University of Technology Sydney

22730 Auditing and Assurance Services

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2025 is available in the Archives.

UTS: Business: Accounting
Credit points: 6 cp

Subject level:

Postgraduate

Result type: Grade and marks

Requisite(s): 22748 Financial Reporting and Analysis AND 22754 Corporate Accounting AND 22747 Accounting for Managerial Decisions
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.

Description

This subject explores the provision of assurance services with a primary focus on the audit of general-purpose financial reports of publicly listed companies. The subject studies the entire audit process from first gaining an understanding of the client's operations, engaging in risk assessment and planning, to designing and executing audit procedures, and ultimately reaching an audit opinion and communicating findings to relevant stakeholders.

The subject evaluates the professional, legal and ethical requirements and responsibilities involved in completing assurance tasks to enhance the quality and value of the service provided. The subject also provides some insight into the role of emerging technologies in auditing.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. examine and evaluate the role of auditing in improving the quality of information provided in the financial reports
2. conduct risk assessment activities to determine effective audit procedures and gather audit evidence to express an appropriate audit opinion
3. appraise the professional, legal and ethical requirements and responsibilities in completing and reporting on assurance and audit tasks
4. operate effectively individually and as a member of an audit team to make judgments about the quality of accounting information and effectively communicate to various stakeholders

Course intended learning outcomes (CILOs)

This subject also contributes specifically to the following program learning objectives:

  • Apply ethical principles and professional integrity in the context of professional accounting practice (3.2)

Contribution to the development of graduate attributes

This subject addresses the provision of auditing and assurance services. It sets out the professional and legal expectations and responsibilities of financial statement audits and assurance services. The subject provides students with competencies in audit methodology of risk and control evaluation, evidence collection and evaluation in various accounting information systems environments. To conduct a thorough audit of any set of financial statements, students must understand the concepts of risk and control, and the relation between the two.

The subject also provides an understanding of relevant legislation and regulations, and professional and ethical requirements and responsibilities in completing and reporting on assurance tasks. Students who have successfully completed this subject have elementary practical experience at conducting parts of the audit process as well as a solid theoretical background. This knowledge is important to students interested in any aspects of business, organisations and society as a necessary skill and attribute for an adaptive and functioning manager. The subject is accredited by the accounting professional bodies.

This subject contributes to the development of the following graduate attribute(s):

  • Communication and collaboration
  • Social responsibility and cultural awareness
  • Professional and technical competence

Teaching and learning strategies

This subject employs both teacher and student-led approaches to help students understand and apply the concepts of assurance and auditing. The three-hour seminar will contain both lecture and workshop/tutorial components. Seminars are used to reinforce and develop key theoretical and practical concepts as well as providing students with the opportunity to work together in analysing problems and applying auditing standards and theory to recommend solutions. Seminars are interactive and may contain written, audio and visual content designed to provide active learning experiences for students aligned with UTS blended learning initiatives.

This subject uses the UTS learning management system to share information and learning material, and facilitate interaction between staff and students.

Announcements will be made using the learning management system and students are expected to familiarise themselves with this platform in addition to regularly checking the “Announcements” page for more subject information. Students are also encouraged to use the discussion forums for sharing ideas, posting questions and improving their understanding of concepts and topics.

Student preparation outside of class

This subject requires students to actively engage in learning independently by utilizing the available course material including completing the assigned readings. This aims to develop mastery of key auditing and assurance concepts which can then be applied within the seminar to questions and scenarios to develop strategic solutions in a financial report audit. Students are required to attend their seminar having fully prepared by using the material available.

In-class activities

Seminar:

Questions will be collected from the discussion forum prior to each seminar and students may have an opportunity to raise further issues at the start of a seminar. A lecture will follow the discussion reviewing key concepts using business scenarios to link theoretical concepts to practical application.

This may include class discussion with the seminar leader acting in a facilitator position to stimulate active learning through student interaction and peer discussion.
Note: The lecture is not a replacement for independent student learning and preparation.

Assessment related

As this subject is part of a postgraduate accounting course, students are assessed based on their ability to exhibit higher level skills in critical thinking, problem solving, application, communication and ability to influence, in addition to offering recommendations to clients in the field of auditing.

