Accounting and Auditing in Practice (ACCT3600) full notes

These ACCT3600 notes are completed using the textbook, all the lectures and some readings. They cover the whole semester. Clearly written notes are tabulated for easy understanding and following with concepts. Included topics are:

• The auditing and assurance environment, understanding the importance of auditor independence and the use of professional scepticism
• Planning the audit and understanding the concept of “business risk”
• Introduction to the concept and importance of internal controls
• Understanding audit risk assessment and the linkage to key accounts and management’s financial statement assertions
• Audit evidence collection linked to priority key account assertions and the concept of materiality
• Developing audit tests of controls and auditing substantive tests linking to evidence collection and evaluation
• Understanding the use of other external auditors and independent experts
• Audit strategy
• Designing audit procedures for the IT Environment and linkage to the IT control environment
• Using computer-assisted auditing tools (CAATs) to perform substantive procedures
• An introduction to the concepts of audit sampling and examination of fraud as a special risk to the audit process
• Completing the audit part 1 – subsequent event analysis
• Understanding the auditor’s approach to the type of audit opinions that may be issued on a set of financial statements
• An introduction to the “Going Concern Principle”
• Completing the audit part 2 – selection of the appropriate audit opinion to be expressed and determination of the appropriate audit report
• Investigation of limitation of scope events, and further development of the going concern principle
• Audit quality and expectation gap
• New assurance services and Integrated Reporting
• The Auditor’s Responsibility for Professional Due Care and Potential Legal Liability