FN0309 Issues in contemporary auditing

Synopsis of Module

This module builds on the knowledge of the basics of audit gained FN0301, expanding the scope of the audit considered to include the audit of multi-national groups and public sector auditing. The module focuses on the contemporary and contentious issues surrounding the effectiveness of audit due to the limitations in the modern audit process and the ethical conflicts arising from the nature of audit as a business.

Students will further develop their ability to analyse U.K corporate reports, their understanding of complex reporting issues and to critically appraise and discuss audit issues.

The module is delivered through lectures, case study based seminars and discussions of exam type essay questions. Students learning is supported through the provision of self assessment questions and feedback on submitted work. Assessment will involve

A) An assignment applying audit techniques to a complex audit situation.

B) An Unseen examination critically discussing contemporary issues.

Aims of Module

The module aims to:

1.	Develop students ability to plan audits in complex situations and thus to deepen their understanding of financial reporting issues.

2.	Develop critical thinking through the evaluation of current audit issues.

Learning Outcomes

Student will be able to:

1.	Analyse a complex real life audit situation to identify audit risk, supported by independently researched data.

2.	Design (and justify) appropriate audit techniques to obtain audit evidence to support the formulation of the audit opinion.

3.	Recognise the subjectivity of audit evidence and conclude (supported by academic research) how this may be improved.

4.	Compare and critically appraise the academic debate on the future of the audit profession.

5.	Critically appraise the role of audit in corporate governance and public sector regulation.

Outline Syllabus

Auditing in Complex Situations

The audit of groups considering the special issues arising from the use of other auditors and the audit of foreign and loss making subsidiaries.

The audit of related party transactions, post balance sheet events and other final review issues.

Formulating a qualified opinion.

Problems with Audit Evidence

A critical appraisal of the theory of audit sampling, risk assessment and reliance on experts.

E-commerce assurance issues.

The role of audit on Corporate Governance

The role of internal audit and the audit committee: how odes external audit interact with this?

How does audit promote and support "good" corporate governance?

What is the role of the auditor in the prevention and detection of fraud?

The role of audit in Democracy

What is the role of Audit Commission and the National Audit Office?

What is the role of audit in the development of public sector regulation and what are the problems inherent with this?

Ethical Issues in Auditing

How does the nature of the audit business impact on audit ethics?

How does audit regulation promote or comprise confidence in audit ethics?

Why do audit ethics matter?

Summative assessment

Assessment A: Assignment (6 hours)

The weighting of this assessment is 25%

Assessment B: Examination - (Closed Book)

The weighting of this assessment is 75%