Vous êtes sur la page 1sur 8

71 NGU HANH SON ST, DANANG, VIETNAM

phongdaotao@due.edu.vn
+84-511-3950227
http://due.udn.vn/

1. Course Title: AUDIT OF FINANCIAL STATEMENTS 1


2. Course Code: AUD3001
3. Credit Number: 3
4. Level: Undergraduate
5. Prerequisite: AUD2001 –Principles of Auditing
AUD3004 – Internal control
6. Course Overview:
This course provides students with detailed knowledge related to three stages of
the process of a financial statement audit, including planning, performing and
completing. Upon completion of the requirements of this module, students will
be able to apply appropriate audit procedures to major business cycles and
account balances of financial statements.
7. Course Objectives:
N0 Objectives
To differenciate fundamental features of an audit of financial
1 OBJ1
statements with other audit types..
To interpret the major audit activities that must be taken in the
2 OBJ2
process of an audit of financial statements.
To apply audit concepts and techniques in the audit of financial
3 OBJ3
statements.
To make professional judgments on issues in the financial statement
4 OBJ4
audit.

8. Learning Outcomes:

Sequence Learning Outcomes (LO)


LO 01 To interpret responsibilities of auditors and audit firms required in the
financial statement audit.
LO 02 To apply basic audit concepts and audit evidence gathering techniques
to the three stages of financial statement audit process in accordance
with applicable auditing standards.
LO 03 To analyse business activities and stategies, accounting information
and internal control system to assess risks of material misstatements
in financial statements, and design appropriate responses to those risks.
LO 04 To evaluate the relevance of professional judgement on issues in

Page 1 of 8
71 NGU HANH SON ST, DANANG, VIETNAM
phongdaotao@due.edu.vn
+84-511-3950227
http://due.udn.vn/

financial statement audits.


LO 05 To build in the ability to self-study, communicate clearly and think
critically.

Relationship between learning outcomes (LO) and course contents

LO1

LO2

LO3

LO4

LO5
Chapter

1 x x x
2 x x x x
3 x x x
4 x x x
5 x x x

9. Time Allocation:(1 credit= 15 periods)


Number of periods
Practical
Chapter Chapter Title
Lecture work/ Total
Discussion(*)
Overview of the audit of financial
1 3 0 3
statements
2 Planning an audit of financial statements 6 3 9
Audit testing and sampling in the audit of
3 6 3 9
financial statements
Performing audit procedures for main
4 9 6 15
financial statement cycles
Completing an audit of financial
5 6 3 9
statements
Total 30 15 45

Notes: Number of practical work/discussion periods, in reality, is twice of the


designed period number of practical work/discussion.

Page 2 of 8
71 NGU HANH SON ST, DANANG, VIETNAM
phongdaotao@due.edu.vn
+84-511-3950227
http://due.udn.vn/

10. Requirements for Students:


- Reading required learning materials and preparing homework;
- Participating in classes (lectures and tutorials), required tests and final
exams.
11. Learning Materials:
11.1 Required Textbooks:

TEXT1. Auditing and Assurance Service: A Business Risk Approach, Ch. Jubb,
L. E. Rittenberg, K. M. Johnstone and A. Gamling, Cengage Learning
(2012).
TEXT2. Auditing and Assurance Services: An Integrated approach, A. A. Arens,
R. J. Elder and M. S. Beasley, Pearson Prentice Hall (2014).

11.2 Other Readings and Materials:


MTR1. The Audit Process: Principles, Practice and Cases, I. Gray and S.
Manson,Cengage Learning (2011).
MTR2. Vietnamese Standards on Audit, promulgated in the Circular N0
214/2012/TT-BTC of Minister of Finance.

12. Grading Scale:


A = 8.5 to 10 B = 7.0 to 8.4
C = 5.5 to 6.9 D = 4.0 to 5.4 F = below 4.0

13. Teaching Methods:


- The lecturer delivers lectures and raises issues for students to discuss in class.
- Students are encouraged to develop self-study skill through reading text
books before classes and doing homework.
- Diagnostic tests composed for every lesson enable lecturers to decide which
lesson contents need in-depth explanation. In tutorials, students actively
participate in class discussion and raise questions, whereas the lecturer plays as
a moderator.

