Students

ACCG925 – Auditing and Assurance Services

2014 – S2 Day

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Kym Butcher
kym.butcher@mq.edu.au
Contact via kym.butcher@mq.edu.au
E4A 243
Friday 11am to 2pm
Lecturer
Fiona Foster
fiona.foster@mq.edu.au
Contact via Via email
E4A Level 2
Appointments Via email
Lecturer
Adrian Klamer
adrian.klamer@mq.edu.au
Contact via Via email
E4A Level 2
Appointments Via email
Lecturer
Garry Morris
garry.morris@mq.edu.au
Contact via Via email
E4A Level 2
Appointments via email
Lecturer
Steve Manton
steve.manton@mq.edu.au
Contact via Via email
E4A Level 2
Appointment via email
Credit points Credit points
4
Prerequisites Prerequisites
(ACCG923 or ACCG862) and (admission to MAcc(Prof) or MAcc(CPA) or MAcc(Prof)MCom)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This is a unit in auditing and assurance services which examines the process of auditing and the concepts which underlay the practice. Although the focus of attention is on audits of financial reports undertaken in compliance with the Corporations Act 2001, reference is also made to other forms of audit and assurance. The unit is intended to provide an overview of the audit process as it exists in Australia, and is consistent with International Auditing Standards. Students will be required to exercise judgement in order to identify and assess risks of material misstatement, to develop audit procedures that respond to those risks, and to form an opinion on the financial report based on the audit evidence obtained. The unit is both practical and theoretical, with students required to apply their knowledge to discussing cases developed from practice. Students will also be exposed to current research and contemporary issues in auditing and assurance.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Discuss the purpose of the audit function and the need for an audit.
  • Critically analyse and explain the professional, legal, ethical and regulatory framework within which audits and other audit related and assurance engagements are carried out.
  • Analyse case studies using professional judgment and the techniques used by auditors such as being able to perform a risk analysis, internal controls assessment, collect and evaluate sufficient appropriate audit evidence including the appropriate use of computer assisted audit techniques.
  • Synthesize audit events to analysis and determine the appropriate audit report.
  • Critique current developments in audit practice

General Assessment Information

What is required to pass the Unit?

To achieve a passing grade for the unit students MUST:

(i) Obtain an overall passing mark AND

(ii) Obtain a pass in the Final exam

Extensions and penalties for assessment tasks

No extensions will be granted and a mark of zero (0) will be awarded for assessments not attempted UNLESS a  Disruption to Studies Notification is made and approved.

Students are advised to familiarise themselves with the University’s Disruption to Studies Policy available at: http://mq.edu.au/policy/docs/disruption_studies/   policy.html.

If a Supplementary Examination is granted as a result of the Disruption to Studies process for either the Class test or Final examination,  the supplementary examination will be scheduled as per the determination of the Faculty. The Supplementary Examination will be of the similar format as the Class test or the Final examination.

A student may withdraw their Disruption to Studies Notification up to the point where the determination of whether it is Serious and Unavoidable has been made. After this determination, the student may not withdraw the Disruption to Studies Notification and must submit themselves to partake in the Supplementary Examination.

Other relevant Policies and procedures

Please refer to the Policies and procedures section below

 

 

 

Assessment Tasks

Name Weighting Due
Quizzes 15% Weeks 3, 5 and 12
Class test 20% Week 7 (Time & location TBA)
Group Case study 20% Monday 13/10 & Monday 20/10
Final examination 45% University Examination Period

Quizzes

Due: Weeks 3, 5 and 12
Weighting: 15%

Due: Weeks 3, 5 and 12

Weighting: 15%

Students are required to complete three online multiple choice quizzes. The quizzes will consist of 20 multiple choice questions to be completed in 30 minutes. The purpose of the quizzes is to encourage students to actively engage with the material covered in the Unit, provide students with timely feedback on their understanding of the key concepts regularly throughout the session and to compare students for the multiple choice component of the final exam. The quizzes are OPEN book, i.e., ANY material is permissible.

Criteria and standards

Every multiple choice question in each quiz will have only one (1) correct answer.

Submission and Materials covered

Links to each quiz will be available in the Weeks 3, 5 and 12 folders on the Unit webpage as follows:

Quiz 1 will be available online in Week 3 within the 72 hour period from 6pm Friday 22 August to 6pm Monday 25 August. Material covered includes lectures, tutorial questions and readings relating to Weeks 1, 2 and 3 inclusive.

