ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title AUDIT AND ASSURANCE
Code ACFI210
Coordinator Professor P Ormrod
Finance and Accounting
P.Ormrod@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2021-22 Level 5 FHEQ First Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

ACFI101 INTRODUCTION TO FINANCIAL ACCOUNTING 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 12

6

      6

12

36
Timetable (if known)   60 mins X 1 totaling 6
 
      60 mins X 1 totaling 6
180 mins X 1 totaling 36
 
 
Private Study 114
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment : Written Unseen Examination Assessment Type: Written Exam Duration: 2 hours Weighting: 100% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL penalty appl  2 hours    100       
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             

Aims

To examine the regulatory framework within which the statutory audit in the UK operates;

To cover key elements of International Standards on Auditing with respect to planning, control, evidence and reporting;

To understand the nature and purpose of the assurance process;

To understand the fundamental principles of ethics in the context of audit and assurance.


Learning Outcomes

(LO1) explain the concept of assurance, why assurance is required and the reasons for assurance engagements being carried out by appropriately qualified professionals

(LO2) explain the nature of internal controls and why they are important, document an organisation’s internal controls and identify weaknesses in internal control systems

(LO3) select sufficient and appropriate methods of obtaining assurance evidence and recognise when conclusions can be drawn from evidence obtained or where issues need to be referred to a senior colleague

(LO4) understand the importance of ethical behaviour to a professional and explain issues relating to integrity, objectivity, conflicts of interest, conflicts of loyalty, confidentiality and independence.

(S1) Adaptability

(S2) Problem solving skills

(S3) numeracy

(S4) Commercial awareness

(S5) Organisational skills

(S6) communication skills

(S7) international awareness

(S8) lifelong learning skills

(S9) Ethical awareness


Teaching and Learning Strategies

Teaching Method: Online Asynchronous Learning Materials
Description: Recordings are interactive and require students to prepare in advance and participate. Lectures will be used to examine key concepts and discuss how these concepts apply in practice. Throughout the recordings students will be required to undertake short exercises and will be encouraged to work in small groups. We will then use the PREPARE - SHARE - COMPARE technique where students complete an exercise and then submit their responses;
Unscheduled Directed Student Hours: 12
Attendance Recorded: Yes

Teaching Method: Synchronous Lecture
Scheduled Directed Student Hours: 12
Attendance Recorded: No

Teaching Method: Seminar
Scheduled Directed Student Hours: 6
Attendance Recorded: Yes

Teaching Method: Group Study
Description: Biweekly 1 hour session to foster student community and engagement by working with others on their ‘active learning’ activities
Scheduled Student Hours: 6
Attendance Recorded: No

Self-Directed Learning Hours: 114
Description: During self-directed learning students will have a variety of activities to undertake. This will include undertaking e-learning activities, completing assigned questions, reading and completing exercises from the recommended textbook and reading assigned articles from professional publications.

Costs Information:
There are no specific costs attached to this module.

This module is a pre-requisite for the following modules:
ACFI301

Skills/Other Attributes Mapping

Skills / attributes: Ethical awareness
How this is developed: Lectures/ self study
Mode of assessment (if applicable)

Skills / attributes: lifelong learning skills
How this is developed: Lectures / self study
Mode of assessment (if applicable)

Skills / attributes: international awareness
How this is developed: Lectures / self study
Mode of asse ssment (if applicable): Examination and Mid-term test

Skills / attributes: communication skills
How this is developed: Lectures / self study
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Organisational skills
How this is developed: Lectures / self study
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Commercial awareness
How this is developed: Lectures / self study
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: numeracy
How this is developed: Lectures / self study
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Problem solving skills
How this is developed: Lectures / self study
Mode of assessment (if applicable): Examination and Mid-term test

Skills / attributes: Adaptability
How this is developed: Lectures / self study
Mode of assessment (if appl icable)


Syllabus

 

The concept, process and need for assurance
Internal controls
Gathering evidence on an assurance engagement
Professional ethics

The following learning outcomes should be read in conjunction with the Assurance and Audit and Ethics Standards tables in the New ACA Syllabus Technical Knowledge document. The ACA is the Chartered Accountancy qualification of the Institute of Chartered Accountants of England and Wales (ICAEW).

