SUNWAY UNIVERSITY BUSINESS SCHOOL

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SUBJECT OVERVIEW

ACC3044 - ADVANCED AUDIT & ASSURANCE/
BAB3202 AUDIT AND ASSURANCE


Course : Bachelor of Science (Hons) in Accounting and Finance
Subject Code / Title : ACC3044 - Advanced Audit and Assurance/
BAB3202 - Audit and Assurance
Semester : March July 2014
Weekly Contact Hours : 2-hrs lecture, 1-hr workshop, 1-hr tutorial
Lecturer : Tan Seng Lee (sengleet@sunway.edu.my)
Room : Room 248, 2
nd
Floor, North Building
Telephone No. : 603-7491-8622 Ext 3698
Consultation Hours : Monday and Tuesday (10.30am to 12.30pm)
Tutor : Wong Wing Tien (wingtienw@sunway.edu.my)
___________________________________________________________________

Subject Description

The subject is an extension of ACC2034 Principles of Auditing. It is designed to
progressively broaden and deepen the knowledge, skills and professional values
demonstrated by students in the area of audit and assurance. The subject
examines the critical aspects of managing audit and assurance engagements as
well as the statutory, regulatory, ethical and current issues.

Subject Objectives

The objectives of this subject are to:
Enhance students knowledge and understanding of audit and assurance, and
its strategic role in business;
Enable students to apply their technical knowledge in the conduct of audit and
assurance engagements; and
Develop students ability to discuss current issues and developments affecting
audit and assurance

Subject Learning Outcomes
Upon completion of the course, students will be able to:
SLO 1 Identify and discuss the tools, theories and principles of auditing and
assurance in business.
SLO 2 Assess, plan, conduct, conclude and report on audit and assurance
engagements in accordance with regulatory and auditing standards.
SLO 3 Discuss and express opinions supported by reasoned arguments on
current issues and developments relating to audit and assurance
engagements
Sunway University Business School ACC3044/BAB3202 Subject Overview

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Programme Learning Outcomes
Upon completion of this programme, students will be able to:
PLO 1 Apply fundamental business knowledge with a focus on accounting and
finance.
PLO 2 Apply relevant tools and techniques used by industry to interpret data and
undertake business analysis.
PLO 3 Take into consideration social, cultural and environmental factors in
making business decisions.
PLO 4 Embed empathy, responsibility, integrity and professionalism in making
business decisions.
PLO 5 Function effectively as an individual and within a group as well as
demonstrate the responsibility and qualities of an effective leader.
PLO 6 Communicate and interact effectively with all levels of an organisation and
the wider community.
PLO 7 Systematically identify problems and provide efficient and effective
solutions.
PLO 8 Manage information and engage in life-long learning.
PLO 9 Apply managerial and entrepreneurial skills.

Mapping of Subject Learning Outcomes to Programme Learning Outcomes
Subject
Learning
Outcomes
Programme Learning Outcomes
PLO1 PLO2 PLO3 PLO4 PLO5 PLO6 PLO7 PLO8 PLO9
SLO 1
SLO 2
SLO 3

Programme Objectives
This programme aims to:
PO1 produce employable business graduates or professionals with a sound
knowledge and understanding of accounting and finance;
PO2 produce business graduates who are ethical and responsible leaders or
managers;
PO3 produce business graduates with the skills and competencies in critical
thinking and problem solving;
PO4 produce business graduates with managerial and entrepreneurial skills;
and
PO5 produce graduates who recognise the need to engage in life-long learning
for personal and professional growth and development.

Sunway University Business School ACC3044/BAB3202 Subject Overview

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Mapping of Subject Learning Outcomes to Programme Objectives
Subject Learning
Outcomes
Programme Objectives
PO1 PO2 PO3 PO4 PO5
SLO1
SLO2
SLO3

Delivery Methods
Topics will be introduced by way of lectures and developed through tutorials and
workshops. Salient concepts learnt in the topics will be applied in the coursework.

