Auditing, theory and methodology

Introduction

The course is mandatory and provides the students with the necessary basic theoretical and methodological tools that an auditor should possess to perform an audit of financial statements in a time where accounting data and information increasingly is digitized and influensaen by international guidelines.

Course content

• Understand the objective of the audit of financial statements and assurance services in an international perspective
• Economic demand for financial audits legal regulation vs. market mechanisms
• The role of auditing in a corporate governance perspective
• Acceptance of audit engagements, content and formulation of engagement letter
• Understanding the business, industry, legal aspects with consequence for the audit
• The audit process
• Audit planning, auditing of business processes
• Considering materiality and risk assessments, business risk and the audit risk model
• Considering internal control and judging control risk
• Considering the risk of fraud, consequences for the auditing and reporting
• Audit evidence and analytical auditing
• Auditing of the main transactions cycles
• Audit sampling, test methods, including the use of statistical methods
• Review for contingent liabilities and subsequent events, going concern assessments
• Audit of the board of directors' report, management reports
• Reporting on the audit