Quiz 2 will be available online in Week 5 within the 72 hour period from 6pm Friday 5 September to 6pm Monday 8 September. Material covered includes lectures, tutorial questions and readings relating to Weeks 4 and 5 inclusive.

Quiz 3 will be available online in Week 12 within the 72 hour period from 6pm Friday  to Friday 7 November to 6pm Monday 10  November. Material covered includes lectures, tutorial questions and readings relating to Weeks, 6, 8, 9, 10 and 11 inclusive.

Quizzes may only be attempted once. Quizzes will be automatically submitted at the conclusion of the duration allowed for each quiz if a student does not submit their attempt within this time.

What is required to complete the assessment satisfactorily?

It is expected that students spend approximately 30-40 hours of study for this assessment task.

Extensions and penalties

Please see the information provided in the General Assessment information section.

 
On successful completion you will be able to:
  • Discuss the purpose of the audit function and the need for an audit.
  • Analyse case studies using professional judgment and the techniques used by auditors such as being able to perform a risk analysis, internal controls assessment, collect and evaluate sufficient appropriate audit evidence including the appropriate use of computer assisted audit techniques.
  • Synthesize audit events to analysis and determine the appropriate audit report.
  • Critique current developments in audit practice

Class test

Due: Week 7 (Time & location TBA)
Weighting: 20%

Due: In Week 7 (Time and location to be confirmed in Week 4)

Weighting: 20%

A 1.5 hour class test will be held in Week 7. The test is worth 20% of the final assessment for this Unit. The test will consist of short answer and case based questions and will include material covered up to the Week 6 seminar. The purpose of the class test is to provide students with practice on a summative assessment task for this Unit and provide feedback on their progress midway through the session.

Students will be allowed to take one double-sided A4 sheet of handwritten notes into the class test. Photocopied notes are not allowed. This sheet will be collected with the class test and will not be returned to students. Students are advised to take copies of their notes prior to the class test should they wish to retain a copy.

No calculators, dictionaries, books, or other materials or aids besides the one page of notes described above are permitted in the class test.

Criteria and standards

The class test will be marked based on the appropriate application of knowledge and skills to short answer and case based questions.

Submission

The class test will be held in Week 7. Please note that there are no seminars scheduled in Week 7. Students MUST make themselves available to take the class test. The class test venue (s) will be confirmed by Week 4. These details together with seating instructions will be provided to students closer to the date.

What is required to complete the assessment satisfactorily?

Students will be expected to undertake self-study study activities in preparation for the class test. It is expected that students spend approximately 40-50 hours of study for the test. It is aimed to have the tests returned for review and feedback provided to students during the Week 8 seminar. The class test is a confidential document, and class test scripts may not be retained  by students.

Extensions and penalties

Please see the information provided in the General Assessment information section.
On successful completion you will be able to:
  • Discuss the purpose of the audit function and the need for an audit.
  • Analyse case studies using professional judgment and the techniques used by auditors such as being able to perform a risk analysis, internal controls assessment, collect and evaluate sufficient appropriate audit evidence including the appropriate use of computer assisted audit techniques.
  • Critique current developments in audit practice

Group Case study

Due: Monday 13/10 & Monday 20/10
Weighting: 20%

Due: Monday 13 October 6pm 2014 and Monday 20 October 6pm 2014 

Weighting: 20%

Students are required to complete a case study assignment worth 20% based on a real life company. The assignment will consist of group and individual components. Details regarding the nature of the assignment and its requirements will be made available by the end of Week 2.

Criteria and standards

The marking rubic for both the group and individual components will be available within the assignment document.

Submission

Submissions for the group component must be made to Turnitin on iLearn by 6pm on Monday 13 October 2014. Submissions for the individual component must be made to Turnitin on iLearn by 6pm on Monday 20 October 2014.  Detailed submission instructions  will be provided in the case study assignment brief that will be made available on iLearn early in the session. Guidance on how to  submit a Turnitin assignment may be accessed from http://mq.edu.au/iLearn/student_info/  assignments.htm#turnitin.

