MODULE CONTENT / EXAM FORMAT

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Audit and Assurance - AUD

Exam Format

3-hour open-book written examination (100%)

Module Content

Topic 1 Fundamental Assurance Concepts:
  • Assertions, Risk, Materiality, Evidence & Judgement
The Assurance & Audit Process:
  • Engagement, Planning, Fieldwork & Reporting
Topic 2 The Regulatory Framework:
  • Legal, Professional and Other Requirements
  • Legal liability
Topic 3 The Planning Phase:
  • Client acceptance and continuance
  • External / Strategic Risk Analysis and Materiality Planning
  • Special issues: going concern, fraud, related parties, earnings management
  • The Impact of Computerised Information Systems on Audit Planning & Procedures
  • Reliance on the Work of Other Parties
  • The Audit Plan and Audit Program
Topic 4 Evaluation of the Client?s Internal Control System:
  • Structure of internal control
  • Internal / Process Risk Analysis
  • The impact of computerised information systems on internal controls
Topic 5 Evidence Collection:
  • Business Performance Measures
  • Control tests and substantive tests
  • Computer Assisted Audit Techniques & Tools (CAATTs)
  • Sampling
  • Current Issues eg Auditing Fair Value Measurements and Disclosures, Derivative Financial Instruments
Topic 6 Completion & Reporting:
  • Contingencies
  • Subsequent events
  • Management representations
  • Closing financial statements review
  • The audit opinion and report
Topic 7 Other Types of Audits, Reviews & Reports
  • Compliance & operational audits
  • Environmental audits
  • Other financial information
  • Reviews of financial reports
  • Agreed-upon procedures
  • Compilation
  • Special audit reports
Topic 8 Assurance Services
  • Nature & characteristics of assurance engagements
  • Types of assurance services
  • The impact of technology

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