Content, progress and pedagogy of the module

This module provides a continuation for the intensive conceptual and applied introduction to Auditing I. The module provides the student with the advanced topics for performing audits of financial statements and for other assurance engagements. The Danish and international regulatory framework represents the basis for performing audits according to the international standards on auditing (ISAs).

The module then concentrates on the audit of sales, cash receipts, and the related income statement and balance sheet accounts. The appropriate audit procedures for accounts in the sales and collection cycle are related to internal control and audit objectives for tests of controls, substantive tests of transactions, and tests of details of balances. The student also learns to apply audit sampling to the audit of sales, cash receipts, and accounts receivable as the module covers performing additional tests to address presentation and disclosure objectives, summarising audit tests, reviewing audit documentation, and communicating with those charged with governance, and all other aspects of completing an audit.

The module also concentrates on the auditors´ liabilities (e.g. liability to pay damages, criminal liability, and disciplinary liability), which are related to the management (and company) liability.

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

• advanced topics on audit planning, ongoing tests and final procedures that lead to the audit opinion.
• practical approaches and auditing standards in relation to audit planning, risk and materiality, audit evidence and documentation as well as audit methods and evidence within the Danish and international framework.
• applicable Danish and international regulations in relation to audit reports and auditors’ responsibilities and ethics.

Skills

The objective is that the student after the module possesses the necessary skills to:

• explain and combine audit concepts, principles and methods in relation to specific audit issues.
• make tests for internal controls, make tests of transactions, and tests of account balances for accounting application.
• use statistical techniques in audit tests.

Competences

The objective is that the student after the module possesses the necessary competences to:

• identify, analyse, discuss and advise on general and specific issues related to international standards on auditing and other assurance engagements. And apply statistical sampling for audit tests.
• distinguish between test of controls, test of transactions, test of accounts balances and review for subsequent events.
• demonstrating what it means to engage in professional cooperation with external partner regarding specific auditing issues and supporting that different perspectives and considerations qualify the identified solutions.

Type of instruction

For information see § 17.

Exam

Prerequisite for enrollment for the exam

• Prerequisite for the exam is a submission of a series of assignments during the semester. This set of assignments (portfolio) is then the basis for the oral examination.

Exams