SHE Level 4
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MHN406668
Module Leader Karen McFarlane
School Glasgow School for Business and Society
Subject Finance and Accounting
  • A (September start)

Pre-Requisite Knowledge


Summary of Content

Rationale The module aims to explore a number of the theoretical and practical issues introduced in Auditing Principles and Practice in a deeper and more critical way. Extensive use is made of journal articles in the theoretical aspects of the module and of case studies in the practical parts. Summary of content " Critical assessment of conceptual and legal and practical issues introduced in Auditing Principles and Practice. " External auditor relationships in corporate governance " Case studies on three main audit areas.


Conceptual, legal and practical issues " Auditing concepts: Audit expectations gaps " Auditor independence: Philosophical and practical dimensions " Audit regulation: The internal/external regulatory debate " The negligence/liability debate " Fraud and illegal acts: Critical assessment of the current situation " Audit reporting: The present report and alternatives " The risk-based approach to audit: Critical appraisal of business risk auditing Case studies in particular audit areas " Inventories " Sales/debtors cycles " Purchases/creditors cycles

Learning Outcomes

On successful completion of this module, the student should be able to:" Demonstrate a critical in-depth understanding of the principal theories, concepts and principles of auditing and their application to the contemporary audit process. This will be reflected in the final examination, the essay and in seminar discussions." Demonstrate a consolidated understanding of contemporary problems and issues in auditing, including ethical issues. This will be reflected in the final examination, the essay and in seminar discussions." Demonstrate the ability to apply techniques and skills to a range of practical auditing situations. This will be reflected in the final examination and in seminar discussions." Demonstrate the ability to make formal presentations on specialized auditing issues to a peer audience. This will be reflected in seminar discussions.

Teaching / Learning Strategy

Teaching/Learning Strategy The teaching/learning strategy has two interrelated elements. " Lectures introduce concepts, techniques and issues. " Student-led seminars provide a range of activities, 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 CAI reflects the need for honours students to be able to work independently and to further develop their ability to discuss, evaluate and critique topic areas. Theoretical and conceptual issues introduced in Auditing Principles and Practice are developed further and alternative theories and ideas are also addressed. Topics are introduced in a mixed classroom format, incorporating lecture material with opportunities for interaction, which is facilitated by the restriction on class size to 25 students. Students are expected to engage extensively in private reading and in discussions in order to be able to consider each topic fully. Seminars adopt a variety of teaching styles with an emphasis on student participation through group and individual presentations and informal discussion. 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 reading will be the relevant chapters in the prescribed textbook, The Audit Process (5 th Edition) 2011, by Gray and Manson, published by Thomson. This is the same textbook as was used in Auditing Principles and Practice but the material addresses the issues more conceptually. The prescribed reading will be extensively supplemented by prescribed articles from journals including International Journal of Auditing, Accounting Forum and Critical Perspectives on Accounting. Supplementary reading: Principles of External Auditing, 3rd Edition Brenda Porter David Hatherley Jon Simon August 2008

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) 22.00
Lectures (FT) 12.00
Independent Learning (FT) 84.00
Directed Study 72.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework 0.00 20.00 n/a 2000 word essay
Exam (Exams Office) 3.00 60.00 35% unseen - 3hr examination
Coursework 0.00 20.00 n/a contribution in seminars