14. Course Content:


CHAPTER 1
OVERVIEW OF THE AUDIT OF FINANCIAL STATEMENTS

1.1. Definition of the audit of financial statements and audit objectives

Page 3 of 8
71 NGU HANH SON ST, DANANG, VIETNAM
phongdaotao@due.edu.vn
+84-511-3950227
http://due.udn.vn/

1.1.1 Definition of the audit of financial statements


1.1.2 Audit objectives
1.2. Approaches to auditing financial statements
1.2.1 Substantive approach
1.2.2 International control reliance approach
1.3 Overview of process of the financial statement audit
1.3.1 Planning the audit of financial statements
1.3.2 Performing audit procedures
1.3.2 Completing the audit of financial statements
1.4 Segmenting an audit
1.4.1 Account balance approach
1.4.2 Financial statement cycle approach

Reading Materials
MTR1. Chapter 6, Auditing and Assurance services: An Integrated approach,
A. A. Arens, R. J. Elder and M. S. Beasley, Pearson Prentice Hall
(2014).
Do homework after class:
+ Chapter 6 (Arrens et al., 2014): 6-26, 27, 28, 29, 30, 31, 32.

CHAPTER 2
PLANNING AN AUDIT OF FINANCIAL STATEMENTS

2.1. Evaluation of the acceptance and continuance of client


relationships
2.1.1 Factors influencing on evaluation of the acceptance and continuance
of client relationships
2.1.2 Evaluation of new client acceptance
2.1.3 Evaluation of old client continuance
2.2 Audit contract
2.2.1 Issues should be considered before signing an audit contract
2.2.2 Audit contract terms
2.3 Understanding the entity and its environment
2.3.1 Understanding the entity’s environment
2.3.2 Understanding the entity’s business, ownership form, organisation
structure and accounting system
2.3.3 Evaluation of business risk
2.4 Preliminary analytical procedure

Page 4 of 8
71 NGU HANH SON ST, DANANG, VIETNAM
phongdaotao@due.edu.vn
+84-511-3950227
http://due.udn.vn/

2.5 Understanding the entity’s internal control system


2.5.1 Understanding internal control environment
2.5.2 Understanding procedures of business risk evaluation
2.5.3 Understanding information system involving in preparation and
presentation of financial statements
2.5.4 Understanding control procedures related to the audit of financial
statements
2.5.5 Understanding oversight process of internal control activities
2.5.6 Evaluating control risk
2.6 Assessing materiality and audit risk
2.6.1 Materiality assessment
2.6.2 Audit risk assessment
2.6.3 Relationship between materiality and audit risk
2.7 Overall audit strategy and audit program
2.7.1 Overall audit strategy
2.7.2 Audit program
Reading Materials
MTR1. Chapter 5 and 6, Auditing and Assurance Service: A Business Risk
Approach, Ch. Jubb, L. E. Rittenberg, K. M. Johnstone and A.
Gamling, Cengage Learning (2012).
MTR2. Chapter 9 and 13, Auditing and Assurance services: An Integrated
approach, A. A. Arens, R. J. Elder and M. S. Beasley, Pearson
Prentice Hall (2014).
Do homework after class:
+ Chapter 5 (Jubb et al., 2012): 5-32, 33, 34, 36, 39, 40, 41, 43, 44, 47.
+ Chapter 6 (Jubb et al., 2012): 6-36, 42, 46.
+ Chapter 9 (Arrens et al., 2014): 9-27, 29, 30, 31, 33, 34, 35.
+ Chapter 13 (Arrens et al., 2014): 13-24, 25, 28, 32, 33.

CHAPTER 3
AUDIT TESTING AND SAMPLING IN THE AUDIT OF
FINANCIAL STATEMENTS

3.1. Tests of control


3.1.1 Objective of tests of control
3.1.2 Determining nature, timing and extent of tests of control
3.1.3 Designing tests of control
3.1.4 Using the internal auditors’ document
3.1.5 Final assessment of control risk

Page 5 of 8
71 NGU HANH SON ST, DANANG, VIETNAM
phongdaotao@due.edu.vn
+84-511-3950227
http://due.udn.vn/