Lectures are delivered with MS Powerpoint as a visual aid. Each lecture covers a
major topic. Students should note that while a lecture is self-contained in terms of
presentation, topics are closely interrelated and this interconnectedness is essential
to their understanding of the contents of this subject.

Tutorials and Workshops are designed to supplement lectures and to enhance
students understanding of topics. Students are encouraged to participate actively
in discussing significant issues or problems on pre-assigned topics.

Assessment

Students are assessed by way of a Coursework and a Final Examination. The
allocation of marks for each assessment mode is as tabulated below:

No. Method of Assessment Marks
1. Coursework 30%
2. Final Examination: 70%
Total 100%


Coursework (30%):

The Coursework requires students (in groups of up to 4) to conduct literature
research and apply relevant concepts and tools to develop an Audit Plan for a
selected public Company listed on the Bursa Malaysia. Students will be evaluated
based on their ability to articulate arguments in support of their opinions, findings
and recommendations in a Written Group Report and a brief Individual
Presentation. The breakdown of Coursework marks is as follows:

Areas of Assessment: Marks
a) Overall qualitative and quantitative effort in the written group report. 20%
b) Overall quality and effectiveness of the individual presentation. 10%
Total : 30%

Sunway University Business School ACC3044/BAB3202 Subject Overview

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Final Examination (70%):

The final examination of three hours in duration will comprise two questions in
Section A and three questions in Section B. Students are required to answer all
questions in Section A and any two questions in Section B. The final examination
will cover topics that are taught throughout the whole of the semester. The
examination is closed-book where no unauthorised materials are allowed in the
examination venue - including notes, textbooks, programmable calculators, and
dictionaries.

NOTE: Marks awarded are provisional and subject to change, and are only deemed
final once approved by the Board of Examiners.

Late Submission Penalty Clause

The deadline for submission of the Coursework is to be strictly adhered to. No
extension of time will be allowed except in extenuating circumstances, e.g. medical
or compassionate reasons. Students who wish to apply for an extension of time
shall put in writing as soon as possible the request, together with validated
documentary evidence to support the application. If the Coursework is submitted
after its due date (and without approval for extension), the following penalty will be
imposed:
Coursework submitted after the deadline but within one week will be accepted
for a maximum mark of 40% of the original marks allocated;
Coursework submitted more than one week after the deadline will be regarded
as a non-submission and shall be marked at zero (ie. all marks allocated for the
Coursework shall be lost).

Academic Malpractice

Plagiarism, whether inadvertent or deliberate, shall include the following:
Word-for-word copying of sentences or whole paragraphs from one or more
sources, or presenting substantial extracts from books, articles, theses, other
unpublished works such as working papers, seminar and conference papers,
internal reports, computer software, lecture notes or tapes, without clearly
indicating their origin;
Using very close paraphrasing of sentences or whole paragraphs without due
acknowledgement in the form of reference to the original;
Submitting another students work in whole or in part; or
Use of other persons ideas, work or research data without acknowledgement.

Collusion, whether inadvertent or deliberate, shall include the following:
Submitting an individual assignment that was jointly prepared by the candidate
and any other third party, e.g. other students, family members, professionals, or
other tutors/lecturers;
Submitting a group assignment that was jointly prepared by the group and
other third party, e.g. other students, family members, professionals, or other
tutors/lecturers; or
Copying each others work and passing it off as an individual effort.

Please refer to the Student Handbook for Diploma and Undergraduate
Programmes or Blackboard for details about academic malpractice penalties.

Sunway University Business School ACC3044/BAB3202 Subject Overview

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Subject Outline

The following is the subject outline by topics with recommended readings indicated
against each of them. Readings may be added during the course as and when
appropriate.

