SHE Level 3
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M3N422788
Module Leader Karen McFarlane
School Glasgow School for Business and Society
Subject Finance and Accounting
  • A (September start)

Pre-Requisite Knowledge

Fundamentals in Financial Management, Financial Management for Decision Making or Financial Accounting and Financial Accounting & Corporate Reporting

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


-108 Audit Theory and the contemporary audit environment The necessity for audit 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

-108 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 APC 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. GCU Learn 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. GSBS will continue to use the advancement of GCU Learn as a blended learning tool through its teaching and learning as well as through engagement with students. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCULearn to ensure student support and information sharing. Students are provided with formative and summative feedback via a variety of mechanisms. Feedback on coursework is provided within 3 working weeks of submission. -108

Indicative Reading

-108 Books and articles: The main textbook will be the relevant chapters of The Audit Process (6th 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 Online sources: FCR web page: <> -108

Transferrable Skills

-108 By the end of this module students will have gained competence in the following key areas: Work in small groups Make solo/group oral presentations to seminar groups Plan and manage their workloads independently.

Module Structure

Activity Total Hours
Independent Learning (FT) 145.00
Lectures (FT) 24.00
Assessment (FT) 20.00
Seminars (FT) 11.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 3.00 70.00 35% 3 Hour formal unseen examination
Coursework 1 n/a 30.00 35% Individual Presentation