This module is not currently running in 2021 to 2022.
The module provides an understanding of a range of auditing topics together with an appreciation of the regulatory and social environment within which auditing process takes place. It includes: an examination of the principles which underpin the auditing process; an introduction to auditing theory and an appreciation of the regulatory and social environment of auditing. As far as possible the coverage of these areas is integrated so that, for example, the nature of the auditing environment is explored within the context of the technical issues and problems with which it must cope.
Topics may include:
• the nature, importance and objectives and underlying theory of auditing;
• the statutory and contractual bases of auditing, including audit regulation and
• auditors' legal duties and responsibilities;
• truth and fairness in financial reporting, materiality and audit judgement;
• the historical development of auditing;
• audit independence;
• the nature and causes of the audit expectation gap;
• auditors' professional ethics and standards;
• the nature and extent of auditors' legal liability, including liability under the trade
• practices legislation;
• audit quality control, planning, programming, performance, supervision and review;
• principles of internal accounting control and internal control;
• the nature and types of audit evidence;
• systems based auditing and the nature and relationship of compliance and
• substantive testing;
• audit risk and statistical sampling;
• audit reporting.
Total contact hours: 24
Private study hours: 126
Total study hours: 150
Main assessment methods:
Essay (2500 words) (20%)
Examination, 3 hour (80%).
Reassessment method:
Like-for-like
Cosserat G.W., "Modern Auditing" 3rd Edition, John Wiley, 2008
Porter B.; Simon J.; & Hatherly D., "Principles of External Auditing" 3rd Edition, John Wiley,2008
Flint, D., "Philosophy and Principles of Auditing", Macmillan, 1988
Godsell, D.J., "Auditors' Legal Duties and Liabilities", Longman, 1991
See the library reading list for this module (Canterbury)
The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
- Demonstrate knowledge and understanding of the regulatory, legal, professional and socio-economic environments within which company audits are performed.
- Appreciate the knowledge and understanding of the client's business which is essential to the planning and conduct of the audit.
- Demonstrate knowledge and understanding of underlying auditing theory, including Flint's concepts and postulates of auditing and the inherent constraints and limitations of auditing, and the nature and causes of the audit expectation gap.
- Demonstrate knowledge and understanding of some of the technical language and practices employed in the audit of company financial statements.
- Demonstrate knowledge and understanding of the role and significance of auditing in the context of widely researched capital market and behavioural models including the efficient markets hypotheses and agency theories of the firm.
- Demonstrate knowledge and understanding of the nature, role and development of a profession and professional bodies, professional duties and ethics, professional independence, professional negligence and legal liability.
The intended generic learning outcomes.
On successfully completing the module students will be able to:
- Demonstrate critical thinking.
- Select, organise, develop and synthesise complex material.
- Critically evaluate arguments and evidence.
- Plan, work and study independently.
- Analyse conceptual problems.
- Assimilate concepts from research literature.
- Make use of library resources to assimilate materials from research literature.
- Demonstrate effective communication skills.
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