3.2. Substantive procedures


3.2.1 Objective of substantive procedures
3.2.2 Substantive analytical procedure
3.2.3 Tests of details of transactions
3.2.4 Tests of details of account balances
3.3 Audit sampling
3.3.1 Audit sampling methods applied for tests of control
3.3.2 Audit sampling methods applied for tests of details
Reading Materials
MTR1. Chapter 8, Auditing and Assurance Service: A Business Risk
Approach, Ch. Jubb, L. E. Rittenberg, K. M. Johnstone and A.
Gamling, Cengage Learning (2012).
MTR2. Chapter 15 and 17, Auditing and Assurance services: An Integrated
approach, A. A. Arens, R. J. Elder and M. S. Beasley, Pearson
Prentice Hall (2014).
Do homework after class:
+ Chapter 8 (Jubb et al., 2014): 8-22, 27, 32.
+ Chapter 13 (Arrens et al., 2014): 13-27
+ Chapter 15 (Arrens et al., 2014): 15-26, 27, 28, 30, 31, 33.
+ Chapter 17 (Arrens et al., 2014): 17-29, 30.

CHAPTER 4
PERFORMING AUDIT PROCEDURES FOR MAIN
FINANCIAL STATEMENT CYCLES

4.1. Audit of sales and receivables


4.1.1 Overview of sales and receivables cycle
4.1.2 Internal control procedures and tests of control
4.1.3 Substantive tests
4.2. Audit of acquisition and payment cycle and inventory
4.2.1 Overview of acquisition and payment cycle
4.2.2 Internal control procedures and tests of control
4.2.3 Substantive tests
4.3 Audit of cash
4.3.1 Overview of cash accounts and fraud risks related to cash
4.3.2 Internal control procedures and tests of control
4.3.2 Substantive tests
4.4 Audit of property, plant and equipment
4.4.1 Overview of audit of property, plant and equipment accounts and fraud

Page 6 of 8
71 NGU HANH SON ST, DANANG, VIETNAM
phongdaotao@due.edu.vn
+84-511-3950227
http://due.udn.vn/

risks
4.4.2 Internal control procedures and tests of control
4.4.3 Substantive tests
Reading Materials
MTR1. Chapter 11, 12, 13 and 14, Auditing and Assurance Service: A
Business Risk Approach, Ch. Jubb, L. E. Rittenberg, K. M. Johnstone
and A. Gamling, Cengage Learning (2012).
Do homework after class:
+ Chapter 11 (Jubb et al., 2012): 11-40, 43, 44, 45, 46, 52, 56, 59, 60.
+ Chapter 12 (Jubb et al., 2012): 12-40, 43, 45, 46, 50, 52, 57.
+ Chapter 13 (Jubb et al., 2012): 13-28, 29, 33, 36.
+ Chapter 14 (Jubb et al., 2012): 14-22, 24, 25, 27, 30.

CHAPTER 5
COMPLETING THE AUDIT OF FINANCIAL STATEMENTS

5.1. Completing the fieldwork


5.1.1 Reviewing for contingent liabilities
5.1.2 Undertaking the review of subsequent events
5.1.3 Considering the appropriateness of the going concern assumption
5.1.4 Performing final analytical procedures
5.2. Evaluating the findings
5.2.1 Making the final assessment of materiality and audit risk
5.2.2 Undertaking the final review of working paper
5.2.3 Obtaining written representations from management
5.2.4 Formulating an opinion and drafting the auditor’s report
5.3 Auditor’s report
5.3.1 Definition and role of the auditor’s report
5.3.2 Main terms of the auditor’s report
5.3.3 Types of audit opinion
Reading Materials
MTR1. Chapter 16 and 17, Auditing and Assurance Service: A Business Risk
Approach, Ch. Jubb, L. E. Rittenberg, K. M. Johnstone and A.
Gamling, Cengage Learning (2012).
Do homework after class:
+ Chapter 16 (Jubb et al., 2012): 16-23, 24, 25, 26, 27, 28.
+ Chapter 17 (Jubb et al., 2012): 17-25, 26, 31.

15. Assessment:

Page 7 of 8
71 NGU HANH SON ST, DANANG, VIETNAM
phongdaotao@due.edu.vn
+84-511-3950227
http://due.udn.vn/

Relationship between learning outcomes (LO) and assessment methods

LO1

LO2

LO3

LO4

LO5
Assessment Method

Diagnostic test

x
Progress assessment

x
Final exam

x
Students are assessed based on the results of 5assessment components:
TT Assessment Description of Assessment Weight
Component
1 Component 1 Class participation 5%
2 Component 2 Diagnostic test 5%
3 Component 3 Homework preparation and class discussion 10%
4 Component 4 Midterm exam (closed book) 20%
5 Component 5 Final exam (closed book) 60 %
Total 100%

Page 8 of 8