• ACCT3004
  • Auditing

  • Credits (ECTS): 10
  • Accounting and Finance

Modules are delivered
as part of a programme.
To apply for the
see the DIT website

Module Description

This course is concerned with the external and internal audit of companies, and the ethics of business managers and auditors. The aim of the course is to develop a knowledge and understanding of auditing, including the legal framework, the standard setting process and business environment in which auditing is conducted. The students will gain knowledge and understanding of the process of carrying out assurance engagements and the value of auditing for validating financial accounts and improving control over businesses. Also, an appreciation of the relationship of ethical standards in business with establishing and verifying control is developed.

Indicative Syllabus

Audit framework
1. The origins of auditing, its current and continuing development, its social dimension
2. Statutory audits, accountability, stewardship and agency theory
3. The regulatory environment and corporate governance
4. Directors' responsibilities and auditors' responsibilities
5. The audit market
Standards and Regulation
1. Statutory Audits
2. Statutory regulations
3. The standard setting process.
4. International Standards on Auditing (UK and Ireland) and International Standards on Auditing their development, role and relationship with each other.
5. Regulation and supervision by professional and other bodies.
6. The role of the Auditing Practices Board and other standard-setting bodies impacting on Ireland and the UK.
7. Corporate governance codes and regulation.
8. Quality control.
1. Professional ethics and codes of conduct
2. Ethics in organisations
3. Policing ethics
4. Relationship of theories of management behaviour with ethics
Internal audit and internal review
1. The scope and limitations of internal audit
2. The role of internal audit and internal review in corporate governance, organisational control, risk management and adherence to corporate objectives.
3. Control by the directors over the scope and functions of internal audit
4. The variable nature and extent of internal audit and internal review assignments.
5. The outsourcing of internal audit functions.
6. The relationship with the external auditor
7. The conduct of external and internal auditors: Responsibility for fraud and error.
Client Acceptance, Planning and Risk Assessment
1. Objectives and general principles
2. Client Acceptance
3. Understanding the entity and related business risks
4. Planning the audit
5. The concept of materiality
6. Assessing the risk of material misstatement
7. Fraud and error
8. Law and regulation
9. Financial statement assertions
10. Audit risk; inherent, control and detection risk; risk assessment
11. Developing responses to risk
12 Analytical procedures
13 Audit documentation
14. Using the work of others
15. The use of technology
Internal control
1. The objectives of internal control systems, and their inherent weaknesses
2. Determining the existence and reliability of internal control systems
3. Evaluating of internal controls
4. Assessing the risk of material misstatement
5. Developing overall responses to risk
6. Internal controls over transaction cycles
7. The reliance by the auditor on internal controls
8. Informing management of weaknesses in internal control
Substantive Audit
1. Objective and general principles
2. The testing of balances and transactions
3. The use of analytical procedures and other types of testing
4. Financial Statement assertions
5. The audit of specific items: assets, liabilities, income and expenditure, including accounting estimates, included in or asserted in the financial statements.
6. The evaluation of evidence from substantive testing
Audit evidence.
1. Evidence gathering techniques
2. The use of assertions
3. Tests of control, substantive testing, analytical procedures; the distinction between them and the appropriate use of them
4. The extent of testing
5. Statistical and judgemental sampling
6. The evaluation of evidence
Audit Review and Finalisation
1. Audit documentation
2. Audit finalisation and review
3. Management representation
4. Subsequent events
5. Going concern
6. Analytical procedures
7. The overall review of evidence obtained.
8. Modifications to the overall audit planning and detailed work program due to audit assessment of evidence received to date.

Total Contact Teaching Hours:72

Please note that the catalogue is provided as a guide to modules in DIT. Not all modules listed will necessarily be offered every year and new modules may also be added. Information subject to change. For detail on specific programmes/modules please contact the relevant School directly.