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ACCT13-305: Auditing January 2021 [Standard]

General information

Auditing is an important process necessary to provide assurance about the accuracy and transparency of corporate financial statements. This subject introduces the principles and practices of external auditing in the public accounting domain within the framework of Australian and International Auditing Standards. Whilst the audit risk model and each phase of the audit process is presented, emphasis is also placed on ethical considerations, independence and corporate governance.


Academic unit:Bond Business School
Subject code:ACCT13-305
Subject title:Auditing
Subject level:Undergraduate
Semester/Year:January 2021
Credit points:10

Delivery & attendance

Delivery mode:


Workload items:


Prescribed resources:
  • Robyn Moroney, Fiona Campbell, Jane Hamilton Auditing. 4th, Australia: John Wiley and Sons


Enrolment requirements

Requisites: ?


Assumed knowledge:


Assumed Prior Learning (or equivalent):

  • ACCT13-301 Financial Accounting and Company Reporting
Restrictions: ?


Assurance of learning



Program Learning Outcomes (PLOs)


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Subject Learning Outcomes (SLOs)

  1. Explain the purpose, nature and limitations of financial statement auditing.
  2. Demonstrate an understanding of the principles of professional ethics and auditor independence and the role of regulators.
  3. Explain the phases of an audit, and how understanding an entity and its environment assists the auditor in developing audit strategies and obtaining evidence.
  4. Demonstrate the ability to make decisions about various elements of the audit risk model, and determine how those decisions influence decisions about the nature, timing, and extent of audit procedures.
  5. Apply appropriate tests of controls and substantive testing procedures in executing an audit.
  6. Explain the auditor's responsibilities in completing, and reporting on, a financial audit.
  7. Prepare an audit report on a set of financial statements


Assessment details

TypeTask%Timing*Outcomes assessed
Tutorial Activity Decision-making exercises. Due dates available in iLearn 15% Progressive 2, 3, 4, 5.
Case Analysis Audit case. Details available in iLearn. 15% Week 5 3.
Learning Log Completion of a reflection workbook in which students identify attributes and traits acquired, achievement of subject learning outcomes, and reflect on their learning experience. Details available in iLearn. 10% Week 11 1, 2, 3, 4, 5, 6, 7.
Computer-Aided Examination (Open) Comprehensive final examination 35% Week 13 1, 2, 3, 4, 5, 6, 7.
Computer-Aided Examination (Open) Mid-semester examination 25% Week 7 (Mid-Semester Examination Period) 1, 2, 3.

Assessment criteria


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Additional subject information


Subject curriculum

An overview of the demand for auditing, the audit engagement and the audit expectation gap. Also discussed is the role of different regulators in maintaining the quality of the audit industry and the relevance of auditing standards.

Introduces the principles of professional ethics and auditor independence, including threats to independence and safeguards to minimise or mitigate those threats. Other concepts include the auditor’s relationship with others, legal liability to third parties, and client acceptance and continuance decisions.

Highlights the audit risk model and the development of an audit strategy for the nature, timing and extent of planned audit testing. It includes the concept of materiality and risk of material misstatement, evaluating fraud risk, the going concern assumption, and other activities undertaken in this phase of the audit process.

An explanation of audit assertions, identifying and appraising the different types of audit evidence an auditor can obtain. Also includes an introduction to the concept of sufficient, appropriate audit evidence and how an auditor may rely on the work of others.

A review of key concepts of risk assessment and audit evidence and introduces analytical procedures for the risk assessment phase of the audit planning process.

Examines internal control systems, their objectives, the strengths and weaknesses of various controls and different techniques to document internal controls. Focus is also given to different levels of internal controls, specifically, those appropriate at the entity level and to the transactional level.

Audit sampling is introduced, as well as sampling risks and the strengths and weaknesses of different sampling methods. Factors that influence the sample size and procedures to evaluate sample results are also explored.

Techniques for testing internal controls and the decisions about the selection, design, nature, timing, and extent of testing are considered. Methods to evaluate the results of internal control testing is also considered.

Defines substantive analytical procedures and substantive tests of details procedures, linking procedures to audit assertions. Also considers different examples of substantive procedures.

Considerations in auditing the revenue cycle and how an entity and its environment affects audit planning decisions are reviewed, including the design of appropriate internal control and substantive tests. Emphasis is placed on the inherent risk for various assertions and evaluating fraud risk.

The relationship between the risk of material misstatement and the extent and timing of substantive procedures is examined. Substantive procedures for a range of balance sheet and income statement accounts are introduced.

Procedures performed when completing an audit, including assessing going concern, subsequent events, unadjusted audit differences and audit reporting.

Approved on: Nov 16, 2020. Edition: 4.9