Extensions and Penalties

No extensions will be granted. Late case studies submissions will be accepted up to 96 hours after the respective deadlines for the group and individual components. There will be a deduction of 25% of the total available marks made from the total awarded mark for each 24 hours period or part thereof that the submission is late (for example, 25 hours late in submission - 50% penalty). This penalty does not apply for cases in which a Disruption to Studies Notification is made and approved.

There will be a deduction of 25% of the total available marks made from the total awarded mark for the group component of the case study assignment for students who fail to form a group. It is the individual student’s responsibility to ensure that they are in a group by the end of Week 3. Further instructions on group formation will be provided in a seminar early in the session.

Without exception, any evidence of plagiarism discovered in submitted assignments will result in a detailed investigation and may result in a fail grade in the unit and exclusion from the University.

What is required to complete the assignment satisfactorily?

Students are expected to undertake independent and collaborative research, study and discussion for the case study. It is expected that students spend approximately 30-40 hours in completing this assessment task. It is aimed to have the case study marked and returned to students in the Week 12 seminar.
On successful completion you will be able to:
  • Discuss the purpose of the audit function and the need for an audit.
  • Critically analyse and explain the professional, legal, ethical and regulatory framework within which audits and other audit related and assurance engagements are carried out.
  • Analyse case studies using professional judgment and the techniques used by auditors such as being able to perform a risk analysis, internal controls assessment, collect and evaluate sufficient appropriate audit evidence including the appropriate use of computer assisted audit techniques.
  • Critique current developments in audit practice

Final examination

Due: University Examination Period
Weighting: 45%

Due: University Examination Period

Weighting: 45%

A final examination is included as an assessment task for this unit to provide assurance that:

  1. learning in the unit belongs to the student; and

  2. the student has attained the knowledge and skills tested in the exam.

The examination will cover topics across the entire course. Further information on the final exam will be provided in a seminar closer to the exam date.

Criteria and Standards

The final examination will be marked based on the appropriate application of knowledge and skills to multiple choice, short answer and case based questions.

Final Examination conditions

A 2 hour final examination will be held during the University Examination period.

Students will be allowed to take one double-sided A4 sheet of handwritten notes into the final examination. Photocopies notes are not allowed. This sheet will be collected with the final examination and will not be returned to students. Students are advised to take copies of their notes prior to the final examination should they wish to retain a copy.

No calculators, dictionaries, books, or other materials or aids besides the one page of notes described above are permitted in the final examination..

What is required to prepare for the final exam satisfactorily?  

Students are expected to spend approximately 40-50 hours of study for the final exam.

Please note that students MUST pass the final exam to receive a passing grade in this unit.  Students who wish to obtain feedback on the final exam should refer to guidelines relating to the Grade Review process available on the web page of the Faculty of Business and Economics.
On successful completion you will be able to:
  • Discuss the purpose of the audit function and the need for an audit.
  • Analyse case studies using professional judgment and the techniques used by auditors such as being able to perform a risk analysis, internal controls assessment, collect and evaluate sufficient appropriate audit evidence including the appropriate use of computer assisted audit techniques.
  • Synthesize audit events to analysis and determine the appropriate audit report.
  • Critique current developments in audit practice

Delivery and Resources

Seminars

The unit requires three hours of face-to-face teaching per week in the form of a three hour seminar. It should be emphasised that attendance at the seminar is a necessary but not sufficient condition for adequate examination preparation.

Each week all students should study the relevant materials prescribed and attempt the assigned seminar questions PRIOR to attending the class, and participate in class discussions regarding the concepts and their application in practical cases. The weekly reading and homework guide for the semester will be available on Monday 4 August. Lecture slides for the seminars will be available for the entire semester by Friday 8 August.

With the exception of the first week the seminar is divided into two parts. The first part of each seminar will comprise a lecture which aims to cover the key concepts of the unit material set for that week. These lectures will be critical to the coverage and understanding of the unit content. Although the auditing and assurance course is broken down into a number of segments, students should recognise that each segment / lecture forms part of the audit process. The second part of the seminar is designed to complement the lecture program by working through the practical seminar questions set for that week. When working through these questions it is expected that seminar participants will contribute to the discussion and raise particular issues or problems that they have had with the seminar questions. Remember that answers to these questions are not easily bracketed as “right” or “wrong” but are the product of a logical and well structured analysis.

