Accounting, Faculty of Business and Law

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On successful completion of this unit students can: 1

Explain the regulatory and ethical framework in which auditors operate

2

Analyse financial information to identify key risk areas and their impact on the audit approach

3

Apply appropriate audit procedures to key risk areas

4

Prepare and justify an audit opinion for a given set of circumstances

Graduate Capabilities addressed

Curtin's Graduate Capabilities Apply discipline knowledge, principles and concepts

Innovative, creative and entrepreneurial

Effective communicators with digital competency

Globally engaged and responsive

Culturally competent to engage respectfully with local First Peoples and other diverse cultures

Industry connected and career capable

Find out more about Curtin's Graduate Capabilities at the Curtin Learning and Teaching website: clt.curtin.edu.au

Learning Activities The strategies used in this unit to facilitate your learning process include lectures, workshops, case studies, a mid semester examination, and an independent final examination. Lectures Each lecture will cover the material for the topic as detailed inthe Program calenderof this unit outline. In this unit, it is highly recommended that you come prepared to each lecture. By doing this, you can maximise the value of attending lectures and can contribute readily to discussions, if any, concerning objectives and content. In addition, your ability to both understand and demonstrate understanding of the material through any lecture activities (cooperatively or otherwise) will be significantly enhanced if you are adequately prepared. To assist you in achieving these objectives, you will be provided access to the lecture material (i.e. PowerPoint slides) the week before each lecture. Workshops The workshops provide students with an opportunity to improve their understanding and technical competence by completing a range of questions and problems related to each topic. In addition, workshop participation encourages the development of oral communication skills, teamwork and group skills, as well as problem solving and critical thinking skills. To this end, students are encouraged (and expected) to contribute and participate at the workshops. To get maximum benefit from the use of workshops, you should be prepared in advance for each workshop by having (a) analysed the topic in advance (b) completed the required readings (c) completed the set questions and problems (d) drafted a set of questions concerning problems encountered during reading of the topic and/or preparation for workshops. In addition, one important aspect of using the workshops as a learning aid is the follow up. It really is in your best interests as soon as possible after the workshop to follow up on any aspects raised as a consequence of that workshop. You should ask yourself if you are satisfied that you have achieved the topic objectives. Were there any general issues that have not been addressed? Can you see how this topic relates to previous topics? Are there any technical or conceptual issues that are still causing you concern? Remember that what you get out of workshops is directly related to what you are willing to put into them by way of preparation and contribution. To assist you with this, the course material will keep closely to the required text.

Learning Resources Library Reading List

ACCT3000 Auditing, Assurance and Risk Assessment Bentley Campus 17 Feb 2020 School of Accounting, Faculty of Business and Law

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Faculty of Business and Law School of Accounting 

The Reading List for this unit can be accessed through Blackboard.

Essential texts The required textbook(s) for this unit are: l

Leung, P., Coram, P., Cooper, B.J., Richardson, P. (2019).Audit and Assurance(1st Ed), John Wiley & Sons Australia (ISBN:9780730363477)

(ISBN/ISSN: 9780730363477) l

CAANZ Auditing, Assurance and Ethics Handbook 2020: John Wiley & Sons Australia(ISBN:9780730384229) (ISBN/ISSN: 9780730384229)

l

Business Communication: A Handbook for Accounting Students and Graduates. Pearson Australia (ISBN: 9781488618789) (ISBN/ISSN: 9781488618789)

Recommended texts You do not have to purchase the following textbooks but you may like to refer to them. l

Moroney, R., Campbell, F., Hamilton, J. (2017). Auditing : A Practical Approach (3rdEd), John Wiley & Sons (ISBN:9780730364573) (ISBN/ISSN: 9780730364573)

l

Gay,R. and Simnett,R. (2018). Auditing & Assurance Services in Australia (7th Ed), McGraw Hill (ISBN: 9781760422035 ). (ISBN/ISSN: 9781760422035)

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Arens, A.., Best, P., Shailer,G., Fiedler, B.,Elder, R.(2017).Auditing, Assurance Services & Ethics(10th Ed),Pearson Australia(ISBN:9781488609138).

(ISBN/ISSN: 9781488609138)

Other resources This unit makes use of the Web -based learning resource, Blackboard. In Blackboard, you will find in electronic form: l l

l

PowerPoint slides for each workshop lecture; One practice/mock mid -semester and final examination paper, including suggested solutions and marking guide. This will be made available on Blackboard two weeks prior to the respective examinations. In “Announcements”, messages to you from time to time from the Unit Controller.

ACCT3000 Auditing, Assurance and Risk Assessment Bentley Campus 17 Feb 2020 School of Accounting, Faculty of Business and Law

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Assessment Assessment policy exemptions l

There are no exemptions to the assessment policy

Assessment schedule Task

Value %

Case Study

30%

Semester Test

20%

Final Exam

50%

1

2

3

Date Due Week: 5 & 14 Day: Monday, 23 March 2020 & Monday, 25/5/2020 Time: 6.00 PM Week: 6 Day: Saturday, 4th April 2020 Time: 1:00 PM Week: 16 & 17 Day: TBA Time: TBA

Unit Learning Outcome(s) Assessed

Late Assessment Assessments Extensions Accepted?* Considered?*

1,2,3

Yes

Yes

1,2,3

No

Yes

2,3,4

No

Yes

*Please refer to the Late Assessment and the Assessment Extension sections below for specific details and conditions.

