SHE Level 3
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M3N406664
Module Leader Wendy Mazzucco
School Glasgow School for Business and Society
Subject Finance and Accounting
  • A (September start)

Pre-Requisite Knowledge

Students should have covered M2N406712 FINANCIAL ACCOUNTING REGULATION and M2N412619 ACCOUNTING INFORMATION SYSTEMS, or equivalent.

Summary of Content

Rationale The module aims to give students an understanding of the theory underlying current auditing practice and explains the way in which the profession is structured. It also explores the way in which financial auditors practise in the UK and seeks to develop students' skills in auditing key aspects of financial statements. These issues are further developed in Contemporary Issues in Auditing in fourth year. Summary of content " The necessity for audit " Audit theory and the contemporary audit environment " Auditor regulation " The auditor and the law " Introduction to the risk-based audit approach


Audit Theory and the contemporary audit environment " The necessity for audit " Postulates and concepts of auditing " Auditor independence Auditor regulation " The role of professional bodies " The auditor and the law " Fraud and going concern " Audit reporting The risk-based approach to auditing " The search for audit evidence " Systems analysis work " Substantive testing, sampling and materiality " Analytical review work " Final review work

Learning Outcomes

On successful completion of this module, the student should be able to:" Demonstrate a critical understanding of the basic concepts and principles of auditing and their application to the contemporary external audit process. This will be reflected in the final examination and/or essay and in seminar discussions." Identify and critically analyse contemporary problems and issues in auditing, including ethical and professional issues. This will be reflected in the final examination and/or essay and in seminar discussions." Demonstrate an understanding of the techniques and practices associated with contemporary auditing practice. This will be reflected in the final examination and/or essay and in seminar discussions." Demonstrate the ability to make effective oral presentations in seminar groups. This will be reflected in the seminar discussions.

Teaching / Learning Strategy

Teaching/Learning Strategy The teaching/learning strategy has two interrelated elements. " Lectures introduce concepts, techniques and issues. " Tutorials/seminars provide a range of activities, some lecturer-led and some student-led, including discussion of concepts and issues, support for directed and independent learning, tackling of case studies in small groups and group and individual presentations. The learning and teaching strategy for APP reflects the learning outcomes and personal transferable skills they seek to achieve. It also derives from the need to obtain accreditation and exemption from professional examinations. The theory, concepts and environment of auditing are introduced at a basic level together with an introduction to audit methodologies and practical problems. Blackboard VLE is used to support class activities. Feedback strategy A: Facilitating the development of self-assessment Students will be asked to identify strengths and weaknesses in their own work in relation to the criteria set out in the marking template before handing the work in for marking. B: Encouraging teacher and peer dialogue The lecturer will review feedback at the tutorials where coursework and other work done by students will be handed back. In reviewing personal transferable skills such as presentation skills individually and in small teams the lecturer will provide constructive instant feedback in discussion with the rest of the class. Students will also be encouraged to discuss the comments they have been given with their peers and suggest strategies to improve their performance next time. C: Clarifying good performance A marking template is available for all student course and exam work, which will be handed out in advance and discussed with students in a tutorial prior to completion of the assignment. Anonymous examples of good, bad and indifferent work from previous cohorts of students will be handed out, together with markers' comments. D: Providing opportunities to close the gap between current and desired performance In providing feedback, the lecturer will provide action points for students to follow to enable them to improve their performance. At feedback sessions in tutorials students will be asked to identify their own action points, based on the feedback they have just received to involve students more in the generation and planned use of feedback. E: Delivering high quality information about their learning Feedback will be provided within three weeks of submission and will provide information on strengths, weaknesses and corrective action. F: Encouraging positive motivational beliefs and self esteem Feedback give to students will always be positive and constructive, with action points for improvement. Opportunities will be provided for students to receive individual feedback designed to encourage positive motivational belief and self-esteem. G: Providing information to teachers that can be used to shape the teaching Students will be asked to identify where they are having difficulty in assignments and in the course generally through the medium of the staff-student consultative group.

Indicative Reading

The main textbook will be the relevant chapters of The Audit Process (4th Edition), 2005 by Gray and Manson, published by Thomson. This will be supplemented by journal, newspaper and magazine articles and websites, including International Journal of Auditing, Accountancy, CA Magazine and the Financial Times. Supplementary reading: Principles of External Auditing (Second Edition), 2003, by Porter, Simon and Hatherly, published by Wiley

Transferrable Skills

On successful completion of this module, students shouldl have developed their ability to: " Work in small groups " Make solo oral presentations to seminar groups " Plan and manage their workloads independently.

Module Structure

Activity Total Hours
Assessment (FT) 10.00
Seminars (FT) 12.00
Lectures (FT) 24.00
Independent Learning (FT) 133.00
Directed Study 21.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 3.00 70.00 35% Unseen - 3 hr examination
Coursework 0.00 20.00 35% 2000 word essay
Coursework 0.00 10.00 35% Presentation in seminars