THE CONCEPT, PROCESS AND NEED FOR ASSURANCE
Students will be able to explain the concept of assurance, why assurance is required and the reasons for assurance engagements being carried out by appropriately qualified professionals.   Students may be required to:

Define the concept of assurance;
State why users desire assurance reports and provide examples of the benefits gained from them such as to assure the quality of an entity’s published corporate responsibility or sustainability report;
Compare the functio ns and responsibilities of the different parties involved in an assurance engagement;
compare the purposes and characteristics of, and levels of assurance obtained from, different assurance engagements;
Identify the issues which can lead to gaps between the outcomes delivered by the assurance engagement and the expectations of users of the assurance reports, and suggest how these can be overcome;
Define the assurance process, including:
Obtaining the engagement;  
Continuous risk assessment;
Engagement acceptance;
The scope of the engagement;
Planning the engagement;
Performing the engagement;
Obtaining evidence;
Evaluation of results of assurance work;
Concluding and reporting on the engagement;
Reporting to the engaging party;
Keeping records of the work performed;
Recognise the need to plan and perform assurance engagements with an attitude of professional scepticism;
Define the concept of reasonable assurance.

INTERNAL CONTROLS
Students will be able to explain the nature of internal controls and why they are important, document an organisation’s internal controls and identify weaknesses in internal control systems.   Students may be required to:

State the reasons for organisations having effective systems of control;
Identify the fundamental principles of effective control systems;
Identify the main areas of a business that need effective control systems;
Identify the components of internal control in both manual and IT environments, including:
The overall control environment;
Preventative and detective controls;
Internal audit;
Define and classify different types of internal control, with particular emphasis upon those which impact upon the quality of financial information;
Show how specified internal controls mitigate risk and state their limitations;
Identify internal controls for an organisation in a given scenario;
Identify internal control weaknesses in a given scenario;
Identify, for a specified organisation, the sources of information which will enable a sufficient record to be made of accounting or other systems and internal controls.

GATHERING EVIDENCE ON AN ASSURANCE ENGAGEMENT
Students will be able to select sufficient and appropriate methods of obtaining assurance evidence and recognise when conclusions can be drawn from evidence obtained or where issues need to be referred to a senior colleague. Students may be required to:

State the reasons for preparing and keeping documentation relating to an assurance engagement;
Identify and compare the different methods of obtaining evidence from the use of tests of control and substantive procedures, including analytical procedures;
Recognise the strengths and weaknesses of the different methods of obtaining evidence;
Identify the situations within which the different methods of obtaining evidence should and should not be used;
Compare the reliability of different types of assurance evidence;
Select appropriate methods of obtaining evidence from tests of control and from substantive procedures for a given business scenario;
Recognise when the quantity and quality of evidence gathered from various tests and procedures is of a sufficient and appropriate level to draw reasonable conclusions on which t obase a report;
Identify the circumstances in which written confirmation of representations from management should be sought and the reliability of such confirmation as a form of assurance evidence;
Recognise issues arising whilst gathering assurance evidence that should be referred to a senior colleague.

PROFESSIONAL ETHICS
Students will be able to understand the importance of ethical behaviour to a professional and identi fy issues relating to integrity, objectivity, professional competence and due care, confidentiality, professional behaviour and independence. In the assessment, students may be required to:

State the role of ethical codes and their importance to the profession;
Recognise the differences between a rules based ethical code and one based upon a set of principles;
Recognise how the principles of professional behaviour protect the public and fellow professionals;
Identify the key features of the system of professional ethics adopted by IFAC (International Federation of Accountants) and ICAEW;
Identify the fundamental principles underlying the IFAC and the ICAEW code of ethics;
Recognise the importance of integrity and objectivity to professional accountants, identifying situations that may impair or threaten integrity and objectivity;
Suggest courses of action to resolve ethical conflicts relating to integrity and objectivity;
Respond appropriately to the r equest of an employer to undertake work outside the confines of an individual’s expertise or experience;
Recognise the importance of confidentiality and identify the sources of risks of accidental disclosure of information;
Identify steps to prevent the accidental disclosure of information;
Identify situations in which confidential information may be disclosed;
Define independence and recognise why those undertaking an assurance engagement are required to be independent of their clients;
Identify the following threats to the fundamental ethical principles and the independence of assurance providers:
Self-interest threat;
Self-review threat;
Management threat;
Advocacy threat;   
Familiarity threat;
Intimidation threat;
Identify safeguards to eliminate or reduce threats to the fundamental ethical principles and the independence of assurance providers;Suggest how a conflict of loyalty between the duty a professional accountant has to their employer and the duty to their profession could be resolved.


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.