Detailed information on assessment tasks 1. The case study assignment comprises of two parts. The first part constitutes 15% of the total assessment marks and is based on Chapter 3 of the prescribed textbook (Ethics, Independence and Corporate Governance). Students will be required to submit their case study - part 1 via Turnitin by 6pm, 23/3/2020(Monday). The second part to the case study constitutes another 15% of the total assessment marks. The second part involves writing a memorandum based on your planning and risk assessment as an auditor. You may also be required to provide recommendations on the audit approach to be used. Students will be required to submit their case study - part 2 via Turnitin by 6pm, 25/5/2020 (Monday). Both case study assignments will only be made known to students through Blackboard two weeks before the due date. Assessment will be based on the criteria in the Assignment Marking Guide (AMG) that will be uploaded on Blackboard.Feedback on the assignment will be uploaded through the online Assignment Marking Guide (AMG) on Blackboard.The instructions for submission of the assignments will be announced on Blackboard. The work you submit must be your own. Any plagiarism from other students’ work or from solutions circulating from ‘solutions manuals’ will result in an automatic zero score for the submission. Significant penalties are imposed where assignments are found to be plagiarised. The University policy on plagiarism and academic misconduct can be found on this webpage: http://academicintegrity.curtin.edu.au/local/docs/StudentPlagiarismGuide.pdf. 2. A mid-semester exam will be completed by you on 4/4/2020 (Saturday) commencing at 1.00pm. The mid-semester examination will be a restricted book examination (with the exception of the CAANZ Auditing, Assurance and Ethics Handbook - see section titled 'additional information') of one hour and thirty minutes plus 10 minutes reading time and will cover all course materials from Chapters 1, 2, 3, 4, 5 and 6. Please be at your respective venue by 12.30pm. The details of the exam venue(s) will be posted on Blackboard. The structure and format of the mid -semester exam is as follows: There will be 35 Multiple -Choice Questions worth 35 marks in total (i.e. one mark each) and one short -essay question worth 15 marks. This ACCT3000 Auditing, Assurance and Risk Assessment Bentley Campus 17 Feb 2020 School of Accounting, Faculty of Business and Law

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Faculty of Business and Law School of Accounting 

will then be scaled down to 20%. Students will be provided mock Mid - Semester exam paper which would provide details on the structure and format of the exam. Students can view their Mid Semester exam papers to receive feedback during the specific consultation hours that will be allocated. 3. The final examination will cover material from each of the topics in the unit. The examination will be a closed book examination (with the exception of the CAANZ Auditing, Assurance and Ethics Handbook – see section titled 'additional information') and be of three hours and ten minutes duration. Mock exam paper with the information about the format and structure of the final examination will be posted on Blackboard during study week. Students will not be given individual information about the examination. Given the weighting of the assessment, students are strongly encouraged to prepare a study program as soon as possible. This will assist you in keeping abreast with the lecture and workshop workload as well as subsequently assist you with your revision. The final examination will be held during the formal examination period. It is your responsibility to check the date and time of the final examination. University policy disallows information regarding the examination timetable to be given over the telephone and no final results are available prior to the Board of Examiners meeting held after the examination.

Pass requirements To pass this unit you must attempt all assessments and receive an overall grade of 5 or more and a mark greater than or equal to 50.

ACCT3000 Auditing, Assurance and Risk Assessment Bentley Campus 17 Feb 2020 School of Accounting, Faculty of Business and Law

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Assessment Moderation Fair assessment through moderation Moderation describes a quality assurance process to ensure that assessments are appropriate to the learning outcomes, and that students work is evaluated consistently by assessors. Minimum standards for the moderation of assessments are described in the Assessment and Student Progression Manual, available from policies.curtin.edu.au/findapolicy/

Pre-marking moderation l

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Unit Coordinator organises meeting with Tutors to consider and develop marking criteria. Feedback practices are discussed to seek consistency and fairness in the nature and extent of how feedback can be provided to all students. Model answers are prepared and considered in the consensus marking meeting. Meetings may be held face -to -face or online. Requirements of the Assessment task, and marking and feedback practices are explained to students. Where a marking rubric is provided, the document is shared with all students prior to the assessment task being undertaken.

Intra-marking / Post-marking moderation l

l l l

l

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A marking guide/rubric is used to minimise variation across the marking team. This also allows the individual marker to maintain consistency when marking multiple assessments. A sample of marked papers needs to be reviewed by the marker or Co -Assessor for consistency. Co- Assessor needs to check for marking consistency in a random sample of marked papers. Blind marking is used. A ‘clean’ assessment, devoid of marking annotations from the first marker, is provided to the second marker. The results of both markers are compared for consistency. Marking inconsistencies are identified if present and where anomalies are detected, the assessments are re-assessed. Unit Coordinator advises students of the moderation processes undertaken to ensure fa...