ACC402E Internal Control and Audit (E)

• Topics

  Internal control and auditing play a crucial role in ensuring reliable financial statements that serve as a basis for economic decision-making. This course provides students with an introduction to internal control and the audit of financial statements from both the company's and the auditor's perspectives. The course covers the entire audit process, from planning to completion.

  • Regarding internal control, the course covers the design, implementation, and evaluation of the company's internal control systems. 
  • Regarding auditing, the course addresses topics such as the role of auditing in a societal context, and performing audits in compliance with auditing standards, including key aspects such as materiality, risk assessment, gathering and evaluating audit evidence, and the preparation of the auditor's report.

• Learning outcome

  Upon completing the course, the candidate has acquired the following:

  Knowledge

  • Knowledge of companies' responsibility for establishing internal controls and documenting financial reporting. 
  • A solid understanding of modern internal control, including the COSO framework, and familiarity with SOX. 
  • Knowledge of mapping, risk assessment, and testing of internal controls. 
  • Understanding of the demand for auditing, the auditor's role in capital markets, and societal expectations of auditors. 
  • Understanding of the auditor's tasks and responsibilities, regulations, and frameworks. 
  • Knowledge of fundamental audit concepts such as materiality, audit risk, and audit evidence. 
  • Knowledge required to plan, execute, and conclude an audit engagement in accordance with relevant regulations. 
  • Knowledge of the significance of sustainability and climate considerations in the audit of financial statements.
  • Knowledge of responsible and efficient use of AI in the context of internal control and auditing.

  Skills

  • Ability to assess the risk of material misstatements in financial statements. 
  • Ability to map, perform risk assessments, and propose effective internal controls. 
  • Ability to plan an audit. 
  • Ability to execute an audit using various audit techniques, including sampling and data analysis. 
  • Ability to evaluate, conclude, and report the results of an audit. 

  General Competence

  • A strong understanding of the theoretical, regulatory, and practical foundations of modern internal control. 
  • A strong understanding of the theoretical basis, as well as the regulatory and practical knowledge required to conduct an effective audit. 
  • Ability to independently reason about key issues related to internal control and auditing. 
  • Ability to communicate subject matter.

• Teaching

  The teaching format consists of lectures, case studies/exercises, and independent study. Students' understanding of internal control and auditing is developed through their work with fundamental theories, concepts, and frameworks. These are applied to key issues and illustrated with practical cases and examples.

• Restricted access

  No restrictions.

• Required prerequisites

  None.

• Credit reduction due to overlap

  ACC402E cannot be taken in combination with ACC402N, MRR411, MRR411E, or BUS426X.

• Compulsory Activity

  1. A group-based assignment and/or group presentation (3-5 students per group). 

  2. Participation in at least 9 hours of case studies/exercises.  3 of the hours can be replaced with 3 hours of attendance at ordinary lectures.

  Repetition: 

  Previously approved mandatory coursework will remain valid even if the requirements for mandatory coursework are later amended. This also applies to previous courses with course codes BUS426X and MRR411X. Valid compulsory activities (work requirements) in ACC402N are valid as compulsory activities (work requirements) for ACC402E, and vice versa.

  For repetition during continued studies under Section 2-10 of the Regulations for Full-Time Studies at the Norwegian School of Economics, no mandatory coursework requirements apply.

• Assessment

  Four hour digital written individual school exam that covers the syllabus, including content in lectures and exercises. All answers can be written in Norwegian or English. 

• Grading Scale

  A - F

• Literature

  Eilifsen, Aa., W. F. Messier Jr., S. M. Glover, and D. F. Prawitt. 2014. Auditing & Assurance Services, Third International Edition, McGraw-Hill. 

  Lectures, assignments, and exercises are an important part of the course syllabus. 

  Assigned articles. 

• Permitted Support Material

  Calculator. 

  One bilingual dictionary (Category 1). 

  See also: Forskrift om fulltidsstudiene ved Norges Handelshøyskole Kap 4 https://www.nhh.no/for-studenter/forskrifter/https://www.nhh.no/for-studenter/forskrifter/ og informasjonen som er gitt her: https://www.nhh.no/for-studenter/eksamen/hjelpemidler-ved-eksamen/https://www.nhh.no/for-studenter/eksamen/hjelpemidler-ved-eksamen/