SHE Level 3
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M3N425673
Module Leader Karen McFarlane
School Glasgow School for Business and Society
Subject Finance and Accounting
  • A (September start)

Pre-Requisite Knowledge

financial and management accounting, and financial accounting 2 or equivalent

Summary of Content

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 internationally and seeks to develop students' skills in auditing key aspects of financial statements. These issues are further developed in Advanced Audit in level 4.


Audit Theory and the contemporary audit environment The necessity for audit Concepts of auditing Auditor independence Auditor regulation and the role of professional bodies 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 Corporate Governance and the role of internal audit Application of audit techniques to specific system areas

Learning Outcomes

On successful completion of this module, the student should be able to:1. 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 coursework and in seminar discussions.2. Identify and critically analyse contemporary problems and issues in auditing, including ethical and professional issues. This will be reflected in the final examination, coursework and in seminar discussions.3. Demonstrate an understanding of the techniques and practices associated with contemporary auditing practice. This will be reflected in the final examination and/or coursework and in seminar discussions.

Teaching / Learning Strategy

The teaching/learning strategy has two interrelated elements. - Lectures introduce concepts, techniques and issues. - 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 attempts at past/mock exam questions. The learning and teaching strategy for the Audit module 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 extensively 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 rubric before submission of coursework for marking. B: Encouraging teacher and peer dialogue - Formative feedback is provided during seminars. Students are encouraged to seek feedback from the module team as required. 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 rubric is available for coursework, which will be handed out in advance and discussed with students 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. Students will be asked to identify their own action points, based on the feedback they have 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 final 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.

Indicative Reading

Books and articles (Note: the latest edition should be used): GRAY, I., MANSON, S. & CRAWFORD, L., 2015. The Audit Process: Principles, Practice and Cases, 6 th ed. Andover: Cengage Learning EILIFSEN, A., MESSIER JR, W., GLOVER, S. & PRAWITT, D., 2013. Auditing & Assurance Services, 3 rd international ed. London: McGraw Hill PORTER,B., SIMON, J. & HATHERLY, D., 2014. Principles of External Auditing, 4 th ed. Chichester:Wiley Supplementary journal, newspaper and magazine articles and websites as directed.

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: Working in small groups Critical academic writing Planning and managing workloads independently.

Module Structure

Activity Total Hours
Independent Learning (FT) 134.00
Lectures (FT) 24.00
Assessment (FT) 30.00
Seminars (FT) 12.00

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% 2000 word essay/case study