Auditing

BUS426E Auditing

  • Topics

    Topics

    What is auditing and why is it considered a corporate governance mechanism?

    How do auditors perform internal control tests?

    Why are risk assessment and materiality important concepts for the auditor?

    What is audit evidence? What are the documentation requirements for an audit?

    What is the planning process for an audit?

    How should the auditor determine whether accounts in the revenue and expenditure business process are materially misstated?

    What audit procedures are conducted at the end of an audit?

    What are the ethics codes for professional behavior in the auditing profession?

  • Learning outcome

    Learning outcome

    Knowledge

    • Understand the basic audit concepts.
    • Have knowledge of the demand for auditing and the audit's fundamental role in capital markets.
    • Have insight into auditing in an international perspective, the background for regulations and introduce auditing in the digital age.
    • Have good knowledge of the key content of important International Standards on Auditing (ISAs).

     

    Skills

    • Be able to plan an audit.
    • Be able to assess the risk of material misstatement.
    • Understand how audit evidence is obtained and evaluated to handle the estimated risks.
    • Understand the importance of the company's internal control.
    • Understand statistical and non-statistical audits.
    • Be able to apply audit concepts to revenue and inventory.
    • Review how the auditor concludes and expresses his opinion in the audit report.

     

    General competence

    • Have a good insight into the basic theoretical foundation, the regulatory and practical insight needed to carry out a modern and effective audit.
    • Have developed the ability to self-assess key audit issues.

  • Teaching

    Teaching

    Teaching follows the conceptual approach and content of the textbook that is adapted to the content of the International and Norwegian Audit Standards (ISAs). In addition to the lectures problem assignments are discussed.

  • Required prerequisites

    Required prerequisites

    None.

  • Credit reduction due to overlap

    Credit reduction due to overlap

    This course cannot be combined with BUS426N (norwegian version of the course), or MRR411

  • Requirements for course approval

    Requirements for course approval

    80% class attendance is required to take the final exam. It is expected that students will come to class prepared to participate in the class discussions. Homework will be collected each week. Students must turn in 80% of the homework at the end of the class period in order to be approved for the exam.

  • Assessment

    Assessment

    Four hour exam written in English.

     

    BUS426N/MRR411 can be re-taken under this code.

    Students who intend to re-take BUS426N/MRR411 should consult Canvas

    as lectures and literature differs between the courses.

  • Grading Scale

    Grading Scale

    A - F

  • Computer tools

    Computer tools

    None.

    Its learning will be used to distribute course information and handouts.

  • Semester

    Semester

    Spring.

  • Literature

    Literature

    Stuart, I. 2012 Auditing and Assurance Services: A Practical Approach. New York City, New York: McGraw-Hill Irwin.

    Olsen, C. 2017. A Study of Professional Skepticism. SpringerBriefs in Accounting. Springer.  Chapters from: Ross, A. 2017. The Industries of the Future. London: Simon & Schuster.  If students attended BUS426N/MRR411, the students are responsible to harmonize the content of the course and the content of the following book with the course content and book: Eilifsen, Aa., W. F. Messier Jr., S. M. Glover and D. F. Prawitt. (EMGP) 2014. Auditing & Assurance Services Third International Edition, McGraw-Hill.

Overview

ECTS Credits
7.5
Teaching language
English
Semester
Spring

Course responsible

Carmen Olsen, Department of Accounting, Auditing and Law