AUDITING

Single discipline educational activity

Course Sheet

Course code:

RA12

Academic Year of enrolment:

2018

Year of supply:

2018/2019

Type of Course:

Related/Supplementary

Degree:

Course of 2nd Cycle Degree in MANAGEMENT AND ECONOMICS

Disciplinary Sector:

Business Administration

Location:

PESCARA

Credits:

Programme Year:

Professor and Collaborators:

DI BERARDINO DANIELA

Cycle:

First four months

Hours of classroom activity:

Individual study hours:

114

Prerequisites:

Although no prerequisites are required, it is recommended to know the content and accounting principles of the financial statements, the methods of analyzing the balance sheet and the income statement, the general accounts.

Objectives

The teaching activity pursues the general objective of the course of study to provide knowledge and skills regarding the financial statement auditing and the internal auditing in the private companies operating in different sectors, in order to train an auditor. Specifically, the teaching activity aims to transmit the theoretical and applicative knowledge of the accounting auditing , knowledge of international standards auditing and of national and international legal regulations on the external auditing, knowledge of the internal control techniques of procedures and business processes according to the risk approach, the ability to analyze financial statements and company measures.

EXPECTED LEARNING OUTCOMES:
At the end of the course the student must possess knowledge and skills concerning the profession of auditor:

KNOWLEDGE AND COMPRENSION:
- ability to analyze the financial statements and accounting documents;
- ability to identify risks emerging from accounting procedures, processes and documents;
- understand the auditing principle and the law concerning auditors;
- understand the operating logic of the company processes and the related accounting documents;
- understand the accounting control techniques and data organization approach;
- understand the sampling techniques for the collection of audit evidence;
- understand the design criteria of an internal control system;
- to prepare a final report;
- understand the practices and IT solutions adopted by the Big4 auditors.
JUDGMENT:
- to link the audit risks to the strategy and control techniques to be adopted;
- linking the financial and economic aspects of management to the cycles of company operations and the financial statements;
- to assess the extent of risks and the extent of control;
- to evaluate the adequacy and sufficiency of the audit evidence for the purposes of professional judgment
COMMUNICATION SKILLS:
- ability to transmit technical-accounting language and technical terms in English;
- ability to coordinate a working and mediating group;
- ability to transmit problems and solutions.

Contents

Internal and external auditing
Auditors: professional standards and legal rules
The ISAs and the regulatory framework
Materiality and risks
The system of internal auditing
The process for external auditing
The business cycles approach: asset-revenue cycle, liabilities-costs cycle, inventory cycle
The final auditing and going concern
The final report and professional judgement

Extended Syllabus

Financial Auditing: scope and functions, characteristics and operational differences
The auditing standards and the regulatory framework: Legislative Decree 39/2010; International standards auditing, governance models and legal control in joint-stock companies, the internal auditor
Subjects and bodies responsible for auditing: the role of the internal auditor, the internal control system in the various categories of companies, the role of the external auditor (company or person)
Materiatility and risks: concept and levels of materiatility, estimation methods, risk categories and methods of estimation and management
The internal control system: the Coso Framework, the principles and the architecture of the internal control system in joint-stock companies
The audit process: preliminary analysis, planning, team, sampling, comparative analysis procedures, validity tests and compliance tests
The audit of business cycles: assets-revenue cycle, passive-costs cycle, inventory cycle
The final procedures and going concern
The final report and professional judgment: structure of the report, key audit matters, categories of judgment, case study

Recommended Bibliography

Mariani C., Magnano San Lio L., La revisione legale dei conti. Risk based approach, franco Angeli, Milano, 2016.

Supplementary teaching materials provided by the teacher in the http://elearning.unich.it

Methods of Provision

Conventional

Teaching Methods

The course includes 36 hours of lessons divided into 3 weekly lessons of 2 hours and will be organized in modules of frontal lessons, exercises, analysis of case studies. During the lessons exercises performed by certified auditors will be submitted to the students. These activities aim to understanding concrete business cases, to transmitting the methods and the operational and IT tools adopted by professionals.
Course attendance is optional.

Evaluation methods

Verification of learning:

The assessment of expected learning outcomes section will take place with a written exam and a subsequent oral examination.
The writing consists of questions with a mixed structure and related to the topics of the program and concrete operational problems. The written test assigns 20 points for closed questions and 10 for open questions and lasts 1 hour. This is followed by an oral exam, optional or recommended based on the results of the written test, on the remaining topics of the program not verified in the written text.
The final score is expressed in thirtieths.
The method of examining non-attending students is the same as for attending students. The assessment of the knowledge and skills described in the Expected Learning Outcomes Section will take place with a written exam and a subsequent oral exam. The written test consists of exercises concerning the continuous accounting entries of a typical company, the final entries for the year and the subsequent preparation of the income statement and balance sheet. The written test lasts 2 hours and is followed by an oral examination on the remaining topics of the program not verified in the written.
The final score is expressed in thirtieths. The method of examining non-attending students is the same as for attending students.

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

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