Please note that solutions to the weekly seminar assigned questions will not be made available to students. Therefore it is imperative that students attend the weekly seminar in order to correct their work and to clarify any issues they may have in understanding the material assigned.

The timetable for classes can be found on the University web site at:  http://www.timetables.mq.edu.au/

Changes to student timetables may only be made through eStudent. Students wishing to change their allocated seminar should log onto to eStudent and enrol in a seminar where there is a vacancy. Any question of an administrative nature in relation to seminar allocations should be addressed to accg925@mq.edu.au.

 Student enrolments must be finalised by the end of Week 1, Friday 8 August 2014. No further changes may be made after this date.

Prizes

Details of prizes awarded by the Faculty of Business and Economics are available at:  http://www.businessandeconomics.mq.edu.au/undergraduate_degrees/prizes_scholarships

Required and Recommended Texts and/or Materials

The required texts for the Unit, which are available from the Co-op Bookshop are as follows:

Martinov-Bennie, N., Roebuck, P. and Soh, D. (2014) Auditing and Assurance: A Case Studies Approach, 6th  Edition, LexisNexis Butterworths, Sydney, Australia.

Gay, G. and Simnett, R. (2012) Auditing and Assurance Services in Australia, 5th edition, McGraw-Hill, Sydney Australia.

Additional required readings will also be made available on the Unit webpage.

Students are also expected to read relevant standards and guidance which are available online

at http://www.auasb.gov.au (ASAs, ASQC, ASRS, and AGS) and http//www.apesb.org.au (APES). These are also contained in the CPA and ICAA Auditing Handbook that are available for purchase as follows:

The Institute of Chartered Accountants Australia (2014) Auditing, Assurance and Ethics Handbook 2014, John Wiley & Sons Australia Ltd, Brisbane, Australia.

CPA Australia (2013) Auditing, Assurance and Ethics Handbook 2013, Pearson, Sydney, Australia

The following texts may be useful as additional references:

Arens, A., Best, P., Shailer, G., Fielder, B., Elder, R. and Beasley, M. (2011) Auditing, Assurance Services and Ethics in Australia: An Integrated Approach, 8th Edition, Pearson, Sydney, Australia.

Leung P., Coram, P., Cooper, B. and Richardson, P. (2011) Modern Auditing & Assurance Services, 5th Edition, John Wiley & Sons Australia Ltd, Brisbane, Australia.

Moroney, R., Campbell, F. and Hamilton, J. (2011) Auditing: A practical approach, 2nd Edition, John Wiley & Sons Australia Ltd, Brisbane. Australia.

Technology Used and Required

Students will need access to a personal computer and the internet to obtain seminar slides, additional readings, assessment details and notices from the ACCG925 iLearn site, as well as to complete and make submissions for the assessment tasks in this Unit.

The iLearn site this unit can be found at: http://iLearn.mq.edu.au

You are strongly encouraged to regularly visit the website to check for important announcement and use it as a resource to enhance your learning experience.

Unit Schedule

Week No.

Begin Date

Seminar Topic

Events and Submissions

1

4/8

Course overview AND Introduction to auditing and assurance services

 

2

11/8

Planning the audit, understanding the entity and assessing business risk

Group Assignment released

3

18/8

Analytical procedures and audit risk assessment

Online Quiz &

Finalise group members

4

25/8

Internal control evaluation and the role of mitigating controls

 

5

1/9

Audit assertions and audit materiality

Online Quiz

6

8/9

Audit evidence: use of procedures and using the work of others

 

7

15/9

No classes this week

Class test this week – day, time and location to be advised

Break

8

 

7/10

Review of Class Test

Audit Strategy

 

Monday 6/10 is a public holiday. Monday students are to attend another seminar this week and make an appointment to view their Class Test script with the Unit Coordinator.

The seminar is likely to be shorter this week because of the Class Test review. Students should use the additional time to finalise work on the Group Case Study.

