Advanced Audit and Assurance

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.

Learning outcomes

Teaching methods

Hawthorn

Assessment

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