Week Topics Readings

1
Current issues in Audit & Assurance
Auditors independence revisited, challenges to quality
control and review, the Malaysian regulatory framework,
Audit oversight and auditing standards,
ISA 200 & 700
Arens
Ch 1,2 & 6

2
Key considerations in developing the Audit Plan
Preliminary Engagement Activities, Assessing client
business risks, Developing the Audit Strategy, Analytical
procedures. The lessons from Enron.
ISA 210, 300
Arens Ch 8 &
13


3
Audit Evidence, Materiality and Audit Risk
Nature and types of Audit Evidence, Audit
Documentation, Materiality for financial statements,
Audit Risk Model, Role of Internal Audit in WorldCom
ISA 230, 320,
500
Arens Ch 7 &
9,

4
Internal Control and the impact of Information
Technology
Assessing control risks, Internal control and audit
strategy, Impact of Information Technology on the Audit
Process. Case of Satyams internal control.
ISA 315, 330,
610
Arens Ch
10,12


5
Audit of the Sales and Collection Cycle
Business functions of the cycle, Designing tests of
control and substantive tests of transactions, Application
of Audit Sampling, Key audit issues
Arens Ch
14,15,16 & 17



6
Audit of the Acquisition and Payment cycle
Business functions of the cycle, Designing tests of
controls and substantive tests of transactions, Designing
tests of details of balances, key audit issues
Arens Ch 18 &
19


7
Audit of the payroll and personnel cycle
Business functions of the cycle, Designing tests of
controls and substantive tests of transactions, Designing
tests of details of balances, key audit issues

Arens Ch 20




8
Audit of the Inventory and warehousing cycle
Business functions of the cycle, Designing tests of
controls and substantive tests of transactions, Designing
tests of details of balances, key audit issues

Arens Ch 21
,


9
Audit of the Capital acquisition and repayment cycle
Business functions of the cycle, Designing tests of
controls and substantive tests of transactions, Designing
tests of details of balances, key audit issues

Arens Ch 22

Sunway University Business School ACC3044/BAB3202 Subject Overview

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Week Topics Readings

10
Audit of cash and financial instruments
Types of cash and financial instruments, Cash in the
bank and transaction cycles, Designing tests of details
of balances, key audit issues

Arens Ch 23


11
Considering the risk of fraud
An overview of Fraud and the Auditors Fraud Related
Responsibilities, Auditing Standards that Reflect a
Responsibility to Detect Fraud, Specific fraud risk areas
ISA 240
Arens Ch 11

12
Completing the Audit
Performing Additional Tests, Review for Contingent
Liabilities and Commitments, Review for Subsequent
Events, Subsequent Discovery of Facts
ISA 560,570
Arens Ch 24

13
Audit Reports
Unqualified audit reports, Departures from unqualified
audit reports, Discussion of conditions requiring a
departure
ISA 700,
705,706
Arens Ch 3

14
Professional Conduct and Ethics
The IFAC Code of Ethics, MIA By-Laws on Professional
Ethics, Conduct and Ethics, Duties to Report Breaches
of Laws, Statutory and Criminal Liability,
Arens Ch 4 &
5

Reading List

Arens, et al (2013), Auditing and Assurance Services in Malaysia - An Integrated
Approach, 3
rd
ed., Pearson: Malaysia (Arens)
Arens, et al (2014), Auditing and Assurance Services - An Integrated Approach,
15
th
ed., Global edition, Pearson: England
Beasley et al (2012), Auditing Cases - an interactive learning approach, 5
th
ed.,
International edition, Pearson: New Jersey

References

Gramling, Rittenberg and Johnstone (2012), Auditing International Edition, 8
th
ed.,
South-Western, Cengage Learning
Gul, F.A. and Nurmazilah, M. (2013), Auditing in Malaysia Theory and Practice,
CCH
Whittington and Pany (2014), Principles of Auditing and Other Assurance Services,
19
th
ed., McGraw-Hill Irwin International Edition
Messier, Glover, Prawitt and Margaret Boh (2007), Auditing and Assurance
Services in Malaysia, 3
rd
ed., McGraw Hill
Bursa Malaysia, Guidance on Internal Controls for Directors of Public-Listed
Companies
The Companies Act 1965
The Malaysian Institute of Accountants, International Standards on Auditing
Securities Commission of Malaysia, Malaysian Code on Corporate Governance
(revised 2007)