The seminars will enable the further development of audit understanding through application-based learning using business scenarios. Therefore, an important part of learning in this subject is to participate in class discussion and presentations of case studies. Students should use the lecturer as a 'senior' or 'manager' on the audit job, in teaching, supervising and directing their work.

Content (topics)

  • The principles of assurance and the accounting profession
  • The auditor’s professional, legal, ethical environment
  • Client risk and internal controls in audit planning and strategy
  • Audit evidence gathering and evaluation in deriving the audit opinion
  • Audit opinions, subsequent events and communicating the findings of the audit

Assessment

Assessment task 1: Communication and Presentation Skills (Individual)*

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

Weight: 25%
Length:

One 3-minute recorded video with one page summary.

Criteria: The assessment is evaluated on the basis of:
  • the professional presentation
  • the verbal presentation
  • the non-verbal presentation and the quality of the information being communicated

*Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Assessment task 2: Learning Quizzes and Written Responses (15% Individual and 10% Group)*

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

Weight: 25%
Length:

Four quizzes comprising 8-10 multiple choice questions and three sets of short answer questions.

Criteria: Part 1 (Module Quizzes) are marked based on the correctness of the answers Part 2 (Practical Questions) are based on
  • the depth and relevance of the background information,
  • quality of the answers,
  • quality of the explanation, and
  • contribution to class discussion

*Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Students who do not attend?one half (2) of the total number of faculty based quizzes will have the weighting of that assessment?component?added to the final examination conditional on the students submitting, receiving approval and complying with the requirements of special consideration in accordance with the UTS rules. If the composite mark for the final exam totals more than 50 percent and the student is in the final subject of their degree, the UTS rules on borderline result (range of 45-49) shall apply whereby students will be allowed to undertake a supplementary final examination. Where a student completes the supplementary examination, the maximum mark awarded for the subject will be 50 Pass.?

Assessment task 3: Final Exam (Individual)

Intent:

This assessment task is a compulsory component of the subject. A student must attain no less than 40% of the marks in this assessment to pass the subject irrespective of the subject’s total marks.

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

This addresses program learning objectives(s):

3.2

Weight: 50%
Length:

5-10 multiple choice questions, 4-6 short answer questions and one long response question.
Criteria:
  • Ability to explain audit concepts and apply to practical scenarios
  • Ability to describe audit processes and procedures
  • Ability to apply judgement in evaluating auditing issues

Minimum requirements

A student must achieve 50% or more of the subject’s total marks AND achieve 40% or more in the final exam to pass the subject.
A Fail (X) Grade is awarded to a student who attains 50% or more of the overall subject assessment marks but attains less than 40% of the final exam marks. To pass the subject, the student must then attain 50% or more of the marks in the supplementary task, in which case the student is awarded an overall mark of 50P.

Required texts

Textbook: The following text is a REQUIREMENT in this subject:

Auditing: A Practical Approach, 4th Edition, Wiley

This textbook is to enable students to supplement the lecture materials and Auditing Standards provided during their seminar with a formal textbook. The text is the 4th Edition - students need to purchase this edition to ensure they have a text that is up to date. Students who wish to purchase older editions do so at their own risk.

You can purchase this resource online through the Wiley site - refer to the "What resources will I need" section in Canvas for details of your purchasing options as well as the related links.

Students are also required to read the Australian Auditing Standards (ASAs) throughout the course. These can be downloaded from the AUASB website at no cost, therefore students are not required to purchase the Auditing Handbook. Students will be provided with a list of the ASAs they will need to refer to in the course, along with a link to the site where they can be downloaded.

Other resources

Websites

Legislation

  • Corporations Act 2001
  • Competition and Consumer Act 2010 (replacing Trade Practises Act 1974)

Reading the Professional and Financial Press
Students should also be aware of new ideas practices and topical issues. Australian professional body journals the Australian CPA and CAANZ, business and trade magazines such as The Business Review Weekly and the financial press such as the Australian Financial Review, Sydney Morning Herald and The Australian are very useful in being aware of topical issues and in understanding practical aspects of this subject as well as business and professional views on auditing. Auditing: A Journal of Practice and Theory is another interesting source to gain a broader understanding of auditing.