MRR445 Topics in Auditing

• Topics

  Part one: Audit judgments

  • Professional judgments
  • Accounting estimates, including fair value measurements
  • Analytical procedures
  • Use of specialists (experts) in the audit process

  Part two: Economic crime

  • Fraud detection
  • White-collar criminal behavior
  • Anti-money laundering
  • Corruption and anti-corruption measures

  Part three: Audit and assurance reporting

  • Materiality disclosure
  • Key Audit Matters (KAM)
  • Corporate sustainability reporting (CSR) assurance

  Part four: Audit regulation & markets

  • Auditor independence
  • Audit markets
  • Audit inspections

• Learning outcome

  Knowledge - upon successful completion the student

  • Know the components of and threats to good professional judgment.
  • Know how features of the audit team environment can impact good professional judgment. 
  • Know the significance of accounting estimates and audit reporting and be able to apply this knowledge in an audit
  • Know why specialists (experts) are needed, how they are used and be able to discuss new research related to how they interact with the audit team and auditees.
  • Know the professional obligations relating to fraud detection and required fraud procedures. 
  • Understand the current empirical knowledge about the who and why of accounting fraud. Be able to reflect how this relates to the audit process and auditors' ability to detect such crimes.
  • Understand the current anti-money laundering regulation, and its implications for the audit.
  • Understand the causes and consequences of corruption, how anti-corruption measures may reduce the risk of corruption, and the auditor's role in fighting corruption.
  • Understand Key Audit Matters (KAM) and its usefulness for investors and analysts.
  • Understand auditors´ materiality judgments and have insights into the effects of disclosure of materiality.
  • Understand current trends in CSR reporting and assurance, and what research tells us about its usefulness for investors and analysts.
  • Understand research on auditor independence
  • Understand how and why regulatory agents monitor and inspect financial statement audits.

  Skills - upon successful completion the student

  • Be able to apply good professional judgment in audits.
  • Understand modern analytical procedures available to auditors.
  • Know how to critically assess the expertise and potential bias of client´s specialists.
  • Be able to critically reflect on auditors ability to discover financial crimes, and learn the regulations that guide practice in this area.
  • Be able to critically reflect on how audit materiality affects the audit quality on engagements.

  General competence - upon successful completion the student

  • Have general professional practice competence through in-depth understanding of audit theory, audit concepts, and current challenging auditing issues
  • Is able to communicate with both specialist and non-specialists about the topics covered in the course

• Teaching

  The course covers research and professional literature as well as problems/cases. It is expected that you are prepared to each class (i.e., you have read the material in advance). In a graduate course, it is desirable to have significant instructor/student discussions.  

  There will be mandatory case lectures, where students either have to participate or deliver answers to case questions on a date set by the instructor. Student preparation for and participation in discussions of problems/cases are an important part of the learning process.

  The regular lectures will be a mix of pre-recorded video sessions available on Canvas, and regular class sessions. See Canvas for more information.

• Recommended prerequisites

  Auditing knowledge similar to MRR411 Revisjon I (auditing).

• Required prerequisites

  None

• Compulsory Activity

  Attendance at case lectures, or alternatively submission of answers to case questions at a date set by the instructor.

  In cases of repetition under postgraduate law pursuant to the regulations on full-time studies at the Norwegian School of Economics § 2-10, no requirements for course approval applies.

• Assessment

  This course has been discontinued. Assessement based on a valid course approval will be available in the autumn semester of 2021 and autumn semester of 2022.

  The assessment will be an individual term paper (100%)

  The term paper will be made available by 1 October, and the students will have 30 days to prepare an answer.  The term paper can be written in either Norwegian or English.

• Grading Scale

  Grading A - F

• Computer tools

  None

• Literature

  Research articles, professional articles, and audit cases posted on Canvas. The lectures and classes are considered part of the curriculum.

• Permitted Support Material

  • Calculator approved by NHHs exam regulations
  • Dictionary