9

13/10

Auditing in an IT environment: Internal control and CAATS

Group component of group assignment due: Monday 13/10/14 at 6pm via Turnitin

10

20/10

Completing the audit process and audit reporting

Individual component of group assignment due: Monday 20/10/14 at 6pm via Turnitin

11

27/10

Legal liability and ethics

 

12

3/11

Review of Group Assignment

Public sector and performance

Auditing (includes Energy Audit)

Online quiz

13

10/11

Current issues in auditing AND

Sample exam discussed in class

 

Learning and Teaching Activities

Seminars

Seminar slides will be available on ilearn for the semester by Friday 8 August. It is the individual student’s responsibility to download and print these slides. It is expected that students will read the materials and specified references prior to attending seminars. Using the concepts and techniques covered in seminars or references, students are required to prepare full solutions to weekly assigned seminar questions before attending their allocated seminar. The weekly seminar homework and reading guide will be made available on iLearn on Monday 4 August. Students are expected to participate in discussions in seminars as it allows them to review and/or clarify the learning material, benefit from the experience and thinking of other students, tests whether their understanding is sound, assists in developing critical thinking skills, as well as develops confidence in communicating. Solutions to seminar questions will only be available via discussion in seminars, i.e., the solutions will not be posted online.

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html

Assessment Policy  http://mq.edu.au/policy/docs/assessment/policy.html

Grading Policy http://mq.edu.au/policy/docs/grading/policy.html

Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html

Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html

Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.

In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Learning Skills

Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.

Student Services and Support

Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

Student Enquiries

For all student enquiries, visit Student Connect at ask.mq.edu.au

IT Help

For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/. 

When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.

Graduate Capabilities

PG - Discipline Knowledge and Skills

Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.

This graduate capability is supported by:

Learning outcomes

  • Discuss the purpose of the audit function and the need for an audit.
  • Critically analyse and explain the professional, legal, ethical and regulatory framework within which audits and other audit related and assurance engagements are carried out.
  • Analyse case studies using professional judgment and the techniques used by auditors such as being able to perform a risk analysis, internal controls assessment, collect and evaluate sufficient appropriate audit evidence including the appropriate use of computer assisted audit techniques.
  • Synthesize audit events to analysis and determine the appropriate audit report.
  • Critique current developments in audit practice

Assessment tasks

  • Quizzes
  • Class test
  • Group Case study
  • Final examination

PG - Critical, Analytical and Integrative Thinking

Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.

This graduate capability is supported by:

Learning outcomes

  • Discuss the purpose of the audit function and the need for an audit.
  • Critically analyse and explain the professional, legal, ethical and regulatory framework within which audits and other audit related and assurance engagements are carried out.
  • Analyse case studies using professional judgment and the techniques used by auditors such as being able to perform a risk analysis, internal controls assessment, collect and evaluate sufficient appropriate audit evidence including the appropriate use of computer assisted audit techniques.
  • Synthesize audit events to analysis and determine the appropriate audit report.
  • Critique current developments in audit practice

Assessment tasks

  • Class test
  • Group Case study
  • Final examination

PG - Capable of Professional and Personal Judgment and Initiative

Our postgraduates will demonstrate a high standard of discernment and common sense in their professional and personal judgment. They will have the ability to make informed choices and decisions that reflect both the nature of their professional work and their personal perspectives.

This graduate capability is supported by:

Learning outcomes

  • Discuss the purpose of the audit function and the need for an audit.
  • Critically analyse and explain the professional, legal, ethical and regulatory framework within which audits and other audit related and assurance engagements are carried out.
  • Analyse case studies using professional judgment and the techniques used by auditors such as being able to perform a risk analysis, internal controls assessment, collect and evaluate sufficient appropriate audit evidence including the appropriate use of computer assisted audit techniques.
  • Synthesize audit events to analysis and determine the appropriate audit report.
  • Critique current developments in audit practice

Assessment tasks

  • Quizzes
  • Class test
  • Group Case study
  • Final examination

Changes from Previous Offering

Based on student and staff feedback, the following changes have been introduced since the last offering of this unit: (i) Minor amendments to the timing of course delivery and assessment tasks to improve content understanding and the timeliness of feedback to students (ii) The group assignment has been modified to include both a group and individual component (iii) Students will be able to bring one page of handwritten notes into both the class tests and final exam (iv) Content has been updated where there have been developments in research and practice in Australia and internationally e.g. ASX Corporate Governance Council Guidelines, ASIC inspection program, integrated reporting, etc. and, (v) Additional readings from leading research journals will be available

Research and practice

This unit draws on current research and practice with additional relevant readings available on ilearn each week.

In addition, information regarding topical issues and developments in the auditing profession in Australia and internationally can be obtained through the following resources: