Monash University Handbook 2011 Undergraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

Synopsis

An introduction to auditing covering the responsibilities, functions and qualities of the auditor and some of the statutory matters. It covers a review of the audit process from planning to the completion of the audit and includes the going concern concept; fraud and error; audit evidence; engagement and planning; internal controls and substantive procedures; completion of the audit and special audit investigations. The tests of control and substantive tests performed on the following business cycles are also included: revenue and receipts; acquisitions and payments; inventory and production; payroll and personnel; finance and investment.

Objectives

The learning goals associated with this unit are to:

1. explain and describe the general principles of auditing, the responsibilities, functions and qualities of the auditor and illustrate knowledge of a proper background to auditing
2. explain and describe the audit process from planning to the completion of the audit, assess audit risk and determine materiality
3. explain and describe all the relevant issues regarding the going concern concept and reliance on other parties, and to apply these on various simulated practical situations/in various audits
4. identify, describe and examine internal controls in the context of external auditing, and to plan and apply that knowledge in simulated practical situations and to make recommendations in that regard
5. apply tests of control and substantive testing to the business cycles
6. apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with auditing and demonstrate in an individual summative assessment ask the acquisition of a comprehensive understanding of the topics covered in AFW2760.

Assessment

Within semester assessment: 30%
Examination (3 hours): 70%

Chief examiner(s)

Professor Anton Du Toit

Contact hours

3 hours per week

Prerequisites

Students must have passed one of the following: AFG1002, AFW1002 or BTW1201 before undertaking this unit.

Prohibitions

AFW2041, AFW3941, AFW3942